Directors’ consent to the company is a document in which a director of a company gives their consent to act as a director of the company. It is a legal requirement under the Companies Act, 2013.
Why is directors’ consent to the company required?
Directors’ consent to the company is required to ensure that the directors are aware of their duties and responsibilities as directors. It also helps to protect the company from liability in case the directors breach their duties.
What are the contents of a directors’ consent to the company?
The contents of a directors’ consent to the company will vary depending on the company’s circumstances. However, the consent should typically include the following:
- The name and address of the company.
- The name and address of the director.
- The date of the consent.
- A statement that the director consents to act as a director of the company.
- A statement that the director is aware of their duties and responsibilities as a director.
- A statement that the director agrees to be bound by the company’s articles of association and bylaws.
How is directors’ consent to the company obtained?
Directors’ consent to the company can be obtained in writing or by electronic means. The consent should be signed by the director and should be kept by the company.
MCQs on directors’ consent to the company
- Which of the following is not a requirement for a valid directors’ consent to the company?
- The consent must be in writing.
- The consent must be signed by the director.
- The consent must be dated.
- The consent must state that the director is aware of their duties and responsibilities as a director.
Answer: The correct answer is (c). The consent does not need to be dated.
- A director’s consent to the company can be obtained:
- Only by the company secretary.
- Only by the board of directors.
- By any person authorized by the board of directors.
- By any person authorized by the company secretary.
Answer: The correct answer is (c). Directors’ consent to the company can be obtained by any person authorized by the board of directors.
- A director’s consent to the company is required:
- Only for a public company.
- Only for a private company.
- For both public and private companies.
- Not required for any company.
Answer: The correct answer is (c). Directors’ consent to the company is required for both public and private companies.