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

    Question

    Which of the following is/are the duties of a Director

    under the Companies Act, 2013?
    A Act in good faith and with reasonable care Correct Answer Incorrect Answer
    B Not assign his/her office Correct Answer Incorrect Answer
    C Achieve any undue gain of his position Correct Answer Incorrect Answer
    D Both a & b Correct Answer Incorrect Answer

    Solution

    Section 166 of the Companies Act lays down the various duties of the Directors of a Company. A director of a company shall  Act in good faith in order to promote the objects of the company  Exercise duties with due and reasonable care, skill and diligence and shall exercise independent judgment.  Not involve in a situation in which he may have a direct or indirect interest that conflicts with the interest of the company.  Not achieve any undue gain or advantage either to himself or to his/ her relatives, partners, or associates and if such director is found guilty of making any undue gain, he/ she shall be liable to pay an amount equal to that gain to the company.  Not assign his/her office and any assignment so made shall be void.

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