1.

Mostly, the directors are elected by

a. Shareholders
b. Promoters
c. Board
d. Government
e. Financial Institutions
2. Who elect the Managing Director?
a. Shareholders
b. Promoters
c. Board
d. Government
e. Financial Institutions
3. The authority of the board is subject to the limitations imposed by relevant provisions
of the Companies Act, 1956 through
a. Memorandum of Association/ Articles of Association of the company
b. Memorandum of Association
c. Article of Association
d. Both of above
e. None of the above
4. Nominated member of Board of Directors doesn’t include directors
a. Nominated by Government
b. Nominated by Financial Institutions
c. Nominated by Shareholders
d. Experts Appointed by Board
e. Nominated by Foreign Companies
5. What comes under Duty of Loyalty of BOD?
a. Avoiding conflicts of Interest
b. Fairness
c. Corporate Opportunity (Ahead of Personal)
d. Confidentiality
e. All of the above
6. What comes under Duty of Care of BOD?
a. A director performs his duties in good faith and in a manner that he serves for the best
interest of the corporation
b. Attention at meetings, Reliance on management and professional
c. Decision Making – exercise reasonable business judgement
d. All of the above
e. None of the above
7. What is the rational of definite number of members in the BOD?
a. To maintain balance of opposite opinion of the board
b. To impose impartiality
c. To impart expertise
d. To understand diversity of the opinion
e. None of the above
8. Company’s act stipulates the minimum of director in BOD as
a. 7
b. 6
c. 5
d. 4
e. 3
9. LODR- [list of Obligation and Disclosure Requirement] ensures Gender Diversity on
the Board by advising:
a. one woman director on the board of directors of every listed entity
b. one woman as an independent director
c. Both of above
d. Either of a & b
e. None of the above
10. What is the proposed provision about Attendance of Directors?
a. Automatic vacation if a director is absent from all meetings of the BOD held
during a 12-month period
b. NO specific provision
c. Ratification by Shareholders in AGM if absent at least half of the total
number of board meetings held over the Relevant Period i.e. Period of 2
consecutive FY on rolling basis.
d. Any one of these is correct
e. None of the above is correct
11. The main rational of attendance of Directors is :
a. to enhance their contribution of skill,
b. to enhance time of contribution
c. to enhance value towards serving the long term interests of all stakeholders
d. All of the above
e. None of the above
12. The provision of Disclosure of Expertise/ Skills of Directors as per proposal says
BOD should undertake:
a. An Annual Disclosure “A chart or a matrix setting out the
skills/expertise/competence of the board of directors”
b. Disclosure of a brief profile of a director on his/her appointment
c. No specific provision
d. All of the above
e. None of the above
13. What company’s act says on Approval for Non-executive Directors on Attaining a
Certain Age?
a. No listed entity shall appoint a person or continue the directorship of any person
as a non-executive director who has attained the age of 75 years unless a special
resolution is passed with justification
b. No specific provision
c. No such Provision only mandates for MD, WTD [Whole time director] and
Manager i.e. 70 yrs. Through Special Resolution.
 d. All of the above
e. None of the above
14. What LODR says about Minimum Number of Board Meetings?
a. Three meetings of the board every year with a maximum gap of one hundred and
twenty days between any two meetings.
b. Four Meetings every year maximum time gap of 120 days between any two
meetings
c. FIVE meetings every year, at least once a year, the board shall specifically discuss
strategy, budgets, board evaluation, risk management, ESG (environment,
sustainability and governance)
d. No fixed number
e. None of the above
15. What is the proposal regarding the Quorum for Board Meetings?
a. No Specific provision
b. One-third of the total strength of the board of directors or two directors, whichever
is higher, for every board meeting
c. For listed company – one-third of its total strength or three directors,
whichever is higher, including at least one independent director.
Participation through audio video conferencing shall be counted as well.
d. All of the above is correct
e. None of the above is correct
16. What LODR states on Separation of the Roles of Non-executive Chairperson and
Managing Director/CEO?
a. An individual shall not be appointed/ reappointed as the chairperson of a company
as well as its MD/CEO unless the articles provide otherwise
b. Discretionary Requirements:-The listed entity may appoint separate persons
to the post of chairperson and managing director or chief executive officer
c. I. Listed entities with more than 40% public shareholding should separate the
roles of Chairperson and MD/CEO with effect from April 1, 2020.
II. After 2020, SEBI may examine extending the requirement to all listed entities
with effect from April 1, 2022.
d. None of the above is correct
e. Any one of a, b, c
17. What is proposal about Maximum Number of Directorships?
a. The maximum number of public companies in which a person can be appointed as
a director shall not exceed ten
b. A person shall not serve as an independent director in more than seven listed
entities and if the director is a WTD in one listed entity, then he/she can’t serve as
an independent director in more than three listed entities.
c. No person shall hold office as a director, including any alternate directorship,
in more than eight listed entities at the same time (of which independent
directorships shall not exceed seven), with effect from April 1, 2019 and not
more than seven listed entities with effect from April 1, 2020:Provided that
any person who is serving as a whole time director/managing director in any
 listed entity shall serve as an independent director in not more than three
listed entities.
d. No specific number
e. None of the above
18. What LODR talks about Disclosures on Board Evaluation?
a. A guidance note on board evaluation issued by SEBI vide circular dated January
5, 2017.
b. Broad provisions on board evaluation i.e. evaluation of the performance of:
(i) the board as a whole,(ii) Individual directors (including independent
directors and Chairperson) and (iii) various committees of the board.
c. No specific suggestions
d. All of the above
e. Either of a, b, c
19. A person who is not the member of Board but has some power to run it can be
appointed as the director but according to member’s wish is called – directors.
a. Additional Director
b. Shadow Director
c. Non-executive Director
d. Residence Director
e. None of the above
20. Which is not among some responsibilities which board of directors?

a. Determining the company’s strategic objectives and policies.

b. Monitoring progress towards achieving the objectives and policies.
c. Appointing senior management.
d. Accounting for the company’s activities to relevant parties, e.g. shareholders
e. None of the above is answer
21. Power of the Directors includes decisions should be made by a resolution of the
shareholders, which of the following is not included in it?

a. Some loans to directors

b. Directors’ fixed term service contracts for more than 2 years
c. Substantial property transactions in which directors have a personal interest
d. Issue shares
e. None of the above is incorrect
22. Which among the following is not Responsibilities of BOD to Shareholders under the
heading of MONITORING?
a. Return on Investment
b. Security of Investment
c. Dividend Policy
d. Social Accountability
e. Evaluate the performance of CEO
23. International Scenario Responsibilities of Board of Directors does not include;
a. Long-range corporate objectives.
 b. Corporate strategies or long range plans for meeting objectives.
c. Allocation of major resources.
d. Major financial decisions
e. Public relation
24. Which of the following is true about Roles and Responsibilities of Chairman and
Chief Executive
a. Whilst the Chairman and Chief Executive are collectively responsible for the leadership
of the Group
b. Chairman is for promoting the highest standards of integrity and probity.
c. There is a clear and effective division of accountability and responsibility between the
Chairman and the Chief Executive
d. Each plays a distinctive role but complementing each other to ensure that there is a
balance of power and authority and no individual has unfettered powers of decision and
control.
e. All of the following is true
25. Which is of the following is correct about Relationship between Directors and
Executives?
a. Go beyond employee and Manager Relation
b. Mutual Coexistence
c. Representation in the board
d. All of the above is correct
e. None of the above is correct