Position of Directors
Directors have two positions in the joint stock company: Position of Directors
1. As an Agent:
Directors are considered special agents of the company and not ordinary agents. The contract made by them will bind the company so long as they act within the scope of their authority. So they are not personally responsible of contracts they made on behalf of the company. As agents they have the authority to act in all matters but their powers are limited by the Articles of Association.
2. As Trustee:
- Directors are trustees for the company to some extent.
- They are of the powers placed in Dfa ho their hand to exercise them for the company’s benefits.
- They are empowered make calls, to allot shares, to issue and forfeit shares.
- They are trustees of the company but not for individual shareholders or any third person. Position of Directors