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

    Question

    What is the tenure for which an additional director is

    appointed under the Companies Act?
    A Up to five consecutive years Correct Answer Incorrect Answer
    B Up to two terms of five consecutive years Correct Answer Incorrect Answer
    C Up to the date of the next annual general meeting or the last date on which the annual general meeting should have been held, whichever is later Correct Answer Incorrect Answer
    D Up to the date of the next annual general meeting or the last date on which the annual general meeting should have been held, whichever is earlier Correct Answer Incorrect Answer
    E Up to the date of the next annual general meeting and the last date on which the annual general meeting should have been held, whichever might be decided by the Board Correct Answer Incorrect Answer

    Solution

    Section 161. Appointment of additional director, alternate director and nominee director: (1) The articles of a company may confer on its Board of Directors the power to appoint any person, other than a person who fails to get appointed as a director in a general meeting, as an additional director at any time who shall hold office up to the date of the next annual general meeting or the last date on which the annual general meeting should have been held, whichever is earlier.

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