The Legal Position of Directors in joint stock Company

Clarification of legal position of directors in company, is significance for in explaining their powers. This significance is not only for theoretical aspects, but it has also practical effects on company itself, its stockholders and of course on third parties dealing with the company. The Legal position of directors has been always a matter of dispute among lawyers. Someone may think that  directors are representative. According to another opinion they are company’s agents. From another point of view, directors are the employees of company. And at last there is another view point according to which the directors should be regarded as an organ of company. In this research after having reviewed the above mentioned opinions and analysing the articles 17, 118, 135 of the commercial Act (Amendment) 1968 and article 589 of commercial Act, it will be proved that the directors legal position is compatible with the last opinion.