Section 97 of Companies Act 2013

Section 97 of the Companies Act 2013 is a pivotal provision that grants authority to the Board of Directors of a company to specify the extent to which their powers shall be exercised. This section essentially empowers directors to delineate the boundaries within which they can operate, subject to the provisions of the Act and the company’s Articles of Association.

Under Section 97, directors have the autonomy to determine the scope of their powers, allowing them to make strategic decisions, allocate resources, and manage the affairs of the company effectively. This provision emphasizes corporate autonomy while ensuring compliance with legal and regulatory frameworks.

Moreover, Section 97 underscores the responsibilities of directors to exercise their powers judiciously, with due diligence, prudence, and integrity. Directors are obligated to act in the best interests of the company and its stakeholders, aligning their actions with the broader objectives of sustainability, transparency, and accountability.

Overall, Section 97 of the Companies Act 2013 plays a crucial role in defining the authority and responsibilities of directors, fostering a framework for effective corporate governance and sustainable business practices.
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