Question

Under the Companies Act, which of the following powers can be exercised by the Board of Directors ____________________.

• A. Power to sell any of the companies undertakings
• B. Power to make calls
• C. Power to borrow in excess of paid up capital
• D. Power to appoint an auditor

Answer 1

The correct option is B Power to make calls

The Board of Directors of a company can exercise the following powers on behalf of the company only by means of resolutions passed at meetings of the Board:

To make calls on shareholders in respect of money unpaid on their shares;

To authorize buy-back of securities under section 68;

To issue securities, including debentures, whether in or outside India;

To borrow monies;

To invest the funds of the company;

To grant loans or give guarantee or provide security in respect of loans;

To approve financial statement and the Board’s report;

To diversify the business of the company;

To approve amalgamation, merger or reconstruction.