Question

A director who is entrusted with substantial powers of management which would not otherwise be exercisable by him is?

• A. Chief executive officer
• B. Managing director
• C. Chief financial officer
• D. None of the above

Answer 1

The correct option is A Chief executive officer

As per section 2(51) of the Companies Act, 2013, managing director has been included under the inclusive definition of key managerial person. Also, section 2(54) of the act has defined managing director as a director who, by virtue of the articles of a company or an agreement with the company or a resolution passed in its general meeting, or by its Board of Directors, is entrusted with substantial powers of management of the affairs of the company which would not otherwise be exercisable by him is and includes a director occupying the position of managing director.

Hence. (B)