Deck 5: Company Law: Directors, Meetings and Management

Question 1

A -------------- may be defined as a person having aontrol over the affairs, conduct and management of a company.

A)Share holders
B)Director
C)Body Corporate
D)Member

Answer 1

Director

Question 2

--------------------- is the supreme policy framing and decision making organ of a company.

A)Board of directors
B)Share holders
C)Auditor
D)Body corporate

Answer 2

Board of directors

Question 3

According to sec.225, the directors should be appointed in he -----------------

A)Office of the Registrar
B)General Meeting
C)Company
D)Share holders

Answer 3

General Meeting

Question 4

The office of a director becomes vacant if he fails to obtain his qualification shares within -------------

A)30 days
B)1 month
C)2 months
D)3 month

Question 5

A elected director can be terminated by the

A)Company
B)High Court
C)State Government
D)Central Government

Question 6

-------------------- vacancy is caused by resignation, death, insolvency or insanity

A)Casual
B)General
C)Special
D)None of the above

Question 7

The maximum remuneration paid to a manager cannot exceed --------------- percent of the annual net profit

A)10%
B)5%
C)15%
D)25%

Question 8

The managing directors hold the ------------- shares of the company.

A)Deemed
B)Equity
C)Qualification
D)Preference

Question 9

Directors are -------------------- of he powers conferred on then and they must exercise those powers bonafide and for the benefit of the company.

A)Trustee
B)Management
C)Representative
D)None of the above

Question 10

--------------------------- Member of directors need to retire every year

A)2/3
B)2
C)¼
D)1/3

Question 11

The directors may be held ---------------- liable on their failure to fulfill the formalities imposed upon them by the Act

A)General law
B)Criminal
C)Civil
D)All of the above

Question 12

A person cannot hold directorship of more than ------------------companies at a time

A)15
B)50
C)25
D)10

Question 13

---------------------is the executive authority of the company

A)Partners
B)Shareholders
C)Board of Directors
D)Expert

Question 14

A meeting of Board of Directors shall be held at least ------------------

A)One month
B)Once in every 3 months and at least 4 such meetings shall be held every year.
C)Two month
D)4 months and at least 3 such meetings must be held in every year.

Question 15

The quorum for a meeting of the board of directors shall be ----------------- of its total strength or 2 directors whichever is higher.

A)3
B)½
C)¼
D)1/3

Question 16

Minimum number of directors in public company is ----------------

A)3
B)2
C)4
D)1

Question 17

Minimum number of directors in private company is ------------------

A)3
B)2
C)4
D)1

Question 18

------------------ is a group of people who are acting on behalf of the company

A)Managing Director
B)Partnership
C)Board of Directors
D)All of the above

Question 19

A managing Director can be appointed for a maximum period of ---------------

A)2 years
B)10 years
C)3 years
D)5 years

Question 20

-------------------- can be imposed on directors for non compliance of requirements'of companies Act

A)Penalty
B)Fine
C)Statutory penalty
D)Criminal liability

Question 21

When a director voluntarily remains absent from the three consecutive meetings of the Board of Directors, and

A)He become liable to be punished with @Rs.500 for every default
B)He is disqualified for becoming a director of any company
C)His office falls vacant
D)None of the above

Question 22

------------------- is a manufacturing process

A)Railway running shed
B)Existing films
C)Making of Bidi
D)Mere-storage of salable articles in refrigerator.

Question 23

The term whole time director is defined in sec.----------------- of the Companies Act 1956

A)2(25)
B)2(24)
C)3(25)
D)3(24)

Question 24

-------------------- director act during the absence of the original director.

A)First director
B)Additional director
C)Alternative director
D)Representative director

Question 25

----------------------- is the first general meeting of the share holders odf a public company

A)Extra ordinary meeting
B)Class meeting
C)General meeting
D)Statutory meeting.