Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: VAT RATES :: due date for vat payment :: TDS :: articles on VAT and GST in India :: form 3cd :: cpt :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: empanelment :: ARTICLES ON INPUT TAX CREDIT IN VAT :: ACCOUNTING STANDARDS :: Central Excise rule to resale the machines to a new company :: VAT Audit :: TAX RATES - GOODS TAXABLE @ 4% :: list of goods taxed at 4% :: ACCOUNTING STANDARD
 
 
News Headlines »
 India is second most complex tax jurisdiction
 How to link your Aadhaar and PAN details to file income-tax returns
 How to calculate capital gains tax on property sold at less than stamp value?
 Return Filing - Under GST, this is how you will file tax returns from July 1
 Income tax filing FAQs part 1
 Filing Income Tax Returns? Things To Keep In Mind As Deadline Approaches
 Filing of online return for 4th quarter of 2016-17- extension of period thereof.
 New tax accounting standards may reduce leeway for infrastructure companies
 GST – CONCEPT & STATUS – As on 01st May, 2017
 Govt extends VAT deadline, relief for developers
 Income Tax Appellate Tribunal Rules, 2017

Education for directors
August, 17th 2006
What is meant by the fiduciary duty of the directors? "Directors are trustees of the assets of the company and they must not misapply them," begins the answer to the question, in 501 Questions & Answers for Company Directors and Company Secretaries, by Roger Mason, from Viva (www.vivagroupindia.com). Misapplication of trust can happen in a variety of ways, ranging from theft, at the one extreme, to `borrowing assets without permission and not declaring a conflict of interest'. Being in the position of trust, directors must act "in what they consider to be the best interests of members," explains Mason. "A court will normally accept a genuine attempt to do this by directors. It will not second-guess the directors and substitute its own judgment of the best interests of members." Though answered in the UK context, the principles may well apply closer home too. Some key questions Here are a few questions, from the remaining 500, in the book: What are the possible consequences if directors act beyond the limit of their powers? Can a board meeting be held without all the directors being informed? Can a formal board meeting ratify the business done at an informal meeting? May a person who is not a director be allowed to attend a board meeting? Are matters at a board meeting settled by a majority vote? Can a shareholder waive a dividend? Of current relevance should be this poser, `Are there any limits to the number of directorships that I can hold?' Mason elucidates the UK law: "There are no limits imposed by statute. There may be a restriction, or indeed a ban, imposed by a service contract but, unless this is the case, you are free to go ahead." However, there are two `possible limiting factors,' disclosure of any possible conflict of interest, and the duty of care. On the latter, Mason cautions directors that it could be a breach of duty to take on too many directorships. "You should not take on more duties than you can reasonably expect to fulfil in a satisfactory way." He cites the example of Robert Maxwell, who was `a director of more than 200 companies'! In India, though, the limit is 15, not counting, inter alia, directorship in private and Section 25 companies. Do we need a more liberal regime? From the basics The book does not presuppose any knowledge on the part of the readers, and therefore begins with the basics, opening with the question, `What is a company?' A practical poser frets, "I am an officer of the company and it all sounds rather worrying. How worried should I be?" You may remember that the definition of `officer' in Section 2(30) of our Companies Act, 1956 includes director; and that Section 2(31) defines `officer in default'. What is Mason's counsel to the worried director? "You should certainly take your responsibilities seriously but perhaps you should not worry too much. The great majority of officers manage without too many problems. You might take comfort from the fact that a fine or penalty can only be imposed if the officer acted `knowingly and wilfully'," writes Mason. But don't bank much on that UK escape route to work here. Because Indian courts have held in many instances, especially after the 1988 amendment to the Companies Act, that mens rea is not an essential ingredient for establishing the offence. A book that offers a quick exposure to a comparable company law.
 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Privacy Policy

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions