Duties And Liabilities Of Directors Under The Companies Act, 2013 – An Overview
- IJLLR Journal
- May 28
- 1 min read
R. Srivinithra, Assistant Professor, Vels Institute of Science, Technology and Advanced Studies
ABSTRACT
The Companies Act, 2013 ("Act") is enacted to gradually replace the old Act of 1956, with the objective to bring more accountability and good corporate governance. The Ministry of Corporate Affairs has notified ninety- eight sections of the Act which have come into effect from September 12, 2013 and repealed the corresponding sections of the 1956 Act. The Act appears to place a higher degree of responsibility on the Board members for good corporate compliance. A clear understanding of these obligations and responsibilities will be critical for current and prospective Board members. In the Act, the sections related to role, duties and removal of directors are yet to be implemented but it will happen soon and, therefore, merits attention. In the context of the Board of a company, the legislators have focused on the role of independent directors and have codified the duties of directors, which were missing in the old Act. The paper studies the provisions governing the rights and liabilities of directors under the companies Act, 2013.
