CMA Intermediate · Business Laws and Ethics · Directors - Role, Responsibilities, Qualification, Appointment, Removal, Remuneration and Powers
Ramesh was convicted by a court of an offence involving moral turpitude and sentenced to imprisonment for eight months. He completed the sentence two years ago. Which statement about his eligibility to be appointed a director is correct?
Ramesh is disqualified for three more years. A conviction for an offence involving moral turpitude with imprisonment of at least six months disqualifies a person until five years have passed from expiry of the sentence. Two years have already passed, so three remain.
- AHe is not disqualified because the sentence was less than one year
- BHe is disqualified for three more years, as five years have not passed from the expiry of his sentenceCorrect
- CHe is disqualified for five more years from today
- DHe became eligible immediately on release
Explanation
A person convicted of an offence involving moral turpitude and sentenced to imprisonment of at least six months is disqualified until five years have elapsed from the expiry of the sentence. Two years have passed, so three years remain. Eight months is above the six-month threshold, so the one-year argument is wrong.
Did you get it right without looking?
One question tells you little. A timed set on Directors - Role, Responsibilities, Qualification, Appointment, Removal, Remuneration and Powers shows your real accuracy, how long you take and where you lose marks.
More Directors - Role, Responsibilities, Qualification, Appointment, Removal, Remuneration and Powers questions
- Regarding the selection and appointment of an independent director under section 150 of the Companies Act, 2013, which statement is correct?
- Arjun is a director in Company X, Company Y and Company Z. Company X fails to file financial statements for three continuous financial years…
- Sagar Textiles Ltd, a listed public company, has Mr. Rao as its executive chairperson. The Board wants to make him a member and also the cha…
- Which of the following is a function that the Companies Act, 2013 assigns to the Nomination and Remuneration Committee?
- Anand Foods Ltd had 1,200 security holders (shareholders, debenture-holders and deposit-holders together) at one point in the financial year…
- Under Section 178, in formulating the remuneration policy the Nomination and Remuneration Committee must ensure that: