Question

State the following statement is True or False:

A Director who is entrusted with the substantial powers of management is the Managing Director.

• A. True
• B. False

Answer 1

The correct option is A True

Managing director is defined by the Companies Act 2013 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 and includes a director occupying the position of managing director, by whatever name called'.