Powers of Directors
The powers of directors can be discussed under following two heads:
Powers without the consent of General Meeting:
According to Section 196(2) of Companies Ordinance, 1984, the directors can exercise the following powers on the behalf of company:
- To issues shares.
- To issue debentures.
- To obtain loans from other sources other than debentures.
- To invest the funds of company.
- To make calls for unpaid money of shares.
- To approve the bonus or employees. • To determine dividend.
- To pay government expenditure.
- To pass the company’s annual or other periodic accounts.
- To fill the vacant seats of directors
- To allot the shares.
- To make contracts on the behalf of company.
- To transfer a part of profit to reserve fund.
- To forfeit shares.
- To perform any other function in the best interest of company.
2. Powers with the consent of General Meeting:
According to Section 196(3) of Companies ordinance, 1984, the following powers may be given to directors in annual general meeting:
- To sell or to give the whole business on lease or a sizable part thereof.
- The give any relief or extension of time for the Dfa ho repayment of any debt outstanding against any person.
According to Section 196(4) of Companies Ordinance, 1984, if any director misuses the above mentioned powers then he will be liable to compensate the loss suffered by the company.
