12th Commerce - Book Back Answers - Chapter 27 - English Medium Guides ~ Kalvi Tips

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Tamil Nadu Board 12th Standard Commerce - Chapter 27: Book Back Answers and Solutions

This post covers the book back answers and solutions for Chapter 27 – Commerce from the Tamil Nadu State Board 12th Standard textbook. These detailed answers have been carefully prepared by our expert teachers at KalviTips.com.

We have explained each answer in a simple, easy-to-understand format, highlighting important points step by step under the relevant subtopics. Students are advised to read and memorize these subtopics thoroughly. Once you understand the main concepts, you’ll be able to connect other related points with real-life examples and confidently present them in your tests and exams.

By going through this material, you’ll gain a strong understanding of Commerce Chapter 27 along with the corresponding book back questions and answers (PDF format).

Question Types Covered:

1 Mark Questions: Choose the correct answer, Fill in the blanks, Identify the correct statement, Match the following
2 Mark Questions: Answer briefly
3, 4, and 5 Mark Questions: Answer in detail

All answers are presented in a clear and student-friendly manner, focusing on key points to help you score full marks.

All the best, Class 12 students! Prepare well and aim for top scores. Thank you!

Chapter 27: Company Management

I. Choose the correct answer.

1. A person Shall hold office as a director in _________ companies as per the Companies Act, 2013.
a) 5 companies
b) 10 companies
c) 20 companies
d) 15 companies
Answer Key:
c) 20 companies

2. A Private Company shall have a minimum of _________ .
a) Seven directors
b) Five directors
c) Three directors
d) Two directors
Answer Key:
d) Two directors

3. A Public Company having a paid up Share Capital of Rs. _________ or more may have a Director, elected by such small shareholders.
a) One crore
b) Three crores
c) Five crores
d) Seven crores
Answer Key:
c) Five crores

4. What is the statue of Directors who regulate money of the company.
a) Banker
b) Holder
c) Agent
d) Trustees
Answer Key:
d) Trustees

5. According to Companies Act, the Directors must be appointed by the.
a) Central Government
b) Company Law Tribunal
c) Company in General Meeting
d) Board of Directors.
Answer Key:
c) Company in General Meeting

II. Very short answer questions.

1. Name the companies required to appoint KMP.
Answer Key:
Requirement to appoint KMP:

Every Listed Company
Every Public Company( Having paid up share capital of Rs.10 Crore or more).

2. Who is whole time Director?
Answer Key:

A Director is one who devotes whole of his time of working hours to the company and has a significant personal interest in the company as the source of his income.

3. Who is called as Managing Director?
Answer Key:

A Director is one who is employed by the company and has substantial powers of management over the affairs of the company subject to superintendence, direction and control of the board.

4. Who can be Executive Director?
Answer Key:

An executive director is a Chief Executive Officer (CEO) or Managing Director of an organization, company, or corporation, who is responsible for making decisions to complete the mission and for the success of the organization.

III. Short answer questions.

1. When are alternative directors appointed?
Answer Key:

Alternate director is appointed by the Board of Directors, as a substitute to a director who may be absent from India, for a period which is not less than three months.
The appointment must be authorized either by the Articles of Association of the company or by a passing a resolution in the General Meeting.
The alternative director is not a representative or agent of Original Director.

2. Who is a shadow director?
Answer Key:

A person who is not the member of Board but has some power to run it can be appointed as the director but according to his/her wish.

3. State the minimum number of Directors for a Private company?
Answer Key:

Under section 149 (1) of the Companies Act, 2013 states that the requirement of Minimum/ Maximum Number of Directors in a Company.,

Private company:
In case of One Person Company:

The requirement of directors is one.

Other Private Companies:

The minimum requirement of Directors is two.

IV. Long answer questions.

1. Who are the KMP?
Answer Key:

Companies Act, 2013 has introduced many new concepts and Key Managerial Personnel (KMP) is one of them.
KMP covers the traditional roles of managing director and whole time director and also includes some functional heads.

Key Managerial Personnel:

The definition of the term Key Managerial Personnel is contained in Section 2(51) of the Companies Act, 2013.
This Section states:
The Chief Executive Officer
The Managing Director or Manager
The Company Secretary
The Whole-time Director
The Chief Financial Officer
Such other officer as may be prescribed

2. Brief different types of Directors. (any-5)
Answer Key:
Residential Director:

According to Section 149(3) of Companies Act 2013, Every company should appoint a director who has stayed in India for a total Period of not less than 182 days in the previous calendar year.

Independent Director:

According to Section 149(6) an independent director is an alternate director other than a Managing Director who is known as Whole Time Director Or Nominee Director.

Small Shareholders Directors:

Small shareholders can appoint a single director in a listed company.

Alternate Directors:

Alternate director is appointed by the Board of Directors, as a substitute to a director who may be absent from India, for a period which is not less than three months.

Nominee Director:

A director nominated by any financial institution in pursuance of the provisions of law.

Additional Directors:

Any Individual can be appointed as Additional Directors by a company.

Shadow Director:

A person who is not the member of Board but has some power to run it can be appointed as the director but according to his/her wish.

3. State the qualification of Directors?
Answer Key:
Qualifications of Director:

As regards to the qualification of directors, there is no direct provision in the Companies Act, 2013.
In general, a director shall possess appropriate skills, experience and knowledge in the fields of finance, law, management, sales, marketing, research and other disciplines related to the business.

The following are the qualifications:

A director must be a person of sound mind.
A director must hold share qualification, if the article of association provides such.
A director must be an individual.
A director should be a solvent person.
A director should not be convicted by the Court for any offence, etc.

Prepared By:

B. MUTHUKUMAR
PG ASST COMMERCE
MKVK MATRIC HR SEC SCHOOL
TENKASI