Business Ethics and Corporate Governance, Second Edition

DISABLITIES OF DIRECTORS

In order to protect the interest of a company and its shareholders, the Companies Act has placed the following disabilities on the directors:

1. Any provision in the Articles or an agreement which exempts a director (including any officer of the company or an auditor) from any liability on account of any negligence, default, misfeasance, breach of duty or breach of trust by him shall be wholly void.
2. An undischarged insolvent shall not be appointed to act as director of any company or in any way to take part in the management of any company.
3. No person shall hold office at the same time as director in more than 15 companies.
4. A company shall not, without obtaining the previous approval of the central government in that behalf, ...