Q.Directors are ______ of the company's money.

Directors hold and manage the company's money for the benefit of the company and its shareholders, so in law they are regarded as trustees of that money — option (c).

Under the Companies Act, directors occupy a fiduciary position. Their legal status is described in three ways:

• Agents of the company when they enter into contracts on its behalf.
• Trustees of the company's money and property — they hold and control the funds not for themselves but for the company, and must apply them only for proper corporate purposes.
• Officers/managing partners in running the day-to-day affairs. …

The correct answer is (d) 3, because a public company must have at least three directors under the Companies Act, 2013.

As studied in the TN HSC Commerce chapter on Company Management, the Board of Directors manages the affairs of a company, and the Companies Act, 2013 fixes the minimum number of directors:

• Public company — minimum 3 directors.
• Private company — minimum 2 directors. …

A private company must have a minimum of two directors, so the answer is (c).

Under the Companies Act, 2013, the minimum number of directors required depends on the type of company: a One Person Company needs at least one director, a private company needs at least two directors, and a public company needs at least three directors. The maximum is generally fifteen.

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