CA Foundation Exam  >  CA Foundation Questions  >  The first directors of a public company are a... Start Learning for Free
The first directors of a public company are appointed by the.
  • a)
    Public
  • b)
    Shareholders
  • c)
    Promoters
  • d)
    Government
Correct answer is option 'C'. Can you explain this answer?
Most Upvoted Answer
The first directors of a public company are appointed by the.a)Publicb...
Appointing First Directors of a Public Company

When a company is incorporated as a public company, there are certain legal formalities that need to be completed, and one of those formalities is the appointment of the first directors. The first directors of a public company are appointed by the promoters of the company, who are responsible for the incorporation of the company.

Role of Promoters

Promoters are individuals who initiate and organize a company's formation by bringing together the necessary resources and people. They are responsible for starting the company and raising the initial capital required to set it up. Promoters are usually the people who have the idea for the company and want to turn it into a reality.

Appointing First Directors

The first directors of a public company are appointed by the promoters of the company. The promoters are responsible for identifying suitable candidates who can serve as directors and who have the necessary skills and experience to help run the company. Once the suitable candidates are identified, the promoters will call a meeting of the first board of directors, where the directors will be appointed.

Importance of First Directors

The first directors of a public company are crucial to its success. They are responsible for setting the strategic direction of the company, ensuring compliance with legal and regulatory requirements, and managing the day-to-day operations of the company. The first directors are also responsible for appointing the company's officers, including the CEO, CFO, and other senior executives.

Conclusion

In conclusion, the first directors of a public company are appointed by the promoters of the company. The promoters are responsible for identifying suitable candidates who can serve as directors and who have the necessary skills and experience to help run the company. The first directors are crucial to the success of the company, and they are responsible for setting the strategic direction of the company, ensuring compliance with legal and regulatory requirements, and managing the day-to-day operations of the company.
Free Test
Community Answer
The first directors of a public company are appointed by the.a)Publicb...
A shareholder also reffered to as a stockholder is a person company or institution th owns at least o e share of a company stocks which is know as equity.because shareholder are essentially owners in a company they reap the benefits of a business success
Explore Courses for CA Foundation exam

Similar CA Foundation Doubts

The first directors of a public company are appointed by the.a)Publicb)Shareholdersc)Promotersd)GovernmentCorrect answer is option 'C'. Can you explain this answer?
Question Description
The first directors of a public company are appointed by the.a)Publicb)Shareholdersc)Promotersd)GovernmentCorrect answer is option 'C'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about The first directors of a public company are appointed by the.a)Publicb)Shareholdersc)Promotersd)GovernmentCorrect answer is option 'C'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for The first directors of a public company are appointed by the.a)Publicb)Shareholdersc)Promotersd)GovernmentCorrect answer is option 'C'. Can you explain this answer?.
Solutions for The first directors of a public company are appointed by the.a)Publicb)Shareholdersc)Promotersd)GovernmentCorrect answer is option 'C'. Can you explain this answer? in English & in Hindi are available as part of our courses for CA Foundation. Download more important topics, notes, lectures and mock test series for CA Foundation Exam by signing up for free.
Here you can find the meaning of The first directors of a public company are appointed by the.a)Publicb)Shareholdersc)Promotersd)GovernmentCorrect answer is option 'C'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of The first directors of a public company are appointed by the.a)Publicb)Shareholdersc)Promotersd)GovernmentCorrect answer is option 'C'. Can you explain this answer?, a detailed solution for The first directors of a public company are appointed by the.a)Publicb)Shareholdersc)Promotersd)GovernmentCorrect answer is option 'C'. Can you explain this answer? has been provided alongside types of The first directors of a public company are appointed by the.a)Publicb)Shareholdersc)Promotersd)GovernmentCorrect answer is option 'C'. Can you explain this answer? theory, EduRev gives you an ample number of questions to practice The first directors of a public company are appointed by the.a)Publicb)Shareholdersc)Promotersd)GovernmentCorrect answer is option 'C'. Can you explain this answer? tests, examples and also practice CA Foundation tests.
Explore Courses for CA Foundation exam

Top Courses for CA Foundation

Explore Courses
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
10M+ students study on EduRev