This document contains 60 multiple choice questions related to directors and the board of directors according to the Companies Act. The questions cover topics such as the minimum and maximum number of directors allowed, requirements for independent directors, qualifications and disqualifications of directors, director remuneration, roles and responsibilities of directors, and requirements for board meetings. Sample questions are included to illustrate the types of concepts addressed. The purpose of the document is to provide a question bank related to the secretarial practice syllabus for B.Com students.

1. By – Tejas Gaydhane Sir
Gondwana University Gadchiroli Syllabus
B.Com. IInd
Year, Sem.IV
Sub. - Secretarial Practice
Multiple Choice Questions (MCQs)
By – Tejas Gaydhane Sir
1 A person cannot act as managing director of more than company/companies at a time.
/ श .
a) 5
b) 10
c) 15
d) 20
Ans: c) 15
2. Who undertakes the management & control of the affairs of the company on behalf of its owners?
?
a) Company secretary
b) Board of directors
c) Promoters
d) None of the above
Ans: b) Board of directors
3) A joint stock company is managed by the board of directors elected by /
A) company secretary

2. By – Tejas Gaydhane Sir
B) board of director
C) promoters
D ) members
Ans: D ) members
4) minimum number of directors in a private company is /
.
A) One
B) Two
C) Three
D) Four
Ans: B) Two
5) minimum number of directors in a public company is /
.
A) 1 ( One)
B) 2 (Two)
C) 3 (Three)
D) 4 (Four)
6) maximum numbers of directors in all the companies is /
श .
A) 5 (Five)
B) 10 (Ten)
C) 15 (Fifteen)

3. By – Tejas Gaydhane Sir
D) 20 (Twenty)
7) which of the following company must appoint one woman directors? /
?
A) every listed company /
B) every public companies having a paid up share capital of rupees 100 crores /
श 100
C) every public companies having turnover of rupees 300 crores of more / 300
D) all of the above /
8) the first directors of a public company are appointed by /
A) articles of association / श
B) the subscribers of memorandum of association / ऑफ श
C) both a and b / a b
D) none of the above /
9) maximum number of public companies in which a person can be appointed A director /
श
A) Five 5
B) Ten
C) Fifteen
D) Twenty

4. By – Tejas Gaydhane Sir
10) maximum number of directorship including alternate directorship is /
A) 5
B) 10
C) 15
D) 20
11) every listed public company shall have a list __________ of the total number of directors as
independent directors. /
_________ .
A) 1/3 of total number of directors / 1/3
B) 1/4 of total number of directors / 1/4
C) 20% of total number of directors / 20%
D) none of the above /
12) every public company shall have at least two independent directors. here public company means
company / .
A) having ped up share capital of rupees 10 crore or more / 10
B) having turnover of rupees 100 crores or more /100
C) having outstanding loans debentures and deposits of rupees 50 crores or more /
५०

5. By – Tejas Gaydhane Sir
D) all of the above /
13) companies listed on the stock exchange have to appoint at least ___ female director within 6
months of the companies registration. / 6
___ .
A) 1
B) 2
C) 3
D) 4
14) the appointment of subsequent directors of a company is made in the /
A) annual general meeting /
B) extraordinary general meeting /
C) class meeting /
D) none of the above /
15) ___ of the total directors is liable to retire by rotation. / श
.
A) 1/3 of total number of directors
B) 1/4 of total number of directors
C) 2/3 of total number of directors
D) none of the above

6. By – Tejas Gaydhane Sir
16) there are restrictions on who can act as a director. Which one of the following is not a valid
restriction. / श श . .
A) a person of unsound mind /
B) and undischarged insolvent /
C) convicted of any offence. / .
D) do not have specified academic qualification / श
17) qualification share for a director have provided in the / श
A) appointment letter /
B) MOA
C) AOA
D) prospectus /
18) for the board of directors of the company, the entire company is a / ,
______ .
A) profit centre / फ
B) expense centre/
C ) responsibility centre /
D) none of the above/
19) where a company has three directors the maximum remuneration payable to all of them is /
,

7. By – Tejas Gaydhane Sir
A) 5%
B) 10%
C) 11%
D) 20%
20) in case of appointment of directors form is to be filled? / फ
.
A) form DIR 11
B) form DIR 12
C) form DIR 13
D) form DIR 14
21. Acompany secretary should have thorough kowledge of provisions of / _________
.
(a) income tax
(b) Companies Act
(c) labour law
(d) All of the above
Ans. d
22. Minimum number of directors in a private company is / .
(a) 1 (b) 3
(c) 2 (d) 4
Ans. C
23 What is not included in the of director under Companies Act? /
?

8. By – Tejas Gaydhane Sir
(a) Salary /
(b) incentive in profit/ फ
(c) Fee paid as managing director/ फ
(d) Fees of attending the meeting/ श
Ans. d
24. If a director fails to attend three consecutive meetings, without seeking permission of the Board of
Directors, then what may be the consequences in this case? / ,
, श ?
(a) He will not become director of any company further /
(b) He has to vacant his office /
(c) He will have to pay a tine of rs. 50000 / . 50000 फ इ .
(d) Any one of the above /
Ans. B
25. Qualification share is related with / श श
(a) (b) (c) (d)
(a) auditor of the company /
(b) officer of the company/
(c) director of the company/
(d) None of these/
Ans. c
26. Minimum number of directors in a public company is

9. By – Tejas Gaydhane Sir
(a) 1
(b) 2
(c) 3
(d) 4
Ans.c
27. A person who is company secretary and director of company is /
(a) employee director /
(b) executive director/
(c) non-executive director / -
(d) independent director /
Ans. b
28. The appointment of a statutory auditor under Section 224A is with reference to 25% of /
224A 25%
(a) paid-up capital /
(b) issued capital /
(c) subscribed capital /
(d) only equity capital /
Ans. c
29. A special notice is required for / श
(a) removal of a member /

10. By – Tejas Gaydhane Sir
(b) removal of the company secretary /
(c) removal of a nominee director / श
(d) None of the above /
Ans. D
30. Age limit of a director in a public company is
(a) 50
(c) 65
(b) 60
(d) no limit
Ans. c
31. As per the provisions of the Companies Act, 1956, the form of proxy must be deposited with the
company atleast / , 1956 , फ
.
(a) 24 hours before the time of AGM
(b) 36 hours before the time of AGM
(c) 48 hours before the time of AGM
(d) 72 hours before the time of AGM
Ans.c
32. In a listed company with 11 directors, what is the quorum for the board meeting? / 11
, ?
(a) 2 directors
(c) 4 directors
(b) 3 directors

11. By – Tejas Gaydhane Sir
(d) 5 directors
Ans.c
33. Age limit of a director in a private company is
(a) 50
(c) 65
(b) 60
(d) no limit
Ans. d
34. On striking off the name of a company considered defunct, the Registrar of Companies is required
to / , ऑफ
(a) publish notice thereof in official gazette /
(b) inform the State Government /
(c) inform the Central Government /
(d) inform the Ministry of Corporate Affairs /
Ans. a
55. The initial disclosure by a director or officer of a listed company under the SEBI (Prohibition of
insider trading) Regulation, 1992 has to be made within / SEBI (Insider Trading ) ,
1992
(a) 4 days of the concerned person's joining the company / ४
(b) 7 days of the concerned person's joining the company / ७

12. By – Tejas Gaydhane Sir
(c) 15 days of the concerned person's joining the company / १५
(d) 21 days of the concerned person's joining the company / २१
Ans. A
36. As per clause 49 of the listing agreement, the audit committee comprising of five directors must
have a minimum of / 49 , श
(a) 2 independent directors
(b) 3 independent directors
(c) 4 independent directors
(d) 1 independent director
Ans. c
37. What is the percentage of average net profit to be contributed as political contribution passed by
Board of Directors? /
?
(a) 10%
(b) 5%
(c) 15%
(d) None of the above
Ans. b
38. Generally, rights and obligations of the company are regulated in …./ ,
(a) Memorandum of Association
(b) Articles of Association

13. By – Tejas Gaydhane Sir
(c) partnership deed
(d) None of the above
Ans. a
39. What is the nominal value of shares that must be there with the director of the company as per
company article? / श
?
(a) 50000
(c) 5000
(b) 150000
(d) no limit
Ans. c
40. What is the maximum number of companies in which a person can be a director at a time? /
श श ?
(a) 10
(b) 15
(c) 20
(d) 25
Ans. b
41. Which schedule discusses about the provision for managerial remuneration? /
?
(a) Schedule X
(c) Schedule XII
(b) Schedule XIII
(d) None of these
Ans. B

14. By – Tejas Gaydhane Sir
42. Out of the following, which states the maximum number of directors in a company? / ,
?
(a) Memorandum of Association / ऑफ श
(b) Articles of Association / श
(c) Board of Directors /
(d) Central Government /
43. What is the maximum duration for holding the office by a director who is appointed against a
casual vacancy? /
?
(a) Till the end of the next AGM /
(b) Till the period allotted to the person against whom he has been appointed after casual vacancy /
(c) Till the other regular director is appointed / इ
(d) None of the above /
Ans. B
44. Who can appoint an alternate director in special conditions? / श
श ?
(a) Board of Directors
(b) Shareholders themselves in AGM

15. By – Tejas Gaydhane Sir
(c) State Government
(d) None of the above
Ans. b
45. In which type of companies, there is no limit for the number of directorship? /
?
(a) Private company /
(c) Limited company
(b) Public company
(d) None of these
Ans. a
46. Out of the following, who will be called for AGM (Annual General Meeting) ? , AGM
( ) श ?
(a) Equity shareholders
(b) Preference shareholders
(c) Auditor
(d) All of these
Ans. d
47. Out of the following, who will issue the Secretarial Compliance Certificate? / ,
?
(a) Board of Directors
(b) Company secretary who is in practice
(c) Central Government
(d) All of the above
Ans. b

16. By – Tejas Gaydhane Sir
48. Who is liable to file various legal returns to Registrar of Companies? / ऑफ
श ?
(a) Chartered accountant
(c) Statutory auditor
(b) Managing director
(d) Company secretary
Ans. d
49. When a company issues shares to its existing shareholdes I than the market price in proportion to
their present holdings it is called /
.
(a) bonus issue
(c) right issue
(b) new issue
(d) None of these
Ans. c
50. Statutory duty of a company secretary includes / श
(a) issue of shares /
(b) observe all legal formalities with being specifically authorized to do so / श
श
(c) call for AGM /
(d) All of the above /
Ans. B
51. The minimum number of members in a public limited company is
(a) 5
(b) 6

17. By – Tejas Gaydhane Sir
(c) 7
(d) 9
Ans.c
52. The contract signed by the promoters of company /
(a) can ratified by the company after incorporation /
श
(b) is legally binding upon the company after registration / श
(c) cease to be the personal liability of promoters after incorporating the company / श
(d) remain the personal liability of the promoters /
Ans. D
53. For how long the first director hold the office? / ?
(a) Till the end of that particular financial year in which he was appointed / श
(b) Till the directors are duly appointed under Section 255 / 255
(c) Till his turns come for retirement /
(d) None of the above /
Ans. B
54. Who will be called a small shareholder in a company? /
?
(a) A person holding shares less than 50,000

18. By – Tejas Gaydhane Sir
(b) A person holding shares less than 1,00,000
(c) A person holding shares less than 20,000
(d) None of the above
Ans. c
55. What is a shadow director? / श ?
(a) A director who has management responsibilities in the company /
(b) A person appointed to attend board meetings and vote in place of a director /
(c) A person whose directions or instructions, the directors of a company follow / श
,
(d) Anyone who acts as a director, although not validly appointed as one /
,
Ans.c
56. Which Act gives the court power to disqualify someone from being a director, if they have been
guilty of fraudulent trading or have been participating in wrongful trading? /
फ
?
(a) Companies Act, 2006
(b) Insolvency Act, 1986
(c) Fraudulent Trading Act, 2006
(d) Company Directors Disqualification Act, 1986
Ans. a

19. By – Tejas Gaydhane Sir
57. Where court action is taken against a director for breach of duty, any compensation awarded by
the court is payable to / ,
(a) the Board of Directors
(b) the shareholders
(c) the company
(d) the creditors
Ans. c
58. What is the statutory minimum age of a directors /
(a) 15
(c) 18
(b) 20
(d) None of these
Ans.c
59. Where does the director of a company elected? / ?
(a) Board meeting /
(b) General meeting by ordinary resolution /
(c) General meeting by especial resolution / श
(d) None of the above /
Ans. B
60. Out of the following decisions, which must be approved by the shareholders? /
?
(a) To sell one of the undertakings of the company /
(b) To make calls on shares / श

20. By – Tejas Gaydhane Sir
(c) To issue debentures /
(d) All of the above /
Ans. a
61. A shareholder who wishes to make a proposal that director is dismissed must give the company
special notice of their proposal prior to the meeting How many days, notice is required for special
notice! इ श श
, श , !
(a) 12
(b) 28
(c) 14
(d) 15
Ans.b
62. In order to be a company secretary of a private limited company, what qualifications must you
have? /
?
(a) You need no qualifications
(b) A member of ICSA
(c) A qualified lawyer
(d) Both b and c
Ans. b
63. Which one of the following statements is not correct? / ?
(a) The auditor cannot be an officer or employee of the company or in partnership with someone who
is an officer or employee of the company / ऑ श
श

21. By – Tejas Gaydhane Sir
(b) An auditor cannot be removed before the expiry of his term of office / ऑ
(c) An auditor has the duty to audit a company's accounts and to report to the shareholders on
whether the accounts give a true and fair view of the financial position of the company and have been
properly prepared in accordance with the Companies Act, 2006 /
ऑ
, 2006
.
(d) It is a criminal offence for anyone to knowingly or recklessly give an auditor misleading. false or
deceptive information / ऑ श फ
. फ
Ans. a
64. Directors' responsibilities are unlikely to include / श
श
(a) a duty to propose high dividends for shareholders / श
(b) a duty of care /
(c) a duty to keep proper accounting records /
(d) a fiduciary duty /
Ans. A
65. Disqualification of directors may result from breaches of /
श
(a) The Financial Service Act, 1986
(b) The Companies Act, 2006 and Insolvency Act, 1986
(c) The Sale of Goods Act, 1979
(d) None of the above

22. By – Tejas Gaydhane Sir
Ans. b
66. Which of the following actions will not help directors to protect themselves from non-compliance
with their obligations and responsibilities? /
?
(a) Keeping themselves fully informed about company affairs /
(b) Ensuring that regular management accounts are prepared by the company /
(c) Including a disclaimer clause in their service contracts /
(d) All of the above /
Ans – c
67. Directors may not be disqualified for / श
(a) paying inadequate attention to the company finances /
(b) being convicted of drunken driving /
(c) continuing to trade when the company is insolvent /
(d) persistent breaches of company legislation /
Ans. B
68. A company may become insolvent if it / श
(a) makes a loss /
(b) cannot pay creditors in full after realization ofits assets /
श

23. By – Tejas Gaydhane Sir
(c) cannot meet its budgeted level of profit / फ श
(d) None of the above /
Ans. b
69. Which of the following is not one of the underlying principles of the corporate governance
combined code of practice? /
?
(a) Acceptability /
(c) Openness /
(b) Integrity /
(d) Accountability /
Ans. A
70. When an act is beyond the powers of the......... it is said to be ultra vires a company. /
.......... श .
(a) directors /
(b) company /
(c) Both 'a' and 'b' /'a' 'b'
(d) None of these /
Ans. B