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Under section 2(54) of the Companies Act, 2013, substantial powers of management may be entrusted to a managing director by which of the following? I. The articles of the company II. An agreement…

Question and options

Under section 2(54) of the Companies Act, 2013, substantial powers of management may be entrusted to a managing director by which of the following?

I. The articles of the company
II. An agreement with the company
III. A resolution passed by the company in general meeting or by its Board
IV. A direction issued by the Registrar of Companies

  1. II, III and IV only

  2. I, II and IV only

  3. I, II and III only

  4. I, III and IV only

Answer and explanation

Correct answer: C - I, II and III only

Section 2(54) of the Companies Act, 2013 defines a managing director as a director entrusted with substantial powers of management by virtue of the articles, an agreement with the company, a resolution passed in general meeting or a resolution of the Board. The Registrar has no power to confer management powers on a director.

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