Multiple choice

Find out the incorrect statement regarding term of office of directors of a bank.

  1. A whole time director is appointed for a term not exceeding 5 years.

  2. Term of a whole time director can be renewed for further period 5 years.

  3. A part-time director is appointed for a term not exceeding 5 years.

  4. A part-time director can hold office for a consecutive period of up to 8 years.
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Correct Answer: A part-time director is appointed for a term not exceeding 5 years Appointment of Managing Director, Whole–Time Director or Manager shall only be for a term which must be less than five years. However, the company may re-appointment them for next term before expiry of their present term but not earlier than one year before expiry of the term. This means, company may re-appoint them for next term in last one year of current term. 

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