New Enroll in RBI Grade B New Batch - Starts on May 21

    Question

    Which of the following is not a type of director that

    can be appointed on the Board of a company?
    A Independent Director Correct Answer Incorrect Answer
    B Nominee Director Correct Answer Incorrect Answer
    C Executive Director Correct Answer Incorrect Answer
    D Small Shareholder’ director Correct Answer Incorrect Answer
    E All can be appointed Correct Answer Incorrect Answer

    Solution

    All of the above types of directors can be appointed by a company, if so required and needed by the company, as per the rules mentioned under the Companies Act, 2013. ·         Independent director means a director other than a managing director or a whole-time director or a nominee director who is person of integrity in opinion of board  and possesses relevant expertise and experience and does not have any direct or indirect association with the company. ·         Nominee director is a director who is appointed on the Board to represent the interest of certain stakeholders like the financial institution or institutional investor or the government. ·         Executive directors are the ones who are involved in the operations of the company like the  managing director or a whole-time director. ·         A small shareholders’ director can be elected by small shareholders in a listed company to represent their interests on the Board. As per companies law, A listed company, may upon notice by at least 1000 small shareholders or 1/10th of the total number of such shareholders, whichever is lower, have a small shareholders’ director elected by the small shareholders

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