©) studocu Company LAW MCQS WITH Answers ‘Studocu isnot sponsored or endorsed by any college or universty Down shit Kumar (rs om)COMPANY LAW MCQS WITH ANSWERS SET- 1, What are the limits of number of members in a Private Company? (a) Fifly (b) Seven (c) Twenty (d) Two hundred 2. If XYZ is the holding company of P&R Ltd. then, which of the following statement is not true in this regard, (a) XYZ Ltd. controls the composition of Board of P&R (b) XYZ Ltd. holds more than 50% of the nominal value of the equity shares (c) Both (a) & (b) (d) None of the above 3. Which of the following is not a stage of the development of company? (a) Promotion (b) Production (c) Incorporation (4) Commencement of Business 4, which of the following company/companies are registered by the Companies Act, 2013? (a) Government Company (b) Private Company (c) Public Company (d) All of the above 5. Apublic company must have at least directors whereas a private company must have at least directors (a) 3;2 (b) 2;3 (C)2;5 (8310 6. A subsidiary of a government company is also treated as a (a) Government Company (b) Public Company (c) Private Company (4) All of the above 7. The. ofa government company is appointed or reappointed by the Comptroller and Auditor General of India (a) Auditor (b) Company Secretary (c) Both (a) and (b) (d) None of the above 8, Which of the following company is incorporated in a country outside India? is documents avaiable fe of charge on § studocu Downloaded by Nishit Kumar (nishitbscty007@gmal.com)(a) Private Company (b) Foreign Compa above s (c) Government Company (d) None of the 9. Which of the following statement is false? (a) No legal formality is required to form a company. (b) The shareholders of a company have limited liability. (c) A company can own property in its own name. (@) A company is managed by the elected representatives of shareholders. 10. A is one who performs the preliminary duties necessary to bring a company into being and float it. (a) Auditor (b) Promoter (c) Director I (d) Financer 11. The registered office clause of memorandum of association contains (a) The name of the state in which the registered office of the company is to be situated. (b) The name of the city/town only and not that of the state, (c) The name of registrar of companie: (d) The complete postal address. 12. “One who undertakes to form a company with reference to a given object and set it going and who takes the necessary steps to accomplish that purpose (a) Promoter (b) Directors (c) C.E.O. (d) Board of Directors 13. Which of the following are the functions of a promoter? (a) Decides name of a company (b) Nomination of directors (©) Settles the details of memorandum and articles (d) Alll of these 14, Ais neither an agent, nor a trustee of a company. (a) Directors (b) Company Secretary (c) Employees (d) Promoters Downloaded by Nishit Kumar nishitescty007@gmal.com)15. Which documents contains the constitution of a company? (a) Memorandum of Association (b) Arti (©) Both (a) and (b) s of Association (d) None of these 16. Which documents contains the regulations relating to the internal management of a company? (a) Memorandum of Association (b) Articles of Association (©) Both (a) and (b) (d) None 17. For vetting the MOA and AOA, as per SPICE, eMOA and eAOA is required. (a) True (b) False (c) Partly True (d) None of the above. 18. The companies are regulated under . (a) Companies Act, 1596 (b) Companies Act, 1957A(c) Indian Partnership Act,1932 (4) Companies Act, 2013 19. The certificate of incorporation is that the company is entitled to commence business. (a) Exclusive (b) Conclusive (c) Supportive (d) Either (a) or (b) 20. The whole process of the company formation may be divided into three direct stages, the sequence is- (a) Promotion, incorporation by registration, commencement of business. (b) Incorporation by registration, commencement of business, promotion (©) Commencement of business, promotion, incorporation by registration. (d) Commencement of business, incorporation by registration, promotion. is documents avaiable fe of charge on § studocu Downloaded by Nishit Kumar (nishitbscty007@gmall.com)21. Company is managed by (a) Shareholders (b) Board of Directors (c) Karta (d) Both(a)&(b) 22. H.ULF. consists of which type of members (a) Both (b) & (c) (b) Heterogeneous (c) Homogeneous (4) None of the above 23. Partnership is governed by Partnership Act (a) 1956 (b) 1948 (c) 1932 (d) 1982 24, which is not a case of lifting of corporate veil (a) Connors Bros. v. Connors (b) Jones v. Lipren (c) Pearce v. Brookes (d) CIT v. Meenakshi Mills Ltd, 25. Word Corporation’ is ——— than company (a) Narrow (b) Wider (c) (a) or (b) I (d) All of the above 26. Which of the following statements is not true? (a) A company is an artificial person created by law. (b) A company can do every act like a natural person except the acts which are purely of personal nature. (©) Acompany can be held liable for violation of the statutory provisions of the Companies Act. (a) A company can be imp: by way of imprisonment only. ned for violation of such provision which attract penalty 27. Which of the following is not the characteristic ofa public company? (a) It has a separate legal entity. (b) It has a perpetual succession. (©) Ithas a common seal and separate property. (d) Its shares are non transferable. Downloaded by Nishit Kumar (nishitescty007@gmall.com)28. A and B were the only members of a company who died in a road accident. In this case, the company comes to end on the death of A and B. (a) True (b) False (c) Partly True (d) Partly False 29. A company being a legal person is also a citizen under the Constitution of India (a) True (b) False (c) Partly True (d) Partly False 30. A statutory company or corporation is one which is incorporated (a) By an Act of Parliament (b) By an Act of State Legislature (©) Under the Companies Act, 2013 (@) By either (a) or (b) 31. In case of a company limited by guarantee, the liability of the members can be enforced (a) At any time when the company so decides (b) Only at the time of winding up of the company (c) Only by an order of court (@) Only by an order of Registrar of Companies 32, A Government Company is one in which $1% or more of the paid up share capital is held by (a) Central Government alone (b) State Government alone (c) Central and State Government jointly (@) Any of the above 33. At the time of registration the filing of Articles of Association with the Registrar of, Companies is compulsory for (a) Private companies, unlimited companies and companies limited by guarantee (b) Unlimited companies only is documents avaiable fe of charge on § studocu Downloaded by Nishit Kumar (nishitescty007@gmal.com)(c) Companies limited by shares only (d) All types of companies 34, If at the time of registration, a company limited by shares does not file Articles of Association with the Registrar, then (a) The company cannot be registered without this document (b) The company is deemed to be adopted Table F” (c) The company is deemed to have become a company with unlimited liability (d) The directors become liable to be punished with fine at the rate of 250 for each day during. which the default continues 35. On 14” July, the Registrar of Companies issued a Certificate of Incorporation, but it was dated 10th July instead of 14th July. From which date the company will legally come into existence? (a) 10th July (b) 14th July (c) 31stJuly (d) None of these 36. A company comes into existence when (a) the memorandum of association is signed by the required number of members. (b) the memorandum of association’ is submitted for registration to the Registrar of Companies. (c) It is registered under the Companies Act, 2013. (@) Itestablishes its registered office and starts functioning there form, 37. A company formed for the promotion of commerce, att, science. religion, charity ete. may not use the word limited at the end of its name, even if itis a limited company. (a) True (b) False (c) Partly True (d) Partly False 38. The Registered office clause of Memorandum of Association contains (a) The name of the state in which the registered office of the company is to be situated. (b) The name of the city/town only and not that of the state, (c) The name of Registrar of companies. (d) The complete postal address. Downloaded by Nishit Kumar (nishitbscty007@gmall.com)39. The Object clause of Memorandum of Association must be divided into two Sub Clauses, namely (i) main objects clause, and (ii) object in furtherance of main object clause. (a) True (b) False (c) Partly True (d) Partly False 40. which of the following statements is correct? (a) In limited compan 3s, the liability of members holding fully paid-up shares is nil. (b) In companies limited by guarantee, the liability of members is limited to the amount which they have agreed to pay. (c) Both (a) and (b) are correct. (d) None of these is correct. 41. For which of the following companies it is not obligatory to have Articles of Association? (a) Public Companies Limited by Shares (b) Public Companies Limited by Guarantee (©) Private Limited Companies (@) Unlimited Companies 42. Which of the following statements is correct ? (a) The memorandum and articles’ are binding on the members in their relation to the company. (b) The memorandum and articles are binding on the company in their relation to the members. (©) None of these is true (d) Both of these are true 43. Company's memorandum and articles are public documents. (a) True (b) False (c) Partly True (d) Partly False 44, In case ‘memorandum and ‘articles’ are inconsistent, then which shall prevail over the others ? (a) Memorandum of Association is documents avaiable fe of charge on § studocu Downloaded by Nishit Kumar (nishitbscty007@gmal.com)(b) Articles of Association (©) The one approved by Registrar (@) None of these 45. A public company having a share ;pital can start its business on obtaining (a) Certificate of incorporation and approval of Company Law Board (b) Certificate to commence business and approval of Company Law Board. (©) ‘Certificate of Incorporation (d) Approval of High Court. 46, Company has ————suceession. (a) Longer (b) Continued (©) Perpetual (@) Limited 47. If company do not follow the principle of separate legal entity —————can be done, (a) Lifting of corporate veil (b) Principle of equity (©) Principle of natural justice (@) All of above 48, Total managerial remuneration in a public company cannot be (a) 10% (b) 11%(c) 18% (d) 11.5% of net profit. 49. Audit of Government Company is done by C & AG. This statement is: (a) True (b) False (c) Partly True | (d) Partly False 50, Any Corporate Body/Association of Firm can be appointed as director of the company. This statement is: (a) True (b) False (c) Partly True (4) Partly False 51, How many members should sign the MOA in case of public company? Downloaded by Nishit Kumar (nisitescty007@gmall.com)(a1 ()S ()3 (7 52, conceives the idea of the business. (a) Promoters (b) Auditors (c) Directors (d) Shareholders 53. Shares of company are freely transferable (a) Private company (b) Public company (c) Both (a) & (b) (d) None of the above 54, Life Insurance Corporation Ltd. is formed under; (a) Companies Act, 2018 (b) Special Act of Parliament (c) Both (a) and (b) (d) None of the above 55. Company's corporate personality was brought forward in the case of (a) Macaura V. Northern Assurance Co, Ltd. (b) Jons V. Lip ran. () CIT V. Meenakshi Mills Ltd. (d) Salomon V Salomon and Co, Ltd. 56. Which of the following is a non trading association ? (a) Company (b) Partnership firm (c) Club (d) HUF 57. Promoter is both an agent and trustee of the proposed company. (a) True (b) False (c) Partly True I (d) Partly False 58. Liability clause in MOA is required by: (a) Company limited by shares (b) Company limited by guarantee (©) Company limited by both shares and guarantee (d) All of the above 59. Articles of unlimited company having share capital is included in: (a) Table I (b) Table G (C) Table H (d) Table F is documents avaiable fe of charge on § studocu Downloaded by Nishit Kumar (nishitbscty007@gmal.com)60. Which one of the following is not a main clause of memorandum of association? (a) Name clause (b) Capital clause (c) Object clause (d) Profit clause 61, ———is to be executed on a non judicial stamp paper. (a) Share warrant (b) Power of attorney (b) Incorporation certificate (d) None of the above 62. The word company is derived from ————word Com Panis”. (a) French (b) Latin (c) German (4) Indian 63. Which of the following are the characteristics of a company? (a) Corporate Personality _(b) Limited Liability (©) Perpetual Succession _(d) All of the above 64, The company has a capacity to sue and be- (a) Incorporated (b) Sued (c) Both (a) and (b)_(d) None of the above 65. A company may be an (a) Incorporated company (b) Unincorporated company (c) Both (a) and (b) (4) None of the above 66. A word corporation is derived from latin term “corpus” which means: (a) Body (b) Legal Person (c) Artificial Person (d) None of the above 67. The liability of the member of the company is limited to the extent of the of the shares held by them, (a) Unpaid value (b) Paid value (c)Nominal value (4) All of the above 68. Which of the following statement is correct? (a) Partners are the agents of the firm but member of company are not its agents (b) Partner cannot contract with his firm but a member of a company can Downloaded by Nishit Kumar (nishitbsctyo07@gmall.com)(©) Both (a) and (b) (d) None of these is correct 69, In public company, the members of the company is not less than . (a) Two (b) Seven (c) Ten (d) Twenty 70, In Private Company, member of the company is not less than (a Seven (b) Ten (c) Two (d) Eight 71. A company is a on the other hand a club is a. (a) Trading association, non trading association, (b) Non trading association, trading association. (©) Trading association, trading association. (d) None of these. 72. Which of the following are not the advantages of incorporation? (a) Separate property (b) Unlimited liability (©) Capacity to sue (d) Flexibility & autonomy 73. Which of the following are not the disadvantage of incorporation? (a) Formalities and expenses (b) Corporate disclosure (c) Limited liability (d) Both (a) and (b) 74. Which of the following are kinds of companies? (a) Private companies (b) Producer companies (©) Both (a) and (b) (d) None of the above 75, Provisions related to accounts, winding up, calls on shares, forfeiture, etc. are contained in (a) Articles of Association (b) Memorandum of Association (c) Prospectus (d) Statement in lieu of prospectus This documents abe re of charge on § studocu Downloaded by Nishit Kumar (nisitbscty007@gmall.com)76. Advantage of incorporated company is (a) Corporate disclosures (b) Common seal (©) Capacity to sue (d) Windier up procedure 77. Find the odd one out: (a) Private Company (b) Public Company (¢) Consumer Company (d) Producer Company 78. Joint shareholders are counted as (a) Two (b) No limit (c) 50 (d) One 79. Example of company limited by guarantee (a) Clubs (b) Both (a) & (¢) (c) Societies (d) None of the above 80, Which is not a registered company (a) Company limited by share (b) Company limited by guarantee (c) Both (a) & (b) (d) None of the above 81. Public company shares are dealt in (a) Stock exchange (b) Public (c) Market (d) All of the above 82. Is there any limit on borrowings to a Private Company (a) Limit up to RS 50,000 (b) Limit up to 1 lakh (C) No limit (4) None 83. Unlimited company may be subsequently converted into limited company (a) True (b) Partly true (c) False (d) None of the above 84, Non Profit companies are also called (a) Holding companies (b) Licensed companies (c) Subsidiary companies (4) Government companies Downloaded by Nishit Kumar (nishitbsctyoo7@gmall.com)85. Government company comes under section (a) 2(46) (b) 2(44) (c) 2(43) (a) 245) 86, Foreign company must issue prospectus (a) True (b) Partly true (c) False (d) None of these 87. Company's memorandum & articles are public documents (a) True (b) False (c) Partly True (d) Partly False 88. For incorporation or registration (a) MOA must be subscribed (b) AOA must be subscribed (c) Only MOA (4) Both (a)&(b) 89, MOA contains of company (a) Constitutions (b) Regulations (c) Declaration (d) None of these 90, MOA has clauses (a) 9 (b) 7 (6) 6 (a) 10 91. AOA is also called as of the company (a) Regulations (b) Bye Laws (c) Provisions (d) Both (a) or (b) 92, Tables I includes articles of (a) Unlimited company having share capital (b) Company limited by guarantee (©) Company limited by shares (A) Public company 93. which amongst the following documents is not required to be filed by a foreign company with the Registrar? (a) Address of the registered office of the company This documents abe re of charge on § studocu Downloaded by Nishit Kumar (nishitbscty007@gmal.com)(b) Address of the principles place of business in India (©) Declaration of Solvency (@ Articles of Association 94, Lifting of corporate veil is permitted (a) By statue (b) Voluntary (c) Any time (d) None of these 95. which one of the following is NOT an essential feature of a company? (a) Perpetual Succession (b) Unlimited Liability (c) Separate Property (d) Transferability of shares 96. which one of the following statement is not true regarding a company? (a) The shares of a company can be transferred (b) It is very simple and easy to form a company (©) Itis a separate legal entity (d) Ithas independence to form its policies 97. Which one of the following is NOT a disadvantage of a company? (a) It does not have a capacity to sue (b) It has more social responsibility (©) Greater tax burden (d) More disclosures 98, Which of the following statement is NOT true regarding a private company? (a) It cannot invite public to subscribe to shares or debentures (b) Restricts the right to transfer its share (©) At least five members are required to form a company (d) It should have at least two directors 99. The auditor of a Government company is appointed by (a) Central Government Downloaded by Nishit Kumar (nishitbscty007@gmal.com)(b) Comptroller and Auditor General of India (©) Directors of the Company (@) Shareholders of the Company 100. The maximum managerial remuneration which (a) 11% of net profit (b) 11% of tumover (c) 5% of share capital (d) None of the above 101. In case of a company limited by shares, the members are liable to the extent of (a) Nominal value of share (b) Called up value of shares (©) They are personally liable (d) None of the above 102. Which one of the following is not true with reference to an unlimited company? (a) The liability is extended to their personal property (b) The members are not liable directly to the creditors of the company (o) It cannot convert itself into a public company (d) All of the above 103. A “not for profit” company is permitted as per which section of the Companies Act, 20137 (a) Sec. 2(4) (iv) (b) Sec. 5 (c) See. 8 (d) Sec. 12. 104. The licence to form a company not for profit” is granted by (a) State Government (b) Registrar (c) High Court (a) Central Government This documents abe re of charge on § studocu Downloaded by Nishit Kumar (nishitbscty007@gmall.com)105. Government company is defined under which section of the Companies Act, 2013? (a) See. 2(45) (b) Sec. 2(44) (c) See. 2(43) (d) None of the above 106. Private Company need not issue prospectus (a) True (b) Partly true (c) False (d) None of these 107. Prospectus is required to be issued when rights issue is made (a) True (b) Partly true (c) False (d) None of these 108. Prospectus is not required to be issued when sweat equity shares are issued to directors and employees (a) True (b) Partly true (c) False (d) None of these 109. Prospectus is required to be i ed when issue is for Employees under Employee stock option scheme (a) True (b) Partly true (c) False (d) None of these 110. When there is a untrue statement in a prospectus who can sue a) Subscribed in primary market b) Subscribed in secondary market c) Rights issue d) None of the above 111. Definition of prospectus was given under which sec. a)2 (30) b)2 (32) ¢)2 (34) d)2(36) 112. Which of the following are not required to sue prospectus? a) Private company b) Incase of right issue c) Sweat equity issue d) All the above 113, are the prospectus issued instead of full prospectus a) Abridged b) Statement in lieu c) Shelf d) Red herring Downloaded by Nishit Kumar (nishitbsctyoo7@gmall.com)114, Which one of the following has a right to claim compensation for any loss due to mis statement in prospectus a) Purchasing shares in Primary Market b) Secondary Market ) Subscribers to memo, d) All the above us, years of imprisonment will be imposed in case of issue of prospectus with untrue statements a)] b)2 c)3 d)4 116, includes an engineer, valuationer, accountant, a) Expert b) Promoter c) Auditor d) Director 117, What is the liability of an expert for misstatement a) Fine — 50,000 b) Imprisonment ~ 2 years c) Both a) & b) d) None of the above 118, What is the liability not delivering that can be imposed for statement in lieu of Prospectus a) Fine — 10,000 b) Imprisonment — 2 years c) Both (a) & (b) d) None of the above 119. are the prospectus issued by the issuing house a) Deemed prospectus b) Shelf prospectus issued by the issuing house ©) Red herring d) None of the above 120. prospectus were issued in case securities were issued in stages a) Deemed b) Shelf c) Red herring d) None of the above 121. are required to file prior to making second and subsequent issue of securities in case shelf prospectus are filed: a) Information memorandum b) Information articles c) Form 13 d) None of the above 122. Information memorandum + shelf prospectus together constitutes 4) Memorandum b) Articles ¢) Prospectus d) None of the above is documents avaiable fe of charge on § studocu Downloaded by Nishit Kumar (nishitbecty007<123. Validity period of information memorandum is a) 1 year b) 2 years e) 3 years d) 4 years 124, prospectus was issued in order to test the market before finalizing issue size/price. a) Deemed b) Shelf e) Red herring d) None of the above 125. If there is any variation in case of R.H.P days should be given for withdrawal of application a)1 b)3 ©)S d)7 126. In case of red-herring prospectus the refund is made with an interest @ a)12 b)13 e)15 d)16 127. When there is a untrue statement in the prospectus. The shareholder who subscribed in secondary market can sue the company (a) True (b) Partly true (¢) False (d) None of these 128, When there is any untrue statement in the prospectus. The shareholder who was A subscriber to the memorandum can sue the company (a) True (b) Partly true (¢) False (d) None of these 129, Because of Misrepresentation in prospectus an expert will be criminally liable. (a) True (b) Partly true (¢) False () None of these 130. What is punishment for directors, promoters and other persons for Mistepresentation in prospectus a) 50,000 b) 2 years imprisonment c) Both of the above d) None 131. When a private company is converted into public company. In which form it should be a) Schedule III b) Schedule IV c) Schedule VI d) None of these Downloaded by Nishit Kumar (nishitbscty007@gmall.com)132. Not less than ....... (A) 10 (B) 15 (2 (D) 30 133. The minimum number of members that must be present at a valid meeting is called....... (A) simple majority (B) quorum (C) proxy (D) none of these 134. A proxy can vote in case of (A) poll (B) meeting (©) both (D) none 135. A special resolution is one to pass with the votes cast in favour must be the votes cast against it (A)2 (B)3 (4 (D)6 136. A special resolution must be filed with the registrar for registration within (ay 10 (B) 15 2 (D) 30 This documents abe re of charge on § studocu Downloaded by Nishit Kumar (nishitbscty007@gmall.com) Days notice for a general meeting of a company must be given, times days.137. To make the liability of directors unlimited a...........1esolution is required. (A) ordinary (B) special (©) both (D) none 138. For declaration of dividend no .........resolution is required. (A) ordinary (B) special (©) both (D) none 139. A company can be wound up. (A) Voluntarily by members. (B) By the order of the Tribunal. (©) By Voluntary winding up by creditors. (D) By all the above methods. 140. A person liable to contribute towards the assets of the company on the event of its being wound up is a (A) liquidator (B) solicitor (© contributory (D) tribunal 141. On a winding up order being made in respect of a company, the official Liquidator shall, become the .. .. of the company. (A) liquidator (B) solicitor (©) contributory (D) tribunal Downloaded by Nishit Kumar (nisitescty007@gmall.com)142, When a winding up order has been made by the tribunal but there is no liquidator, the property of the company vests in the . (A) liquidator (B) solicitor (C) contributory (D) tribunal 143. After obtaining of certificate to commence business a company may be wound up if it does not commence business within ..... (A) one month (B) three months (C) six months (D) one year 144. A company has to submit a statement of aff: days of the appointment of the official liquidator. (A) 10 (B14 (21 to the Official Liquidator within (D) 30 145. The demand for a poll may be withdrawn before of the poll is declared. (A) commencement (B) closing (© result (D) none 146. The minutes of the share holder’s meeting are to be kept at the ..........oflice of the company and must be open to inspection. (A) registered (B) divisional (©) head This documents abe re of charge on § studocu Downloaded by Nishit Kumar (nishitbscty007@gmall.com)(D) none 147. The meeting other than statutory and the annual general meeting of the company is (A) extra ordinary meeting (B) special meeting (C) board (D) none of these 148. .........is the proper authority to call annual general meeting. (A) promoters (B) manager (©) board of directors (D) secretary 149. Which of the following is the feature of a registered company (A) separate property (B) perpetual succession (C) common seal (D) all of these SET-2 QI. To whom shall the application for Director Identification Number (DIN) be filed with? a, Central Government b. Registrar ¢. State Government 4. Both a and b Q2. Which one of these is a disqualification for a person to be appointed as a Director? a, Having the age of 62 and above b, Previous conviction of 3 months for moral turpitude Downloaded by Nishit Kumar (nishitescty007@gmal.com)¢. Unpaid calls on share and 4 months have elapsed d. Convicted of the offence dealing with related party transaction under sec 188 in preceding last five years. Q3. What is the maximum number of directors in a company without passing special resolution? a. 12 b.20 4.25 Q4. Which option stands true and mandatory for an Independent Director? a. Is holding any security of or interest in the company, its holding, subsidiary or associate company during the two immediately preceding financial years or during the current financial year b. Has given a guarantee or provided any security in connection with the indebtedness of any third person to the company, its holding, subsidiary or associate company or their promoters, or directors of such holding company, for such amount as may be prescribed during the two immediately preceding financial years or during the current financial year ¢. Who is or was not a promoter of the company or i company holding, subsidiary or associate 4, Has any other pecuniary transaction or relationship with the company, or its subsidiary, or its holding or associate company amounting to two per cent. or more of its gross turnover QS. How many Directors retire by rotation in each general meeting? a. Two-third b. One-third c. Half d. One-fourth is documents avaiable fe of charge on § studocu Downloaded by Nishit Kumar (nihitbscy0t /@grall.com)Q6. A person “A” is a Director of 12 public companies and 15 private companies, however 8 public companies are dormant and he is alternate director in 4 companies. Is he permitted to do this under the Act? a. Yes, as maximum directorships of public companies are 20 b. No, as the maximum directorships exceeds 20. c. Yes, as the directorships are within 20 d. No, as the public companies exceed 10. Q7. When a Director's office does stand vacant? a. he absents himself from all the meetings of the Board of Directors held during a period of six months with or without seeking leave of absence of the Board b. he is convicted by a court of any offence, whether involving moral turpitude or otherwise and sentenced in respect thereof to imprisonment for not less than three months c. he becomes disqualified by an order of a court or the Tribunal, and where an appeal or petition is preferred within thirty days as aforesaid against the convietion resulting in sentence or order, until expiry of seven days from the date on which such appeal or petition is disposed of d. he fails to disclose his interest in any contract or arrangement in which he is directly or indirectly interested, in contravention of the provisions of section 184 Q8. Till when does an additional director hold his office? a. Upto 5 years b. Upto retirement by rotation c. Upto next annual general meeting 4. Upto next Board meeting Q9. What is the minimum number of Resident Director to be appointed on the Board of Director? a. One b. Two Downloaded by Nishit Kumar (nishitbscty007@gmall.com)c. Five 4. Three Q10, When and under which section does a Director have to disclose his Director Identification Number to the Company? a, See 156, One month b, Sec 149, 15 days ©. Sec 156, 15 days d. Sec 152, 10 days QIl. After how many days after incorporation a company must hold its Annual General Meeting? a, Nine months b. One year c. Six months d. Three months QI2. Board of Karawan Ltd, seeks to appoint Mr. Karan as Alternate Director of Mr. Kiran, an Independent Director. What is the basic requirement? a. Shall not be an Individual rejected by the Company b. The individual so proposed shall also be eligible to be appointed as Independent Director. ¢. Board can appoint only if AOA gives power. d. All of above QU3. .......suis the proper authority to call annual general meeting a. promoters b. manager ¢. board of directors d. secretary This documents abe re of charge on § studocu Downloaded by Nishit Kumar nisitbscty007@gmal.com)Q14, A general meeting may be called after giving shorter notice than that specified in this sub-section if consent, in writing or by electronic mode of how many members? a. 50% b. 95% ©. 65% 4.25% Q15. Mr. A was @ person having property, accounts & papers of company in his possession and was about to leave India for evading payment of calls or of avoiding examination affairs of company. The tribunal has the power to detain him and seize his property under section: a. sec 300 b. sec 304 c. see 302 d. sec 301 Q16. Mr. A and Mr. B, members of company ABC Developers Private Limited filed two different applications under section 245 to the Tribunal requesting suitable action against the auditor of the company for the improper and misleading statements in audit report regarding the company. Advice the company on the following application of class action a. Both the application shall be filed and proceeded by making it a joint application b. Two class action applications for the same cause of action shall not be allowed ¢. Both the application shall be rejected and filled with the appellate tribunal d. None of the above QI7. The Board of directors of Say Limited has indulged in the following acts. Whether the following acts can be said to be mismanagement: (i) Not filing documents with Registrar of Companies (ii) Sale of assets at glaringly low price. (iii) Violations of provisions of law and of memorandum or articles of association. (iv) Application of company finances. a. i), (ii) & (iv) are mismanagement Downloaded by Nishit Kumar nishitbscty007@gmall.com)b. (ii), (iii) & (iv) are mismanagement ¢. (i), (i) & Gi) are mismanagement 4. All are mismanagement QIR. Does the following acts by the board amount to oppression? (i) Denial of inspection of books of accounts (ii) Not holding board meeting in timely manner. (iii) Non declaration of dividend (iv) Company is incurring looses for last 3 years a. (i), (ii), (iii) - Amount to oppression b. (i), (ii) Amount to oppression ¢. (iii) (iv)- Amount to oppression d. None of the above is oppression Q19. Rule of majority was established in which case law: a. Elder v Elder & Watson Ltd. b. Foss v. Harbottle c. Shanti Prasad Jain v. Kalinga Tubes d. Thomas Veddon V. J. v Kuttanad Robber Co. Ltd. Q20. In which of the following cases majority rule does not prevail? a. Where the act is ultra vires the company b. Where the act is illegal to the company c. Where the act infringes personal rights d. All of above This documents abe re of charge on § studocu Downloaded by Nishit Kumar (rishitbsctyO07@gmall.com)Q2I. In the case of an annual general meeting, all business to be transacted thereat shall be deemed special, other than: a. the consideration of financial statements and the reports of the Board of Directors and auditors b. the declaration of any dividend c. he appointment of, and the fixing of the remuneration of, the auditors d. All of above Q22, Which statement is correct for the quorum of a General Meeting? a. In case of a public company 10 members, personally present if the number of members as on the date of meeting is not more than one thousand b. In case of public company 50 members personally present if the number of members as on the date of the meeting exceeds five thousand c. In case of public company 30 members personally present if the number of members as on the date of the meeting exceeds five thousand 4. In case of public company 75 members personally present if the number of members as on the date of the meeting exceeds five thousand 23. What is the right of a Proxy? a. Right to speak at the meetings b. Right to discuss the motion c. Right to vote on poll d. Right to every kind of vote at the meetings Q24. Who has the right to demand poll? a. in the case a company having a share capital, by the members present in person or by proxy, where allowed, and having not less than one-tenth of the total voting power or holding shares on which an aggregate sum of not less than five lakh rupees or such higher amount as may be prescribed has been paid-up b. in the case a company having a share capital, by the members present in person or by proxy, where allowed, and having not less than one-fifth of the total voting power or holding Downloaded by Nishit Kumar (nishitescty007@gmall.com)shares on which an aggregate sum of not less than five lakh rupees or such higher amount as may be prescribed has been paid-up c. in the case of any other company, by any member or members present in person or by proxy, where allowed, and having not less than one-fifth of the total voting power d. in the case of any other company, by any member or members present in person or by proxy, where allowed, and having not less than one-twelfth of the total voting power Q25. Every company shall cause minutes of the proceedings of every general meeting of any class of shareholders or creditors, and every resolution passed by postal ballot and every meeting of its Board of Directors or of every committee of the Board, to be prepared and signed in such manner as may be prescribed and kept within how many days of the conclusion of every such meeting concemed, or passing of resolution by postal ballot in books kept for that purpose with their pages consecutively numbered? a. 30 days b, 60 days c. 15 days d. 45 days Q26. Who ate the persons who can file petition for winding up of the company? a. Company & its Contributories b. The Central Government or State Government, c. Registrar on his own account d. Both A and B Q27. For the Registrar who wants to file a petition for winding of a company what are the Conditions to be fulfilled? a. Registrar needs to take permission of CG b. The Company needs to be given opportunity of being heard ¢. Registrar can directly approach tribunal 4, Both A and B Q28, When petition for winding up has been filed before the tribunal, in how many days should the Company file its objections and Statement of Affairs by an order of the Tribunal? a. 15 days b. 30 days This documents abe re of charge on § studocu Downloaded by Nishit Kumar (nisitbscty007@gmal.com)©. 45 days 4d. 60 days 29. When a petition for winding up is made to tribunal, the tribunal shall pass its order within how many days? a. 90 Days b. 190 Days ©. 270 Days 4.360 Days Q30. The Registrar of Company can approach the central government to accord sanction to present a petition to the tribunal if financial statements are defaulted for a period a. Two consecutive years b. Four consecutive years c. Five Consecutive Years d. Any Five years Q31. A scheme of merger or amalgamation may be entered into between two or more small companies or between a holding company and its wholly-owned subsidiary company or such other class or classes of companies must be approved by majority representing what value of the creditors or class of creditors of respective companies indicated in a meeting convened by the company? a, Nine Tenth b, One-Fourth c. One-Fifth c. One half 32. Who has the authority to appoint the provisional liquidator a. Tribunal b. Central Government c. Registrar of Companies d. None of the above Q33. Within from the date of passing of winding up order, the Company Li shall make an application to the Tribunal for constitution of a winding up committee to assist and monitor the progress of liquidation proceedings by the Company Liquidator. a. 3 weeks b. 15 days Downloaded by Nishit Kumar (nishitescty007@gmal.com)©. 30 days 4.25 days Q34, What is the Jurisdiction of the Tribunal? a, any claim made by or against the company, including claims by or against any of its branches in India b. any question of priorities or any other question whatsoever, whether of law or facts, including those relating to assets, business, actions, rights, entitlements, privileges, benefits, duties, responsibilities, obligations or in any matter arising out of, or in relation to winding up of the company c. any suit or proceeding by or against the company d. All of the Above Q35. What shall not be included in the minutes of the meeting? a, Which is in the opinion of the Chairman is or could reasonably be regarded as defamatory of any person; b, the names of the directors present at the meeting ¢. a fair and correct summary of the proceedings thereat 4. in the case of each resolution passed at the meeting, the names of the di dissenting from, or not concurring with the resolution ctors, if any, Q36. The remuneration payable to any one managing director; or whole-time director or manager shall not exceed..? a. five per cent, Of the net profits of the company and if there is more than one such director remuneration shall not exceed seven per cent, Of the net profits to all such directors and manager taken together b. five per cent. Of the net profits of the company and if there is more than one such director remuneration shall not exceed ten per cent. Of the net profits to all such directors and manager taken together c. ten per cent, Of the net profits of the company and if there is more than one sueh director remuneration shall not exceed twenty per cent. Of the net profits to all such directors and manager taken together d. None of the Above is documents avaiable fe of charge on § studocu Downloaded by Nicht Kumar (nihitbscy0t /@grall.com)37, What is known as a charter of a Company? a, Memorandum of Association b. Bye laws c. Articles of Association d. Prospectus Q38 The name of a company can be changed by a. an ordinary resolution 'b. a special resolution c. the approval of the union government 4d. a special resolution and with the approval of the central government Q39. A company licenced under section 8 of the Companies Act, 2013 to operate as an association not-for profit, cannot alter its memorandum or Articles without prior approval fiom: a. Its Members b. Its Board . Central Government d. Registrar of Companies (Q40, Mark out the type of alteration that is permitted in the articles of association__. a. that may not be in the companys interest, b. that is contrary to the provisions of the companies act. ¢. that increases a members liability without his written consent . d. that is consistent with the memorandum of association . Downloaded by Nishit Kumar nishitbscty007@gmall.com)Q41 Liability of a member in case of a private company is (a) Limited (b) Unlimited (©) Both (a) or (b) (d) None of the above Q42.A private company enjoys which of the following privileges over a public company: a. Not required a report on an annual general meeting b. Not to appoint an independent director c. Not to appoint more than two directors All of the above Q43 The share capital of a company may be reduced by a. an ordinary resolution b. a special resolution ¢. a resolution of the board of directors 4, obtaining permission from the company law board Q44 The amount of minimum subscription may be learnt from the a. prospectus. b. memorandum of association c. articles of association 4. records of general meetings Q45 An exception to the doctrine of constructive notice is, [A] the doctrine of ultra vires [B] the doctrine of indoor management . is documents avaiable fe of charge on § studocu Downloaded by Nishit Kumar nishitbscty007@gmall.com)[C] lifting the corporate veil [D] the doctrine of ultra vires in Articles of Association, Q46 A prospectus is to be issued within days of registration, a.30 b. 60 90 d. 180 Q47 A company is a juristic person with a perpetual succession a. as such it dies. b, its life depends on the life of its members. ¢. it is created by a process of law and can be put to an end only by a process of law d. none Q48 On a share of Rs. 100 of a company, a shareholder has already paid Rs, 30.His Liability is now limited to a. Rs. 100, b. Rs. 30 c. Rs. 70, d. Rs.10 Q49 A shareholder purchased in the open market shares of a company whose prospectus contained some misstatements. He a. can rescind the contract only but cannot claim damages b. can claim damages only but cannot rescind the contract c. has no remedy against the company d, has remedy against the directors responsible for the issue of the prospectus Downloaded by Nishit Kumar (nishitbscty007@gmall.com)Q50 Share capital of a company means a, equity share capital . b. preference share capital c. equity and preference share capital . 4. equity and preference share capital and debentures Q51 Which Doctrine is also known as Turquand Rule? a. Doctrine of Ultra b. Doctrine of Indoor Management ¢. Doctrine of Constructive notice es d. Doctrine of Intra vires Q 52 Which of the following case is an example for lifting of corporate veil by Judiciary on the grounds of Prevention of Fraud? 4, Daimler company Ltd v. Continental Tyre & Rubber Co.( Great Britain) Ltd b. Gilford Motor Company v. Horne J.B.Exports Ltd v. BSES RAJDHANI Power Ltd. Jyoti Ltd. V. Kanwaljit Kaur Bhasin & Q 53 An additional clause in Memorandum of Association i.e. Nominee clause is mandatory in a, Small Companies b. Producer companies ©. Private Companies d. One Person Companies Q54 For conversion of Private company into Public Company which step is not required? a. Increase in no. of members b. Increase in no. of Directors ¢. Passing of a General Resolution d. Alterations in Articles is documents avaiable fe of charge on § studocu Downloaded by Nishit Kumar (nihitbscy0t /@grall.com)Q55 Government Copany is defined under: a. Section 2(46) b. Section 2(47) Section 2 (44) d. Section 2(45) 56 Which among the following is wrong in context of a Government Company? a, Ina government company 51% Paid up share capital is held by Central Government or state Government or together by them Government company can sue and can be sued in its own name Employees of Government Company are the members of government. It can be wound up like any other registered company a Q57 Four Stages of Process of Incorporation of a company does not Promotion Registration Raising of Capital Winding up as Q58 A Promoter can be made liable for Pre-incorporation contracts under following Act: a, Specific Relief Act,1963; Section 15(h) and Sec. 19 b. Specific Relief Act, 1963; Section 15(g) and Sec. 19(h) The Companies Act,2013; Sec. 34 & 449 d. The Companies Act,2013; Sec. 35 & 449 (59 The provision regarding Commencement of Buisiness is mentioned under a. Sec. 10 b. See 104 c. Sec ll d. Sec 1A Q 60 Lakshmanaswami Mudaliar v. LIC is one of the leading case for Downloaded by Nishit Kumar (nishitescty007@gmall.com)a, Doctrine of Ultra Vires b. Separate Legal Identity c. Doctrine of Indoor Management 4. Lifting of Corporate Veil Q61 Which case is an example to exception to doctrine of indoor management? Royal British Bank v. Turquand Rayfield v. Hand Howard v. Patent Ivory Co. Borland’s Trustee v. Steel Bros. Co. Lid. AROS Q62 “A Share is undoubtedly movable property but it is not a movable property in the same way in which a bale of loth or bag of wheat is movable property” This was held in: a. Bucha F. Guzdar v. commissioner of IT; Bombay b. Vishwanathan v, East India Distilleries Borland ’s Trustee v. Steel Bros. Co. Ltd. d. CIT. Standard vacuum Oil Co. Q63 A Public Company can issue Securities through a. Public Offer b. Private Placement c. Either aorb d. Neither anor b 64 Preference Share can be redeemed as per the provisions of which section of Companies Act, 20137 a, Section 55 b. Section 56 c. Section 45 d. Section 46 Q65 Shareholders can have variation of rights as per the provisons of companies act if the same is consented by: a, not less than three-fourths of said class share holders This documents abe re of charge on § studocu Downloaded by Nishit Kumar (nishitbscty007@gmall.com)b. not less than 10% of said class share holders ¢. not less than 100 of such class share holders d. not less than two-third of said class share holders Q66 Which is not true about Bonus shares Bonus shares are free of charge Bonus shares need not to be returned in case of failure of Minimum subscription Bonus shares are always fully paid up Bonus shares may be renounced in favour of his nominee asge Q67 A company shall unless otherwise prescribed, make investment through not more than . Layers of investment companies. a, Two b. Three c. Four d. Five Q68 Which of the following statement is not true about stock? A stock has no nominal value A stock can never be partly paid-up Astock cannot be transferred in fractions Stock may be of different denominations. eee Q69 Which is not one of the general Principles of allotment of shares? Allotment must be done by Proper Authority Allotment must be against application only Allotment must be within reasonable time i.e.3 months of application Allotment must be Communicated. Q70 Ram Lal is a shareholder of a company holding 100 shares. Ram Lal dies leaving Mohan as his legal representative. Mohan is not a member of the company. Mohan Transfers all 100 shares of the deceased to Anil. a. Transfer is valid as Mohan is the LR of Deceased b. Transfer is not valid as Mohan is not a member of the company Downloaded by Nishit Kumar (nishitescty007@gmal.com)¢. Transfer is not valid as Anil is not a member of the company d. Transfer is not valid because Mohan has not validly registered with the company the succession of shares in his favour. is documents avaiable fe of charge on § studocu Downloaded by Nishit Kumar (nishitescty007@gmal.com)