Objective Questions on Company Law with Answers:
A company to issue sweat equity shares must pass a.
(a) Special resolution
(b) Ordinary resolution
(c) Unanimous resolution
Proxy need not be a_____ of the company
(a) Shareholders
(b) Members
Under writing commission payment shall be authorised by AOA
(a) Yes
(b) No
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Can an insolvent vote in the company
(a) Yes
(b) No
Shares warrant should be issued when shares are fully paid up
(a) Yes
(b) No
President appointed a proxy. State whether that person will be counted towards quorum
(a) Yes
(b) No
While calculating maximum limit in case of private company which of the following will not be included
(a) Employee + Member
(b) Member + Employee
(c) Member
Managing director will be counted as___ while calculating maximum limit in case of private company.
(a) Member
(b) Employee
(c) Shareholder
MoA should be in form ____ in case of a unlimited liability
(a) Table A
(b) Table B
(c) Table E
___ is a charge created on a class of assets related to ordinary course of business.
(a) Fixed
(b) Specific
(c) Floating
Governor appointed a proxy. State whether that person will be counted towards quorum
(a) Yes
(b) No
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Share warrant can be transferred by delivery.
(a) Yes
(b) No
Can shares be allotted immediately after the issue of prospectus
(a) Yes
(b) No
MOA should be in form_____________ in case of company limited by shares
(a) Table A
(b) Table B
(c) Table C
(d) Table D
X Co. having control on Board of Directors of Y Co. Can we say that Y Co. is subsidiary of X Co.
(a) Yes
(b) No
Related: Quadrilaterals quiz
If as a person is present in more than 1 capacity his presence will be counted as____________
(a) 1
(b) 2
(c) 3
(d) 4
A proxy must bear revenue stamp worth.
(a) 30 paise
(b) 15 paise
(c) 45 paise
(d) 50 paise
Property of the company belongs to
(a) Company
(b) Share holders
(c) Members
(d) Promoters
Related: Data Interpretation Questions
___ is a charge when it is made specifically to cover assets
(a) Fixed
(b) Floating
(c) Specific
(d) Both Fixed & Specific
Which company shares can be freely transferable
(a) Private Company
(b) Public Company
Related: Percentages test with answers
Total managerial remuneration cannot exceed ____% of net profit
(a) 11
(b) 12
(c) 13
(d) 14
Debenture holders are
(a) Owners
(b) Creditors
(c) Debtors
Transfer of shares in the company is
(a) Restricted
(b) Freely transferable
(c) Prohibited
Company must pass_________ for reducing its share capital
(a) O.R
(b) S.R
(c) C.G permission
Statutory meeting must be held in case of a public company
(a) Yes
(b) No
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Premium amount on the securities are transferred to_____________ account
(a) Securities premium
(b) Reserve fund
(c) Capital Reserve
_____ are the contracts entered into by promoters on behalf of a prospectus company.
(a) Provisional contracts
(b) Pre-Incorporation contracts
(c) Preliminary contracts
(d) Both (a) & (b)
Share warrant does not contain any name on face of it.
(a) True
(b) False
Definition of prospectus was given under which sec.
(a) 2 (30)
(b) 2 (32)
(c) 2 (34)
(d) 2 (36)
A cost auditor makes his report to:
(a) Members of company
(b) Directors of company
(c) Registrar
(d) C. G.
In addition to the contribution employer has to pay ______ % of wages as administration charges.
(a) 0.17%
(b) 0.18%
(c) 0.10%
In the absence of a quorum the proceedings of the meeting will be___
(a) Valid
(b) Void
Register of deposits should be maintained for__________ years.
(a) 2
(b) 4
(c) 8
(d) 16
Return of deposits is to be filed on or before___________ with ROC
(a) 30 th day of June
(b) 30 th day of July
(c) 30 th day of January
(d) 30 th day of May
Contracts made after incorporation but before the grant of Certificate of commencement of Business _____
(a) Provisional contracts
(b) Pre-incorporation contracts
(c) Preliminary contracts
(d) Both (b) & (c)
In case of appointment of Directors________ form is to be filed
(a) 29
(b) 32
(c) 18
(d) 1
With in how many days prospectus or statement in lieu of prospectus should file with ROC
(a) 30
(b) 40
(c) 20
(d) 50
Advertisement given for deposits is valid for________ months
(a) 3
(b) 6
(c) 9
(d) 12
For computation of number of working days as per Sec 14 the day when employee has been laid off under an agreement or by a standing order under Industrial Disputes Act 1947 will be included
(a) Yes
(b) No
Private company can start its business immediately after the issue of
(a) Certificate of commencement of Business
(b) Certificate of Incorporation
If the companies does not increase their paid up capital by 1/5 lakhs with in 2 years such
companies are known as___
(a) Private
(b) Public
(c) Defunct
(d) Govt Company
If the employer is a partnership firm. The deduction will be allowed under 3 rd schedule while determining available surplus _____ % of G.P as remuneration to partners.
(a) 40%
(b) 25%
(c) 30%
(d) 60%
An appeal is made to whom against stock exchange for refusing the permission of listing.
(a) SAI
(b) NCLT
(c) MAT
(d) ROC
In case of companies other than Non -Profit making Companies notice of G.M. should be given with in ____ days
(a) 14
(b) 15
(c) 21
(d) 22
Signature of memorandum and articles should be done by ________ number of persons in case of private company
(a) 3
(b) 4
(c) 2
The expenses of holding an E.G.M by the requisitionists will be ultimately borne by _____
(a) Company
(b) Requisitionists
(c) all directors in default
The term company is defined under which sec of the Act?
(a) Sec 3(1)
(b) Sec 4 (2)
(c) Sec 2 (4)
(d) Sec 1 (3)
Minimum paid up share capital in case of a private company is ________
(a) 1 Lakh
(b) 2 Lakhs
(c) 3 Lakhs
(d) 4 Lakhs
Security deposit received from the employee will not be treated as deposit.
(a) Yes
(b) No
Prospectus is not required to be issued when sweat equity shares are issued to directors and employees
(a) Yes
(b) No
Generally rights and obligations of the company are regulated in
(a) A.O.A
(b) M.O.A
(c) Partnership deed
__ prospectus were issued in case securities were issued in stages
(a) Deemed
(b) Shelf
(c) Red herring
A company can change its name by passing
(a) Ordinary resolution
(b) Special resolution
(c) Either by special resolution or by ordinary resolution
Audit of a private company will not be counted for the limit of audits
(a) Yes
(b) No
______ stands in the fiduciary position of the company
(a) Directors
(b) Promoters
(c) Auditors
What is punishment for directors, promoters and other persons for Misrepresentation in prospectus
(a) 50,000
(b) 2 years imprisonment
(c) Both of the above
Small deposits means a depositor who had deposits a sum not exceeding _____ in a financial year
(a) 15,000
(b) 20,000
(c) 18,000
Can a partnership be a member of the company?
(a) Yes
(b) No
The capital which is part of the uncalled capital of the company which can be called up only in the event of its winding up it is called
(a) Issued capital
(b) Nominal capital
(c) Authorised Capital
(d) Reserve capital
To issue a share warrant Central Government permission is necessary?
(a) Yes
(b) No
Voting Rights are available to share warrant holders.
(a) Yes
(b) No
No consideration shall be paid by the company in exchange of ________ shares
(a) Lien
(b) Forfeited
(c) Surrender
If the ownership of shares goes to another by operation of law is called as
(a) Transfer
(b) Transmission
In case of allotment Debenture Certificate is to be issued with in ___ Months
(a) 1
(b) 2
(c) 3
(d) 4
Amount due on redemption including interest should be claimed with in ___ years.
(a) 10
(b) 9
(c) 8
(d) 7
_____ Sec. contains the provision relating to modification of a charge.
(a) 130
(b) 135
(c) 140
(d) 145
A company cannot pay under writing commission unless it is authorised by its ______
(a) Articles
(b) Memorandum
If company wants to place shares to brokers they should give a maximum of _______ as brokerage commission.
(a) 3%
(b) 2%
(c) 1.5%
What is maximum period for which deposits can be issued?
(a) 36 months
(b) 24 months
(c) 12 months
A company can accept or renew deposits for a period less than 6 months if they do not exceed 10% of the aggregate of
(a) Paid up Capital
(b) Free reserves
(c) Paid up capital and Free reserves
A Notice inviting deposits from the public is______________
(a) Deposit
(b) Fund
(c) Share
In case of private company the quorum should be
(a) 2 members
(b) 3 members
(c) 4 members
When shares are issued at premium permission of AOA and NCLT is required.
(a) Yes
(b) No
The notice offering right shares must allow the members ____ to exercise their option to accept, reject or renounce it
(a) 10 days
(b) 14 days
(c) 15 days
(d) 20 days
The company must deliver share certificate within ____ if the shares allotted by company.
(a) 2 months
(b) 3 months
(c) 4 months
Private company can issue share warrant?
(a) Yes
(b) No
In case of __________ duplicate can be obtained if it lost
(a) Share warrant
(b) Share certificate
(c) Dividend coupon
Duplicate certificate obtained if original certificate lost in case of.
(a) Share Certificate
(b) Share warrant
(c) Dividend warrant
Interest out of capital can be paid only if it is sanctioned by
(a) MOA
(b) AOA
(c) NCLT
(d) C.G
_____ is an instrument of transfer signed by the transferor in which the name & date are not
filled.
(a) Forged transfer
(b) Blank transfer
Question: ____ transfer is null and void
(a) Forged
(b) Blank
Consideration is necessary in case of transmission
(a) Yes
(b) No
Share certificate can be issued for partly paid up shares
(a) Yes
(b) No
Share certificate can’t be transferred by delivery.
(a) Yes
(b) No
Stamp duty to be paid at the time of issue of share warrant.
(a) Nominal
(b) High
(c) Very high
Return paid on shares is
(a) Interest
(b) Dividend
(c) Commission
Question: _____ is payable even if there are no profits
(a) Interest
(b) Dividend
(c) Commission
DRR is required to be created for debentures issued prior to ___
(a) 13.12.2000
(b) 13.12.2001
(c) 13.12.2002
(d) 13.12.03
The amount unclaimed on redemption is transferred to ____ fund.
(a) Investor education & protection
(b) Children welfare
(c) Workmen compensation fund
Re-issued debentures are treated as new debentures for the purpose of _____
(a) Debentures certificates
(b) Income Tax
(c) Stamp duty
Charge includes __
(a) Loans
(b) Mortgage
(c) Security
(d) Hire
Joint shareholders appointed a person as a proxy. State whether he will be counted for quorum
(a) Yes
(b) No
XYZ is a company conducting an AGM. There are 3 members personally present and one member present in his individual capacity and as well as a representative of a body corporate. State whether the AGM is valid
(a) Valid
(b) Not valid
State whether there is any provision in companies Act. That one member constitute quorum
(a) Yes
(b) No
In case of alteration in the object clause of memorandum the resolution shall be passed by show of hands
(a) Yes
(b) No
In case of class or debenture holders quorum constitutes _____ members.
(a) 1
(b) 2
(c) 3
(d) 4
Casting vote can be cast by whom only in case of equality of votes
(a) Chairman
(b) Director
(c) Auditor
(d) Manager
The Chairman on his own motion ______ also order a poll
(a) Must
(b) Should
(c) May
Poll is conducted by Chairman with in ______ hrs from the demand.
(a) 24
(b) 48
(c) 72
(d) 36
If the notice contain a special business then an__________ statement shall be enclosed:
(a) Explanatory
(b) Enquiry
With in_______ weeks requisition requiring circulation of a resolution may be deposited with ROC.
(a) 3
(b) 6
(c) 9
(d) 12
thanks so much for this good piece, it was very helpful
I rely like the way you have set the questions is understandable