Unit VI · Topic 9Company law – Directors and meetings – Previous Year Questions

Assertion (A): Every public company shall have at least three and every private company at least two Directors. Reason (R): Directors are trustees for the company and not for individual shareholders. Code:

1. (a)(A) and (R) are true and (R) is correct explanation of (A)✓
2. (b)(A) and (R) are true but (R) is not correct explanation of (A)
3. (c)(A) is true, but (R) is false
4. (d)(A) is false, but (R) is true

Match an item in List P with an item in List Q List-P: A. Removal of Directors by Company Law Board B. Duty of Directors to disclose interest C. Compensation for loss of office of Director D. Director with unlimited liability List-Q:

Section 318

Section 299-300

Section 402

Section 322-323 Code:

1. (a)A-3, B-2, C-1, D-4✓
2. (b)A-2, B-3, C-1, D-4
3. (c)A-2, B-3, C-4, D-1
4. (d)A-2, B-1, C-3, D-4

Which statements are correct? Directors are:

Trustees of Company

Managers of Company

Agents of Company

Owners of Company Codes:

1. (a)1 and 2 are correct
2. (b)2 and 3 are correct
3. (c)3 and 4 are correct
4. (d)1 and 3 are correct✓

Match an item in List-I with an item in List-II: List-I: A. Prohibition of assignment of office by Director B. Appointment of alternate Director C. Disqualification to be a Director D. Officer who is in defaulter List-II:

Section 267

Section 312

Section 5

Section 313 Codes:

1. (a)A-4, B-2, C-1, D-3
2. (b)A-2, B-4, C-1, D-3✓
3. (c)A-2, B-4, C-3, D-1
4. (d)A-2, B-3, C-1, D-4

Directors are

1. (a)only agents of a company
2. (b)only fiduciaries of a company
3. (c)only servants of a company under a contract of employment with the company
4. (d)All of the above✓

Which statements are correct, answer using codes given below:

Directors are trustees of company

Directors are mentors of company

Directors are agents of company

Director are agents of shareholders Codes:

1. (a)1 and 2 are correct
2. (b)1 and 3 are correct✓
3. (c)1 and 4 are correct
4. (d)2 and 4 are correct

Match List-I with List-II and select the correct answer using the codes given below: List-I A. Directors with unlimited liability Companies Act B. Prevention of management of a company by undesirable persons. C. A director cannot assign his office in favour of any one else. D. Appointment to a place of profit under the company. List-II

Section 202 and 203 of the Companies Act.

Section 312 of the Companies Act.

Section 322 and 323 of the Companies Act.

Section 314 of the Companies Act. Code:

1. (a)A-1, B-3, C-2, D-4
2. (b)A-3, B-1, C-2, D-4✓
3. (c)A-3, B-1, C-4, D-2
4. (d)A-2, B-4, C-1, D-3

Find answer by using codes given below: Director may be removed by

Other Directors

Creditors

Central Government

Shareholders in a general meeting Codes:

1. (a)only 1 and 2 are correct
2. (b)only 2 and 3 are correct
3. (c)only 3 and 4 are correct✓
4. (d)only 4 and 1 are correct

"Directors are agents of the company". In which of the following cases above principle laid down. Answer using code given below:

Ferguson v. Wilson

Elkington and Co. v. Harter

Hampshire Land Co., re

Allen v. Hyatt Code:

1. (a)Only 1
2. (b)Only 1 and 2
3. (c)Only 1, 2 and 3
4. (d)1, 2, 3 and 4✓

Removal of members of Company Law Appellate Tribunal can be carried out in consultation by: (1) Central Government (2) Chief Justice (3) Chairperson of Appellate Tribunal (4) Auditor General Choose the correct answer from the options given below:

1. (a)(1) and (2) only✓
2. (b)(1), (2), (3)
3. (c)(3) and (2) only
4. (d)(1), (2), (3), and (4)

Given below are two statements: Statement I: Every public company shall have at least three directors and every private company shall have at least two directors. Statement II: There can be a maximum of 15 directors and for having more than 15 directors, the company may pass a special resolution. In light of the above statements, choose the most appropriate answer from the options given below:

1. (a)Both Statement I and Statement II are correct✓
2. (b)Both Statement I and Statement II are incorrect
3. (c)Statement I is correct but Statement II is incorrect
4. (d)Statement I is incorrect but Statement II is correct

What is a whistleblower

1. (a)A person who signals illegal or unethical practice to a precribed body✓
2. (b)Usually a disgruntled ex-employee
3. (c)A subversive person spying on a company
4. (d)An investigative journalist

Minimum number of Directors in one person company is

1. (a)1✓
2. (b)3
3. (c)4
4. (d)5

Match the following legal positions of directors with the corresponding case law

List-I (Position of Directors)

A. Directors as "Agents"

B. Directors as "Employees"

C. Directors as "Trustees"

D. Directors in a "Fiduciary Relationship"

List-II (Case Law)

1. Ferguson v. Wilson

2. R.R. Kothandraman v. Commissioner of Income Tax

3. Great Eastern Railway Co. v. Turner

4. Forest of Dean Coal Mining Co. Re

1. (a)A-1, B-2, C-3, D-4✓
2. (b)A-3, B-1, C-4, D-2
3. (c)A-2, B-3, C-1, D-4
4. (d)A-4, B-3, C-2, D-1

In every listed public company how many of the total number of directors shall be independent directors?

1. (a)One-fourth
2. (b)One-third✓
3. (c)One-fifth
4. (d)One-tenth

The board of directors of every listed company and such other class or classes of companies as may be prescribed are required to constitute, an Audit committee under which of the following provision of the Companies Act, 2013?

1. (a)Section 178 of the Companies Act, 2013
2. (b)Section 180 of the Companies Act, 2013
3. (c)Section 183 of the Companies Act, 2013
4. (d)Section 177 of the Companies Act, 2013✓