Question 1

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

Accepted Answer

A

Question 2

Validity period of information memorandum is___________
A)1 year
B)2 years
C)3 years
D)4 years

Accepted Answer

The validity period of an information memorandum is typically 1 year. This document is used in finance and investment to provide essential information to potential investors or lenders.

Question 3

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

Accepted Answer

Central Government permission is required when converting a public company to a private company as per the Companies Act, 2013 in India.

Question 4

Paying back of capital is called
A)redemption
B)conversion
C)participation
D)none

Accepted Answer

Redemption refers to the process of repaying the principal amount of a debt or security, such as bonds, at or before maturity.

Question 5

Proxies cannot vote on_________
A)show of hands
B)poll
C)both (a) & (b)
D)none of the above

Accepted Answer

Proxies cannot vote on a show of hands; they can only vote on a poll.

Question 6

Minimum number of members in case of public company
A)1
B)2
C)5
D)7

Accepted Answer

The minimum number of members required to form a public company is 7, according to company law in many jurisdictions.

Question 7

Minimum no. of Directors in case of private company is __________
A)1
B)2
C)3
D)4

Accepted Answer

The minimum number of directors required for a private company is 2, as per the Companies Act, 2013.

Question 8

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

Accepted Answer

A company is considered a government company if the government holds more than 50% of its paid-up share capital.

Question 9

_______ % 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

Accepted Answer

For a company to become a subsidiary of another company, the parent company must hold more than 50% of the subsidiary's shares. This majority stake gives the parent company control over the subsidiary's board of directors and thus its operations.

Question 10

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

Accepted Answer

Non-profit making companies are required to preserve their books of accounts for 4 years as per Section 133 of the Companies Act, 2013.

Question 11

Accepting of deposits from public in case of private company is
A)prohibited
B)restricted
C)acceptable
D)none of these

Accepted Answer

Private companies are prohibited from accepting deposits from the public as per the Companies Act, 2013 in India.

Question 12

Stamp duty on registration of the company is payable based on____________ capital.
A)nominal
B)authorized
C)both (a) & (b)
D)none

Accepted Answer

Stamp duty on registration of a company is payable based on both nominal and authorized capital. These terms are often used interchangeably to refer to the maximum amount of share capital that a company is authorized to issue to shareholders.

Question 13

____ 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

Accepted Answer

Sweat equity shares are issued by a company to its employees or directors as a form of compensation for their work, typically for consideration other than cash, recognizing their contribution in terms of work, labor, and effort.

Question 14

________ 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

Accepted Answer

Special resolution is required to be passed by the company to offer shares to outsiders.

Question 15

The doctrine of indoor management is an_________ to the doctrine of constructive notice
A)exception
B)extension
C)alternative
D)none of the above

Accepted Answer

The answer of The doctrine of indoor management is an_________...

Question 16

Ques. Companies are now allotted a_________ in addition to their name
A)PAN
B)SIN
C)PIN
D)CIN

Accepted Answer

Companies are now allotted a Corporate Identification Number (CIN) in addition to their name. This unique identifier is used to track all aspects of a company's information in the official records.

Question 17

In how many days did the company have its registered office after incorporation
A)10
B)20
C)30
D)40

Accepted Answer

A company is required to have its registered office within 30 days of its incorporation. This is to ensure that there is a legal address for receiving communications and notices from regulatory bodies and other stakeholders.

Question 18

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

Accepted Answer

The correct place to file a case against a company is at its registered office. This is because the registered office is the official address of a company where all official communications and legal notices are sent.

Question 19

Ultra vires loans granted by the company are
A)void
B)voidable
C)valid
D)none of the above

Accepted Answer

Ultra vires loans, which are loans granted by a company beyond its legal power or authority, are considered void. This is because they exceed the scope of the powers granted to the company by its constitution or under the law.

Question 20

conceives the idea of the business
A)promoters
B)directors
C)auditors
D)none of the above

Accepted Answer

Promoters are responsible for conceiving the idea of the business, planning the initial operations, and getting the company off the ground.

Quiz 4: Company Law and Regulations: Part 2

A company can become a members of another company if it is so authorized by______

Validity period of information memorandum is___________

Central Government permission is required in case of_ conversion

Paying back of capital is called

Proxies cannot vote on_________

Minimum number of members in case of public company

Minimum no. of Directors in case of private company is __________

A company is named as govt. company if it is holds_________ % of paid up share capital

_______ % of shares should be held by a company in another company so as to become subsidiary

In case of Non -Profit making Companies books of accounts are required to be preserved for _____ years

Accepting of deposits from public in case of private company is

Stamp duty on registration of the company is payable based on____________ capital.

____ are the shares issued by the company to it employees or directors for consideration other than cash

________ resolution should be passed by the company to offer shares to outsiders

The doctrine of indoor management is an_________ to the doctrine of constructive notice

Ques. Companies are now allotted a_________ in addition to their name

In how many days did the company have its registered office after incorporation

If any body wants to file a case against the company they should file at what place _____

Ultra vires loans granted by the company are

conceives the idea of the business