McqMate
These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Bachelor of Science in Law (BSL) , Bachelor of Laws (LLB) , Staff Selection Commission (SSC) , Common Law Admission Test (CLAT) , Bachelor of Legal Science (BLS) .
| 1. |
_________ Order to call a EGM even though 1 member present in person or by proxy. |
| A. | roc |
| B. | c.g |
| C. | nclt |
| D. | d.c.a |
| Answer» B. c.g | |
| 2. |
The time period for conduction of AGM is extended by ROC for how many months |
| A. | 1 |
| B. | 2 |
| C. | 3 |
| D. | 4 |
| Answer» C. 3 | |
| 3. |
Maximum rate of discount that can be allowed on issue of shares |
| A. | 5% |
| B. | 10% |
| C. | 15% |
| D. | 20% |
| Answer» B. 10% | |
| 4. |
Liability under_____ sec. may be imposed only if it is proved that the companies business has been carried on with a view to defraud the creditors |
| A. | 540 |
| B. | 541 |
| C. | 542 |
| D. | 543 |
| Answer» C. 542 | |
| 5. |
The time gap between two AGM’s shall not exceed. |
| A. | 15 months |
| B. | 18 months |
| C. | 16 months |
| D. | none of these |
| Answer» A. 15 months | |
| 6. |
Age limit of Directors in case of private company is ___________ |
| A. | 65 |
| B. | 70 |
| C. | 75 |
| D. | no limit |
| Answer» D. no limit | |
| 7. |
Debentures payable to a holder of certificate is called_____ |
| A. | bearer |
| B. | unregistered |
| C. | secured |
| D. | both ((a) & ((b) |
| Answer» A. bearer | |
| 8. |
Minimum paid up share capital in case of a public company is _____ |
| A. | 1 lakh |
| B. | 3 lakhs |
| C. | 5 lakhs |
| D. | 7 lakhs |
| Answer» C. 5 lakhs | |
| 9. |
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 |
| Answer» B. 2 months | |
| 10. |
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 |
| Answer» A. under the company’s act | |
| 11. |
Share warrants can be issued with the prior approval of the____ |
| A. | company law board |
| B. | dept of company affairs |
| C. | registrar |
| D. | none |
| Answer» C. registrar | |
| 12. |
Minimum no. of Directors in case of a public company is ___ |
| A. | 1 |
| B. | 2 |
| C. | 3 |
| D. | 4 |
| Answer» C. 3 | |
| 13. |
Which of the following is not a member of a company? |
| A. | partnership firm |
| B. | foreigner |
| C. | government |
| D. | huf |
| Answer» A. partnership firm | |
| 14. |
Debentures payable to person whose name appears both on Debenture Certificate and company’s register is called |
| A. | bearer |
| B. | unregistered |
| C. | registered |
| D. | none of the above |
| Answer» C. registered | |
| 15. |
___ is issued in acknowledgement of any indebtedness |
| A. | debenture certificate |
| B. | share certificate |
| C. | share warrant |
| D. | none of the above |
| Answer» A. debenture certificate | |
| 16. |
In case of Non -Profit making Companies notice of general meeting should be given with in _____ days |
| A. | 14 |
| B. | 15 |
| C. | 21 |
| D. | 22 |
| Answer» A. 14 | |
| 17. |
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 |
| Answer» B. for special reason only | |
| 18. |
Which of the following is a right of the members of a company_____ |
| A. | right to have share |
| B. | right appoint auditor |
| C. | right appoint director |
| D. | all the above |
| Answer» D. all the above | |
| 19. |
Which of the following can issue the share warrant |
| A. | public |
| B. | private |
| C. | both (a) & (b) |
| D. | none of the above |
| Answer» A. public | |
| 20. |
In case of continuing default to convene the AGM fine is Rs.___________ for every day. |
| A. | 250 |
| B. | 300 |
| C. | 350 |
| D. | 400 |
| Answer» A. 250 | |
| 21. |
Transfer of shares in the case of public company is |
| A. | prohibited |
| B. | restricted |
| C. | freely transferable |
| D. | none of these |
| Answer» C. freely transferable | |
| 22. |
In the given below who are required to hold A.G.M___________ |
| A. | public company |
| B. | private company |
| C. | government company |
| D. | all the three |
| Answer» A. public company | |
| 23. |
U/s 274 (f) (g) directors are disqualified for how many________ years. |
| A. | 1 |
| B. | 3 |
| C. | 5 |
| D. | 7 |
| Answer» C. 5 | |
| 24. |
Where the registrar strikes off the register the name of a company as a defunct one, the court has the power to order restoration of name with in: |
| A. | 5 years |
| B. | 7 years |
| C. | 10 years |
| D. | 20 years |
| Answer» C. 10 years | |
| 25. |
A share warrant is transferable by ____________ |
| A. | by execution of transfer deed |
| B. | by delivery |
| C. | both (a) and (b) |
| D. | none of the above |
| Answer» B. by delivery | |
| 26. |
Every AGM must be held with ___ from the date of the Balance Sheet. |
| A. | 4 months |
| B. | 6 months |
| C. | 9 months |
| D. | none of these |
| Answer» C. 9 months | |
| 27. |
After the expiry of how much time the company must think that the permission was not granted |
| A. | 11 weeks |
| B. | 12 weeks |
| C. | 10 weeks |
| D. | none of these |
| Answer» C. 10 weeks | |
| 28. |
The resolution passed at AGM are__________ |
| A. | valid |
| B. | void |
| C. | voidable |
| D. | void ab-initio |
| Answer» A. valid | |
| 29. |
Own funds are called |
| A. | debenture capital |
| B. | share capital |
| C. | loan capital |
| D. | none of the above |
| Answer» B. share capital | |
| 30. |
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 |
| Answer» A. nclt | |
| 31. |
In case of red-herring prospectus the refund is made with an interest @_____ |
| A. | 12 |
| B. | 13 |
| C. | 15 |
| D. | 16 |
| Answer» C. 15 | |
| 32. |
If the guarantee Co. having no share capital the liability of shareholders will be |
| A. | to the extent of guarantee |
| B. | unpaid value of shares |
| C. | unlimited |
| D. | none of the above |
| Answer» A. to the extent of guarantee | |
| 33. |
First AGM must be held within_____________ from the incorporation of the company |
| A. | 15 months |
| B. | 18 months |
| C. | 12 months |
| D. | none of these |
| Answer» B. 18 months | |
| 34. |
The doctrine of__________ does not apply to acts void ab initio. |
| A. | ultra virus |
| B. | intra virus |
| C. | constructive notice |
| D. | indoor management |
| Answer» D. indoor management | |
| 35. |
Cumulative preference share holders have voting right if dividend are in arrears for years |
| A. | 1 |
| B. | 2 |
| C. | 3 |
| D. | 4 |
| Answer» B. 2 | |
| 36. |
In case of Partly Convertible Debentures non-convertible portion is classified as_____ |
| A. | debt |
| B. | equity |
| C. | both (a) & (b) |
| D. | none of the above |
| Answer» A. debt | |
| 37. |
Transmission is effected by |
| A. | sale |
| B. | death |
| C. | insolvency |
| D. | both (b) & (c) |
| Answer» D. both (b) & (c) | |
| 38. |
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 |
| Answer» D. all of the above | |
| 39. |
Deposits should issued with in__________ weeks from the date of receipt of money. |
| A. | 2 |
| B. | 4 |
| C. | 6 |
| D. | 8 |
| Answer» D. 8 | |
| 40. |
If minimum subscription is not received application money should be refunded with in _____ days |
| A. | 20 |
| B. | 25 |
| C. | 30 |
| D. | 10 |
| Answer» D. 10 | |
| 41. |
Information memorandum + shelf prospectus together constitutes_____ |
| A. | memorandum |
| B. | articles |
| C. | prospectus |
| D. | none of the above |
| Answer» C. prospectus | |
| 42. |
In the event of appointing a proxy joint holders shall sign the proxy form |
| A. | singularly |
| B. | jointly |
| C. | none of the above |
| D. | both (a) & (b) |
| Answer» B. jointly | |
| 43. |
Minimum number of members in case of private company is |
| A. | 1 |
| B. | 2 |
| C. | 3 |
| D. | 4 |
| Answer» B. 2 | |
| 44. |
Maximum no .of members in case of public company is |
| A. | 0 |
| B. | unlimited |
| C. | 50 |
| D. | 100 |
| Answer» B. unlimited | |
| 45. |
Ques. The liability of members if company is limited by guarantee. |
| A. | unpaid value of shares |
| B. | guarantee amount |
| C. | unlimited liability |
| D. | none of the above |
| Answer» B. guarantee amount | |
| 46. |
Which one of the following has a right to claim compensation for any loss due to mis-statement in prospectus |
| A. | purchasing shares in primary market |
| B. | secondary market |
| C. | subscribers to memo |
| D. | all the above |
| Answer» 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 |
| Answer» B. 2 | |
| 48. |
The liability of members if company is limited by shares |
| A. | unpaid value of shares |
| B. | guarantee amount |
| C. | unlimited liability |
| D. | none of the above |
| Answer» A. unpaid value of shares | |
| 49. |
Forfeiture can be made only if it is authorized by ______ |
| A. | aoa |
| B. | moa |
| C. | roc |
| D. | c.g |
| Answer» B. moa | |
| 50. |
Name of the member is struck off from the register in case of____________ |
| A. | issue of share certificate |
| B. | share warrant |
| C. | forfeiture |
| D. | none of the above |
| Answer» B. share warrant | |
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