Directors – Practice Test 2 - corporatepreptest.com

This practice test covers key provisions related to the appointment, duties, powers, and liabilities of Directors.

Directors – Practice Test 3

1 / 50

Who cannot inspect the attendance register of Directors attending the Board Meetings

Company Secretary in Practice

Any Director

Secretarial/Statutory Auditor

Any Member

2 / 50

What type of need-based training can be provided to the directors of a bank

RBI Guidelines on Priority Sector Advances

RBI Guidelines and update circulars on Income recognition, Assets Classification and Provisioning

Recent amendments in the insolvency and Bankruptcy Code, 2016.

All of the above

3 / 50

The training program for directors of a banking company may not cover the following topic

Conduct applicable for the respective Directors

Corporate Governance

Actuarial Science

Model code of business ethics

4 / 50

The board of directors shall encourage continuing directors training to ensure that the members of Board of Directors

Can increase their liaison and knowledge updating on persons front as well

Gets out of the boredom

Can enjoy the status of director and networking

Are kept up to date knowledge about the regulatory changes and its impact on company’ business

5 / 50

Director’s Induction Training Module may contain

Introductions

Briefing

Internal visits

All of the above

6 / 50

Continuing education and professional development programmers for company directors

It is essential to ensure that directors remain abreast of all developments, which are or may impact on their corporate governance and other related duties

Is luxury

Directors already have the knowledge and experience

Useless expenses

7 / 50

The training program should be chalked out for

Woman Director

Independent Directors

Executive Directors and Non-Executive Directors

All of the above

8 / 50

Directors must have knowledge about

Challenges being faced by the Board

Area of operation of the company’s business

Corporate strategy

All of the above

9 / 50

The board should ensure that the directors are exposed to

The latest managerial techniques

The Risk Management systems prevailing in the industry at macro level and company at micro level

The technological developments in the industry

All of the above

10 / 50

Regulation 25(7) of SEBI (LODR) regulation, 2015 provides that the listed entity shall familiarise the _______ through various programmes about the listed entity

Independent Directors

Executive Director

Nominee Directors

Managing Director

11 / 50

An effective board of directors is a board that has

Regularly evaluates each individual member’s performance, as well as the board’s performance as a whole

Diversity within its members

Diversity with its talents

All of the above

12 / 50

The board have

All understands the difference between managing and governing

The foresightedness

Visualise the things

All of the above

13 / 50

An effective board

Shapes its culture and conducts its business

Defines the company’s purpose

Sets a strategy to deliver it

All of the above

14 / 50

The prime duty of the board is to provide ____ whereas the duty of the management is to ____ the company

Oversight/Run

Run/Oversight

15 / 50

Approving policies and procedures designed to ensure that the company operates responsibly and in compliance with applicable laws and regulations, is the responsibility of

Regulatory authority

Board of Directors

Auditors

Senior management

16 / 50

The Board is responsible for

Reviewing the major risk to the corporations business objectives (corporate risk profile)

Reviewing and approving the corporation enterprise risk management and framework.

Reviewing the risk retention, philosophy and risk tolerance guidelines.

All of the above

17 / 50

Which ____________ committee shall include the formulation of criteria for evaluation of performance of independent directors and the Board of Directors.

Audit Committee

Nomination Committee

Remuneration Committee

Only (B) & (C)

18 / 50

Evaluation mechanism of __________ is contained in Schedule-IV.

Additional Directors

Executive Directors

Independent Directors

Alternate Directors

19 / 50

How many DIN a person can have?

Only one

Three

Two

There is no limit

20 / 50

Any intermittent vacancy of a woman director shall be filled up by the Board at the earliest but

Till the conclusion of the general meeting

Not later than immediate next board meeting

Three months from the date of such vacancy

Whichever is later from (B) & (C)

21 / 50

Contravention of any of the provisions of Chapter-XI (Appointment and qualification of Directors) and for which no specific punishment is provided therein, the officer, who is in default, shall be liable to a penalty of

75,000/-

25,000/-

50,000/-

1,00,000/-

22 / 50

A company may, _________ remove a director, before the expiry of the period of his office after giving him a reasonable opportunity of being heard.

By special resolution

By ordinary resolution

23 / 50

Which among the following is eligible to be appointed as Director?

He is of unsound mind and stands so declared by a competent Court.

He is an undischarged insolvent.

He has been convicted by a Court involving moral turpitude and was imprisoned for a period of one month and a period of 10 years has been elapsed from the date of expiry of the sentence.

None of the above

24 / 50

The office of a Director shall become vacant in case he absents himself from all the meetings of the Board of Directors held during a period of _______ with or without seeking leave of absence of the Board.

12 months

10 months

15months

6 months

25 / 50

The maximum number of public companies in which a person can be appointed as a director shall not exceed

Fifteen

Twenty

Twelve

Ten

26 / 50

Any intermittent vacancy of a woman director shall be filled-up by the Board at the earliest but

Not later than immediate next Board meeting

Till the conclusion of the General Meeting

Three month from the date of such vacancy

Whichever is later from A and C

27 / 50

An independent director may be selected from a data bank, which is being maintained by

Indian Institute of Corporate Affairs

Ministry of Corporate Affairs

The Institute of Company Secretaries of India

The Institute of Chartered Accountant of India

28 / 50

An Independent director in relation to a company, means a director other than

A managing director

A nominee director

A whole-time director

All/any of the above

29 / 50

An Independent director in relation to a company, means

Who is or was not a promoter of the company or its holding, subsidiary or associate company

Who is not related to promoters or director in the company, its holding, subsidiary or associate company

Who, in the opinion of the Board, is a person of integrity and possesses relevant expertise and experience

All of the above

30 / 50

Every company shall have at least one director who stays in India for a total period of not less than one hundred and eighty-two days during the

Co-operative year

Financial year

Diwali year

Calendar year

31 / 50

Every company shall have _____ who stays in India for hundred and eighty-two days during the financial year

At least one independent director

One director

At least one director

At least two director

32 / 50

A company may appoint more than 15 directors

By passing a Special resolution in General Meeting

By passing a Board Resolution in Board Meeting

Company cannot increase the number more than 15

By passing an Ordinary Resolution in General Meeting

33 / 50

Who may become a member of Board of Directors

Any Firm or AoP

Any Public or Private Limited Company

Any Individual

Any L.L.P

34 / 50

The Board of Directors of a company can exercise the following powers on behalf of the company

Borrower money

Issue securities

Grant loans

All of the above

35 / 50

Whether the Board of Directors can delegate its powers

Yes, the power can be delegated to the Managing Director

No, power cannot be delegated

Yes, the power can be delegated to any Committee of Directors

Both A and C

36 / 50

The Board of Director of any company can exercise any power or do any act or thing which is directed or required whether

Under MoA of the Company

Under the Companies Act, 2013

Under AoA of the Company

All of the above

37 / 50

A meeting of the Board shall be called by giving not less than ____ notice in writing to every director

Nine days

Three days

Seven days

Five days

38 / 50

In company’s record, the Mumbai address of a Director is registered. His permanent address is at Nashik. However, he actually resides in Pune, where his son is residing. Where the company shall send notice for meeting of the Board of Directors

At his Mumbai address

At both the addresses of Mumbai and Pune

At his son’ Pune Address

At permanent address of Nashik

39 / 50

The participation of directors in a meeting of the Board may be

The Central Govt.

The concerned registrar of Companies

The State Govt. of concerned State where the Registered Office of the company is situated

The concerned regional Director

40 / 50

Which company is not required to hold meeting of the Board of Directors

One Person Company

Unlisted Public Company

Private Company

None of the above

41 / 50

The minimum member of meeting of the Board of Directors shall be held by a company every year

Four meeting

Two meeting

Three meeting

There is no restriction on the minimum number of meetings

42 / 50

A director of a company shall not achieve or attempt to achieve any undue gain or advantage either to himself or to his relatives, partners, or associates and if such director is found guilty of making any undue gain, he shall be liable to pay

No need to pay any penalty

An amount equal to that gain to the company

Heavy penalty as decided by the Board of Directors

An amount double to that gain to the company

43 / 50

The director of a company shall exercise his duties in the best interests of:

1. The shareholders

2. Its employees

3. The company

4. The Government

5. The promoters

6. The community

7. The protection of environment

Which among the above is correct

Only 3,5,4 & 1

Only 5,4,1 & 6

Only 3,2,1,6 & 7

All from 1 to 7

44 / 50

A director of a company shall not assign his office and any assignment so made shall be

Illegal

Valid

Void

Voidable

45 / 50

A director of a company shall exercise his duties with due and reasonable care, skill and diligence and shall exercise

Independent judgment

Logical judgment

True judgment

Dependent judgment

46 / 50

The director of company shall act in accordance with

The Memorandum of Association

The Articles of Association

The Directors of the Promoter

The Mandate given by the shareholders

47 / 50

If a director of a company contravenes the provisions of section 166 director shall be punishable with fine which shall not be less than one lakh rupees but which may extend to

Five lakh rupees

Seven lakh rupees

Three lakh rupees

Ten lakh rupees

48 / 50

Director may be personally liable in case of

Company’s business is to defraud the creditors

Director is guilty of fraud

Mis- statement in the prospectus

All of the above

49 / 50

A director is not expected

To ensure the truth the prospectus

To be Conversant with the provisions of the Companies Act, 2013

To involve in the routine day-today actives of the company

All of the above

50 / 50

A director shall have right

To received sitting fee

To attend the board meeting

To have the agenda papers in advance

All of the above

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