QS Study

Rights of Directors

The directors regulate corporate affairs of a public limited company. They are responsible for formulating plans, policies, and strategies. Like the shareholders, directors of the company have some rights to the company. Generally, directors of the company enjoy following rights:

  • Right to direct and control activities of the company.
  • Right to take office after the appointment.
  • Right to the issuance of share.
  • Right to call general meetings.
  • Right to take a seat in general meeting of the board of directors.
  • Right to till the vacant post of the company.
  • Right to determine salaries of the executives.
  • Right to appoint and release the employees.
  • Right to discharge their duties without interference from co-directors.
  • Right to determine duties and responsibilities of the executives.
  • Right to select business policies, plans, programs etc.
  • Right to inspect the company’s accounting records, assisted by an accountant.
  • Right to participate m the strategic management of the company and attend and vote at board meetings.
  • Right to distribute dividend among the shareholders.
  • Right to claim reimbursement for expenses incurred.
  • Right to receive reasonable notice of meetings.
  • Right to make an agreement on the behalf of the company.
  • Right to take independent professional advice at the expense of the company.
  • Right to take retirement before the just in time etc.

From the above all given rights of the directors, we can conclude that directors take the vital position in the governing body of the company.

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