Balbharti Maharashtra State Board Class 11 Secretarial Practice Important Questions Chapter 6 Directors and Key Managerial Personnel of a Company Important Questions and Answers.
Maharashtra State Board 11th Secretarial Practice Important Questions Chapter 6 Directors and Key Managerial Personnel of a Company
1A. Select the correct answer from the options given below and rewrite the statements.
Question 1.
DIN means __________
(a) Director Identification Number
(b) Secretary Identification Number
(c) Doctor Identification Number
Answer:
(a) Director Identification Number
Question 2.
Private company requires __________ Directors.
(a) 3
(b) 2
(c) 1
Answer:
(b) 2
Question 3.
COO means __________
(a) Chief Operating Officer
(b) Chief Financial Officer
(c) Chief Organization Officer
Answer:
(a) Chief Operating Officer
Question 4.
CS means __________
(a) Company Secretary
(b) Company Standard
(c) Chief Store Manager
Answer:
(a) Company Secretary
1B. Match the pairs.
Question 1.
| Group ‘A’ | Group ‘B’ |
| (a) DIN | (1) Whole-time Director |
| (b) Executive Director | (2) Chief Executive Officer |
| (c) Key Managerial Personnel | (3) Alternate Director |
| (d) Company Secretary | (4) Director Identification Number |
| (e) Chief Financial Officer | (5) Member of ICWA |
| (6) Officer responsible for Company’s finance | |
| (7) Member of ICSI | |
| (8) Officer responsible for Company’s Management |
Answer:
| Group ‘A’ | Group ‘B’ |
| (a) DIN | (4) Director Identification Number |
| (b) Executive Director | (1) Whole-time Director |
| (c) Key Managerial Personnel | (2) Chief Executive Officer |
| (d) Company Secretary | (7) Member of ICSI |
| (e) Chief Financial Officer | (6) Officer responsible for Company’s finance |
1C. Write a word or a term or a phrase that can substitute each of the following statements.
Question 1.
DIN means.
Answer:
Director Identification Number
Question 2.
This is an audit that checks the compliance of the company.
Answer:
Secretarial Audit
Question 3.
It aims to achieve and integrate corporate practices to all companies.
Answer:
Secretarial Standard
Question 4.
As a principal officer of the company.
Answer:
Secretary
Question 5.
A Director who is in Whole Time Employment of the company.
Answer:
Whole Time Director
Question 6.
A first secretary appointed by the promoter.
Answer:
Pro-tem Secretary
Question 7.
Written proceeding of the meeting.
Answer:
Minutes
Question 8.
A person holding shares of nominal value ₹ 20,000.
Answer:
Small shareholders
Question 9.
Shares are required to be bought by the directors.
Answer:
Qualification shares
Question 10.
The person nominated on the Board by a dominant shareholder.
Answer:
Nominee Director
Question 11.
The director is in full-time employment with the company.
Answer:
Executive Director or Whole Time Director
Question 12.
Director designated as ‘Outside Director’.
Answer:
Nonexecutive Director
Question 13.
Fees paid to Directors for attending a Board meeting
Answer:
Sitting fees
1D. State whether the following statements are True or False.
Question 1.
A Directors include whole-time employment of company is called WTD.
Answer:
True
Question 2.
DIN is required for Directorship.
Answer:
True
Question 3.
Secretarial audit checks the compliance of the company.
Answer:
True
Question 4.
Secretary is not the principal officer of the company.
Answer:
False
Question 5.
Not providing guidance to the Board of Directors of the company is a general duty of the secretary.
Answer:
False
1E. Find the odd one.
Question 1.
Directors as Agents, as managing partners, As a company secretary.
Answer:
As a company secretary
Question 2.
First Directors, Casual vacancy, Audit.
Answer:
Audit
Question 3.
Chief Executive Officer, Chief Financial Officer, Promoter.
Answer:
Promoter
1F. Complete the sentences.
Question 1.
Statutory duties of secretary is to make all meetings __________
Answer:
minutes
Question 2.
There is no prohibition on having more than one in a company __________
Answer:
Managing Director
Question 3.
CFO is __________
Answer:
Chief Financial Officer
Question 4.
WTD means __________
Answer:
Whole Time Director
Question 5.
KMP is __________
Answer:
Key Managerial Personnel
1G. Select the correct option from the bracket.
Question 1.
| Group ‘A’ | Group ‘B’ |
| (1) Managing Director | ………………………….. |
| (2) ……………………. | ICSI passed |
| (3) Manager | ………………………….. |
| (4) Secretarial Audit | Checks the Legislations |
(Substantial powers, Fulltime employee, Secretary, Checks the legislations)
Answer:
| Group ‘A’ | Group ‘B’ |
| (1) Managing Director | Substantial powers |
| (2) Secretary | ICSI passed |
| (3) Manager | Full-time employee |
| (4) Secretarial Audit | Checks the Legislations |
Question 2.
| Group ‘A’ | Group ‘B’ |
| (1) First Director | ………………………. |
| (2) ……………………. | Key Managerial Personnel |
| (3) Pro-tem Secretary | ………………………. |
| (4) Secretarial Standards | ………………………. |
(First Secretary, Appointed by the Promoter, Formulated by ICSI, Whole Time Director)
Answer:
| Group ‘A’ | Group ‘B’ |
| (1) First Director | Appointed by the Promoter |
| (2) Whole Time Director | Key Managerial Personnel |
| (3) Pro-tem Secretary | First Secretary |
| (4) Secretarial Standards | Formulated by ICSI |
1H. Answer in one sentence.
Question 1.
What do you mean by Nominee Director?
Answer:
The person nominated on the board by a major/dominant shareholder is known as the nominee director.
Question 2.
What do you mean by Independent Director?
Answer:
Independent Director is a director other than managing director, whole-time director, or a nominee director.
Question 3.
Which Companies have to appoint a Woman Director?
Answer:
Every listed company and the public company has a paid-up share capital of Rs. 100 crores or more and whose turnover is Rs. 300 crores or more, have to appoint a Woman Director.
Question 4.
What do you mean by Alternate Director?
Answer:
It means a director who is nominated by the board to act in the place of a director in his absence.
Question 5.
Who is in full-time employment with the company?
Answer:
The executive director (WTD) is in full-time employment with the company.
Question 6.
What do you mean by Qualification shares?
Answer:
Qualification shares are those shares that are to be bought by the intending director, so as to become a director of a company.
1I. Correct the underlined word and rewrite the following sentences.
Question 1.
RIN is the unique identification number of the director.
Answer:
DIN is the unique identification number of the director.
Question 2.
Whole-time Director is not involved in the day-to-day management of the company.
Answer:
Non-Executive Director is not involved in the day-to-day management of the company.
Question 3.
A company having paid-up share capital of ₹ 10 crores or more has to appoint a Woman Director.
Answer:
A company having paid-up share capital of ₹ 100 crores or more has to appoint a Woman Director.
Question 4.
Big Shareholder’s Directors is not a mandatory appointment.
Answer:
Small Shareholder’s Directors is not a mandatory appointment.
Question 5.
Directors are regarded as an employee of the company.
Answer:
Directors are regarded as an elected representatives of shareholders of the company.
Question 6.
A small shareholder is a person holding shares of a maximum of ₹ 50,000.
Answer:
A small shareholder is a person holding shares of a maximum of ₹ 20,000.
Question 7.
The manager needs to be the director of the company.
Answer:
The managing director needs to be the director of the company.
2. Explain the following Terms/Concepts.
Question 1.
Pro-tem Secretary
Answer:
The first secretary appointed by the promoters of the company is termed as Pro-tem Secretary. He may or may not be appointed as a regular secretary by the Board.
Question 2.
Sitting Fees
Answer:
Fees paid to the director for attending Board or Committee meeting is called as Sitting fees. It may extend up to Rs. one lakh also.
3. Answer in brief.
Question 1.
State the importance of DIN.
Answer:
Importance of DIN:
- It helps the investors to take accurate and appropriate decisions, as through DIN they get to know the composition of top management of the company.
- It helps to handle the problems arising due to the company creating fraud after raising capital from the investors.
- It helps to detect and handle offenses committed by a particular Director.
Question 2.
What are the general duties of a Company Secretary?
Answer:
General duties depend on the size and nature of the business.
Some of the general duties are as follows:
- To provide guidance to the Board and Director with respect to their duties, responsibilities, and powers.
- To represent before different regulators and authorities and discharge different duties under the Act.
- To assist the Board in the conduct of the affairs of the company.
- To assist and advise the Board in ensuring good corporate governance.
- To perform all the duties that may be assigned by the Board from time to time.
Question 3.
State the rights of a Company Secretary.
Answer:
Rights of a Company Secretary: Rights are given to the Secretary by the Companies Act, Board of Directors, and the Shareholders.
The rights of the Company Secretary are given below:
- Right to control and supervise the working of his department.
- Right to be indemnified by the company if any loss is suffered by Secretary while performing or discharging his duties.
- Right to sign a document requiring authentication.
- Right to get remuneration as an employee of the company.
Question 4.
State the importance of Secretarial Audit?
Answer:
Importance of Secretarial Audit:
- It provides a mechanism that monitors the compliance requirements.
- It detects errors and mistakes in compliance with companies’ rules and regulations mechanism.
- It prevents the company from the risk and losses due to non-compliance.
- It builds the confidence of regulators, management, and stakeholders.
- Investors feel relaxed that the company is following a disciplined approach towards management.