Directors' role and corporate governance

Abstract

As shareholders representatives, board of directors need to act in the best interest of the company. In doing so the directors must at all times act honestly and use reasonable diligence in the discharge of his duties. The director needs to fulfill a set of Fiduciary, Statutory and duties of care and diligence to ensure safeguard of company's interest. Recent corporate scandals have broadened directors' responsibility to corporate governance and transparency. No company is exempt from the need to maintain good corporate governance standards. This article explores the scope of director's role and responsibilities to accomplish the above. The article highlights the basic role of directors in a corporation.