Company Law - Appointment and Qualifications of Directors
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Questions and Answers

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?

    <p>Having an independent mindset</p> Signup and view all the answers

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

    <p>The company must have a Resident Director proportionately at the end of the financial year</p> 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?

    <p>To hinder the decision</p> Signup and view all the answers

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

    <p>It is neither refunded nor adjusted with any other application</p> Signup and view all the answers

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

    <p>For the lifetime of the applicant</p> Signup and view all the answers

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

    <p>The application is treated as invalid</p> Signup and view all the answers

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

    <p>Either by letter by post or electronically or in any other mode</p> Signup and view all the answers

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

    <p>They are deemed to have been allotted under these rules</p> Signup and view all the answers

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

    <p>The applicant is directed to file a fresh application with complete and correct information</p> Signup and view all the answers

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

    <p>By the company in general meeting</p> Signup and view all the answers

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

    <p>Furnishing incomplete documents or suppressing material information</p> Signup and view all the answers

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

    <p>They must have been allotted a DIN under section 154</p> Signup and view all the answers

    Under which circumstances can the Central Government deactivate a DIN?

    <p>If the DIN holder fails to intimate his particulars in e-form DIR-3-KYC within the stipulated time</p> Signup and view all the answers

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

    <p>To declare that they are not disqualified to become a director under this Act</p> Signup and view all the answers

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

    <p>Fraudulent manner</p> Signup and view all the answers

    Who is authorised to deactivate a DIN?

    <p>The Central Government or the Regional Director (Northern Region)</p> Signup and view all the answers

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

    <p>They must give their written consent to hold the office as a director</p> Signup and view all the answers

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

    <p>The DIN holder has never been appointed as a director in any company</p> Signup and view all the answers

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

    <p>To obtain a unique identification number as a director</p> 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?

    <p>Form DIR-2</p> Signup and view all the answers

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

    <p>To ensure that the DIN has not been used for any filings</p> Signup and view all the answers

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

    <p>To counter the possibility of confrontation in a company and protect managerial efficiency</p> Signup and view all the answers

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

    <p>It overrides all other provisions of the Companies Act, 2013</p> Signup and view all the answers

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

    <p>The company must not have committed a default in filing its financial statements or Annual Return</p> Signup and view all the answers

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

    <p>Majority shareholders with 51% voting rights can easily negate the choice of minority shareholders</p> Signup and view all the answers

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

    <p>To protect the interests of minority shareholders</p> Signup and view all the answers

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

    <p>It provides for the appointment of directors by way of proportional representation</p> Signup and view all the answers

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