Chief Financial Officer.<\/li>\n<\/ul>\nSo this made the appointment of whole-time Company Secretary mandatory for better efficiency.<\/p>\n
Question 22.
\nState the disqualifications for appointment of director.
\nAnswer:
\nSec 164 of the Companies Act, 2013 provides that a person is ineligible for appointment as a director of a company if he –
\n\u2192 Is of unsound mind<\/p>\n
\u2192 Has been declared insolvent or has applied to be adjudicated as an insolvent<\/p>\n
\u2192 Has been convicted of any offense involving moral turpitude or otherwise, and sentenced in respect thereof to imprisonment for six months or more by a court and a period of five years has not elapsed from the date of expiry of a sentence. However, a person is ineligible to be appointed to any company if, has been convicted of any offense and was sentenced to imprisonment for a period of seven years or more.<\/p>\n
\u2192 Has been disqualified from appointment as a director by any court or Tribunal<\/p>\n
\u2192 Has failed to pay any call money in respect of any shares of the company held by him and a period of six months has elapsed from the day on which the call money was to be paid.<\/p>\n
\u2192 Has been convicted of the offense dealing with related party transactions under section 188 in preceding five years;<\/p>\n
\u2192 Does not have a DIN.<\/p>\n
Question 23.
\nWhat is the difference between director, additional director and whole time director?
\nAnswer:
\nAs per Companies Act, a Director is a person appointed to the Board of a Company by the shareholders of that-firm, to perform the duties of administering the companies policies, manage the business and other legally required activities.<\/p>\n
Director: An attendee to all Board meetings – A director who attends the Board meetings of the Company and participates in the matters of the business of the Board. They are neither Managing Directors or Whole Time Directors.<\/p>\n
Additional Director:
\nAppointed between 2 AGM\u2019s by the Board of Directors – If the Articles specifically so provide or enable, the Bbard has the discretion, where it feels it necessary and expedient, to appoint Additional Directors who will hold office until the next AGM. However, the number of Directors and Additional Directors together shall not exceed the maximum strength fixed in the Articles for the Board.<\/p>\n
Whole Time Director: In the employment of the Company whole time – A whole-time director is a director in the whole-time employment of the company. In other words, a director who devotes his whole time to the affairs of a company is called a whole-time director of the company. A whole-time director of a company cannot accept the position of a whole-time director in other companies, though he may accept office of non-whole-time director in other companies.<\/p>\n
Question 24.
\nState the qualification of independent director.
\nAnswer:
\nCompanies Act 2013 prescribes detailed qualifications for the appointment of an independent director on the board of a company. Some important qualifications include:
\n\u2192 he \/ she should be a person of integrity, relevant expertise and experience.<\/p>\n
\u2192 he \/ she is not or was not a promoter of, or related to. the promoter or director of the company or its holding, subsidiary or associate company.<\/p>\n
\u2192 he \/ she has or had no pecuniary relationship with the company, its holding, subsidiary or associate company, or their promoters, or directors during the 2 (two) immediately preceding financial years or during the current financial year.<\/p>\n
\u2192 a person, none of whose relatives have or had pecuniary relationship or transaction with the company, its holding, subsidiary or associate company, or their promoters, or directors amounting to 2 (two) percent or more of its gross turnover or total income or INR 5,000,000 (Rupees five million only), whichever is lower, during the 2 (two) immediately preceding financial years or during the current financial year.<\/p>\n
\u2192 Companies Act 2013 also sets forth stringent provisions with respect to the relatives of the independent director.<\/p>\n
Question 25.
\nExplain the powers of managing director.
\nAnswer:
\nManaging directors is a director of a company. All the directors of the company by virtue of an agreement, or by resolution or by virtue of its memorandum or a articles of association appoints one of the director among themselves to occupy the position of a managing director. He is also called as full time director of the company.<\/p>\n
Managing director is entrusted with substantial powers of management of the company he is delegated power by directors to take decisions on matters like investment of funds, buying and selling on behalf of the company, appointment of the company\u2019s employees, entering into contracts with other parties etc. Managing director exercises his powers subject to superintendence, control and direction of the board of director of the company.<\/p>\n
He takes the responsibility of management to frame the policy of the company. He is considered as an agent of the board of directors. He is entrusted with special powers of management by the board can act individually.<\/p>\n
Question 26.
\n\u2018Directors are the brains of the company, the secretary is its ears, eyes and hands\u2019 Comment.
\nAnswer:
\nIt is rightly said that \u201cwhile the Directors are the brains of the company, the Secretary is its ears, eyes and hands\u201d. The Directors are the brains because they collectively make policy decisions. But in order to do so they require to have detailed information and data and they need that their policies are communicated to the organisation so that they are carried out. The assistance of the Secretary becomes necessary for this purpose.<\/p>\n
The Secretary is described as \u2018eyes and ears\u2019 because the Board of Directors looks at things and hears information through the Secretary. The Secretary, as in charge of the office, keeps detailed information about the men and their activities inside the company.<\/p>\n
As a liaison officer he keeps in contact with the outside world on behalf of the company. Moreover, as a liaison officer between the Board of Directors and the members of the staff, the Secretary communicates all the decisions of the Board to the members of the staff. The orders are issued under the signature of the Secretary and so he is the \u2018hands\u2019 of the company.<\/p>\n","protected":false},"excerpt":{"rendered":"
Company Administration Short Answer Type Questions Question 1. Explain briefly liabilities of Board of directors of a company? Answer: Directors are having certain liabilities at the time of performing their duties in a company. They are – (a) Directors are personally liable to make good the loss caused to the company by their acts these …<\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[847],"tags":[866,867,868,869,871,870],"_links":{"self":[{"href":"https:\/\/ncert-solutions.guru\/wp-json\/wp\/v2\/posts\/7682"}],"collection":[{"href":"https:\/\/ncert-solutions.guru\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ncert-solutions.guru\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ncert-solutions.guru\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/ncert-solutions.guru\/wp-json\/wp\/v2\/comments?post=7682"}],"version-history":[{"count":1,"href":"https:\/\/ncert-solutions.guru\/wp-json\/wp\/v2\/posts\/7682\/revisions"}],"predecessor-version":[{"id":7683,"href":"https:\/\/ncert-solutions.guru\/wp-json\/wp\/v2\/posts\/7682\/revisions\/7683"}],"wp:attachment":[{"href":"https:\/\/ncert-solutions.guru\/wp-json\/wp\/v2\/media?parent=7682"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ncert-solutions.guru\/wp-json\/wp\/v2\/categories?post=7682"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ncert-solutions.guru\/wp-json\/wp\/v2\/tags?post=7682"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}