Directors of a public company are elected by ________.

Correct option is B

In a public company, the directors are elected by the shareholders during the Annual General Meeting (AGM). Shareholders are the true owners of the company, and they exercise control through their voting rights. The Companies Act, 2013 provides that the Board of Directors is accountable to the shareholders, and hence, they elect directors by passing an ordinary resolution.
Each shareholder gets voting rights in proportion to their shareholding (unless otherwise specified). Debenture holders, government, or the general public do not elect directors unless under special circumstances like government nomination in certain public sector enterprises.
Thus, the correct answer is (b) Shareholders.
Information Booster
1. Directors form the Board of Directors, responsible for policy decisions and overall management.
2. Election of directors is usually done by show of hands or polling at the AGM.
3. The Companies Act, 2013 prescribes qualifications, disqualifications, and duties of directors.
4. At least one woman director and one resident director are mandatory in certain public companies.
5. Shareholders can remove a director before the expiry of his term through an ordinary resolution.
Additional Information
· (a) Government: Government does not elect directors in private or public companies unless it is a government company or due to special intervention.
· (c) Debentureholders: They are creditors, not owners; hence they have no voting rights in director elections.
· (d) Public: The general public has no direct role in electing directors unless they are shareholders.