1. Define the term Director?
by passing a resolution in the
ANS: A Director may, therefore, be
defined as a person having control
over the direction, conduct,
management or superintendence of
the affairs of the company. Directors
are elected by shareholders or
appointed by the other board
members. They represent
shareholders of a company.
2. Who is an Executive Director?
ANS: An Executive Director is a
director involved in the company’s
internal affairs. Executive Directors
are responsible for making decisions
for the company and its future
decision. They are entrusted with the
responsibility of managing and
running the company’s business,
including development plans
3. State the maximum and minimum
number if directors to form a part
of BOD in a public and private
limited company as per company
law act 2013?
ANS: A Private company needs to
have at least two directors and a
public company must have at least
three directors. Both private and
public limited companies have a
maximum of fifteen directors as
company law 2013.
4. Write any two powers of Director
towards Corporate Governance?
ANS: Thus the board of directors can
exercise the following powers, only
meetings of the board:
a) Make calls on shareholders.
b) Authorize the buyback of
securities and shares.
c) Issues Securities and Shares.
5. Name any three committees of the
board of directors towards
Corporate Governance?
ANS: 1. Nomination Committee.
2. Compensation Committee.
3. Audit Committee
4. Board Risk Committee.
6. What is the role of Independent
Directors?
ANS: They provide advice,
perspective, and judgment to the
board of directors. They are also
responsible for evaluating the
strength of their board, especially
monitoring conflicts of interest and
complying with corporate
governance guidelines.
7. Define the term Committee?
ANS: Committees often serve as
resources for various issues that the
board of directors may face.
The board governance committee is
the board of director’s primary
resources for governance issues. It
overseas board compliance with a
company’s board governance
framework.
8. What is meant by Divisional
Management?
ANS: The Executive management of
each business division is vested with
the divisional management
committee (DMC), headed by the
Chief Executive. Each DMC is
responsible for a totally focused on
the management of its assigned
business.

9. Bring out the role of Corporate

Management?
ANS: The Committee enables the
importance and benefits of the
corporate management. Principles to
be formed and adopted within the
company. It evaluates weather an
efficient and effective “Corporate
Management Culture” is placed on
the company or not.

10. Define the term Capital Structure?

ANS: Capital structure refers to the
specific mix of debt and equity used
to finance a company’s assets and
operations. From a corporate
prospective, equity represents a more
expensive, permanent source of
capital with greater financial
flexibility.