Asian Hotels (West) Limited (Owner) was recently in the news on account of suspension of operations of Hyatt Regency, Mumbai. Apropos such suspension, the Owner has been beset by several challenges, one of which is the resignations tendered by the independent directors of the Owner. The independent directors have cited the financial crunch faced by the Owner and alleged non-compliances of applicable laws by the Owner. It was also contended that the Chairperson and other directors of the Owner failed to convene a meeting of the board of directors to discuss the financial condition of the Owner. This incident, coupled with the financial constraints faced by several hotel companies across the country, begets the question as to what duties directors have in such circumstances. With the enactment of the Companies Act, 2013 (Companies Act), the duties of directors were codified. Section 166(2) of the Companies Act requires a director of a company to “act in good faith in order to promot...