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Question
Answer in brief:
State any four powers of the Board of Directors.
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Solution
Powers of Board of Directors:
(1) Board of Directors has the power to borrow money. For expansion, modernization, and development of the company by applying to the bank for loan and overdraft facility, by the issue of debentures of different types and by the issue of bonds.
(2) It has the power to invest surplus or idle funds in short term or long term securities as per the requirement of the company.
(3) It has the power to appoint or remove key managerial personnel (KMP) such as managing director, company secretary, chief financial officer, etc.
(4) It has the power to fill casual vacancies by appointing additional, alternate or co-opted directors;
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RELATED QUESTIONS
Select the correct answer from the options given below and rewrite the statement.
Managing Director is appointed for a period of ______ Years.
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Only a member of ________ Can be a practicing Company Secretary
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The body of elected representatives of company.
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Explain the following Term/Concept:
Casual vacancy of a Director.
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The Board of Directors
Study the following case/situation and express your opinion.
Mr. M wishes to be the Managing director of QRS Ltd:
(a) The age of Mr. M is 30 years. Can he be appointed as MD of a company?
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(c) For how long a period QRS Ltd. can appoint Mr. M. as Managing Director?
Distinguish between the following:
Director and Managing Director
Answer in brief:
Mention any four ways in which the office of a Direction becomes vacant.
Justify the following statement:
The company has a distinct feature of separate ownership and management.
Justify the following statement:
Directors have to work as a team.
Justify the following statement:
Directors play a triple role.
Justify the following statement:
A Director cannot be called an employee of the company.
Justify the following statement:
Secretarial Standards should be in conformity with the Act.
Write a word or a term or a phrase which can substitute the following statement:
This KMP signs document of the company requiring authentication by the company.
Write a word or a term or a phrase which can substitute of the following statement.
This KMP signs document of company requiring authentication by company.
Write a word or a term or a phrase which can substitute the following statement.
This KMP signs document of company requiring authentication by company.
