Multiple choice

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.

  1. (A) and (R) are true, but (R) is not an explanation for (A).

  2. (A) and (R) are true, and (R) is an explanation for (A).

  3. (A) is true, but (R) is false.

  4. (R) is true, but (A) is false
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A Correct answer
Explanation

Every company shall have a minimum number of three Directors in case of public company, two Directors in case of private company and one Director in one person company and a maximum of fifteen Directors in its Board of Directors. Directors are trustees for the company, and not for individual shareholders.

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