Justify the following statement:Directors are managing partners.

1.	Justify the following statement:Directors are managing partners.
Answer» Directors have to work as a team as Board of Directors, not as an individual. The powers by Board are subject to provisions of the Companies Act and Memorandum and Articles of Associations. Director is required to perform his functions. He represents shareholders to conduct and manage the business of the company on their behalf. They are entrusted with vast powers of management and perform several functions which are proprietary in nature like allotment of shares, raising of loans, investing funds of the company. This is because they themselves are significant shareholders of the company. In fact, they are the most active shareholders of the company. Thus, Directors are the managing partners of the company.

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