The Companies Act Puts Forward Many Responsibilities and Duties on Directors of a Company. Which of Those Duties Do You Consider to Be More Pertinent to the Role Which Directors Are Called Upon to Exercise in the
The Companies Act puts forward many responsibilities and duties on directors of a company. Which of those duties do you consider to be more pertinent to the role which directors are called upon to exercise in the context of Corporate Governance in Mauritius? Introduction
In Mauritius, every company must be registered with the Registrar of company. Upon registration, it must be specified whether the company is limited or unlimited. To be able to incorporate a business, the company must have at least one director. The company may have a constitution, but it is not mandatory to have one. A constitution is a set of rules and regulation design to protect the transaction done between the company and its shareholders and between shareholders. As a result they have to exercise their powers in accordance with this Act and with the limits and subject to the conditions and restrictions established by the company’s constitution if it is available.
Directors have important and powerful positions in a company. The stockholders entrust them with the running of the company, and this is why the law requires directors to comply with certain duties. Directors have a duty to act within their powers for a proper purpose, which is underlined in the Company Act 2001. They also have a duty to promote the success of the company and, in doing this, must balance the interests of the stockholders, employees, suppliers, and customers of the company. The law does not define success, but in general this is agreed to mean increasing the value of the company and its business.
Who is a director?
• A director is defined by section 128 of the Act and includes a person occupying the position of director of the company by whatever name called.
Are directors required
• There is a statutory requirement for all companies to have at least one director. Section 132 of the Act provides that « a company shall have at least one director who shall be ordinarily resident in Mauritius »
What is
In Mauritius, every company must be registered with the Registrar of company. Upon registration, it must be specified whether the company is limited or unlimited. To be able to incorporate a business, the company must have at least one director. The company may have a constitution, but it is not mandatory to have one. A constitution is a set of rules and regulation design to protect the transaction done between the company and its shareholders and between shareholders. As a result they have to exercise their powers in accordance with this Act and with the limits and subject to the conditions and restrictions established by the company’s constitution if it is available.
Directors have important and powerful positions in a company. The stockholders entrust them with the running of the company, and this is why the law requires directors to comply with certain duties. Directors have a duty to act within their powers for a proper purpose, which is underlined in the Company Act 2001. They also have a duty to promote the success of the company and, in doing this, must balance the interests of the stockholders, employees, suppliers, and customers of the company. The law does not define success, but in general this is agreed to mean increasing the value of the company and its business.
Who is a director?
• A director is defined by section 128 of the Act and includes a person occupying the position of director of the company by whatever name called.
Are directors required
• There is a statutory requirement for all companies to have at least one director. Section 132 of the Act provides that « a company shall have at least one director who shall be ordinarily resident in Mauritius »
What is