Directors play a crucial role
in the functioning of companies, due to their analytical skills, farsighted
decision, and business strategies, a company establishes its positive identity,
reputation, and achieve growth in the market. Therefore, it will not
exaggeration directors are the brain of organizations. Generally, organizations
rotate directors in two ways; either appointing a new director or resignation
of existing. The Board of Directors approves the resignation of the director
whereas the appointment must be made through the consent of shareholders. Whether
appointment, resignation, or removal of directors, the change does not take
effect until the intimation is made to the Ministry of Corporate Affairs, Government
of India.
