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What is the maximum term of a single appointment as whole-time director under section 196(2) of the Companies Act, 2013?

Question and options

What is the maximum term of a single appointment as whole-time director under section 196(2) of the Companies Act, 2013?

  1. Two years

  2. Ten years

  3. Five years

  4. Three years

Answer and explanation

Correct answer: C - Five years

Section 196(2) of the Companies Act, 2013 allows a managing director, whole-time director or manager to be appointed or reappointed for a term not exceeding five years at a time. Reappointment is allowed, but it may not be made earlier than one year before the current term expires.

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