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CS Executive — Answer Writing

The Executive level is where a candidate learns to write like a company secretary: statute first, facts second, conclusion stated. ICSI publishes Suggested Answers, and the gap between a candidate's answer and those is the entire feedback loop.

THE INSTITUTE OF COMPANY SECRETARIES OF INDIA
EXECUTIVE PROGRAMME EXAMINATION
COMPANY LAW AND PRACTICE
Time Allowed: 3 HoursMaximum Marks: 100

Answer ALL Questions. All references to sections relate to the Companies Act, 2013 unless stated otherwise.

  1. 1. (a)The Board of PQR Ltd. wishes to appoint an additional director who will hold office beyond the next annual general meeting. Advise on the legal position and the procedure to be followed.(5 Marks)
  2. (b)Explain the doctrine of indoor management and its exceptions.(5 Marks)
  3. 2. (a)State the provisions relating to the quorum for a Board meeting and the consequences of its absence.(5 Marks)
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Studio 07:30
Company Law and Practice5 marks

The board of PQR Ltd wishes to appoint an additional director who will hold office beyond the next annual general meeting. Advise on the legal position and the procedure.

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The board can appoint an additional director if the articles authorise it. But an additional director holds office only up to the date of the next annual general meeting. To continue beyond that he has to be appointed as a director by the members in the general meeting. So the company should propose his appointment as a regular director at the AGM. While he holds office an additional director has the same powers, duties and liabilities as any other director.
80 / 100 words
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Your page, photographed and readMarked in red
Q. No. 1Company Law and PracticeMax. marks 5
Q1

The board can appoint an additional director if the articles authorise it. But an additional director holds office only up to the date of the next annual general meeting. To continue beyond that he has to be appointed as a director by the members in the general meeting. So the company should propose his appointment as a regular director at the AGM. While he holds office an additional director has the same powers, duties and liabilities as any other director.

Section 161(1) and Section 152 by numberThe second limb of the tenure rule — the last date on which the AGM should have been held
3/5
Page 1Marks for each expected point are written down the right margin
The pen marks on your page
StrongThe correct rule, and the exact limitation the question is testing.
StrongCorrectly conditioned. Section 161(1) makes this authority a precondition.
What the examiner wanted and did not find
  • Section 161(1) and Section 152 by number
  • The second limb of the tenure rule — the last date on which the AGM should have been held
  • The procedural chain: board resolution, DIR-2 consent, DIR-12 filing within thirty days
Model answer for this question

Provision: under Section 161(1) the board may appoint an additional director if the articles confer the power, and such a director holds office up to the date of the next annual general meeting or the last date on which it should have been held, whichever is earlier. To continue, the member must be appointed as a director by the members under Section 152. Procedure: check the articles, pass a board resolution, obtain DIN and consent in Form DIR-2, file Form DIR-12 within thirty days, and include the appointment as an item of special business in the AGM notice with the explanatory statement.

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Evaluation reportIllustrative
Step marking
  • Section 161(1) — power conditional on the articles½/1

    The condition is stated without the section.

  • Tenure limited to the date of the next AGM, or the last date on which it should have been held½/1

    The first limb is right; the second limb is the part candidates miss.

  • Route to continue — appointment by members under Section 1521/1

    Correct route identified.

  • Procedure — board resolution, DIN, DIR-12 filing, consent in DIR-20/1

    The question asked for the procedure and none is given.

  • Advice framed as advice1/1

    Ends with a clear recommendation.

Total 3/5AverageAI estimate — not an official score

CS Executive at a glance

Conducting bodyThe Institute of Company Secretaries of India (ICSI)
ModeHandwritten, with objective components in some papers
Papers7
MarkingCS Executive — step marking
Marked the way CS Executive answers are marked — step marking against ICSI's published Suggested Answers: the provision stated, applied to the facts, and concluded.
ICSI groups these papers and sets their objective and descriptive split under its current syllabus. Confirm for your session.

What CS Executive sets

The papers you sit, and what each is worth.

1Company Law and Practice
2Jurisprudence, Interpretation and General Laws
3Tax Laws and Practice
4Corporate Accounting and Financial Management
5Capital Market and Securities Laws
6Economic, Commercial and Intellectual Property Laws
7Setting up of Business, Industrial and Labour Laws
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