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CA Final Appointment and Remuneration of Managerial Personnel — practice questions

Explore 62 free Appointment and Remuneration of Managerial Personnel questions in CA Final Law. Open each question or exercise to read its content, reference answers and available explanation.

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Appointment and Remuneration of Managerial Personnel questions and exercises with answers

Showing questions 1–30 of 62.

Under s.196(2), a managing director's term at a time cannot exceedRead the answer and worked solution →A managing director's re-appointment cannot be made earlier than how long before expiry of the term?Read the answer and worked solution →Section 196(3) bars appointing a managing director below what age?Read the answer and worked solution →At what age does s.196(3) require a special resolution to appoint a managing director?Read the answer and worked solution →The explanatory statement for appointing a person aged 70 or more must showRead the answer and worked solution →Under s.196(3), which person cannot be appointed as a managing director?Read the answer and worked solution →A conviction disqualifies a person from being MD only if the sentence exceedsRead the answer and worked solution →Under s.196(3)(c), a person who compounded with creditors isRead the answer and worked solution →Under s.196(4), the terms of a managing director's appointment are first approved byRead the answer and worked solution →The Board's appointment of a managing director is then put for approval at theRead the answer and worked solution →A return of appointment of an MD must reach the Registrar within how many days?Read the answer and worked solution →If members do not approve an MD's appointment, his earlier acts under s.196(5) areRead the answer and worked solution →The notice of a meeting to consider an MD's appointment must include hisRead the answer and worked solution →Under s.197(1), a public company's total managerial pay is capped at what share of net profits?Read the answer and worked solution →Net profits for the s.197 ceiling are computed as laid down in sectionRead the answer and worked solution →For the 11 per cent test, directors' pay isRead the answer and worked solution →Without members' approval, one MD or whole-time director may be paid up to what share of net profits?Read the answer and worked solution →With several MDs or whole-time directors, the joint limit without members' approval isRead the answer and worked solution →Non-executive directors' pay, when a managing director exists, is capped at what share of profits?Read the answer and worked solution →With no MD, whole-time director or manager, non-executive directors may share at mostRead the answer and worked solution →The s.197(1) percentages are what with respect to sitting fees under s.197(5)?Read the answer and worked solution →In a loss or low-profit year, directors' pay must follow which Schedule?Read the answer and worked solution →Director remuneration under s.197(4) can be fixed byRead the answer and worked solution →Pay for a director's other-capacity services is left out of his fixed pay if they areRead the answer and worked solution →For a company under s.178(1), who judges a director's professional qualification for s.197(4)?Read the answer and worked solution →Fees for attending Board meetings under s.197(5) must not exceedRead the answer and worked solution →Profit related commission for an independent director is approved byRead the answer and worked solution →A director who draws pay above the s.197 limit mustRead the answer and worked solution →A listed company's Board report shows each director's pay as a ratio toRead the answer and worked solution →Indemnity insurance premium for a MD counts as pay only if he isRead the answer and worked solution →

Worked practice questions

Under s.196(2), a managing director's term at a time cannot exceed

  1. Seven years
  2. Three years
  3. Five years
  4. Ten years
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Correct answer: C. Five years

Section 196(2) fixes the ceiling of one appointment or re-appointment at five years.

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A managing director's re-appointment cannot be made earlier than how long before expiry of the term?

  1. Six months
  2. Three months
  3. One year
  4. Two years
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Correct answer: C. One year

The proviso to s.196(2) forbids re-appointment sooner than one year ahead of expiry.

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Section 196(3) bars appointing a managing director below what age?

  1. 25 years
  2. 30 years
  3. 21 years
  4. 18 years
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Correct answer: C. 21 years

A person under twenty-one cannot be appointed or continued as MD, whole-time director or manager.

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