The Company jurisprudence in India enshrines statutory auditors who audit the accounts of a company as representatives of the shareholders who appoint them at every Annual General meeting {AGM} to look after the interest of the shareholders.
The Companies Act 2013 {new Act 2013} for the first time has laid down the duties of directors in unequivocal terms in the section 166 in contrast to erstwhile Companies Act 1956. It is a well established judicial precedent that the Directors have fiduciary obligations and also duties to act reasonably and in the best interests of the companies where they hold such positions. Their duties emanate due to holding positions which may be synonymous to trustees as well as agents of their companies.
