Which body normally has primary responsibility for managing the business of a company?
Correct answer: A. The board of directors
- A. The board of directors
- B. The company’s external auditor
- C. The registrar of companies
- D. The company’s creditors
Explanation
The board of directors normally manages or supervises the company’s affairs within the authority given by law and the company’s constitution. Auditors and regulators perform oversight roles rather than general management.
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About Company Law Basics
Company law covers incorporation, separate legal personality, limited liability, shares, the memorandum and articles of association, and the powers and duties of directors. It also includes shareholder meetings, resolutions, company records, audit, winding up and the differences between a registered company, partnership and sole proprietorship.
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