In public or a private company, a total of two-thirds of directors are appointed by the shareholders. The rest of the one-third remaining members are appointed with regard to guidelines prescribed in the:

[amp_mcq option1=”Article of Association” option2=”Memorandum of Association” option3=”Anyone of A or B” option4=”None of the above” correct=”option1″]

The correct answer is: A. Article of Association

The Article of Association is a document that sets out the rules and regulations of a company. It includes information such as the company’s name, its registered office, its objects, and the rights and duties of its members. The Article of Association also includes information on how the company is to be managed, including the appointment of directors.

The Memorandum of Association is a document that sets out the main objects of a company. It also includes information such as the company’s name, its registered office, and the amount of its authorized share capital. The Memorandum of Association does not include information on how the company is to be managed.

Therefore, the Article of Association is the document that prescribes the guidelines for the appointment of directors.

Here is a brief explanation of each option:

• A. Article of Association
  The Article of Association is a document that sets out the rules and regulations of a company. It includes information such as the company’s name, its registered office, its objects, and the rights and duties of its members. The Article of Association also includes information on how the company is to be managed, including the appointment of directors.

• B. Memorandum of Association
  The Memorandum of Association is a document that sets out the main objects of a company. It also includes information such as the company’s name, its registered office, and the amount of its authorized share capital. The Memorandum of Association does not include information on how the company is to be managed.

• C. Anyone of A or B
  This option is incorrect because the Article of Association is the document that prescribes the guidelines for the appointment of directors, while the Memorandum of Association does not.

• D. None of the above
  This option is incorrect because the Article of Association is the document that prescribes the guidelines for the appointment of directors.