Tag: joint stock company 5 - direction and management

Questions Related to joint stock company 5 - direction and management

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

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

  1. share holders

  2. promoters

  3. employees

  4. None of these

Show answer
Correct Option: B
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.

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

  1. Annual General meetings

  2. Board meetings

  3. Statutory meetings

  4. Daily meetings

Show answer
Correct Option: B
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.

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

  1. Board of Directors

  2. Auditor

  3. Company's Secretary

  4. All of above

Show answer
Correct Option: A
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.

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.

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

  1. Alternate director

  2. De facto director

  3. Executive director

  4. Non-executive director

Show answer
Correct Option: B
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.

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

A person elected by the shareholders of a company:

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

  1. Director

  2. Secretary

  3. Auditor

  4. None of these

Show answer
Correct Option: A
Explanation:

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

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

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

  1. 1

  2. 2

  3. 3

  4. 4

Show answer
Correct Option: C
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. 

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

  1. owners

  2. representative of shareholders

  3. creditors of the company

  4. none of these

Show answer
Correct Option: B
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.

A director retiring by rotation  _________.

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

  1. cannot be appointed again.

  2. can be re-appointed

  3. should be re-appointed

  4. nothing relevant

Show answer
Correct Option: B

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

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

Show answer
Correct Option: B

Write a word or a term or phrase which can substitute the following statement:
A body of elected representatives of shareholders:
business organisation and correspondence company management directors of the company introduction, meaning and definition of director joint stock company 5 - direction and management

  1. Managing Directors

  2. Board of Directors

  3. Auditors

  4. All of above

Show answer
Correct Option: B
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 .