Industrial and Company Law Solved MCQs

126.

The first Annual General Meeting of a company may be held within a period of not more than ___________ from the date of its incorporation.

A. 12 months
B. 14 months
C. 16 months
D. 18 months
Answer» D. 18 months
127.

The ___________________ is a director who is entrusted with substantial powers of management.

A. First Directors
B. Whole Time Directors
C. Managing Directors
D. Board of Directors
Answer» C. Managing Directors
128.

The Board of Directors can call a general meeting of the members any time by giving not less than-

A. 12 days‟ notice
B. 15 days‟ notice
C. 18 days‟ notice
D. 21 days‟ notice
Answer» D. 21 days‟ notice
129.

A company shall not appoint any person as its whole time director if:

A. He is an undischarged insolvent
B. He is already a director of other company
C. He is a minor
D. None of the above
Answer» A. He is an undischarged insolvent
130.

A director may be removed from his office by:

A. The shareholders
B. The Company Law Board
C. The Central Government
D. All of the above
Answer» D. All of the above
131.

Which of the following section defines a managing director:

A. Sec. 296 (1)
B. Sec. 2 (26)
C. Sec. 26 (2)
D. Sec. 6 (22)
Answer» B. Sec. 2 (26)
132.

No company shall appoint any individual as its managing director for a term exceeding:

A. 3 years at a time
B. 5 years at a time
C. 4 years at a time
D. 2 years at a time
Answer» B. 5 years at a time
133.

A director who is known as an executive director is:

A. Manager
B. Whole time director
C. Managing director
D. None of the above
Answer» B. Whole time director
134.

The meetings of a company can be classified as:

A. Meetings of the shareholders
B. Meetings of debenture holders
C. Meetings of directors
D. All of the above
Answer» D. All of the above
135.

The most method to ascertain the sense of a meeting and commonly used voting method at company meeting is:

A. Voting by show of hands
B. Voting by Poll
C. Voting by secret ballot
D. None of the above
Answer» A. Voting by show of hands
136.

The official record of the proceedings of the meetings of directors or shareholders of a company is:

A. Resolution
B. Meetings
C. Quorum
D. Minutes
Answer» C. Quorum
137.

Any invitation issued to the public inviting it to deposit money with the company or to take share or debentures of the company such invitation may be in the form of a document or a notice, circular, advertisement etc is known as

A. Prospectus
B. Documents
C. Promotion
D. All of the above
Answer» B. Documents
138.

A subsidiary company can be a member of the holding company also.

A. True
B. False
C. undefined
D. either (a) or (b)
Answer» A. True
139.

A person who has control over the affairs of the company, directly or indirectly whether as a shareholder, director or otherwise

A. Promoter
B. Manager
C. Owner
D. None of the Above
Answer» B. Manager
140.

A borrowing made by a company from a particular bank/financial institution.

A. Secured Borrowing
B. Bilateral borrowing
C. Private borrowing
D. Public borrowing
Answer» C. Private borrowing
141.

Bonds which are sold at a discount from its eventual maturity value and have zero interest rate.

A. Zero coupon bonds
B. Zero Capital
C. Secured coupon Bonds
D. None
Answer» D. None
142.

For which type of capital a company pays the prescribed fees at the time of registration?

A. Subscribed capital
B. Authorized capital
C. Paid up capital
D. Issued capital
Answer» D. Issued capital
143.

Reappointment of Managing director and Whole time director shall not be made earlier than

A. 3 months before the expiry of his term
B. 12 months before the expiry of his term
C. 9 months before the expiry of his term
D. 6 months before the expiry of his term
Answer» B. 12 months before the expiry of his term
144.

The term Managing Director as defined by Companies Act, 2013, means

A. A director who, by virtue of the articles of a company is entrusted with substantial powers of management of the affairs of the company.
B. A director who, by virtue of an agreement with the company is entrusted with substantial powers of management of the affairs of the company.
C. A director who, by virtue of a resolution passed in its general meeting, or by its Board of Directors is entrusted with substantial powers of management of the affairs of the company
D. All of the above
Answer» D. All of the above
145.

A company shall not appoint any person as its managing or whole time director who

A. is an undischarged insolvent or has at any time been adjudged insolvent
B. suspends or has at any time suspended payment to its creditors
C. is or has any time been convicted by a court of an offence involving moral turpitude
D. All of the above
Answer» D. All of the above
146.

No Company shall appoint any individual as its managing director for a term exceeding______ at a time

A. 5 years
B. 2 years
C. 6 years
D. 1 year
Answer» A. 5 years
147.

A whole-time key managerial personnel shall not hold office in more than __________ at the same time.

A. one company except in its subsidiary company
B. two company in its subsidiary company
C. one company except in its wholly owned subsidiary company
D. none of the above
Answer» A. one company except in its subsidiary company
148.

If the office of any whole-time key managerial personnel is vacated, the resulting vacancy shall be filled-up by the Board at a meeting of the Board within a period of

A. 3 months from the date of such vacancy
B. months from the date of such vacancy
C. 6 months from the date of such vacancy
D. none of the above
Answer» C. 6 months from the date of such vacancy
149.

A director or manager in a company may be paid remuneration by way of

A. a specified percentage of the net profits of the company
B. Monthly payment
C. partly by monthly payment and partly at a specified percentage of net profits of the company.
D. (d)All of the above
Answer» D. (d)All of the above
150.

A person shall not be eligible for appointment as a managing or whole-time director or a manager of a company if he had been detained for any period under the__________

A. Conservation of Foreign Exchange and Prevention of Smuggling Activities Act, 1974.
B. Prevention of Money Laundering Act, 2001
C. Foreign Exchange Management Act, 1999
D. None of the above
Answer» A. Conservation of Foreign Exchange and Prevention of Smuggling Activities Act, 1974.
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