Professional Documents
Culture Documents
BUSINESS LAW
ASSIGNMENT -2
SUBMITTED BY
NILAMBARI BABAR
DIVISION: D
Director act as an agent of the company who controls the affairs of the
company and are within the scope of their authority. They have to
disclose their interest if any in the transaction of the company.
Directors act like trustees of the company they also in charge of
companys money and its property. The directors maybe called upon to
refund to the company any money and property improperly and
negligently applied by them.
Directors act as managing partners as they manage day to day affairs and
transactions but they are not partners since they are employees of the
company.
They act as employees as they are treated as an officer under the
companies act. They may hold an office as a salaried employee of a
company.
Tata and Cyrus Mistry conflict:
As far we know that on 24th October Tata group removed Cyrus mistry as
chairman and the reasons were not given by tata group, now what exactly
happened on 24th October was not identified in a first go but the tata group
has constituted a selection committee to choose a new chairman.
According to tata group here are some reasons why Cyrus Mistry was
removed:
Now the legal options available with Cyrus Mistry are as follows:
He has a right to make demonstration against removal and then the matter
to be put to a vote.
The meeting cannot eliminate him unless it is due to bad faith or abuse of
authority.
He was not given a free hand as a chairmen
He was removed without any notice or explanation.