Shareholders/owners appoint directors in a company to manage its affairs since the company, being an artificial entity, requires natural persons to conduct business activities and handle day-to-day affairs. The Board of Directors plays a crucial role in ensuring the success and profitability of the business.
The company appoints the initial directors, known as First Directors, during its incorporation through the Articles of Association (AOA). Subsequently, additional directors can be appointed by the company based on shareholder requirements. The AOA of the company contains provisions governing the addition or removal of directors.