Level 1: CA Final Law – Part I – Sec A – Chapter 2 – Appointment and Remuneration of Managerial Personnel MCQs

_______ means an individual who, subject to the superintendence, control and direction of the Board of Directors, has the management of the whole, or substantially the whole, of the affairs of a company

Which director is entrusted with substantial powers of management of the affairs of the company

The appointment of a whole-time company secretary is mandatory when the paid-up share capital of a company exceeds ______

No company shall appoint or continue the employment of any person as managing director, whole-time director or manager who is below the age of ___ years or has attained the age of ___ years

A whole-time key managerial personnel of a company can hold office in another company if the other company is___

As Per Part I of Schedule V, a person is not eligible for appointment as managing director or whole-time director or a manager he had been sentenced to imprisonment for any period, or to a fine exceeding ____

Board of Directors of Centra Tech Limited desires to appoint Nipun, aged 22 years as the Managing Director of the company. Nipun is currently a director and the son of Ramesh, the immediate Managing Director who expired in a car accident. State whether Nipun can be appointed as Managing Director.

Board of Directors of Centra Tech Limited desires to appoint Nipun, aged 20 years as the Managing Director of the company. Nipun is currently a director and the son of Ramesh, the immediate Managing Director who expired in a car accident. State whether Nipun can be appointed as Managing Director.

Which form is prescribed by Rule 7 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 in which application for seeking approval from the Central Government shall be made within ninety days of such appointment of MD or WTD or manager in the company.

Form MR-2 has been prescribed by Rule 7 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 in which application for seeking approval from the Central Government shall be made within _______ of such appointment of MD or WTD or manager in the company.

What is the maximum sitting fees per meeting that can be paid to a director of a company.

In addition to a listed company which other public company is required to have wholetime key managerial personnel?

Total managerial remuneration payable by a public company to its directors (including MD, WTD and manager) in any financial year shall not exceed _______ of its net profits for that financial year.

Total managerial remuneration payable by a Private company to its directors (including MD, WTD and manager) in any financial year shall not exceed what percentage of its net profits for that financial year.

Every whole-time key managerial personnel of a company shall be appointed by means of a which resolution?

Which of the following is not a function of Company Secretary

While fixing the remuneration of a director company shall consider ______

What is the overall limit applicable to managerial remuneration

If there is one Managing director/ Whole time director/ manager what is the maximum remuneration payable by the company

If there is more than one Managing Director/ Whole time director/manager. what is the maximum remuneration payable by the company

What is the maximum remuneration payable to directors who are neither Managing Directors nor Whole time directors if there is a Managing Director or a Whole time director

What is the maximum remuneration payable to directors who are neither Managing Directors nor Whole time directors if there is no Managing Director or Whole time director

If in any financial year, a company has no profits or its profits are inadequate, the company shall pay any amouny by way of remuneration to its directors as per the provisions of which schedule?

The Limit of yearly remuneration payable shall not exceed ____ & ____ in case of managerial remuneration and other directors respectively if the effective capital is Rs. 95 Crores

“effective capital” for the purposes of Section II of Part II does not include

The sitting fee payable to the Independent Directors and Women Directors shall _______ than that payable to other directors

The company can waive the recovery any sum refundable to it under Section 197 (9) is possible only if the same is approved by the company through ______within two years from the date the sum becomes refundable.

The board’s report shall include a statement showing name of every employee, who if employed throughout the financial year, was in receipt of remuneration for that year which, in the aggregate, was not less than _______.

Non-compliance with the provisions of Section 197 gives rise to penalty of _____ in case of Company and ____ in case of officer in default

As Per Rule 9(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 which of the following companies are not required conduct secretarial audit

A company secretary in practice is authorised to give Secretarial Audit Report in which form?

If a company or any officer of the company or the company secretary in practice, contravenes the provisions of Section 204, then they are liable to a penalty of ______

A newly incorporated company having no profit or inadequate profit can pay remuneration to Managerial Personnel or Directors for what period from the date of its incorporation.

Which of the Perquisites is not included in managerial remuneration (Not being a expatriate managerial person)

The following particulars are extracted from the statement of profit and loss of Surya Cement Limited for the year ended 31st March 2020:
Sr. No Particulars Amount
1) Gross Profit 60,00,000
2) Profit on sale of building (Cost Rs.10,00,000
and written down value ` 6,00,000) 5,00,000
3) Salaries & wages 2,50,000
4) Sundry Repairs to Fixed Assets 1,00,000
5) Subsidy from the government 3,00,000
6) Compensation for breach of contract 1,00,000
7) Depreciation 1,40,000
8) Loss on sale of investments 2,00,000
9) Interest on unsecured loans 50,000
10) Interest on debentures issued by the company 1,00,000
11) Repair Expenses to fixed assets
(Capital in nature) 2,00,000
12) Net Profit 13,00,000
Calculate the overall managerial remuneration payable under section 197 of the Companies Act, 2013 subject to the provisions under Schedule V.

Capable Limited appoints Mr. Vikas as the Managing Director of the company. The Board of Directors entrusted him with some powers. Mr. Vikas is not ready to do administrative acts authorised by the Board of Directors keeping in view that he shall been entrusted with substantial powers of the management. Decide the acts which Mr. Vikas can undertake

You are a Whole Time Director of ABC Private Limited and wishes to appoint Mr. X as its Managing Director who has attained the age of 72 years. You are requested by the board to evaluate the situation and suggest whether he can be appointed as Managing Director?

Go Dairy Company Limited, a public company incorporated under the Companies Act, 2013 is into the business of selling dairy products through online mode. Mr. Dhaval is holding the position of the Whole Time Director in the Company. During the financial year ended March 2020, the office of Mr. Dhaval got vacated on attracting disqualifications under section 164 of the Companies Act, 2013. You are required to advise how shall the board of Directors fill the vacancy of Mr. Dhaval considering the provisions of the Companies Act, 2013?

Mr. A was appointed as a Manager of PQR Ltd for the period of five years on 20thJune, 2018. Considering his performance and dedication, before completion of his tenure, management decided to re-appoint him as a Manager. On which date his re-appointment will be considered valid?

If a person is MD or manager in some other company it is permissible for a company to appoint him as its managing director if it is approved by