SEBI Grade A 2022– Companies Act Practice Question | Set- 1

Correct Answer: A. By a special resolution

Explanation: As per Section 149, a director over prescribed limit (15 maximum directors of the company) can be appointed only by a special resolution.

Correct Answer – C. Listed company

Explanation: As per Section 151, a listed company must mandatorily appoint a director elected by small shareholders. A small shareholder is a person who is holding shares of nominal value amounting to a maximum of Rs. 20,000 in a public company.

Correct Answer – B. One-third

Explanation: According to Section 149 – Appointment & Qualification of Directors, every listed public company shall have at least one-third of the total number of directors as independent directors.

Correct Answer – C. Identification

Explanation:  Section 154 – DIN stands for Director Identification Number.

Correct Answer – B. 3

Explanation: According to Section 149, every company shall have (a) a minimum number of three directors in the case of a public company , two directors in the case of a private company, and one director in the case of a One Person Company; and (b) a maximum of fifteen directors: Provided that a company may appoint more than fifteen directors after passing a special resolution.

Correct Answer – C. Not less than 182 days in current financial year

Explanation: This is a tricky question. As per barebones Act “Every company shall have at least one director who has stayed in India for a total period of not less than one hundred and eighty-two days in the previous calendar year. ” Answer should be (a). We gave the answer as (c) because ICAI has taken the view that the stay of 182 days is to be considered in the current financial year. Hopefully, such a question won’t come. But if it does come, it is up to you as to what answer you will be giving.

Correct Answer – D. Both (a) and (b)

Explanation: MCA through its notifications has clarified that Section 165(1)9i) [limiting a person to be director of 20 companies] of the Companies Act 2013, shall not apply to Section 8 companies or dormant companies.

Correct Answer – D. At any time before his appointment

Explanation: person can be a director only after obtaining DIN [Section 152(3) and Section 152(4)]

Correct Answer – DIR 2

Explanation:  Democratic approaches rely on taking on board other people’s opinions and views.

Correct Answer – A. 30 days

Explanation: Section 173(1): Every company shall hold the first meeting of the Board of Directors within thirty days of the date of its incorporation and thereafter hold a minimum number of four meetings of its Board of Directors every year in such a manner that not more than one hundred and twenty days shall intervene between two consecutive meetings of the Board.