Minimum directors required in a public company:

3. A public company must have at least three directors.

Maximum number of directors in a company (without special resolution):

15. The limit is 15 unless raised by special resolution.

Director Identification Number. DIN is a unique ID for every director.

Which is a Key Managerial Personnel?

Company Secretary. KMPs include CEO/MD, CS and CFO.

Chief Financial Officer. Chief Financial Officer.

Maharashtra State Board · HSC Commerce · Class 11 (Std XI)

Class 11 Secretarial Practice Chapter 6: Directors and Key Managerial Personnel

Short notes, key concepts, quick revision and practice MCQs with answers

A company is managed by its Board of Directors elected by members. Key Managerial Personnel (KMP) are senior officers who run the day-to-day affairs and ensure compliance.

Key concepts: Directors and Key Managerial Personnel

Board of Directors: Group of persons who direct the affairs of a company. Minimum directors: public 3, private 2, One Person Company 1; maximum 15 (more by special resolution).
Director's identity: Each director must have a Director Identification Number (DIN).
Managing Director: A director entrusted with substantial powers of management.
Key Managerial Personnel: CEO/Managing Director/Manager, Company Secretary (CS), Whole-time Director and Chief Financial Officer (CFO).
Role of CS: Compliance officer and legal adviser to the board.

Quick revision: important points

At least one director must be a resident of India (stay 182 days or more).
Directors are agents and trustees of the company.
CFO handles financial matters of the company.

Practice MCQs with answers

Minimum directors required in a public company:
1. 1
2. 2
3. 3
4. 10
Show answer
Answer: C. 3
A public company must have at least three directors.
Maximum number of directors in a company (without special resolution):
1. 7
2. 10
3. 15
4. 50
Show answer
Answer: C. 15
The limit is 15 unless raised by special resolution.
DIN stands for:
1. Director Identification Number
2. Daily Income Note
3. Direct Investment Norm
4. Dividend In Name
Show answer
Answer: A. Director Identification Number
DIN is a unique ID for every director.
Which is a Key Managerial Personnel?
1. Company Secretary
2. Peon
3. Customer
4. Driver
Show answer
Answer: A. Company Secretary
KMPs include CEO/MD, CS and CFO.
CFO stands for:
1. Chief Financial Officer
2. Chief Field Officer
3. Company Fund Owner
4. Central Finance Order
Show answer
Answer: A. Chief Financial Officer
Chief Financial Officer.

All Class 11 Secretarial Practice chapters

Chapter 1: Secretary
Chapter 2: Joint Stock Company
Chapter 3: Formation of a Company
Chapter 4: Documents Related to Formation of a Company
Chapter 5: Members of a Company
Chapter 6: Directors and Key Managerial Personnel
Chapter 7: Company Meetings - I
Chapter 8: Company Meetings - II (AGM and EGM)
Chapter 9: Business Communication Skills of Secretary
Chapter 10: Correspondence with Directors

Class 11 Secretarial Practice notes: all chapters