Advertisements
Advertisements
Question
Justify the following statement:
A Director is an agent of the Company.
Advertisements
Solution
(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.
APPEARS IN
RELATED QUESTIONS
Select the correct answer from the options given below and rewrite the statement.
_________ needs a whole time director.
Select the correct answer from the options given below and rewrite the statement.
To provide guidance to Board is _____ duty of company Secretary
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:
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
Write a word or a term or a phrase which can substitute the following statement:
Name the secretarial standard-3
Answer in one sentence.
What is the importance of Secretarial Standards?
Explain the following Term/Concept:
Chief Financial Officer
Distinguish between the following:
Director and Managing Director
Distinguish between the following:
Managing director and Manager
Answer in brief:
State any four powers of Managing Directors.
Justify the following statement:
Directors have to work as a team.
Justify the following statement:
Pro-tem Secretary is helpful to 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 in 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 the company requiring authentication by the 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.
