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प्रश्न
Justify the following statement:
Directors exercise their powers and authorities collectively as a Board.
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उत्तर
(i) Although the shareholders are the owners they cannot manage their company. Following the principle of democracy, they elect their representatives from amongst them, called the Directors, at the Annual General Meeting. They vest the Directors with the powers of managing the affairs of the company. Directors are the men of commercial skill and business tact. They are authorised by the shareholders to utilize the capital, acquire the assets, and appoint the personnel to conduct the affairs of the company for the benefit of the shareholders of the company.
(ii) The directors exercise their powers and take decisions collectively as a Board. They cannot exercise their powers and take decisions in their individual capacity. The Board of Directors is the policy-framing and decision-making organ of the company. As agents of the company, the directors must act within the scope of their authority and in the name of the principal, i.e. company. They would be personally liable if they take decisions in their own name and in their individual capacity. Their acts are not binding on the shareholders or on each other unless the Articles provide so.
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संबंधित प्रश्न
Select the correct answer from the option given below and rewrite the statement:
___________ looks after the management of a company.
Select the correct answer from the option given below and rewrite the statement:
The Directors take decisions at ______ meeting.
Match the pairs:
| Group ‘A’ | Group ‘B’ |
| a) Directors | 1) At least 2 Directors |
| b) Absenteeism of Director in Board Meetings | 2) At least 3 Directors |
| c) Public Company | 3) Disqualification of director |
| d) Private Company | 4) Representatives of shareholders |
| e) Notice of a Routine Board Meeting | 5) 21 clear days |
| 6) 7 days | |
| 7) 70 days | |
| 8) Representative of public | |
| 9) At least 20 directors | |
| 10) At least 30 directors |
State whether the following statement is true or false:
A director can be removed before the expiry of his term.
State whether the following statement is true or false:
A director can remain absent for any number of Board Meetings.
State whether the following statement is true or false:
Directors act as agents and trustees of the company.
State whether the following statement is true or false:
Director can take decisions individually.
Select the correct option from the bracket:
| Group A | Group B |
| Notice of board meeting | _______________ |
Complete the sentence.
The elected representatives of the shareholders are called as _________
Justify the following statement:
The secretary has to correspond with directors on an important occasion
Answer in brief:
Under what circumstances will a Secretary correspond with a Director?
Answer in brief:
What are the points to be considered by a secretary while corresponding with the directors?
Complete the sentence.
The notice period for Board Meeting shall not be less than _______
Explain the following term/concept:
Conciseness
Explain the following term/concept:
Board of Directors.
Explain the following term/concept:
Director
Correct the underline words and rewrite the following statement:
Secretary is responsible for decision making and framing policies of a company.
Answer in one sentence:
When does a Director vacate his office due to absenteeism at Board Meeting?
