Companies Act 2013: Director Disqualification
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Companies Act 2013: Director Disqualification

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Questions and Answers

Bhavik is a director of ICAI ltd which has failed to file financial statements for 3 financial years. The company is facing losses and has defaulted in payment of interest amounting Rs. 5 crores of debenture holders. As per section 164 of the Companies Act, 2013 Bhavik has been disqualified from being acting as a director to any company further. What is the cooling period before he disqualification u/s 164 be lifted?

  • 3 years
  • 2 years
  • 5 years (correct)
  • 7 years

    • What is the maximum time allowed for holding the first board meeting from the date of incorporation?

  • 30 days (correct)
  • 3 months
  • 60 days
  • 90 days

    • There are 10 directors in ABC private ltd. Notice of the meeting of the board was sent to the registered addresses of 8 directors who were in India 5 days before the meeting to transact urgent business. Dhruv, the company secretary laid out his concerns that the notice was not valid. Whether Mr. Dhruv is right and if yes, what is the quantum of penalty?

  • No, private companies need not appoint independent directors hence can send notice at a shorter period than 7 days of the meeting to any number of directors.
  • Yes, notice of board meeting needs to be sent to all directors and penalty of Rs. 50,000 shall be charged to officer in default.
  • Yes, notice of board meeting needs to be sent to all directors and penalty of Rs. 25,000 shall be charged to officer in default. (correct)
  • Yes, notice of board meeting needs to be sent to all directors and penalty of Rs. 75,000 shall be charged to officer in default.

    • Questions 4 -6 relate to Section 8 Companies. What is the quorum of board meeting?

    <p>Lesser of 8 members or 25% of the total strength</p> Signup and view all the answers

    Under section 160 of the Companies Act, 2013, Mr. A proposed himself to be the director and won 20% votes in favour of his appointment.What is the amount of deposit to be made and whether it is refundable on his failure to secure appropriate number of votes?

    <p>Rs. 1 lac and refund depends upon the Board of directors of the company.</p> Signup and view all the answers

    the company has 12 directors. It wants to appoint 5 more. Can the company do so?

    <p>Yes it can appoint whatever number of directors it wants</p> Signup and view all the answers

    ABC Ltd is a wholly owned subsidiary of XYZ ltd a listed company. Which of the following is applicable to ABC ltd?

    a) Independent director b) Audit Committee c) Woman Director d) Nomination Remuneration Committee

    <p>A, B and D not applicable</p> Signup and view all the answers

    what is considered an undertaking of a company?

    <p>When company invests &gt;20% of its net worth in it</p> Signup and view all the answers

    Register for Contracts or Arrangements in which directors are interested will be maintained in which form?

    <p>MBP-4</p> Signup and view all the answers

    Penalty for contravention of section 184 (interested directors in contracts or arrangements) in case of listed company is?

    <p>25 lacs</p> Signup and view all the answers

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