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12th Standard English Medium Commerce Subject Company Management Book Back 3 Mark Questions with Solution Part - I

Published on: 03/06/2021

QB365 provides detailed and simple solution for every Book back Questions in class 12 Commerce Subject. It will helps to get more idea about question pattern in every book back questions with solution.

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Std: 12th Standard - Commerce

chapter: - Book back Questions

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Questions:

Generic 3

5 x 3 = 15

State the minimum number of Directors for a Private company.

What is causal Vacancy?

Who is a shadow director?

When are alternative directors appointed?

Differentiate Executive and Non-Executive Directors.

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Answers Key:

Generic 3

5 x 3 = 15

(i) In case of one person company, the requirement of directors is one.
(ii) In the case of other Private companies the minimum requirement of directors is two

Causal vacancy is a situation in which a seat in a delibrative assembly becomes vacant during that assembly's term, casual vacancies may arise through the death, resignation or disqualification of the sitting member or for other reason.

A person who is not the member of Board but has some power to run it can be appointed as the director but according to his/her wish.

(i) Alternate directors are appointed by the Board of Directors, as a substitute to a director who may be absent from India, for a period which is not less than three months.
(ii) The appointment must be authorised either by the Articles of Association of the company or by a passing a resolution in the General Meeting.
(iii) The alternative director is not a representative or agent of Original Director.

(i) An Executive Director can be either a whole-time Director of the Company or a Managing Director.
(ii) But a Non-Executive Director is a Director who is neither a Whole-time Director nor a Managing Director.