Meaning of Company Promoter
Shareholders of Company, Meaning & Significance
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Meaning of Director of a Company
Difference Between Shareholders & Directors
Directors are personally liable for the lapses of the compliance of all laws which apply to the company. The liability of the director is generally a tremendous amount of penalty, but in a few cases, they may be sent to imprisonment after prosecution by the government. For support, write an email to firstname.lastname@example.org for due diligence of your company to avoid severe penalties later on.
The directors, on the other hand, can hold office only until they are discharging their responsibilities to the satisfaction of the shareholders. To remove a director, shareholders can call an EGM, and by a simple majority vote, a director may be removed.
Section 164 of the companies act also prescribes various grounds on which a director is declared as disqualified. Upon being a disqualified director under section 164, the director automatically vacates the office of the directorship, and he or she is no longer part of the board of the directors. Any board meeting having a disqualified director as part of quorum count is an invalid meeting, and all the decision taken by such board is void having no legal force and sanction.