Company Law - Appointment and Qualifications of Directors

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What is the latest date by which the vacancy of a women director must be filled?

16th June, 2019
25th June, 2019 (correct)
31st December, 2019
15th September, 2019

What is the minimum number of days a Resident Director must stay in India during a financial year?

190 days
180 days
182 days (correct)
185 days

Why are independent directors appointed on the Board of specified public companies?

To reduce the level of corporate governance
To increase the level of corporate governance (correct)
To reduce the responsibility of the Board
To appoint more directors on the Board

What is the characteristic of an independent director?

Having an independent mindset (A) Signup and view all the answers

What is the requirement for a newly incorporated company in terms of the Resident Director?

The company must have a Resident Director proportionately at the end of the financial year (D) Signup and view all the answers

What is the purpose of an independent director in case of a decision that is illegal or not in the best interest of the company?

To hinder the decision (B) Signup and view all the answers

What happens to the application fee if the Central Government rejects or invalidates the application?

It is neither refunded nor adjusted with any other application (B) Signup and view all the answers

What is the validity period of the DIN allotted to an individual under these rules?

For the lifetime of the applicant (D) Signup and view all the answers

What happens if the defects in the application are not removed within the given time?

The application is treated as invalid (D) Signup and view all the answers

How can the Central Government inform the applicant about the rejection or invalidation of the application?

Either by letter by post or electronically or in any other mode (B) Signup and view all the answers

What happens to the DINs allotted to individuals before the commencement of these rules?

They are deemed to have been allotted under these rules (D) Signup and view all the answers

What is the consequence of partially rectifying the defects in the application?

The applicant is directed to file a fresh application with complete and correct information (C) Signup and view all the answers

What is the primary method of appointing a director in a company, according to the Companies Act?

By the company in general meeting (B) Signup and view all the answers

What is meant by the term 'wrongful manner' in the context of obtaining a DIN?

Furnishing incomplete documents or suppressing material information (C) Signup and view all the answers

What is the requirement for a person to be appointed as a director of a company?

They must have been allotted a DIN under section 154 (C) Signup and view all the answers

Under which circumstances can the Central Government deactivate a DIN?

If the DIN holder fails to intimate his particulars in e-form DIR-3-KYC within the stipulated time (B) Signup and view all the answers

What is the purpose of a director furnishing a declaration under Section 152(4)?

To declare that they are not disqualified to become a director under this Act (A) Signup and view all the answers

What is the term for obtaining a DIN with an intent to deceive any authority?

Fraudulent manner (D) Signup and view all the answers

Who is authorised to deactivate a DIN?

The Central Government or the Regional Director (Northern Region) (A) Signup and view all the answers

What is the requirement for a person to act as a director after their appointment?

They must give their written consent to hold the office as a director (A) Signup and view all the answers

What is the condition for deactivating a DIN under clause (f)?

The DIN holder has never been appointed as a director in any company (D) Signup and view all the answers

What is the purpose of obtaining a DIN under Section 154?

To obtain a unique identification number as a director (C) Signup and view all the answers

What is the form in which a person appointed as a director must furnish their written consent to hold the office as a director?

Form DIR-2 (C) Signup and view all the answers

What is the purpose of verifying e-records before deactivating a DIN?

To ensure that the DIN has not been used for any filings (C) Signup and view all the answers

What is the main reason behind the provision of proportional representation for the appointment of directors?

To counter the possibility of confrontation in a company and protect managerial efficiency (B) Signup and view all the answers

What is the effect of the phrase 'Notwithstanding anything contained in this Act' in Section 163?

It overrides all other provisions of the Companies Act, 2013 (C) Signup and view all the answers

What is the condition for a private company to be exempted from the application of Section 162?

The company must not have committed a default in filing its financial statements or Annual Return (C) Signup and view all the answers

What is the outcome of the simple majority rule in the appointment of directors?

Majority shareholders with 51% voting rights can easily negate the choice of minority shareholders (D) Signup and view all the answers

What is the primary objective of the provision of proportional representation in the appointment of directors?

To protect the interests of minority shareholders (A) Signup and view all the answers

What is the significance of Section 163 in the context of the appointment of directors?

It provides for the appointment of directors by way of proportional representation (A) Signup and view all the answers