Tag: joint stock company 5 - direction and management

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Questions Related to joint stock company 5 - direction and management

Multiple choice business organisation and correspondence company management directors of the company introduction, meaning and definition of director joint stock company 5 - direction and management

The first Director of the company are elected by the _________.

  1. share holders

  2. promoters

  3. employees

  4. None of these
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Generally, the first directors are named in the articles. In such a case, there is no appointment. The general practice is that the promoters of  the company select the first directors and name them in the Articles.

Multiple choice business organisation and correspondence company management directors of the company introduction, meaning and definition of director joint stock company 5 - direction and management
The Directors take decisions at ___________.

  1. Annual General meetings

  2. Board meetings

  3. Statutory meetings

  4. Daily meetings
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Board meetings are formal meetings of the board of directors of an organisation held at definite intervals to consider policy issues and major problems. Hence the meetings at which the directors take decisions is called a board meeting.

Multiple choice business organisation and correspondence company management directors of the company introduction, meaning and definition of director joint stock company 5 - direction and management
Body of the Directors which looks after the management of a company _____________.

  1. Board of Directors

  2. Auditor

  3. Company's Secretary

  4. All of above
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

A Board of directors is a group of individuals elected to represent shareholders. The Board's mandate is to establish policies for corporate management and oversight, making decisions on major company issues. Hence the body of directors which looks after the management of a company is Board of Directors.

Multiple choice business organisation and correspondence company management directors of the company introduction, meaning and definition of director joint stock company 5 - direction and management

The ________ is a person who has not been validly appointed or who is disqualified but who in effect occupies the position of, and acts as if he were, a director.

  1. Alternate director

  2. De facto director

  3. Executive director

  4. Non-executive director
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation
The de facto director is a person who has not been validly appointed or who is disqualified but who in effect occupies the position of, and acts as if he were, a director. Literally, a de facto director means 'a director by fact'.
A de facto director is not formally appointed but carries out all the duties and makes decisions as a director.
Multiple choice business organisation and correspondence company management directors of the company introduction, meaning and definition of director joint stock company 5 - direction and management

Write a word or a term or phrase which can substitute the following statement:

A person elected by the shareholders of a company:

  1. Director

  2. Secretary

  3. Auditor

  4. None of these
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Director is a person elected by the shareholders of a company. He has the responsibility for determining and implementing the company's policies.   

Multiple choice business organisation and correspondence company management directors of the company introduction, meaning and definition of director joint stock company 5 - direction and management

Minimum no. of Directors in case of a public company is _______.

  1. 1

  2. 2

  3. 3

  4. 4
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Generally, in a public company or a private company subsidiary of a public company, two-thirds of the total numbers of Directors are appointed by the shareholders and the remaining one-third’s appointment is made as per Articles and failing which, shareholders shall appoint the remaining one-third. A Minimum Number of Directors Required in a public Company are three directors. The Companies Act does not prescribe any qualifications for Directors of any company. 

Multiple choice business organisation and correspondence company management directors of the company introduction, meaning and definition of director joint stock company 5 - direction and management
Directors are the ____________.

  1. owners

  2. representative of shareholders

  3. creditors of the company

  4. none of these
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Director is an appointed elected member of the board of directors of a company who with other directors has the responsibility for determining and implementing the company's policies. Hence, directors are the representatives of shareholders.

Multiple choice business organisation and correspondence company management directors of the company introduction, meaning and definition of director joint stock company 5 - direction and management

A director retiring by rotation  _________.

  1. cannot be appointed again.

  2. can be re-appointed

  3. should be re-appointed

  4. nothing relevant
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Under the Companies Act, a director retiring by rotation can be re-appointed if the company passes the necessary resolution at the general meeting.

Multiple choice business organisation and correspondence company management directors of the company introduction, meaning and definition of director joint stock company 5 - direction and management

Which of the following is essential of the directing function of management?

  1. Identifying the activities and grouping them into convenient classes

  2. Motivating the subordinates to direct their behaviour in a desired pattern.

  3. Revise the structure of the basis of assessment of personnel and other resources

  4. None of above
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Directing involves guiding, motivating, and leading employees to ensure they work effectively toward organizational objectives.

Multiple choice business organisation and correspondence company management directors of the company introduction, meaning and definition of director joint stock company 5 - direction and management

Write a word or a term or phrase which can substitute the following statement:
A body of elected representatives of shareholders:

  1. Managing Directors

  2. Board of Directors

  3. Auditors

  4. All of above
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

A board of directors is a group of individuals elected to represent shareholders. A boards mandate is to establish policies for corporate management and oversight, making on company's decision. Every public company must have a board of directors .