MCQ Objective Questions on Company Law

Company Law Paper of the CS Executive Programme:

Ques. The date of the opening of the subscription list means the beginning of the_____ from the day of the issue of prospectus.

(a) 5 th

(b) 3 rd

(c) 10 th

(d) 20 th

Ans. (a)

Ques. Pre-incorporation contract is also known as __

(a) Provisional

(b) Preliminary

(c) illegal

(d) legal

Ans. (b)

Ques. The minimum application money should be _____ of nominal value.

(a) 5%

(b) 3%

(c) 2%

Ans. (a)

Ques. Private Company need not issue prospectus

(a) Yes

(b) No

Ans. (a)

Ques. If the employer is a Banking company. Deduction will be allowed under 3 rd schedule is while determining available surplus __ of reserves shown in its B/S at the commencement of the accounting year

(a) 5%

(b) 6%

(c) 7%

Ans. (b)

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Ques. Prospectus is required to be issued when right issue are made

(a) Yes

(b) No

Ans. (b)

Ques. ___ report is send by the directors to its members.

(a) Statutory

(b) Audit

(c) Annual

Ans. (c)

Ques. Prospectus is required to be issued when issue is for Employees under Employee stock option scheme

(a) Yes

(b) No

Ans. ()

Ques. A poll can be demanded by any member present in person or by proxy if he has voting powers at least equal to:

(a) 1/5 th

(b) 1/10 th

(c) 1/20 th

(d) 1/30 th

Ans. (b)

Ques. ____ includes an engineer, valuationer, accountant

(a) Promoter

(b) Auditor

(c) Director

(d) Expert

Ans. (d)

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Ques. OMPL Gas Company shares are totally held by government. The company will be government.

(a) True

(b) False

Ans. (b)

Ques. Advance received against orders for the supply of goods or selling of properties will be treated as deposits.

(a) Yes

(b) No

Ans. (b)

Ques. ____ 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

Ans. (c)

Ques. In the case of partnership firm. Audit is

(a) Compulsory

(b) Optional

Ans. (b)

Ques. Consideration shall be paid if share holder surrender his shares

(a) Yes

(b) No

Ans. (b)

Ques. Because of Misrepresentation in prospectus an expert will be criminally liable.

(a) Yes

(b) No

Ans. (b)

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Ques. A special resolution is passed with

(a) Simple majority

(b) 60% majority of members present

(c) 75% majority of members present

Ans. (c)

Ques. Set on can be done for next ________  accounting years

(a) 5

(b) 6

(c) 4

(d) None of these

Ans. (c)

Ques. Calls in advance have voting rights

(a) Yes

(b) No

Ans. (b)

Ques. 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

Ans. (b)

Ques. Amount received by a company from another company will not be treated as deposit.

(a) Yes

(b) No

Ans. (a)

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Ques. Every Company who want to go for public issue and allot shares, they should make an applicant to stock exchange

(a) Yes

(b) No

Ans. (a)

Ques. If the employer is a corporation deduction will be allowed under 3 rd schedule is while determining available surplus ____ % of its paid up capital as at the commencement of the accounting year

(a) 8.5%

(b) 7.5%

(c) 6%

Ans. (a)

Ques. Public deposit matures and claimed but remains unpaid, penal interest will be in case of small deposits

(a) 16%

(b) 18%

(c) 20%

(d) None of these

Ans. (c)

Ques. __  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

Ans. (d)

Ques. _____ includes any amount borrowed by a company.

(a) Deposits

(b) Funds

Ans. (a)

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Ques. In case of adjourned meeting is it necessary to wait for the quorum

(a) Yes

(b) No

Ans. (b)

Ques. What is the ceiling imposed by the government on company on any deposits?

(a) 10

(b) 25

(c) 35

(d) 5

Ans. (c)

Ques. Audit of a public company will be counted for the limit of audits

(a) Yes

(b) No

Ans. (a)

Ques. Failure to comply with the order of NCLT is punishable with an imprisonment upto ___ years.

(a) 1

(b) 2

(c) 3

(d) 4

Ans. (c)

Ques. If quorum is not present with in____ time the meeting is stand dissolved.

(a) ½ Hr

(b) 1 Hr

(c) 1 ½ Hr

(d) 2 Hr

Ans. (a)

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Ques. Alan Private Limited company provided in articles that quorum for the company should be 7 member is the company correct

(a) Correct

(b) Not correct

Ans. (a)

Ques. Part of the issued capital taken by public is called______

(a) Subscribed

(b) Called – up capital

(c) Un called capital

(d) Paid up capital

Ans. (a)

Ques. Voting right can’t be exercised in case of___

(a) Calls in advance

(b) Calls in arrears

Ans. (b)

Ques. Voting Rights are available to share certificate holders.

(a) Yes

(b) No

Ans. (a)

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Ques. Notice of Adjourn meeting is not required of a meeting is

(a) Adjourn for want of quorum

(b) Adjourn sine die

(c) Adjourn for more than 30 days

(d) None

Ans. (a)

Ques. If the employer is company other than a banking company deduction will be allowed under 3rd schedule  while   determining  available  surplus _____ %  of its paid up  capital  at the commencement of the accounting year

(a) 7.5%

(b) 8.5%

(c) 9.5%

(d) None of these

Ans. (b)

Ques. Age limit of Directors in case of public company is ___

(a) 80

(b) 75

(c) 70

(d) 65

Ans. (d)

Ques. Part of authorized capital which is offered by the company for subscription.

(a) subscribed

(b) Issued

(c) Un called

(d) called up

Ans. (b)

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Ques. ___ is a charge when it is made specifically to cover assets

(a) Fixed

(b) Floating

(c) Specific

(d) Both Fixed & Specific

Ans. (c)

Ques. In which of the following stamp duty & consideration not necessary ____

(a) Transfer

(b) Transmission

Ans. (b)

Ques. The companies which are formed under special Act. Those companies are called as

(a) Chartered companies

(b) Registered companies

(c) Statutory companies

(d) None of these

Ans. (c)

Ques. MoA should be in form ____ in case of a unlimited liability

(a) Table A

(b) Table B

(c) Table E

Ans. (c)

Ques. ___ is a charge created on a class of assets related to ordinary course of business.

(a) Fixed

(b) Specific

(c) Floating

(d) None of the above

Ans. (c)

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Ques. Which companies are exempted to add “Ltd” or “Pvt Ltd” at the end of their name

(a) Private

(b) Govt

(c) Defunct

(d) Association not for profits

Ans. (d)

Ques. The companies which are formed under companies Act. 1956. They will be called as

(a) Chartered companies

(b) Statutory companies

(c) Registered companies

(d) None of these

Ans. (c)

Ques. ___ is the charter of a company.

(a) Memorandum

(b) Articles

Ans. (a)

Ques. Reduction & diminution is done under which sec.

(a) 100 & 94

(b) 94 & 100

(c) 100 & 96

(d) 96 & 100

Ans. (a)

Ques. Transfer of shares in the company is

(a) Restricted

(b) Freely transferable

(c) Prohibited

Ans. (b)

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Ques. Notice of statutory meeting should be attested by at least.

(a) 3 directors

(b) 2 directors

(c) 4 directors

(d) None of these

Ans. (b)

Ques. Company will have fundamental rights.

(a) True

(b) False

Ans. (b)

Ques. Notice of statutory meeting should be attested directors among them one should be compulsory M.D.

(a) Yes

(b) No

Ans. (a)

Ques. To issue a share certificate Central Government permission is necessary?

(a) Yes

(b) No

Ans. (b)

Ques. The Provident Fund Scheme is mandatory to employer but not mandatory to employee. Do you agree with this statement?

(a) Agree

(b) Disagree

Ans. (b)

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Ques. If the employer is a partnership firm deduction will be allowed under 3 rd schedule is while determining available surplus ____ % of the capital invested

(a) 8.5%

(b) 7.5%

(c) 6%

Ans. (a)

Ques. 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

Ans. (a)

Ques. Buy back should be less than or equal to ___ % of total paid up capital

(a) 25

(b) 30

(c) 35

(d) 40

Ans. (a)

Ques. Company must pass_________ for reducing its share capital

(a) O.R

(b) S.R

(c) C.G permission

(d) None of the these

Ans. (b)

Ques. Statutory meeting must be held in case of a public company

(a) Yes

(b) No

Ans. (a)

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Ques. Definition of prospectus was given under which sec.

(a) 2 (30)

(b) 2 (32)

(c) 2 (34)

(d) 2 (36)

Ans. (d)

Ques. A cost auditor makes his report to:

(a) Members of company

(b) Directors of company

(c) Registrar

(d) C. G.

Ans. (b)

Ques. In addition to the contribution employer has to pay ______ % of wages as administration charges.

(a) 0.17%

(b) 0.18%

(c) 0.10%

(d) None of these

Ans. (c)

Ques. In the absence of a quorum the proceedings of the meeting will be___

(a) Valid

(b) Void

Ans. (b)

Ques. Shraddha Shakti Company accepted deposits on March 1 st 2019 and at the time of acceptance they said that the deposits will be repaid on Aug. 1 st 2020. Is the company proposal and deposits are valid

(a) Yes

(b) No

Ans. (b)

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Ques. If a company which is formed with unlimited liability wants to convert to limited liability then it should pass

(a) Ordinary resolution

(b) Special resolution

(c) No need

Ans. (b)

Ques. Any charge is satisfied in full then which form is to be file with ROC_____

(a) 17

(b) 18

(c) 19

(d) 20

Ans. (a)

Ques. Maximum capital of private company is

(a) 50 Lakhs

(b) 1 Crore

(c) 10 Crore

(d) Unlimited

Ans. (d)

Ques. A charge requiring registration shall be filed with the registrar with in____

(a) 45 days

(b) 21 days

(c) 30 days

(d) None of the above

Ans. (c)

Ques. Minutes should be recorded within ____ days from the date of conclusion of every meeting

(a) 10

(b) 20

(c) 30

(d) 40

Ans. (c)

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Ques. What is minimum period for which deposits can be issued?

(a) 6 months

(b) 7 months

(c) 8 months

(d) None of these

Ans. (a)

Ques. Is the holder of share warrant is eligible for voting?

(a) Yes

(b) No

Ans. (b)

Ques. Under which sec. a private company can voluntarily converted into public company___

(a) 34

(b) 44

(c) 54

(d) 64

Ans. (b)

Ques. In the process of conversion of a private company into a public company which prospectus must be issued

(a) Deemed prospectus

(b) Shelf prospectus

(c) Statement in lieu of prospectus

Ans. (c)

Ques. All money received in the form of application money can be used for business activities

(a) Yes

(b) No

Ans. (b)

Ques. Maximum members in case of private company

(a) 50

(b) 100

(c) 75

Ans. (a)

Ques. Loose – leaf minutes to be bound into books at regular intervals of ____ months

(a) 6

(b) 7

(c) 8

(d) 9

Ans. (a)

Ques. ___ meeting given an opportunity to the member to know discuss on promotion & formation of the company.

(a) General

(b) EGM

(c) Statutory

Ans. (c)

Ques. Transfer of shares in case of private company is

(a) Prohibited

(b) Restricted

(c) Freely transferable

Ans. (b)

Ques. ____ is the conclusive evidence in case of company that statutory requirements have complied with

(a) Certificate of Incorporation

(b) Certificate of commencement of Business

Ans. (a)

Ques. The min subscription amount is reckoned with amounts payable in___

(a) cash only

(b) kind only

(c) cash as well as kind

Ans. (a)

Ques. Company to accept calls in advance from shareholders they should have permission in

(a) MOA

(b) AOA

(c) BOD

Ans. (b)

Ques. Company should file a prospectus in case of conversion of private company into a public company with in ______ from the date of resolution

(a) 30 days

(b) 45 days

(c) 60 days

Ans. (a)

Ques. Every company must go for under writing

(a) Yes

(b) No

Ans. (b)