Advertisements
Advertisements
Question
Justify the following statement:
The company has a distinct feature of separate ownership and management.
Advertisements
Solution
(a) In a joint-stock company, though shareholders are the owners, the management of the affairs 0f the company is entrusted to the Board of Directors’ The shareholders cannot participate in the management because they are too large in number5 and are scattered over a wide area.
(b) Shareholders lack the necessary business skill and experience. They are mainly interested in the returns on the shares held by them. The sense of proprietorship of the shareholders is lost due to the changing membership from one shareholder transferor) to another (transferee). Thus, in a joint-stock company, the ownership remains with the shareholders and the management with the Board of Directors.
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.
________ is to be prepared in prescribed form MR -3.
Write a word or a term or a phrase which can substitute the following statement:
The body of elected representatives of company.
Explain the following Term/Concept:
Managing Director.
Explain the following Term/Concept:
Independent 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?
Study the following case/situation and express your opinion.
Mr. Z is a member of Institute of Company Secretaries of India:
(a) Can Mr. Z be appointed as pro-tem Secretary of LMN Ltd. which is under formation?
(b) Can Mr. Z work as a secretarial Auditor?
(c) Mr. Z wishes to be employed as whole time Secretary in companies ABC Ltd. and OPC Ltd. Is he allowed?
Distinguish between the following:
Managing Director and Whole Time Director
Answer in brief:
State any four powers of the Board of Directors.
Justify the following statement:
Company Secretary plays a triple role.
Justify the following statement:
A Director cannot be called an employee of the company.
Justify the following statement:
Indian companies prefer to appoint a M. D. than Manager.
Justify the following statement:
Pro-tem Secretary is helpful to the company.
Answer the following question:
Explain the Company Secretary.
Answer the following question:
Explain the role of the Company Secretary.
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.
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.
