"Directors are trustees as well as agents of the company". Discuss

Directors are trustee and agent of the Company

Directors are trustees as well as agents of the Company. All activities, business and transactions of the Company for its developments, promotions is done by the directors for and on behalf of the Company like an agent. The articles of association empowered the Directors to do/run the Company. 

The directors can do the followings for and on behalf of the Company as contained in the articles of association:

1. To run the business of the company;
2. To recommend dividend;
3. To enter into contract;
4. To maintain reserves;
5. To issue, forfeiture of share;
6. To issue debenture;
7. To Invest fund;
8. To take, redeem loan; and
9. To appoint officers & staffs and to pay their emoluments.

The above activities are done by the directors as agent of the Company.

Directors are to do all activities as trustee of the Company. All assets resources are to be kept safety and to utilize them for the interest of the Company. Under any circumstances Directors are not allowed to use asset of the Company for their own without the approval of the Board. Directors are to maintain proper accounts as required by law and to do many other activities as trustee of the company, such as:

1. To run the Company efficiently;
2. To optimum utilization resources;
3. To save the Company from losses/damages;
4. To maintain proper books of accounts;
5. To call the AGM;
6. To maintain secrecy of the organization; and
7. To refrain from doing such activities prohibited by the act.

In the above sense it is said Directors are trustees of the Company.