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CMA Final · Corporate and Economic Laws · Board of Directors and Key Managerial Personnel

Sagar Textiles Ltd, a prescribed class of company, has its Managing Director resign on 1 March. By what date must the Board fill the resulting vacancy in the office of this whole-time key managerial personnel?

The vacancy must be filled by the Board at a meeting of the Board within six months from the date the office fell vacant. Shareholders in general meeting are not required to fill it, and the period is not three months or one year.

  1. AWithin three months, at a Board meeting
  2. BWithin six months from the date of vacancy, at a Board meetingCorrect
  3. CWithin six months, by a resolution of members in general meeting
  4. DWithin one year, at a Board meeting

Explanation

Where the office of any whole-time KMP is vacated, the Board must fill it at a Board meeting within six months from the date of vacancy. It is the Board, not the members, that fills it, so the general meeting option is wrong.

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