Every country in this world is taking active steps to formulate laws and regulations so as to protect the interest of its citizens. It is not only the interest of the citizens that are considered, rather, the interest of the companies and corporations are also taken into account. In order to do so there are several laws and enactments which are made such as, Corporation Act, 2001,Taxation law, Intellectual property right laws etc. Now, in order to understand the laws of directors remuneration and are such laws are adequate, effective and efficient to protect the interest of the shareholders, it is necessary to understand some basic concepts, such as, the meaning of director, remuneration, their respective laws with respect to remuneration, the impact of such laws on shareholders, whether they are effective etc.
In order to answer the above submitted questions, there is a need to analyze few provisions of Corporation Act, 2001. The Corporation Law, 2001 is the guiding force which manages the affairs of the companies which are working and operating in the Australia. In order to deal with the present assignment scenario, the first task understands the role of a Director in a Company. A Director is the guiding force in the Company and it is as per the decisions of a Director, a company works and operates. A Director is the most important component of the Company and anybody can be regarded as a Director who is appointed at such position, whether officially or unofficially (as per section 9 of the Corporation Act, 2001). However the only important considerations which must be kept in mind that the person who is elected as a Director should be major (as per section 201B of the Corporation Act, 2001). A Director is the governing hand behind a Company. A person who is appointed as a Director must give its consent regarding the same. If the consent is not given, the appointment of a director cannot be regarded as valid (as per section 201B of the Corporation Act, 2001)1 he has responsibilities which must be furnished properly by a Director. He has several duties to cater with in order to justify the position his position as a Director2. Further, a Director though has powers, but he has responsibilities which must be furnished properly by a Director. He has several duties to cater with in order to justify the position his position as a Director.