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Justify the following statement: A Director is an agent of the Company. - Secretarial Practice

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प्रश्न

Justify the following statement:

A Director is an agent of the Company.

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उत्तर

(a) A company, being an artificial person cannot act on its own. It acts through the Directors. They, therefore, resemble as agents of the company in the eyes of law. As agents, Directors can enter into contracts, sign agreements or contracts, carry on the business, and perform all the other duties on behalf of the company.

(b) As agents, they must act within the scope of their authority and in the name of the principal (i.e. the company). They would be personally liable if they enter into a contract in their own name or use the company’s name incorrectly or exceed the powers given to them by the Memorandum of Association or the Articles of Association.

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Key Managerial Personnel (KMP)
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अध्याय 6: Directors and Key Managerial personnel of a company - EXERCISES [पृष्ठ १०१]

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बालभारती Secretarial Practice [English] 11 Standard Maharashtra State Board
अध्याय 6 Directors and Key Managerial personnel of a company
EXERCISES | Q 6. 2) | पृष्ठ १०१

संबंधित प्रश्न

Select the correct answer from the options given below and rewrite the statement.

Only a member of ________ Can be a practicing Company Secretary


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

The officer responsible for company’s finances


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

Agents, Trustees and Managing Partners of the company.


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

Audit which checks compliances of different legislations.


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

The nature of the relationship of Director with the company.


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

Name the secretarial standard-l


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

Name the secretarial standard-2


Answer in one sentence.
What is the importance of Secretarial Standards?


Answer in one sentence.
Who provides guidance to the Board of Directors?


Correct the underlined word and rewrite the following sentence:

Public company must have minimum 15 Directors.


Correct the underlined word and rewrite the following sentence:

First Directors are appointed by ROC.


Explain the following Term/Concept:

Alternate Director.


Explain the following Term/Concept:

Casual vacancy of a Director.


Study the following case/situation and express your opinion.

Mr. A is a commerce graduate. He has vast experience in the field of finance and the financial market. He wishes to become director of PQR co Ltd :

(a) Is he required to obtain DIN?

(b) Can PQR Co. Ltd. object to his directorship on lack of specialized qualification

(c) If he is appointed as director of PQR Co Ltd, is he entitled to remuneration?


Distinguish between the following:

Managing director and Manager


Answer in brief:

Mention any four ways in which the office of a Direction becomes vacant.


Answer in brief:

State any four powers of Managing Directors.


Justify the following statement:

Directors play a triple role.


Justify the following statement:

Company Secretary plays a triple role.


Justify the following statement:

A Director cannot be called an employee of the company.


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