The Companies Act, 2013, specifies certain powers that can be exercised only at meetings of the board of directors. These powers include:
- Making calls on shareholders in respect of money unpaid on shares.Authorizing the buy-back of securities.Issuing securities, including debentures, whether in or outside India.Borrowing money, whether in or outside India.Investing the funds of the company.Approving the annual accounts and the balance sheet of the company.Declaring dividends.Appointment and removal of managing directors, whole-time directors, and other officers of the company.Fixing the remuneration of the managing directors, whole-time directors, and other officers of the company.Winding up the company.
Why are these powers required to be exercised only at meetings of the board?These powers are required to be exercised only at meetings of the board because they are important decisions that affect the company as a whole. It is important that these decisions are taken after careful consideration and discussion by all the directors.MCQs on powers that can be exercised only at meetings of the board
- Which of the following powers can be exercised only at meetings of the board?
- Making calls on shareholders in respect of money unpaid on shares.Approving the annual accounts and the balance sheet of the company.Declaration of dividends.All of the above.
Answer: The correct answer is (d). All of the powers mentioned above can be exercised only at meetings of the board.
- The power to borrow money can be exercised by the board of directors:
- Only at a meeting of the board.By a resolution passed by a majority of the directors.By a resolution passed by a majority of the directors present at a meeting of the board.By a resolution passed by a simple majority of the shareholders.
Answer: The correct answer is (c). The power to borrow money can be exercised by the board of directors by a resolution passed by a majority of the directors present at a meeting of the board.
- The power to appoint a managing director can be exercised by:
- The board of directors.The shareholders.Both the board of directors and the shareholders.None of the above.
Answer: The correct answer is (a). The power to appoint a managing director can be exercised by the board of directors.