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Objective Questions · Q2

Q.A director appointed by the Board to act in place of an original director who is absent from India for not less than three months is called:

(a) Additional Director
(b) Alternate Director
(c) Nominee Director
(d) Casual Vacancy Director
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Section 161(2) of the Companies Act, 2013 allows the Board, if authorised by the Articles or a members' resolution, to appoint an Alternate Director to act in place of a director who is absent from India for a period of not less than three months. The alternate director vacates office as soon as the original director returns to India.

Option-by-option analysis:

  • (a) Additional Director [Section 161(1)] is appointed to a fresh Board seat between two AGMs, not as a substitute for an absent director — incorrect.
  • (b) Alternate Director [Section 161(2)] is exactly this substitute role — correct. …

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