| Management of Company in India |
| In India the shareholders elect the board of directors for conducting the management of the company. The directors share a fiduciary relationship between the company and its shareholders. |
| Shareholders |
| A share in a company is a property of the shareholder and trading of shares should be in compliance with the provisions of the Indian Contract Act 1872 and the Transfer of Property Act 1882. |
| The directors of a company conduct the day to day activities of the Company. However for key stipulated decisions are approved by shareholders by passing resolutions. |
| Board of Directors |
| The Board of Directors undertakes the day to day management of the company. They are elected by the shareholders of the company. Only individuals can be appointed as a director and no body corporate or firm may be a director. |
| Directors draw salary from the Company and are also entitled to sitting fees for attending the meetings. |
| The powers of the board are set out in the Articles of association. The board has to meet at least once in every three calendar months and the proceedings are to be detailed in a minute Book. |
| Accounts |
| The Accounts of a Company are to be audited by statutory auditors who are elected by the shareholders in a general meeting. The directors are answerable to the shareholders for any lapses in the management of the company. |
| Allocation of Profits |
| The profits are allocated by declaring dividend in the Annual General Meeting. The Companies act stipulates certain compliances that must be met for declaration and distribution of dividend. |
| Registers for inspection |
| The following registers are open to inspection to shareholders and government Authorities |
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