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CA Final Meetings of Board and Its Powers — practice questions — page 3

Explore 86 free Meetings of Board and Its Powers questions in CA Final Law. Open each question or exercise to read its content, reference answers and available explanation.

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Meetings of Board and Its Powers questions and exercises with answers

Showing questions 61–86 of 86.

Under s.184(2), an interested director must disclose and then:Read the answer and worked solution →Section 184(2): body corporate interest arises if a director holds more than what shareholding?Read the answer and worked solution →Penalty on a director contravening s.184(1) or (2) is:Read the answer and worked solution →Section 184(5)(b) exempts a contract if directors hold not more than this share of the other company:Read the answer and worked solution →A director turns interested after a contract is made. He disclosesRead the answer and worked solution →Which section prohibits loans to directors?Read the answer and worked solution →Section 185(1) bars a loan to a firm in which a director's relative is:Read the answer and worked solution →Section 185(2) permits a loan to a director-interested entity with:Read the answer and worked solution →Under s.185(2)(b), loans to such a person must be used for its:Read the answer and worked solution →A body corporate counts as director-interested if directors control at least what voting power?Read the answer and worked solution →Section 185 exempts a loan by a holding company to its:Read the answer and worked solution →Loan to MD or whole-time director is exempt if given as per:Read the answer and worked solution →Which section governs loans and investments by a company in other bodies corporate?Read the answer and worked solution →Under s.186(1), investment through at most how many layers of investment companies?Read the answer and worked solution →s.186(2): 60% of capital, reserves, premium or this, if more:Read the answer and worked solution →The s.186(2) limit is what share of capital, free reserves and premium?Read the answer and worked solution →To exceed the s.186(2) limits, the company needs previous authority by:Read the answer and worked solution →The s.186(3) limit check is waived for loans by a company to its:Read the answer and worked solution →Section 186(5): a Board resolution sanctioning a loan needs consent of:Read the answer and worked solution →Under s.186(5), a subsisting term loan needs prior approval of:Read the answer and worked solution →Loans under s.186 cannot be at an interest rate below the yield on:Read the answer and worked solution →A company in default on repaying deposits may not give loans under s.186(8) until:Read the answer and worked solution →The s.186 register of loans, guarantees and investments is kept at the:Read the answer and worked solution →s.186(11) exempts lending by which company in ordinary business?Read the answer and worked solution →Maximum imprisonment for contravening s.186 per s.186(13) is:Read the answer and worked solution →Section 186(4) requires loans and investments to be disclosed in the:Read the answer and worked solution →

Worked practice questions

Under s.184(2), an interested director must disclose and then:

  1. Not participate in meeting
  2. Chair that Board meeting
  3. Vote as the chairperson
  4. Request a Tribunal order
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Correct answer: A. Not participate in meeting

The director must disclose the nature of interest and must not participate in that meeting.

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Section 184(2): body corporate interest arises if a director holds more than what shareholding?

  1. Two per cent
  2. Twenty per cent
  3. Five per cent
  4. Ten per cent
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Correct answer: A. Two per cent

Holding more than two per cent of a body corporate makes the director interested in its contracts.

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Penalty on a director contravening s.184(1) or (2) is:

  1. Rs 5 lakh
  2. Rs 1 lakh
  3. Rs 50,000
  4. Rs 10,000
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Correct answer: B. Rs 1 lakh

As substituted in 2020, the director is liable to a penalty of one lakh rupees.

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