Quiznetik
Corporate Regulations | Set 1
1. How many members should sign the MOA in case of public company ______.
A. 1
B. 3
C. 5
D. 7
Correct : D. 7
2. How many members should sign the MOA in case of private company ________
A. 1
B. 2
C. 3
D. 4
Correct : B. 2
3. In case of appointment of Directors ______ form is to be filed
A. 29
B. 32
C. 18
D. 1
Correct : A. 29
4. ______ is the conclusive evidence in case of company that statutory requirements have complied with
A. certificate of incorporation
B. certificate of commencement of business
C. both
D. none of the above
Correct : A. certificate of incorporation
5. Private company can start its business immediately after the issue of
A. certificate of commencement of business
B. certificate of incorporation
C. both
D. none of the above
Correct : B. certificate of incorporation
6. The doctrine of indoor management is an ______to the doctrine of constructive notice
A. Exception
B. Extension
C. Alternative
D. None of the above
Correct : B. Extension
7. The doctrine of _________ does not apply to acts void ab initio.
A. Ultra virus
B. Intra virus
C. constructive notice
D. Indoor management
Correct : D. Indoor management
8. A company can change its name at its own discretion by passing _________
A. Ordinary resolution
B. Special resolution
C. Boards resolution
D. None of the above
Correct : B. Special resolution
9. Any change in the address of the registered office must be communicated to the registrar within:
A. 15 days
B. 30 days
C. 1 Month
D. 12 months
Correct : C. 1 Month
10. An act ultra virus the directors can be rectified if it is not ultra vires
A. the articles
B. the memorandum
C. Company Act
D. None of the above
Correct : C. Company Act
11. 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
Correct : A. under the company’s Act
12. 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
Correct : A. NCLT
13. Companies are now allotted a _______ in addition to their name
A. PAN
B. SIN
C. PIN
D. CIN
Correct : D. CIN
14. In how many days did the company have its registered office after incorporation
A. 10
B. 20
C. 30
D. 40
Correct : C. 30
15. Under which sec. if company fails to commence its main object the court may order winding up
A. 403 (f)
B. 413 (f)
C. 423 (f)
D. 433 (f)
Correct : D. 433 (f)
16. In case of forgeries acts done in the name of the company are
A. Valid
B. Void
C. Void ab initio
D. None of the above
Correct : C. Void ab initio
17. Signature of memorandum and articles should be done by ___________ number of persons in case of public company
A. 7
B. 5
C. 4
D. None of these
Correct : A. 7
18. Signature of memorandum and articles should be done by ___________number of persons in case of private company
A. 3
B. 4
C. 2
D. None of these
Correct : C. 2
19. MOA should be in form ____________ in case of company limited by shares
A. Table A
B. Table B
C. Table C
D. Table D
Correct : B. Table B
20. MOA should be in form ____________ in case of company limited by guarantee not having share capital
A. Table A
B. Table B
C. Table C
D. Table D
Correct : C. Table C
21. MOA should be in form ________ in case of company limited by guarantee and having share capital
A. Table A
B. Table B
C. Table C
D. Table D
Correct : D. Table D
22. MOA should be in form ____________ in case of a unlimited liability
A. Table A
B. Table B
C. Table E
D. None of these
Correct : C. Table E
23. 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
Correct : C. Association clause
24. If anybody 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
Correct : B. Registered Office
25. Address of the registered office is situated in
A. MOA
B. AOA
C. Prospectus
D. None of these
Correct : B. AOA
26. Which of the following need not have MOA
A. Public company
B. Private company
C. Government company
D. Statutory Corporation.
Correct : D. Statutory Corporation.
27. A company can change its name by passing
A. Ordinary resolution
B. Special resolution
C. Either by special resolution or by ordinary resolution
D. None of the above
Correct : D. None of the above
28. Ultra vires means
A. Beyond the power
B. Within the power
C. Both
D. None of the above
Correct : A. Beyond the power
29. Ultra vires loans granted by the company are
A. Void
B. Voidable
C. Valid
D. None of the above
Correct : A. Void
30. What is known as a charter of a Company?
A. Memorandum
B. Articles
C. Bye laws
D. Prospectus
Correct : A. Memorandum
31. The granting of the certificate of incorporation renders the illegal objects include in the memorandum:
A. Legal
B. Void
C. Voidable
D. None of the above
Correct : B. Void
32. 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
Correct : B. For special reason only
33. The capital clause of a company can be changed with the permission of _____________
A. Company law board
B. Registrar
C. Court
D. None of the above
Correct : C. Court
34. ______ conceives the idea of the business
A. Promoters
B. Directors
C. Auditors
D. None of the above
Correct : A. Promoters
35. _______stands in the fiduciary position of the company
A. Directors
B. Promoters
C. Auditors
D. None of the above
Correct : B. Promoters
36. ______ 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)
Correct : D. Both a) & b)
37. 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)
Correct : C. Preliminary contracts
38. Pre incorporation contract is also known as _________
A. Provisional
B. Preliminary
C. illegal
D. legal
Correct : B. Preliminary
39. A public company can borrow money ___________
A. before incorporation
B. Soon after incorporation
C. after issuing a proposal
D. after obtaining certificate to commerce business.
Correct : D. after obtaining certificate to commerce business.
40. A private company can borrow funds
A. after incorporation
B. after obtaining certificate to commerce business
C. after holding first annual general meeting
D. None of the above
Correct : A. after incorporation
41. A promoter is a person who
A. is a director.
B. is a relative of the company.
C. is a wellwisher of the company.
D. takes part in the companys incorporation.
Correct : D. takes part in the companys incorporation.
42. 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
Correct : A. Subscribed in primary market
43. Definition of prospectus was given under which sec.
A. 2 (30)
B. 2 (32)
C. 2 (34)
D. 2 (36)
Correct : D. 2 (36)
44. Which of the following are not required to issue prospectus?
A. Private company
B. In case of right issue
C. Sweat equity issue
D. All the above
Correct : D. All the above
45. _______are the prospectus issued instead of full prospectus
A. Abridged
B. Statement in lieu
C. Shelf
D. Red herring
Correct : A. Abridged
46. Which one of the following has a right to claim compensation for any loss due to misstatement in prospectus
A. Purchasing shares in Primary Market
B. Secondary Market
C. Subscribers to memo.
D. All the above
Correct : A. Purchasing shares in Primary Market
47. _______ years of imprisonment will be imposed in case of issue of prospectus with untrue statements
A. 1
B. 2
C. 3
D. 4
Correct : B. 2
48. 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
Correct : A. Fine – 10,000
49. _______ are the prospectus issued by the issuing house
A. Deemed prospectus
B. Shelf prospectus issued by the issuing house
C. Red herring
D. None of the above
Correct : A. Deemed prospectus
50. _________ prospectus were issued in case securities were issued in stages
A. Deemed
B. Shelf
C. Red herring
D. None of the above
Correct : B. Shelf
51. ________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
Correct : A. Information memorandum
52. Information memorandum + shelf prospectus together constitutes ________
A. Memorandum
B. Articles
C. Prospectus
D. None of the above
Correct : C. Prospectus
53. Validity period of information memorandum is _______
A. 1 year
B. 2 years
C. 3 years
D. 4 years
Correct : A. 1 year
54. _________ prospectus were issued in order to test the market before finalizing issue size/ price.
A. Deemed
B. Shelf
C. Red herring
D. None of the above
Correct : C. Red herring
55. What is the punishment for directors, promoters and other persons for Misrepresentation in prospectus
A. Fine 50,000
B. 2 years imprisonment
C. Both of the above
D. None
Correct : C. Both of the above
56. 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
Correct : B. Schedule IV
57. A statement in lieu of prospectus is required to be issued
A. by all companies which issue shares or debentures
B. by public companies when shares are issued among friends and relatives
C. by private companies as they do not issue shares to the public
D. by all companies
Correct : B. by public companies when shares are issued among friends and relatives
58. A company must inform the registrar about redemption of preference shares with in
A. 21 days
B. 15 days
C. 30 days
D. None of the above
Correct : C. 30 days
59. Share premium amount is treated as the __________ capital of a company
A. issued
B. Reserve
C. Subscribe
D. None of the above
Correct : B. Reserve
60. A company can create ‘reserve capital’ by passing__________
A. an ordinary resolution
B. a special resolution
C. a board resolution
D. None of the above
Correct : B. a special resolution
61. 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
Correct : D. Reserve capital
62. 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
D. None of these
Correct : B. Void
63. What is the maximum period for redemption in case of preference shares issued by the company?
A. 10 years
B. 15 years
C. 20 years
D. None of these
Correct : C. 20 years
64. Capital redemption reserve must be used for issue of
A. Fully paid bonus shares
B. Fully paid equity shares
C. Preference shares
D. None of the above.
Correct : A. Fully paid bonus shares
65. Part of the issued capital taken by public is called ___________
A. Subscribed
B. Called - up capital
C. Un called capital
D. Paid up capital
Correct : A. Subscribed
66. Part of authorized capital which is offered by the company for subscription.
A. Subscribed
B. Issued
C. Un called
D. called up
Correct : B. Issued
67. Stamp duty on registration of the company is payable based on _________capital.
A. Nominal
B. Authorised
C. Both a & b
D. None
Correct : C. Both a & b
68. Deferred shares are also known as ____________ shares
A. Founders
B. Equity
C. Preference
D. None
Correct : A. Founders
69. _________ Preference shares carry the right to cumulate the dividends
A. Converted
B. Cumulative
C. Nonconverted
D. None
Correct : B. Cumulative
70. Paying back of capital is called
A. Redemption
B. Conversion
C. Participation
D. None
Correct : A. Redemption
71. Premium amount on the securities are transferred to ________account
A. Securities premium
B. Reserve fund
C. Capital Reserve
D. None
Correct : D. None
72. ____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
Correct : B. Sweat
73. Cumulative preference share holders have voting right if dividends are in arrears for years
A. 1
B. 2
C. 3
D. 4
Correct : B. 2
74. _______ form is to be find in case of variation rights of share holders
A. 23
B. 19
C. 18
D. 20
Correct : B. 19
75. _________ is an aggregate of fully paid share that have been legally consolidated.
A. Share
B. Stock
C. Both a & b
D. None of the above
Correct : B. Stock
76. _________have fixed denomination
A. Share
B. Stock
C. Both a & b
D. None of the above
Correct : A. Share
77. ________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
Correct : A. Special resolution
78. Company must pass ________ for reducing its share capital
A. O.R
B. S.R
C. C.G permission
D. None of the above
Correct : B. S.R
79. Court order the company to add _________ after reducing its share capital
A. And reduced
B. Ltd
C. Both a or b
D. None of the above
Correct : A. And reduced
80. For reducing its share capital it should give notice to whom?
A. Debtors
B. Creditors
C. Both a & b
D. None of the above
Correct : B. Creditors
81. Reduction & diminution is done under which sec.
A. 100 & 94
B. 94 & 100
C. 100 & 96
D. 96 & 100
Correct : A. 100 & 94
82. 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
Correct : D. All of the above
83. Buy back by board resolution can only be upto _________
A. 15
B. 10
C. 25
D. 20
Correct : B. 10
84. Buy back should be less than or equal to _________% of total paid up capital
A. 25
B. 30
C. 35
D. 40
Correct : A. 25
85. In case of buy back debt equity ratio should be ________
A. 1:2
B. 2:1
C. 3:1
D. 1:3
Correct : B. 2:1
86. Every buy back shall be completed within _____ month from the date of passing the S.R.
A. 6
B. 8
C. 10
D. 12
Correct : D. 12
87. __________companies are permitted to buy back its shares
A. Insolvent
B. Solvent
C. Both a & b
D. None of the above
Correct : B. Solvent
88. Buy back securities should be physically destroyed within ________days
A. 7
B. 17
C. 21
D. 28
Correct : A. 7
89. After buy back company can’t issue the same kind of shares for ________months
A. 6
B. 12
C. 18
D. 24
Correct : A. 6
90. Within 30 days of completion of buy back company shall file the details with whom _________
A. Registrar
B. SEBI
C. Both a & b
D. None of the above
Correct : A. Registrar
91. If buy back is made from free resources then what should be created __________
A. Debenture Redemption Reserve
B. Capital Redemption Reserve
C. Statutory liquid Ratio.
D. None of the above
Correct : B. Capital Redemption Reserve
92. The premium amount that can be charged as per companies Act.
A. 10%
B. 15%
C. 20%
D. None of these
Correct : D. None of these
93. A company to issue sweat equity shares must pass a.
A. Special resolution
B. Ordinary resolution
C. Unanimous resolution
D. None of these
Correct : A. Special resolution
94. 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
Correct : C. 15 days
95. The company must deliver share certificate within ___________ if the shares allotted by company.
A. 2 months
B. 3 months
C. 4 months
D. none of these
Correct : B. 3 months
96. 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
Correct : B. 2 months
97. Share warrants can be issued with the prior approval of the _____________
A. Company law board
B. Dept of company affairs
C. Registrar
D. None
Correct : C. Registrar
98. Stamp duty to be paid at the time of issue of share certificate is.
A. Nominal
B. High
C. Very high
D. None of these
Correct : A. Nominal
99. Stamp duty to be paid at the time of issue of share warrant.
A. Nominal
B. High
C. Very high
D. None of these
Correct : C. Very high
100. ______ specifies the time limit with in which share certificate is to be delivered
A. sec 110
B. sec 111
C. sec 112
D. sec 113
Correct : D. sec 113