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Business Studies

Loans from Financial Institutions

Financial ins...

Question

Financial institutions may not have their nominees on the Board of Directors of the borrowing company.

A

True

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B

False

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Solution

The correct option is B
False

False. Financial institutions may have their nominees on the Board of Directors of the borrowing company, thereby restricting the powers of the company.

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Financial institutions may sometimes have their nominees on the Board of Directors of borrowing companies.

Q. Statements :
The government has spoiled many top ranking financial institutions by appointing bureaucrats as directors of these institutions.
Conclusions :
I. The government should appoint directors of the financial institutes taking into consideration the expertise of the person in the area of finance.
II. The director of the financial institute should have expertise commensurate with the financial work carried out by the institute.

Q. Statement Government has spoiled many top ranking financial institutions by appointing bureaucrats as directors of these institutions.
Conclusions
I. Government should appoint directors of the financial institutes taking into consideration the expertise of the person in the area of finance.
II. The director of the financial institute should have expertise commensurate with the financial work carried out by the institute.

Q. Companies may issue the debentures as security against loans taken from banks/financial institutions as _______.

Q. Which one of the following financial institutions shall not be regarded as Public financial institutions as per section

2 (72)

of Companies Act

2013

?

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Loans from Financial Institutions

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