GLS University

Faculty of Commerce
Semester VI
Corporate and Industrial Laws
Unit -1
Multiple Choice Quetions
1. Maximum no. of members in Private co. is
a) 20
b) 30
c) 50
d) 200

2. Clauses of memorandum of association include

a) Name clause
b) Object clause
c) Capital clause
d) All of above

3. Minimum no. of members in Public co. is

a) 2
b) 5
c) 7
d) 10

4. The application for registration of a co. should be presented to the_______ of the state.
a) Controller
b) Registrar
c) Registration officer
d) Governor
5. The article of association needs to be signed by
a) All proposed directors
b) Registrar
c) Subscribers of memorandum
d) None of above
6. No. of clauses in memorandum of association is
a) 5
b) 6
c) 7
d) 8
7. Which of the following clause of memorandum of association cannot be altered
 a) Name
b) Object
c) Situation
d) Liability
8. Generally Company liability is
a) Limited
b) Unlimited
c) Both (a) & (b)
d) None of above
9. Property of the company belongs to
a) Company
b) Share holders
c) Members
d) Promoters
10. __________ cannot give invitation to public for any shares in the company.
a) Statutory co.
b) Private co.
c) Registered co.
d) Subsidiary co.

True or False

1. Company will have fundamental rights.

Answer: False
2. The company’s nationality is decided by its registered office.
Answer: True
3. Property of the company belongs to company.
Answer: True
4. In case of company, Audit is compulsory.
Answer: True
5. Private company can start its business immediately after the issue of certificate of
Incorporation.
Answer: True
6. More than 50% of shares should be held by a company in another company so as to
become subsidiary.
Answer: True
7. Certificate of incorporation is the conclusive evidence in case of company that statutory
requirements have complied with.
Answer: True
8. Prospectus is required to be issued when right issue is made.
 Answer: False
9. Private company need not issue prospectus.
Answer: True
10. Company cannot pay under writing commission unless it is authorized by its Article.
Answer: True

Give the answers in brief

1. Minimum no. of members is required in Private co.

Answer: 2 members
2. Write definition of Public company.
Answer: Public company means a company which is not a private company.
3. Write any one restriction of private company.
Answer:
a) Restricts the right to transfer its shares,
b) limits the number of its members to two hundred,
c) Prohibits any invitation to the public to subscribe for any securities of the company.
4. Write any two information which required to be given in prospectus.
Answer:
a) Name and address of registered office of company.
b) details about underwriting of the issue,
c) dates of the opening and closing of the issue
d) procedure and time schedule for allotment and issue of securities
5. Write any two objects of issuing a prospectus.
Answer:
a) To invite the public to invest in the shares or debenture of a market.
b) To give a bureau of a condition on which the public is invited to invest in shares and
debentures.
c) To make a declaration that the directors of the company are liable for the condition
stated in the prospectus.
6. Define meaning of Memorandum.
Answer: Memorandum means memorandum of association of a company as originally
framed or as altered from time to time in pursuance of any previous company law or this
Act.
7. Write any four contents specified in Article of Association.
Answer:
a) Share capital and different classes of share capital
b) Procedure for the issue of share capital
c) Procedure of making share allotment
 d) Voting rights of members
e) Payment of dividend
8. Which resolution is required to pass for alteration of Article of Association.
Answer: Company can alter its Article of Association by passing a special resolution in
general Meeting.

9. Write clauses of Memorandum of Association.

Answer:
A. Name clause B. Registered office clause C. Object clause D. Liability Clause E.
Capital clause E. Subscription clause

10. Write any two characteristics of compant.

Answer:
A. Separate Legal entity B. Limited Liability C. Perpetual Succession D. Common Seal

Unit -2
Multiple Choice Quetions
1. Minimum no. directors in Private Co. is
a) 1
b) 2
c) 3
d) 4
2. Maximum no. of directors in Public co. is
a) 1
b) 2
c) 3
d) 4
3. Who can be appointed as director.
a) Individual
b) Body corporate
c) Firm
d) Association of Persons
4. Any person can hold office as director at the same time in ______________.
a) Maximum 10 companies
b) Maximum 12 companies
c) Maximum 18 companies
d) None of above
5. Age limit of Directors in case of Private co. is
a) 65
 b) 70
c) 75
d) No limit
6. Age limit of Directors in case of Public company is
a) 60
b) 65
c) 70
d) No limit
7. The position of Directors in co. is
a) Agent
b) Owner
c) Entrepreneur
d) None of above
8. Person shall not be eligible for appointment as a director of a co. if he is
a) of unsound mind
b) undischarged insolvent
c) applied to be adjudicated as an insolvent and his application is pending
d) all of above
9. DIN means
a) Director Identification Number
b) Director Independent Number
c) Director Information Number
d) None of above
10. Powers shall be exercised by board of directors only by means of resolutions passed at
meetings of board
a) To make political contribution
b) To appoint internal auditors
c) To appoint or remove key managerial personnel.
d) All of above
True or false

1. Director Identification Number is compulsory for the appointment of director in

company.
Answer: True
2. Provision for retirement of director by rotation shall not be applicable to Independent
director
Answer: True
3. Small shareholders’ director shall not be liable to retire by rotation.
Answer: True
4. Mr. X is director of A company and he is also director of B company, this means A co.
and B co. both are same.
Answer: False
5. A director of company shall not involve in a situation in which he may have direct or
indirect interest.
Answer: True
6. Director of a company shall assign his office to other.
Answer: False
7. The office of director shall become vacant in case he becomes disqualified by an order of
court.
Answer: True
8. Share holders of company may remove a director before the expiry of the period of his
office by passing an ordinary resolution.
Answer: True
9. Every listed company shall appoint at least three women directors.
Answer: False
10. Every listed public company shall have at least one-third of the total number of directors
as independent directors.
Answer: True

Give the answers in brief.

1. Write definition of Director.

Answer: Director means a director appointed to board of a company.
2. Write different types of Directors.
Answer:
A) Full time ( Executive directors) B) Part-time directors ( Non-executive directors)
3. Who can become the First Directors.
Answer: The first directors of a company may be named in its articles of association or
the articles may authorize the subscribers to memorandum to appoint the first directors.
4. Write any two disqualifications of director.
Answer:
1. If Person is undischarged insolvent. 2. If person is of unsound mind and stands to
declare by competent court. 3. Person has not got the DIN.
5. Explain the meaning of Quorum of board meetings.
Answer: Quorum is the minimum no. of directors required to be present to validly
transact any business.
6. What is quorum for a meeting of the board of Directors of a company.
Answer: Quorum for a meeting of the board of Directors of a company shall be one-third
of its total strength or two directors, whichever is higher.
7. Write any two powers to be exercise by Board only at a Board meeting.
 Answer:
1. To authorise buy back of securities under section 68
2. To borrow money
3. To invest the funds of company.
4. To approve the financial statement and the Board’s report.

8. How many board meetings should be held in the financial year.

Answer: There shall be minimum four board meetings every year.
9. Specify the time limit for notice of board meeting.
Answer: Not less than seven days’ notice in writing shall be given to every director.
10. In which company shall appoint at least one woman director.
Answer:
A) Every listed company
B) Every other public company having –
a) Paid up share capital of 100 crore rupees or more, or
b) Turnover of 300 crore rupees or more

Unit -3

Multiple Choice Quetions

1. DPIN Stands For
a) Designated Partner Identification Number
b) Director Personal Identification Number
c) Director and Partner Identification Number
d) Direct Partner Identification Number
2. LLP shall be Taxed Under Income Tax Act,1961 As of
a) Partnership Firm
b) Company
c) Association of person
d) HUF
3. Minimum Number of Partner in LLP
a) 1
b) 2
c) 3
d) 4
4. Who cannot become partner in LLP
a) Person has been found to be unsound mind.
b) Person is an undischarged insolvent.
c) Person has applied to be adjudicated as an insolvent.
 d) All of above
5. A Person shall cease to be a partner of LLP
a) On receiving advance from LLP
b) On giving advance to LLP
c) On his death
d) After completing age of 60 years
6. Partner of LLP is personally liable in case of
a) Liabilities of LLP
b) Personal liability of other partner
c) His own personal liability
d) Wrongful act or omission of any other partner
7. Document Which is defining the role and obligations of Partner in LLP
a) Partnership Deed
b) LLP agreement
c) Memorandum of association
d) Article of association
8. LLP may be wound up by Tribunal
a) If LLP is unable to pay its debt
b) If LLP has acted against interest of sovereignty & integrity of India
c) If LLP has made a default in filling of annual return with Registrar for any five
consecutive
Financial years
d) All of above
9. Incorporation documents shall be filled by LLP with
a) Tribunal
b) SEBI
c) Central Government
d) Registrar
10. According to LLP Act 2008, Body Corporate include
a) A company incorporated outside India
b) A corporation sole
c) Co-operative society
d) Partnership Firm

True Or False

1. Name applied for LLP cannot be rejected. – False

2. Name of the LLP shall end with either ‘Limited Liabilities Partnership’ or ‘LLP’. – True
3. Body corporate may be a partner of an LLP. – True
4. Provisions of Indian Partnership Act,1932 shall not be applicable to LLP. –True
5. There is no any requirement for appointment of Company Secretary in LLP. – True
6. Listed company can be converted into LLP. – False
7. Undischarged insolvent cannot become a partner in LLP. – True
8. Partners can be prosecuted under LLP act,2008. – True
9. LLP may be wound up by Tribunal. – True
10. An obligation of LLP shall be solely the Obligation of LLP. - True

Give the answers in brief

1. Explain the meaning of Foreign Limited Liability Partnership.

Answer: It means LLP formed, incorporated, or registered outside India which
establishes place of business within India.
2. Explain meaning of Limited Liability Partnership.
Answer: LLP means a Partnership formed and registered under LLP Act 2008
3. Explain meaning of Partner.
Answer: Partner, in relation to LLP, means any person who becomes the Partner in LLP
in accordance with Limited Liability Partnership Agreement.
4. Specify the time limit for the appointment of designated partners in LLP in case of a
vacancy arising for any reason.
Answer: Appoint designated partners within 30 days of vacancy arising for any reason.
5. State any two information provided in the incorporation documents.
Answer:
A) Name of Limited Liability Partnership
B) Proposed business of Limited Liability Partnership
C) Address of registered office of Limited Liability Partnership
D) Name and address of each persons who are to be partners of Limited Liability
Partnership on incorporation.
6. State any one situation in which person shall cease to be a partner of Limited Liability
Partnership.
Answer:
A) On his death or dissolution of Limited Liability Partnership
B) If he is declared to be of unsound mind by a competent court.
7. Specify the time limit for the filing annual return by Limited Liability Partnership.
Answer: To file annual return within 60 days of closure of its financial year.
8. Specify the punishment for making false statement in any return or other documents by
any person.
Answer: He shall be punishable with imprisonment for a term which may extend to 2
years, and liable for fine which may extend to 5 lakhs rupees but not be less than 1 lakh
rupees.
 9. Who shall appoint the inspectors to investigate the affairs of Limited Liability
Partnership.
Answer: Central Government
10. Who shall not be appointed as Inspectors to investigate the affairs of Limited Liability
Partnership.
Answer: Firm, body corporate or other association.

Unit -4
Multiple Choice questions

1. The Industrial Dispute Act was passed in the year ;

(a) 1947 (b) 1957 (c) 1967 (d) 1977
2. The objective of Industrial dispute Act , 1947 is to;
(a) Prevention of illegal strikes and lock outs
(b) Investigation and settlement of industrial disputes
(c) Both of these
(d) None of these
3. The triple test to determine industry was laid down in a case decided by Supreme court
and known as;
(a) Bangalore water supply case
(b) Dimakutchi tea estate case
(c) Express newspaper case
(d) None of these
4. After giving a notice of change under section 9-A of the Industrial Dispute Act, 1947,
change in service condition can be effected ;
(a) After 21 days of giving notice
(b) Within 21 days of giving notice
(c) After 15 days of giving notice
(d) Within 15 days of giving notice
5. The Industrial dispute relating to any matter specified in the Third schedule of the
Industrial Dispute Act may also be referred to Labour court if the dispute is not likely to
affect workmen more than;
(a) 400 (b) 200 (c) 300 (d) 100
6. Reference of Industrial Dispute by the parties under section 10A of the Act is also known
as ;
(a) Compulsory reference (b) obligatory (c) voluntary (d) mandatory
7. Which of the following fall in the category of conciliation authorities?
(a) Works committee (b) Board of conciliation (c) Court of inquiry (d) All of these
8. The appointment/constitution of conciliation officer, Board of Conciliation and Court of
inquiry is made by;
 (a) Appropriate government (b) employer (c) Occupier (d) Both (b) & (c)
9. A factory is a premises where 10 or more workers are working and the manufacturing
process is carried on ;
(a) With the aid of power
(b) Without aid of power
(c) Through the year
(d) None of these
10. Which of the following persons fall in the definition of ‘young persons’ as used in the
Factories Act, 1948;
(a) A child (b) an adolescent (c) Both of these (d) None of these

Objective Type Questions

11. For the purpose of the Factories Act, 1948 and adolescent is a person who has completed
his fifteenth year of age.
12. The certifying surgeons under the Factories Act, 1948 are appointed by the state
Government under section 10 of the Act.
13. The legal position for effecting a change in the service conditions of workmen as
provided in section 9-A of the Industrial Dispute Act, 1947
14. As regards cleanliness, it is provided in the Factories Act, 1948 that accumulation of dirt
refuse shall be removed daily.
15. The provisions relating to the welfare in the Factories are provided in chapter V of the
Factories Act, 1948 which contains sections 42 to 50.
16. In a view of section 71 of the Factories Act, 1948 no child shall be employed in any
factory for more than four and half hours.
17. Holder in due course is a person who has obtained the instrument for valuable
consideration.
18. The State Government may exempt any factory from the application of leave rules
contained in Chapter VIII of the Factories Act, 1948. (True / False)
19. Any person who is directly or indirectly interested in any factory shall not be appointed
as Inspector under the Factories Act, 1948. (True/ False)
20. Every negotiable instrument must be reduced to writing and signed by the parties as per
the rules relating to promissory notes, bills of exchange and cheques.

Answer in One line

21. Define Unfair Labour Practice.

Any unfair act or omission that arises between employer and employee involving unfair
conduct of the employer relating to promotion, demotion or training of employees.
22. Define Ambiguous instrument.
Owing to faulty drafting when an instrument may be interpreted either as a promissory
note or as a bill of exchange it is called an ambiguous instrument.
23. Define the term factory under section 2(m) under Factories Act, 1948
It means any premises including the precincts thereof where 10 or more workers are
working on a day preceding 12 months and any kind of manufacturing process is carried
out.
24. What is the meaning of the term Creches under Factories Act, 1948
In a factory where more than 30 women are employed there shall be maintained and
provided suitable rooms for children under the age of six for such women are called
crèches.
25. Essential ingredients of Bill of Exchange
Instrument must be in writing, made by drawer, must contain an order to pay and must be
certain with legal tender money of India.
26. Define cheque and crossing of cheque.
Cheque is a bill of exchange drawn on a specified banker and not expressed to be payable
otherwise than on demand.
27. Difference between Promissory Note and Bill of Exchange.
Promissory note 2 parties,unconditional promise to pay- BOE 3 parties,unconditional
order to pay.
28. What is crossing of cheque?
Crossing cheque is one which has two short parallel lines with or without the words “&
Co” marked across the cheque.
29. Define Negotiable Instrument.
Negotiable means that it is transferable from one person to another and instrument means
a written document which gives a right in favor of some person.
30. Which chapter under Factories Act, 1948 contains provisions relating to annual leave
with wages is contained?
Chapter VIII of the Factories Act, 1948 contains the provision of annual leave under
section 78-84 of the Act.