The Articles of Association of a corporation are the source of authority from which the Board of Directors derives the power to appoint new directors to the Board or withdraw current ones, according to sections 260 and 284 of the Companies Act, 1956. The inclusion of Directors must be allowed in the Articles of Incorporation. According to the relevant clauses in the Articles of Association, the person appointed must be eligible.

Directors are mainly in charge of a company’s day-to-day activities. The shareholders may delegate further organisational responsibilities without sacrificing strategic power by adding or nominating an additional director. As a Director, he does not own or subscribe to any stock. capital, The ownership of the business, as well as the voting rights that come with it, remain in the hands of the shareholders, preventing any dilution.