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Answer in brief: State any four powers of Board of Directors. - Secretarial Practice

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Question

Answer in brief:

State any four powers of the Board of Directors.

Short/Brief Note
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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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Key Managerial Personnel (KMP)
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Chapter 6: Directors and Key Managerial personnel of a company - EXERCISES [Page 101]

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Balbharati Secretarial Practice [English] 11 Standard Maharashtra State Board
Chapter 6 Directors and Key Managerial personnel of a company
EXERCISES | Q 5. 2) | Page 101

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