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Q1. AOA of ZNMD Ltd. specifies a maximum of 18 directors. There are 18 directors on Board. The Company seeks to appoint Mr. Adinath 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.
Noneof the above
Q2. Rama Ltd appointed Mr. Rahul as an Additional Director by passing a resolution by circulation. Is the appointment valid?
Valid
Invalid
Valid after ratification
If AOA provides for appointment by resolution by circulation, then the same is valid.
Q3. KHL Ltd. appointed Ms. Shruthi as Woman Director. Mr. Sham brother of Ms. Shruthi is the Director of a Section 8 Company which receives 32% of its income from KHL Ltd. Can Ms. Shruthi continue as a Woman Director?
Yes
No, because she loses her independence
Can continue by taking approval from Company
None of the above.
Q4. Mr. Suresh is a Director of ABC Ltd., XYZ Ltd. and PQR Ltd. ABC Ltd. did not file annual accounts for the year ended 31st March, 2002 and failed to pay interest on loans taken from a public financial institution from 1st Jan, 2002 onwards and also failed to repay the matured deposits on due date from 1st April, 2002 onwards. Mr. Suresh is proposed to be appointed as additional director of Manyata Ltd. on 1st June, 2003. Comment.
Mr. Suresh can be appointed as Additional Director for Manyata Ltd. but cannot continue with ABC Ltd., XYZ and PQR Ltd.
Mr. Suresh can be appointed as Additional Director for Manyata Ltd. but cannot continue with XYZ and PQR Ltd.
Mr. Suresh cannot be appointed as Additional Director for Manyata Ltd. and cannot continue with ABC Ltd., XYZ and PQR Ltd.
Mr. Suresh cannot be appointed as Additional Director for Manyata Ltd. and cannot continue with XYZ and PQR Ltd.
Q5. Ms. Juliet holds directorship in eight public companies including managing directorship in 2 companies and directorship in 6 companies. In addition, she intends to take up independent directorship in 3 subsidiary companies of LIT Limited. Is the position valid?
As she was already a director in 8 public companies, her appointment in LIT Limited is not valid as it will lead to her directorship in 14 public companies.
As she was already a director in 8 public companies, her appointment in LIT Limited is not valid as it will lead to her directorship in 11 public companies. She can however take directorship in any 2 of the 3 companies proposed.
She can either choose between the companies in which she wishes to continue to hold the office of director and resign her office as director in the other remaining companies.
[(a) or (b)] & (C)
Q6. RML Ltd. issued shares of the nominal value of Rs. 10 per share, out of which Rs. 5 was payable on application and balance Rs. 5 was payable on call. The call money was invited by the Board of Directors but some shareholders, including a non–executive director, failed to pay the same within the prescribed period. Will the Non-Executive Director be disqualified from his position and will he have to vacate?
If call is not paid within 1 year from the last date fixed for the payment of the call, he shall vacate the office of director held by him.
If the call is not paid within 182 days from the last date fixed for the payment of the call, he shall vacate the office of director held by him.
If the call is not paid within 6 months from the last date fixed for the payment of the call, he shall vacate the office of director held by him.
None of the above
Q7. XYZ Ltd. is Whole Owned Subsidiary of Government Company. The members of XYZ Ltd. applied for inspection of Register of Directors maintained u/s 170. Company seeks your advice.
Sec 171 gives the right to Members for inspection of register.
If the members ask for inspection of register in Business Hours the same is permitted.
Both (a) and (b)
Sec 171 is not applicable to Whole Owned Subsidiary of Government Company
Q8. LIT Ltd., having a paid up capital of Rs. 120 Cr in the financial year 2017-18 appoints Ms. Juliet as the women director on 1st March 2018. She already holds directorship in twelve companies including 10 public companies.
As she was already a director in ten public companies, her appointment in LIT Limited is not valid as it will lead to her directorship in 11 public companies.
She can either choose between the companies in which she wishes to continue to hold the office of director and resign her office as director in the other remaining companies.
Can take up directorshi p inLIT Ltd.
(a) or [(b) & (c)]
