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Question
Justify the following statement:
The Board of Directors are the elected representatives of the shareholders.
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Solution
(1) In a joint stock company, there is a separation of ownership from the management. Although the shareholders are the owners of the company, they never participate in the management. The shareholders elect their representatives from amongst themselves. The elected representatives are called ‘directors’. The directors form themselves into a body called a Board of Directors. Thus, the Board of Directors is the elected representatives of the shareholders.
(2) The shareholders delegate their powers of management to the Board. The Board after discussion decides the matters frame the policies and takes policy decisions. The managing Directors with the help of the managerial staff implements the policies.
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RELATED QUESTIONS
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 |
Write a word or a term or a phrase which can substitute the following statement.
An elected body of representatives of Shareholders.
Write a word or a term or a phrase which can substitute the following statement.
A meeting of all the directors of a company.
Write a word or a term or a phrase which can substitute the following statement.
A written invitation was given to the Director to attend the meeting.
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 |
| _____________ | Meeting of all directors |
Select the correct option from the bracket:
| Group A | Group B |
| Duty of directors | ______________ |
Complete the sentence.
The elected representatives of the shareholders are called as _________
Justify the following statement:
The secretary should take certain precaution while corresponding with directors
Explain the following term/concept:
Initiative
Explain the following term/concept:
Conciseness
Explain the following term/concept:
Board of Directors.
Correct the underline words and rewrite the following statement:
Secretary is responsible for decision making and framing policies of a company.
Correct the underline word and rewrite the following statement:
Secretary is a elected representative of the shareholders.
Answer in one sentence:
Can a Director who was absent at Board Meeting get a copy of minutes of that Board Meeting?
Answer in one sentence:
When does a Director vacate his office due to absenteeism at Board Meeting?
