MCQs on Board of Directors
Multiple Choice
Questions and Answers (MCQS)
Companies Act 2013
MCQs (2021 – 2022)
Given below are MCQs on Board of Directors updated for 2021 – 2022 exams. These MCQs on Board of Directors of Companies Act 2013 are useful for B.Com, BBA, M.Com, MBA, UGC – NET (NTA NET), CA – IPCC, CMA Intermediate, CS Foundation CSEET Exam and all other competitive exams of commerce stream students.
Choose the Correct Alternative
1. A person cannot act as managing director of more than
_______company/companies at a time.
a) 5
b) 10
c) 15
d) 20
Ans:
c) 15
2. Who undertakes the management & control of the
affairs of the company on behalf of its owners?
a) Company secretary
b) Board of directors
c) Promoters
d) None of the above
Ans:
b) Board of directors
3. A joint stock company is managed by the board of
directors elected by:
a) Company secretary
b) Board of directors
c) Promoters
d) Members
Ans:
d) Members
4. Minimum number of directors in a private company is:
a) 1 (One)
b) 2 (Two)
c) 3 (Three)
d) 4 (Four)
Ans:
b) 2 (Two)
Also you can read Company Law Chapter wise MCQs together with some additional Questions:
1. Company Law MCQs (130+ Questions)
2. Formation of Companies MCQs
3. MCQ on Memorandum and Articles of Association
7. MCQ on Winding Up of A Company
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5. Minimum number of directors in a public company is:
a) 1 (One)
b) 2 (Two)
c) 3 (Three)
d) 4 (Four)
Ans:
c) 3 (Three)
6. Maximum number of directors in all the companies is:
a) 5 (Five)
b) 10 (Ten)
c) 15 (Fifteen)
d) 20 (Twenty)
Ans:
c) 15 (Fifteen)
7. Which of the following company must appoint one woman
director?
a) Every listed company
b) Every public companies having a paid up share capital of Rs. 100 crores
c) Every public companies having turnover of Rs. 300 crores of more
d) All of the above
Ans:
d) All of the above
8. The first directors of a public company are appointed
by:
a) Articles of association
b) The subscribers of memorandum of association
c) Both a & b
d) None of the above
Ans:
c) Both a & b
9. Maximum number of public companies in which a person
can be appointed as a director:
a) 5 (Five)
b) 10 (Ten)
c) 15 (Fifteen)
d) 20 (Twenty)
Ans:
b) 10 (Ten)
10. Maximum number of directorship including alternate
directorship is:
a) 5 (Five)
b) 10 (Ten)
c) 15 (Fifteen)
d) 20 (Twenty)
Ans:
d) 20 (Twenty)
11.
Every listed public company shall have at least _________of the total number of
directors as independent directors.
a) 1/3 of total number of directors
b) ¼ of total number of directors
c) 20% of total number of directors
d) None of the above
Ans:
a) 1/3 of total number of directors
12.
Every public company shall have at least two independent directors. Here public
company means company:
a) Having paid-up share capital of Rs. 10 crores of more
b) Having Turnover of Rs. 100 crores or more
c) Having outstanding loans, debentures and deposits of Rs. 50 crores or more
d) All of the above
Ans:
d) All of the above
13.
Companies listed on the stock exchange have to appoint at least _____ female
director within six months of the company’s registration.
a) 1 (One)
b) 2 (Two)
c) 3 (Three)
d) 4 (Four)
Ans:
a) 1 (One)
14. The appointment of subsequent directors of a company is
made in the:
a) Annual General Meeting
b) Extra-ordinary general meeting
c) Class meeting
d) None of the above
Ans:
a) Annual General Meeting
15. _______ of the total directors is liable to retire by
rotation.
a) 1/3 of total number of directors
b) ¼ of total number of directors
c) 2/3 of total number of directors
d) None of the above
Ans:
c) 2/3 of total number of directors
16. There are restrictions on who can act as a director. Which
one of the following is not a valid restriction?
a) A person of unsound mind.
b) An undischarged insolvent.
c) Convicted of any offence.
d) Do not have specified academic qualification.
Ans:
d) Do not have specified academic qualification.
17. Qualification shares for a director are provided in
the:
a) Appointment letter
b) MOA
c) AOA
d) Prospectus
Ans:
c) AOA
18. For the board of directors of the company, the entire
company is a:
a) Profit center
b) Expense center
c) Responsibility center
d) None of the above
Ans:
c) Responsibility center
19. Where a company has three directors the maximum
remuneration payable to all of them is:
a) 5%
b) 10%
c) 11%
d) 20%
Ans:
b) 10%
20. In case of appointment of directors form is to be
filed?
a) Form DIR – 11
b) Form DIR – 12
c) Form DIR – 13
d) Form DIR – 14
Ans:
b) Form DIR – 12
State whether the following statements are true or false:
1. Managing director is appointed by a resolution passed by the company in general meeting. True
2. Only individual can be appointed as a director. True
3. A person below the age of 21 years or has attained the age of 70 years cannot be appointed as managing director. True
4. A managing director can be appointed for a maximum period of 5 years. True
5. Manager may not be a director. True
6. Managing director must be a director of the company. True
7. Maximum number of manager in a company is one. True
8. Maximum remuneration to a managing director cannot exceed 5% of the net profits. True
9. Only the directors have the power to call a general meeting. True
10. The director of a company must be a shareholder. False
11. A company may appoint more than one managing director. True
12. Approval of the central government is required for appointment or reappointment of managerial personnel. False
13. Only individual can be appointed as a director. Body corporate, AOP, BOI or firms shall not be appointed as a director of a company. True
14. A director's election takes place in a general meeting through a separate resolution passed by a simple majority. True
15. Only the directors have the power to call a general meeting. True
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