ABSTRACT:
The very important roles that the Directors of a company play in a company’s success or failure, which in turn affects national development, are often not seriously appreciated, understood or highlighted by both the directors themselves and or by the other parties related to a company. Also, the failure or inability of the board of directors of a company to direct and manage a company in a responsible manner has contributed enormously to corporate governance failures and the current global economic crises. It is a trite principle of law that a company, even though recognized under the law to be an artificial, separate and distinct legal entity from its owners, cannot manage or direct her own affairs because a company is an “abstract” person. This is the reason why a company needs directors and shareholders Meaning of Director A company is a legal entity and does not have any physical existence. It can act only through natural persons to run its affairs. The person, acting on its behalf, is called Director. A Director is any person, occupying the position of Director, by whatever name called. They are professional men, hired by the company to direct its affairs. But, they are not the servants of the company. They are rather the officers of the company.