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Commerce · Q124

Legal Aspects of Business

Graduate and Post Graduate · Commerce · question 124

Q124

Consider the following statements: Assertion (A): The companies Act does not lay down any academic, technical or professional qualification for directors. It does not even provide for any share qualification. Reason (R): The Articles usually provide for a minimum share qualification. Where such qualification is laid down the Act provides that the nominal value of the qualification shares must not exceed Rs. 5,000 or the nominal value of one share where it exceeds Rs. 5,000. Now select your answer:

A.
A is true but R is false
B.
A is false but R is true
C.
Both A and R are true but R is not the correct explanation of A
D.
None of the above
Answer

Answer: Option D

Solution

Answer: Option D
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