Question

Consider the following statements regarding the duties of directors under Sections 166-167 of the Companies Act, 2013: Statement 1: A director must avoid conflicts of interest between personal activities and company interests. Statement 2: A director shall not gain undue advantage or allow relatives to gain advantage through the directorship. Statement 3: A director cannot assign his office; any assignment made is void. Statement 4: The company can indemnify a director for loss arising from criminal acts committed by the director in their capacity as director. Which statements are correct?

Q: Answer-Consider the following statements regarding the duties of directors under Sections 166-167 of the Co...

Sections 166-167 address directors duties and liabilities. Statement 1 is correctSection 1664 requires avoiding conflicts of interest. Statement 2 is correctSection 1665 prohibits undue gain by the director or relatives. Statement 3 is correctSection 1666 explicitly states office cannot be assigned and any such assignment is void. Statement 4 is incorrectSection 167 provides that indemnification cannot extend to criminal acts or intentional fraud the company can only indemnify for innocent breaches. Statements 1, 2, and 3 are correct.