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CA Foundation Exam  >  CA Foundation Questions  >  Who may be appointed as a director of a compa... Start Learning for Free
Who may be appointed as a director of a company?
  • a)
    An individual
  • b)
    A body corporate
  • c)
    A firm
  • d)
    An association
Correct answer is option 'A'. Can you explain this answer?
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Verified Answer
Who may be appointed as a director of a company?a)An individualb)A bod...
- Only an individual can be appointed as a director of a company.
- A director is responsible for managing the company's affairs and making crucial decisions.
- A body corporate, firm, or association cannot be appointed as a director because they are not natural persons who can perform the duties required of a director.
- The law requires directors to take personal responsibility and accountability, which only individuals can fulfil.
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An employee Mr. Elvish Yadav signed a contract with his employer company Kingfisher Limited that hewill not solicit the customers after leaving the employment from the company. But after Mr. Elvish left ABCLimited, he started up his own company Big Boss Limited and he started soliciting the customers ofKingfisher Limited for his own business purposes. Kingfisher Limited filed a case against Mr. Elvish forbreach of the employment contract and for soliciting their customers for own business. Mr. Elvish contendedthat there is corporate veil between him, and his company and he should not be personally held liable forthis. In this context, the company Kingfisher Limited seek your advice as to the meaning of corporate veiland when the veil can be lifted to make the owners liable for the acts done by a company?

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Who may be appointed as a director of a company?a)An individualb)A body corporatec)A firmd)An associationCorrect answer is option 'A'. Can you explain this answer?
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