Quiznetik

Regulatory Framework for Companies | Set 1

1. A company is called an artificial person because

Correct : D. it exists only in contemplation of law.

2. The ‘common seal’ of the company should have

Correct : D. all the above.

3. Power to use official seal of the company outside India is to be authorized by.

Correct : A. article of association.

4. A company comes into legal existence as a person on.

Correct : D. issue of certificate of incorporation by the registrar of companies.

5. The word ‘Limited’ can be dropped from a company’s name only when.

Correct : C. both (a) and (b).

6. A public company can be called as a body corporate after it.

Correct : C. receives certificate of incorporation.

7. A registered company is the company which is incorporated.

Correct : A. under the companies act, 1956.

8. The minimum number of members required to form a ‘public Company’ is.

Correct : B. 7

9. The minimum and maximum number of members in a private company are.

Correct : B. 2 and 50.

10. Converting a public company into a private company requires a special resolution.

Correct : A. passed by the members and with sanction of the central government.

11. In which of the following conditions, a company will be reckoned a foreign company?

Correct : A. if the company is established outside india and has a place- of business in india.

12. Legal position of a promoter of a company is.

Correct : D. in a fiduciary capacity.

13. A company is said to have been registered when?

Correct : B. it gets incorporation certificate with the registrar of companies.

14. A private Limited company commences business.

Correct : B. after obtaining the certificate of incorporation.

15. Certificate of commencement of business is not required by.

Correct : B. a private company.

16. The companies (Amendment) Act , 2000 provides new section 292 A for constitution of audit committees by every public company having a paid- up capital of.

Correct : D. rs.50 million or more.

17. An Audit Committee may include.

Correct : D. all.

18. Which of the following reports included clause 49 in the listing agreement.

Correct : B. kumaramangalam birla report.

19. Audit committee shall act in accordance with the terms of reference to be specified by.

Correct : C. board of directors.

20. The Statutory Auditors of the company are appointed by.

Correct : A. share holders in annual general meeting.

21. Remuneration Committee is made up of.

Correct : A. independent directors.

22. Executive Directors are those directors who.

Correct : B. occupy management position.

23. The company agrees that the remuneration of non- executive directors shall be decided by.

Correct : A. board of directors.

24. An Article constitutes a contract between.

Correct : A. the company and its members.

25. Name of a company can be changed by.

Correct : D. a special resolution and with approval of the central government.

26. Change of registered office of a company from one place to another in the same city requires.

Correct : A. board resolution.

27. Article of Association can be altered by.

Correct : C. a special resolution.

28. A change in the registered office of the company from one state to another can be effected by.

Correct : D. a special resolution and confirmation of the company law tribunal.

29. The charter of a company is its.

Correct : B. memorandum of association.

30. A document which lays down the fundamental conditions upon which the company is allowed to form is called.

Correct : A. memorandum of association.

31. The alteration of the Memorandum has to be certified by the Registrar.

Correct : D. within 30 days.

32. Memorandum of Association does not include.

Correct : D. assets clause.

33. ‘Shelf prospectus’ means a prospectus issued by.

Correct : C. any financial institution or banks.

34. The ‘Golden Rule’ for framing of a prospectus was laid down in the case of.

Correct : C. new brunswick & canada rly. & land co. vs muggeridge.

35. The document which invites the public for subscribing capital in the form of shares and debenture is called.

Correct : C. prospectus.

36. Which of the documents is not filed to the registrar at the time of incorporation?

Correct : D. prospectus.

37. A prospectus may contain a statement purporting to be made by an expert. The term “expert” includes.

Correct : D. all the above.

38. The most important clause in the Memorandum of Association of a company is.

Correct : C. objects clause.

39. Who has certain remedies for misstatement in the prospectus against the company and the persons issuing the Prospectus?

Correct : A. a person who has applied for shares in the company and who has been allotted shares.

40. The prospectus must be issued within ………………… after the date on which a copy thereof has been delivered for registration.

Correct : C. 90 days.

41. Every prospectus

Correct : A. has to be dated.

42. The exception to the doctrine of constructive notice is provided in

Correct : C. doctrine of indoor management.

43. Any document filed with the registrar will be deemed to have been read and understood by all those who deal with the company. It is as per the doctrine of.

Correct : A. constructive notice.

44. The Doctrine of indoor management provides protection to.

Correct : D. outsiders.

45. The doctrine of constructive notice protects the interest of.

Correct : A. the company.

46. When an act is performed or a transaction is carried out, which though legal in itself, is not authorized by the objects clause in the Memorandum or by Statute, it is said to be.

Correct : A. ultra vires the powers of the company.

47. An act of a director which is intra vires the Memorandum and ultra vires the Articles of Association.

Correct : C. may be ratified by the company.

48. Doctrine of constructive notice is related to.

Correct : C. memorandum of association and articles of association both.

49. A person is disqualified from being appointed as a director of a company if.

Correct : D. all the above.

50. A person cannot be a director of more than …………… as per the Companies (Amendment) Act, 2000.

Correct : C. 15 companies.

51. The remuneration payable to a whole time director of the company should not exceed.

Correct : A. 5% of the net profits.

52. The first directors of a public company are appointed by the.

Correct : C. promoters.

53. According to the companies Act, 1956 a Private limited company must have at least ………… directors.

Correct : C. two.

54. Maximum managerial remuneration permissible under the Companies Act, 1956 for public limited companies is.

Correct : C. 11% of net profit.

55. Under the companies Act, which one of the following powers can be exercised by the Board of Directors?

Correct : B. power to make call.

56. Who may be appointed as a director of a company?

Correct : A. an individual.

57. The nominal value of the qualification shares of a director must not exceed.

Correct : D. rs. 5000 or the nominal value of one share where it exceeds rs.5000.

58. According to section 255 of the companies Act, the Directors must be appointed by the.

Correct : C. company in general meeting.

59. The Board of Directors can exercise the power to appoint directors in the case of.

Correct : D. all the above.

60. Where a director acts dishonestly to the interest of the company, he will be held liable for.

Correct : C. breach of fiduciary duty.

61. Except with the approval of the central Government, remuneration of a whole time director or a managing director shall not exceed …………… of the net profits for one such director.

Correct : C. 10%.

62. Under section 269, every public company and a private company which is a subsidiary of a public company must have a managing director or a whole time director if its paid-up share capital is.

Correct : C. rs.5 crore or more.

63. Sec.291 of the Company Act 1956, has clarified that.

Correct : B. the board of directors shall exercise all such powers and do all such acts as the company is authorized to exercise or to do subject to the restrictions contained in the act, memorandum and articles.

64. When the Directors have acted mala fide and are themselves the wrong doers, the only option left with the shareholders is.

Correct : C. to interfere in management by a majority in the general meeting.

65. When there is a deadlock between the directors.

Correct : C. shareholders may intervene to take necessary steps to ensure the working of the company.

66. What is the amount of contribution that a company can make for political purposes?

Correct : C. amount not exceeding 5% of the net profits of three immediately preceding financial years.

67. Any information or knowledge generated by the company.

Correct : D. all the above.

68. According to section 283 (1) (g) if a director absents himself from 3 consecutive board meetings or from all meetings consecutively for a period of 3 months without obtaining leave of absence.

Correct : C. his office shall become vacant.

69. The maxim “delegates nonpotest delegare” states the.

Correct : B. duty not to delegate their duties.

70. A company can be wound up.

Correct : D. by all the above methods.

71. Compulsory winding up means winding up.

Correct : A. by the tribunal.

72. A company may be wound up by the Tribunal if.

Correct : D. company is unable to pay its debts.

73. As per Sec 439, who can file a petition to the tribunal for winding up?

Correct : D. any one of these.

74. As per Sec.444 when the Tribunal makes an order for the winding up it should be communicated within two weeks to.

Correct : A. official liquidator.

75. Official liquidators are appointed from a panel of.

Correct : D. all.

76. Tribunal may appoint the official liquidator to be the liquidator provisionally at any time.

Correct : A. after the presentation of petition for winding up.

77. The official liquidator after receipt of statement of affairs of the company must submit a preliminary report to the Tribunal not later than ……………. of the order.

Correct : A. 6 month.

78. On a winding up order being made, the company’s property comes under the custody of.

Correct : A. liquidator.

79. As per Sec.457, the statutory powers of the liquidator can be exercised.

Correct : C. some with and some without such sanction.

80. In the event of Company being wound up the Tribunal shall prepare list of contributories into.

Correct : C. list a and list b.

81. One of the following is the instance where the just and equitable clause for winding up can be adopted by the Tribunal.

Correct : A. oppression of minority by the majority.

82. As per Sec.488, Declaration of Solvency of company by the Directors in the case of voluntary winding up may be made within.

Correct : A. 5 weeks of passing resolution.

83. The object of winding up of a company by the Tribunal is.

Correct : A. to facilitate the protection of its assets.

84. A voluntary winding up means winding up by.

Correct : A. members or creditors.

85. Statutory meeting of the company must be held within.

Correct : D. 6 months of obtaining the certificate to commence business.

86. Notice of the statutory meeting to all the members of the company is required to be sent at least.

Correct : B. 21 days before the date of the meeting.

87. Statutory meeting of the company is held.

Correct : C. once in the life time of the company.

88. Statutory meeting is not to be held if a new company is a .

Correct : C. private company (limit)

89. The first annual general meeting of the company must be held within.

Correct : C. 18 months from the date of its incorporation.

90. The interval between two annual general meetings should not be more than.

Correct : B. 15 months.

91. Statutory meeting need to be held by.

Correct : A. a public company limited by guarantee and having a share capital.

92. A meeting of the Board of Directors must be held at least once in.

Correct : C. every three months.

93. When can an annual General Meeting be called giving shorter notice than that specified?

Correct : A. if consent is accorded to by all the members entitled to vote.

94. For general meeting of any kind (statutory, Annual or Extraordinary) at least ………….. Notice must be given to members.

Correct : A. 21 days.

95. Quorum for general meeting for private and public companies.

Correct : A. 2 and 5.

96. Quorum for a Board meeting is.

Correct : A. 1/3 of total number of directors or 2 directors, whichever is higher.

97. The minutes book can be inspected by the.

Correct : A. shareholders free of charge.

98. Minutes of company meeting should be prepared within.

Correct : B. 30 days of the meeting.

99. A special resolution is passed by.

Correct : C. 3/4 majority.

100. An ordinary resolution at a general meeting of the shareholders is sufficient for.

Correct : B. issue of shares at a discount.