MCQ Company Law PDF

Preview

Summary

Company LawMCQLLB II AND BSL IV1 Question: _________ Order to call a EGM even though 1 member present in person or by proxy. (a) ROC (b) C (c) NCLT (d) D.C Ans. (b) 2 Question: The time period for conduction of AGM is extended by ROC for how many months (a) 1 (b) 2 (c) 3 (d) 4 Ans. (c) 3 Question: M...

Description

Company Law MCQ LLB II AND BSL IV 1 Question: _________ Order to call a EGM even though 1 member present in person or by proxy. (a) ROC (b) C.G (c) NCLT (d) D.C.A Ans. (b) 2 Question: The time period for conduction of AGM is extended by ROC for how many months (a) 1 (b) 2 (c) 3 (d) 4 Ans. (c) 3 Question: Maximum rate of discount that can be allowed on issue of shares (a) 5% (b) 10% (c) 15% (d) 20% Ans. (b) 4 Question: Liability under _____ sec. may be imposed only if it is proved that the companies business has been carried on with a view to defraud the creditors (a) 540 (b) 541 (c) 542

(d) 543 Ans. (c) 5 Question: The time gap between two AGM’s shall not exceed. (a) 15 months (b) 18 months (c) 16 months (d) None of these Ans. (a) 6 Question: Age limit of Directors in case of private company is ___________ (a) 65 (b) 70 (c) 75 (d) No limit Ans. (d) 7 Question: Debentures payable to a holder of certificate is called_____ (a) Bearer (b) Unregistered (c) Secured (d) Both ((a) & ((b) Ans. (a) 8 Question: Minimum paid up share capital in case of a public company is _____ (a) 1 Lakh (b) 3 Lakhs (c) 5 Lakhs (d) 7 Lakhs Ans. (c) 9 Question: The company must deliver share certificate within______ if the shares applied for transfer. (a) 3 months (b) 2 months (c) 5 months (d) none of these Ans. (b) 10 Question: The lending of funds ultra vires, the company has no rights (a) under the company’s Act (b) contract Act (c) under equity (d) None of the above Ans. (a) 11 Question: If the company failed to comply with the order of NCLT they will be punishable with fine and

imprisonment up to (a) 2 years (b) 3 years (c) 4 Years (d) None of these Ans. (b) 12 Question: Share warrants can be issued with the prior approval of the____ (a) Company law board (b) Dept of company affairs (c) Registrar (d) None Ans. (c) 13 Question: Minimum no. of Directors in case of a public company is ___ (a) 1 (b) 2 (c) 3 (d) 4 Ans. (c) 14 Question: Which of the following is not a member of a company? (a) Partnership firm (b) Foreigner (c) Government (d) HUF Ans. (a) 15 Question: Debentures payable to person whose name appears both on Debenture Certificate and company’s register is called (a) Bearer (b) Unregistered (c) Registered (d) None of the above Ans. (c) 16 Question: ___ is issued in acknowledgement of any indebtedness (a) Debenture certificate (b) Share certificate (c) Share warrant (d) None of the above Ans. (a) 17 Question: In case of Non -Profit making Companies notice of general meeting should be given with in _____ days (a) 14 (b) 15

(c) 21 (d) 22 Ans. (a) 18 Question: Change in objects clauses can be effected (a) For any reason (b) For special reason only (c) to comply with C.G order (d) None of the above Ans. (b) 19 Question: Which of the following is a right of the members of a company_____ (a) Right to have share (b) Right Appoint Auditor (c) Right Appoint Director (d) All the above Ans. (d) 20 Question: Which of the following can issue the share warrant (a) Public (b) Private (c) Both (a) & (b) (d) None of the above Ans. (a) 21 Question: In case of continuing default to convene the AGM fine is Rs.___________ for every day. (a) 250 (b) 300 (c) 350 (d) 400 Ans. (a) 22 Question: Transfer of shares in the case of public company is (a) Prohibited (b) Restricted (c) Freely transferable (d) None of these Ans. (c) 23 Question: In the given below who are required to hold A.G.M___________ (a) Public company (b) Private company (c) Government company (d) All the three Ans. (a)

24 Question: U/s 274 (f) (g) directors are disqualified for how many________ years. (a) 1 (b) 3 (c) 5 (d) 7 Ans. (c) 25 Question: Where the registrar strikes off the register the name of a company as a defunct one, the court has the power to order restoration of name with in: (a) 5 years (b) 7 years (c) 10 years (d) 20 years Ans. (c) 26 Question: In case of default with regards to deposits intimation to NCLT should be made with how many days. (a) 10 (b) 20 (c) 30 (d) 40 Ans. (c) 27 Question: A share warrant is transferable by ____________ (a) By Execution of transfer deed (b) By delivery (c) both (a) and (b) (d) None of the above Ans. (b) 28 Question: Every AGM must be held with ___ from the date of the Balance Sheet. (a) 4 months (b) 6 months (c) 9 months (d) None of these Ans. (c) 29 Question: After the expiry of how much time the company must think that the permission was not granted (a) 11 weeks (b) 12 weeks (c) 10 weeks

(d) None of these Ans. (c) 30 Question: The resolution passed at AGM are__________ (a) Valid (b) Void (c) Voidable (d) Void ab-initio Ans. (a) 31 Question: Own funds are called (a) Debenture capital (b) Share capital (c) Loan capital (d) None of the above Ans. (b) 32 Question: If a new company get registered with a name which resembles the name of existing company then it should apply to whom? (a) NCLT (b) SEBI (c) ROC (d) None of the above Ans. (a) 33 Question: In case of red-herring prospectus the refund is made with an interest @_____ (a) 12 (b) 13 (c) 15 (d) 16 Ans. (c) 34 Question: If the guarantee Co. having no share capital the liability of shareholders will be (a) To the extent of guarantee (b) Unpaid value of shares (c) Unlimited (d) None of the above Ans. (a) 35 Question: First AGM must be held within_____________ from the incorporation of the company (a) 15 months (b) 18 months (c) 12 months

(d) None of these Ans. (b) 36 Question: The doctrine of__________ does not apply to acts void ab initio. (a) Ultra virus (b) Intra virus (c) constructive notice (d) Indoor management Ans. (d) 37 Question: Cumulative preference share holders have voting right if dividend are in arrears for years (a) 1 (b) 2 (c) 3 (d) 4 Ans. (b) 38 Question: In case of Partly Convertible Debentures non-convertible portion is classified as_____ (a) Debt (b) Equity (c) Both (a) & (b) (d) None of the above Ans. (a) 39 Ques. Transmission is effected by (a) Sale (b) Death (c) Insolvency (d) Both (b) & (c) Ans. (d) 40 Ques. Which of the following can be used for buy back of shares (a) Free reserves (b) Securities premium (c) Proceeds of fresh issue of shares (d) All of the above Ans. (d) 41 Ques. Deposits should issued with in__________ weeks from the date of receipt of money. (a) 2 (b) 4 (c) 6 (d) 8 Ans. (d)

42 Ques. If minimum subscription is not received application money should be refunded with in _____ days (a) 20 (b) 25 (c) 30 (d) 10 Ans. (d) 43 Ques. Information memorandum + shelf prospectus together constitutes_____ (a) Memorandum (b) Articles (c) Prospectus (d) None of the above Ans. (c) 44 Ques. In the event of appointing a proxy joint holders shall sign the proxy form (a) Singularly (b) Jointly (c) None of the above (d) both (a) & (b) Ans. (b) 45 Ques. Minimum number of members in case of private company is (a) 1 (b) 2 (c) 3 (d) 4 Ans. (b) 46 Ques. Maximum no .of members in case of public company is (a) 0 (b) unlimited (c) 50 (d) 100 Ans. (b) 47Ques. The liability of members if company is limited by guarantee. (a) Unpaid value of shares (b) Guarantee amount (c) Unlimited liability (d) None of the above Ans. (b) 48 Ques. 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

(c) Subscribers to memo (d) All the above Ans. (a) 49 Ques. ______ years of imprisonment will be imposed in case of issue of prospectus with untrue statements (a) 1 (b) 2 (c) 3 (d) 4 Ans. (b) 50 Ques. The liability of members if company is limited by shares (a) Unpaid value of shares (b) Guarantee amount (c) Unlimited liability (d) None of the above Ans. (a) 51 Ques. Forfeiture can be made only if it is authorized by ______ (a) AOA (b) MOA (c) ROC (d) C.G Ans. (b) 52 Ques. Name of the member is struck off from the register in case of____________ (a) Issue of share certificate (b) Share warrant (c) Forfeiture (d) None of the above Ans. (b) 53 Ques. A company can become a members of another company if it is so authorized by______ (a) MOA (b) AOA (c) Both (a) & (b) (d) None of the above Ans. (a) 54 Ques. Validity period of information memorandum is___________ (a) 1 year (b) 2 years (c) 3 years

(d) 4 years Ans. (a) 55 Ques. Central Government permission is required in case of_____ conversion____ (a) Private to public (b) Public to private (c) Both (a) or (b) (d) None of the above Ans. (b) 56 Ques. How many members should sign the MOA in case of private company_____________ (a) 1 (b) 2 (c) 3 (d) 4 57 Ans. (b) Ques. In case minimum subscription is not received and refund is delayed ____ % of interest to be paid by the company. (a) 5 (b) 6 (c) 7 (d) 8 Ans. (b) 58 Ques. Paying back of capital is called (a) Redemption (b) Conversion (c) Participation (d) None Ans. (a) 59 Ques. Proxies cannot vote on_________ (a) Show of hands (b) Poll (c) Both (a) & (b) (d) None of the above Ans. (a) 60 Ques. Minimum number of members in case of public company (a) 1 (b) 2 (c) 5 (d) 7 Ans. (d)

61 Ques. Minimum no. of Directors in case of private company is __________ (a) 1 (b) 2 (c) 3 (d) 4 Ans. (b) 62 Ques. If the company failed to refund application money with in 130 days from the date of issue of prospectus on non-receipt of minimum subscription who will be personally liable. (a) Company (b) Directors (c) Shareholders (d) None of these Ans. (b) 63 Ques. A company is named as govt. company if it is holds _________ % of paid up share capital (a) more than 30 (b) more than 40 (c) more than 50 (d) None Ans. (c) 64 Ques. _______ % of shares should be held by a company in another company so as to become subsidiary (a) more than 50 (b) more than 40 (c) more than 30 (d) more than 20 Ans. (a) 65 Ques. In case of Non -Profit making Companies books of accounts are required to be preserved for _____ years (a) 2 (b) 4 (c) 6 (d) 8 Ans. (b) 66 Ques. Accepting of deposits from public in case of private company is (a) Prohibited (b) Restricted (c) Acceptable (d) None of these Ans. (a)

67 Ques. XYZ Co. is a holding of XZ Pvt. Company. XZ Co. issued deferred shares. The issue is valid or void (a) Valid (b) Void (c) Situation does not arise Ans. (b) 68 Ques. Stamp duty on registration of the company is payable based on____________ capital. (a) Nominal (b) Authorized (c) Both (a) & (b) (d) None Ans. (c) 69 Ques. ____ are the shares issued by the company to it employees or directors for consideration other than cash (a) Bonus (b) Sweat (c) Right (d) None of the above Ans. (b) 70 Ques. ________ resolution should be passed by the company to offer shares to outsiders (a) Special resolution (b) Ordinary resolution (c) C.G (d) None of the above Ans. (a) 71 Ques. For reducing its share capital it should give notice to whom? (a) Debtors (b) Creditors (c) Both (a) & (b) (d) None of the above Ans. (b 72 Ques. The doctrine of indoor management is an_________ to the doctrine of constructive notice (a) Exception (b) Extension (c) Alternative (d) None of the above Ans. (b)

73 Ques. Companies are now allotted a_________ in addition to their name (a) PAN (b) SIN (c) PIN (d) CIN Ans. (d) 74 Ques. In how many days did the company have its registered office after incorporation (a) 10 (b) 20 (c) 30 (d) 40 Ans. (c) 75 Ques. In the MOA there are 6 clauses. We can alter all clauses expect one clause. What is that clause? (a) Objects clause (b) Name clause (c) Association clause (d) None of these Ans. (c) 76 Ques. If any body wants to file a case against the company they should file at what place _____ (a) Company (b) Registered Office (c) BOD (d) Books of accounts Ans. (b) 77 Ques. Ultra vires loans granted by the company are (a) Void (b) Voidable (c) Valid (d) None of the above Ans. (a) 78 Ques. conceives the idea of the business (a) Promoters (b) Directors (c) Auditors (d) None of the above Ans. (a) (79) 1. What are the limits of number of members in a Private Company?

(a) Fifty (b) Seven (c) Twenty (d) Two hundred Answer: D (80) 3. Which of the following is not a stage of the development of company? (a) Promotion (b) ProductionD(c) Incorporation (d) Commencement of Business Answer: B (81) 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 Answer: D (82) 6. A subsidiary of a government company is also treated as a (a) Government Company (b) Public Company (c) Private Company (d) All of the above Answer: A (83) 7. The_____________ of a 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 Answer: A (84) 8. Which of the following company is incorporated in a country outside India? (a) Private Company (b) Foreign Companies (c) Government Company (d) None of the above Answer: B (85) 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. (d) A company is managed by the elected representatives of shareholders. Answer: A (86) 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 Answer: B (87) 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 companies (d) The complete postal address. Answer: A (88) 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 Answer: A (89) 13. Which of the following are the functions of a promoter? (a) Decides name of a company (b) Nomination of directors (c) Settles the details of memorandum and articles (d) All of these Answer: D (90). Which documents contains the constitution of a company? (a) Memorandum of Association (b) Articles of Association (c) Both (a) and (b) (d) None of these Answer: A (91) 16. Which documents contains the regulations relating to the internal management of a company? (a) Memorandum of Association (b) Articles of Association

(c) Both (a) and (b) (d) None Answer: B (92) 21. Company is managed by (a) Shareholders (b) Board of Directors (c) Karta (d) Both(a)&(b) Answer: . B

(93) 1. The most important document of a company is its __________. A. prospectus. B. annual report. C. memorandum of association . D. articles of association . ANSWER: C

(94) 2. The rules and regulations for the internal management of a company are contained in its_______. A. prospectus . B. annual report . C. memorandum of association . D. articles of association . ANSWER: D

(95) 4. The union government may appoint such number of directors in a company as it may deem necessary A. at its own initiative . B. on the application of least 100 members of the company . C. on the application of members holding at least 10% voting rights. D. any of the above . ANSWER: D (96) 5. A director’s election takes place in a general meeting through a separated Resolution passed by a _______ majority. A. single. B. two-thirds. C. three-fourths. D. five-sixths . ANSWER: A (97) 6. Which of the following is beyond the powers of the board of directors? A. To issue debentures. B. To make loans. C. To remit the payment of any debt due by a director. D. to issue prospectus. ANSWER: C (98) 7. The minimum subscription is to be received within ______days of the offer. A. 30. B. 60. C. 120.

D. 150. ANSWER: C (99) 9. A share certificate once issued by the company binds it in two ways, namely by estoppel as to title and ___________. A. by estoppel as to payment. B. by estoppel as to profit. C. by estoppel as to dividend. D. none ANSWER: A (100) 10. Share capital of a company means __________. A. equity share capital . B. preference share capital C. equity and preference share capital . D. equity and preference share capital and debentures. ANSWER: C (101) 11. A shareholder in a company___________. A. can be its debentureholder B. cannot be its debentureholder C. alone can become its debentureholder D. must also become its debentureholder within a year of being a shareholder. ANSWER: A

x...