Question

Who cannot appoint a director?

• A. Provision in the articles
• B. Board of directors
• C. Third parties
• D. State Government

Answer 1

The correct option is A Provision in the articles

In a public company or a private company subsidiary of a public company, two-thirds of the total numbers of Directors are appointed by the shareholders and the remaining one-third is appointed in accordance with the manner prescribed in Articles failing which, the remaining one-third of the Directors must be appointed by the shareholders. The Board of Directors also have the power to appoint directors as per section 179. In case of government companies, State government if holds more than 50% stake can appoint the directors.

Hence, (C)