Duties of Directors (Section 166 of the Companies Act, 2013) :

Duties of directors has been defined in the company Law for the first time under section 166 of the Companies Act, 2013.The following duties have been prescribed for a director under the said section:

(i) He shall act in accordance with the articles of the company, subject to the provisions of this Act.

(ii) He shall act in good faith in order to promote the objects of the company for the benefit of its members as a whole, and in the best interests of the company, its employees, the shareholders, the community and for the protection of environment.

(iii) He shall exercise his duties with due and reasonable care, skill and diligence and shall exercise independent judgment.

(iv) He shall not involve in a situation in which he may have a direct or indirect interest that conflicts, or possibly may conflict, with the interest of the company.

(v) He shall not achieve or attempt to achieve any undue gain or advantage either to himself or to his relatives, partners, or associates and if such director is found guilty of making any undue gain, he shall be liable to pay an amount equal to that gain to the company.

(vi) He shall not assign his office and if any assignment so made, it shall be void.

(vii) If a director of the company contravenes the provisions of this section, such director shall be punishable with fine which shall not be less than ` 1,00,000 but which may extend to ` 5,00,000.