Directors play an instrumental role in the functioning of the day to day affairs of the company. Directors are involved in certain key aspects of the management, and have a better understanding of the company’s affairs. This could also be misused in a way akin to them making secret profits or using such information for their personal benefit.
Section 173 of Companies Act 2013 corresponds to Sections 285 and 286 of the Companies Act, 1956. Section 173(1) provides that after incorporation, Board of Directors should conduct first meeting within thirty days, and subsequently a minimum of four meetings a year.
