Multiple choice

A person is eligible to be appointed as a director of a company if

  1. He is of unsound mind

  2. He is solvent

  3. He has not paid any of the calls in respect of shares of the company

  4. The court has disqualified him to be appointed as a director

Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

 According to Sec. 274 of the Companies Act,  a person is eligible to be appointed as a director if he is solvent, that is not insolvent. This means that the person is not bankrupt and can pay his liabilities, so he is eligible to be appointed as a director.

Keep practicing — related questions