Tag: introduction, meaning and definition of director

Questions Related to introduction, meaning and definition of director

Direction is a _____________.

business organisation and correspondence company management directors of the company introduction, meaning and definition of director joint stock company 5 - direction and management

  1. Descrete process

  2. Continuous process

  3. Circular process

  4. None of the above

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Correct Option: B

According to the provisions of new Company Act, 2013, the 'SFIO' (Serious Fraud Investigation Office) shall be headed by _______________.

business organisation and correspondence company management directors of the company introduction, meaning and definition of director joint stock company 5 - direction and management

  1. A manager

  2. An auditor

  3. A director

  4. Any of the above

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Correct Option: C
Explanation:

The Central Government shall appoint a Director in the Serious Fraud Investigation Office, who shall be an officer not below the rank of a Joint Secretary to the Government of India having knowledge and experience in dealing with matters relating to corporate affairs.The SFIO is headed by a director not below the rank of a Joint Secretary to the Government of India having knowledge and experience in dealing with the matters relating to corporate affairs.

State the following statement is True or False:

The share qualification of the directors of a joint stock company is prescribed in Articles of Association.

business organisation and correspondence company management directors of the company introduction, meaning and definition of director joint stock company 5 - direction and management

  1. True

  2. False

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Correct Option: A
Explanation:

Generally, in a public company or a private company subsidiary of a public company, two-thirds of the total numbers of Directors are appointed by the shareholders and the remaining one-third is appointed in accordance with the manner prescribed in Articles failing which, the remaining one-third of the Directors must be appointed by the shareholders. The Articles of a public company or a private company subsidiary of a public company may provide for the retirement of all the Directors at every annual general meeting.

The Managing Directors can be appointed for the period of __________ years.

business organisation and correspondence company management directors of the company introduction, meaning and definition of director joint stock company 5 - direction and management

  1. one

  2. two

  3. tree

  4. five

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Correct Option: D
Explanation:

As per the provisions of Companies Act 2013, no company shall appoint or re-appoint any person as its managing director, whole-time director or manager for a term exceeding five years at a time.

Representative of shareholders are ____________.
business organisation and correspondence company management directors of the company introduction, meaning and definition of director joint stock company 5 - direction and management

  1. directors

  2. servants

  3. employees

  4. none of these

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Correct Option: A
Explanation:

The representatives of the shareholders are directors of the firm. Shareholders are the owners of the firm who owns certain part of shares in a firm while the directors are the top most level or authority responsible for the determination of company policies.

The first Director of the company are elected by the _________.

business organisation and correspondence company management directors of the company introduction, meaning and definition of director joint stock company 5 - direction and management

  1. share holders

  2. promoters

  3. employees

  4. None of these

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Correct Option: B
Explanation:

Generally, the first directors are named in the articles. In such a case, there is no appointment. The general practice is that the promoters of  the company select the first directors and name them in the Articles.

The Directors take decisions at ___________.
business organisation and correspondence company management directors of the company introduction, meaning and definition of director joint stock company 5 - direction and management

  1. Annual General meetings

  2. Board meetings

  3. Statutory meetings

  4. Daily meetings

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Correct Option: B
Explanation:

Board meetings are formal meetings of the board of directors of an organisation held at definite intervals to consider policy issues and major problems. Hence the meetings at which the directors take decisions is called a board meeting.

Body of the Directors which looks after the management of a company _____________.
business organisation and correspondence company management directors of the company introduction, meaning and definition of director joint stock company 5 - direction and management

  1. Board of Directors

  2. Auditor

  3. Company's Secretary

  4. All of above

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Correct Option: A
Explanation:

A Board of directors is a group of individuals elected to represent shareholders. The Board's mandate is to establish policies for corporate management and oversight, making decisions on major company issues. Hence the body of directors which looks after the management of a company is Board of Directors.

The ________ is a person who has not been validly appointed or who is disqualified but who in effect occupies the position of, and acts as if he were, a director.

business organisation and correspondence company management directors of the company introduction, meaning and definition of director joint stock company 5 - direction and management

  1. Alternate director

  2. De facto director

  3. Executive director

  4. Non-executive director

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Correct Option: B
Explanation:
The de facto director is a person who has not been validly appointed or who is disqualified but who in effect occupies the position of, and acts as if he were, a director. Literally, a de facto director means 'a director by fact'.
A de facto director is not formally appointed but carries out all the duties and makes decisions as a director.

Write a word or a term or phrase which can substitute the following statement:

A person elected by the shareholders of a company:

business organisation and correspondence company management directors of the company introduction, meaning and definition of director joint stock company 5 - direction and management

  1. Director

  2. Secretary

  3. Auditor

  4. None of these

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Correct Option: A
Explanation:

Director is a person elected by the shareholders of a company. He has the responsibility for determining and implementing the company's policies.