10. ABC Ltd is a government company with fourteen Directors. They are willing to appoint two more Directors in the company to enable the effective management of the company. Mr. X, the Managing Director of the company is of the view that the appointment of two more Directors would be a violation of the Companies Act. Examine the above situation in lights of the legal provision.
(a) Appointment of more than fifteen Directors is violation of Companies Act.
(b) Appointment of more than fifteen Directors can be done by passing a special resolution.
(c) The Companies Act is silent about the maximum number of Directors in a company.
(d) Government companies are exempted from the provision of maximum number of Directors needed.
Ans : (d) Government companies are exempted from the provision of maximum number of Directors needed.
0 Comments