GK
BUSINESS MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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true
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false
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Either A or B
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None of the above
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Detailed explanation-1: -Partnerships can do without directors, but they’re a standard part of corporate structure. Below the shareholders are the board of directors, then the corporate officers. The board carries out the will of the shareholders, while the officers handle day-to-day management decisions.
Detailed explanation-2: -A corporation is set up in this structure: Shareholders own the stock of the corporation. Shareholders elect Directors (known as the “Board of Directors”).
Detailed explanation-3: -6.1 The ultimate responsibility to appoint/remove directors should be that of the Company (Shareholders). If the Directors themselves are legally disqualified to hold directorships, they should have an equal responsibility for disclosing the fact and reasons for their disqualification.
Detailed explanation-4: -Companies Act, 2013 defines the term “Director” as someone appointment to the Board of a company. The Board of Directors means a group of those individuals elected by the shareholders of a company to manage the affairs of the company.