Question

A body of elected representatives of shareholders of a company is called ______________.

• A. Board of Directors
  
• B. Managing Directors
  
• C. Secretary
• D. None of these
  

Answer 1

Answer: (A)

Board of Directors

Shareholders elect a team of members that represent the interests of shareholders and manages the company on behalf of the shareholders. They collectively form the Board of Directors which is headed by the Chairman or Chairperson.

Managing Director is the key managerial personnel of a company who represents the company and takes relevant and crucial decisions for the company. Managing Director is granted with powers to manage, by the Board.

Company Secretary is also a key managerial personnel of a company who is a link between the Board of Directors, shareholders, and government/regulatory authorities. He/She ensures that the procedures are followed and reviewed regularly, besides providing guidance on the responsibilities of Directors and Chairman.