MCQs for CA Final Exam - CAFinal[dot]Org: Complete Learning Portal for CA Final Students

Quiz

Q1. Which of the following persons can be appointed as a Director of a company in 2019: a. Mr. Amar, who has huge personal liabilities far in excess of his Assets and Properties, has applied to the court for adjudicating him as an insolvent and such application is pending. b. Mr. Bakshi, who was caught red-handed in a shop lifting case two years ago, was convicted by a court and sentenced to imprisonment for a period of eight weeks. c. Mrs. Chetana, a Former Bank Executive, was convicted by a court eight years ago for embezzlement of funds and sentenced to imprisonment for a period of one year. d. Mr. Dhiraj is a Director of DLT Limited, which has not filed its Annual Returns pertaining to the Annual General Meetings held in the calendar years 2011, 2012 and 2013.

Mr. Amar & Mr. Dhiraj

Mr. Bakshi & Mrs, Chetana

Mrs. Chetana & Mr. Amar

Mr. Dhiraj & Mrs. Chetana

Q2. AOA of XYZ Ltd. specifies a maximum of 12 directors. There are 12 directors on Board. The Company seeks to appoint Mr. Sinha as Additional Director. Can the same be done?

Additional Director is not counted in Maximum number of directors, hence valid.

Additional Director is counted in Maximum number of directors, hence invalid.

Additional Director is counted in Maximum number of directors but since Act provides a maximum of 15 directors, hence appointment is valid.

None of the above

Q3. PQR Ltd appointed Ms. Smita as an Additional Director by passing a resolution by circulation. Is the appointment valid?

Valid

Valid after ratification

Invalid

If AOA provides for appointment by resolution by circulation, then the same is valid

Q4. Mr. Ketan, director of OIL Ltd. absents himself for a period more than 12 months with notice. Hence the Company decides on appointing an Alternate Director. However, CS of the Company is of the opinion that an Alternate Director cannot be appointed hence the position shall be filled in by a Casual Vacancy Director. Is the contention of the CS correct?

Yes, a Casual vacancy director needs to be appointed.(>12 mths)

No, since the director has given notice of absence an Alternate Director can be appointed.

Based on the circumstances and the intention of Director to return to his position, the same can be decided on a case to case basis.

Any of the above

Q5. Board of PQR Ltd. seeks to appoint Mr. L as Alternate Director of Mr. S, an Independent Director. What is the basic requirement?

Shall not be an Individual rejected by the Company

The individual so proposed shall also be eligible to be appointed as Independent Director.

Boardcan appoint only if AOA gives power.

All of above

Q6. RWD Ltd. A Listed Company, in its AOA empowers the Board of Directos to appoint Additional Director. The Board of Directors, therefore, appoints Mr. Raj as the additional director. It was noticed that the proposal to appoint Mr. Raj as a director on the Company’s Board was rejected by the members at the company’s AGM just before his eventual appointment by BOD as Additional Director. Whether Mr. Raj’s appointment as additional director by the Board of Directors is valid?

Power to appoint additional director vests with the BOD and hence Mr. Raj can be appointed.

The appointment of Mr. Raj as Additional Director by the Board of Directors is not valid as he was earlier rejected by the members.

If the AOA provides for authority of BOD for appointment of Additional Directors, then same cannot be objected.

If the AOA provides for authority of GM for appointment of Additional Directors, then same cannot be objected.

Q7. PQR Ltd appointed Ms. Smita as an Additional Director. Till when can she hold directorship?

Terms of appointment

Next AGM

DateonwhichAGM should have been held

(b) or (c) whichever is earlier

Q8. LYF Ltd. appoints Mr. Naren as a Casual Vacancy Director in its Board Meeting complying and in accordance with the provisions of the Act. The members suggest that appointment of Mr. Naren is invalid as their approval wasn’t taken. Comment.

Q9. ZNMD Ltd. appointed an Alternate Director and a Casual Vacancy Director by passing resolution by circulation. Comment.

Alternate Director cannot be appointed by passing resolution by circulation, however, Casual Vacancy Director can be.

Casual Vacancy Director cannot be appointed by passing resolution by circulation, however, Alternate Director can be.

Both Casual Vacancy Director and Alternate Director can be appointed by passing resolution by circulation.

Both Casual Vacancy Director and Alternate Director cannot be appointed by passing resolution by circulation.

Q10. Mr. Sam, a Director of DCH Ltd. dies in a casualty. However, the Company in its Board meeting decides not to fill the casual vacancy. Is it valid?