190+ Corporate Laws Solved MCQs

These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Bachelor of Business Administration (BBA) , Union Public Service Commission (UPSC) , Indian Administrative Service (IAS) , Common Law Admission Test (CLAT) .

Take a Test

51.	A company may change its name by passing ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ with the approval of central govt.
A.	Special resolution
B.	Ordinary resolution
C.	Both A & B
D.	None of the above
Answer» A. Special resolution

52.	The company shall give notice of alteration to the Register within ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ of passing the resolution
A.	3 months
B.	6 months
C.	30 days
D.	60 days
Answer» C. 30 days

53.	‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ consists of a series of regulations framed by the legislature for the conduct of the affair of company.
A.	Table B
B.	Table A
C.	Table C
D.	Table D
Answer» B. Table A

54.	If a public company limited by shares does not register its own articles ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐apply
A.	Table C
B.	Table B
C.	Table A
D.	Table D
Answer» C. Table A

55.	Prospectus must therefore make full and honest declaration of materials facts without concealing or omitting any relevant fact. This is known as ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
A.	Twiquant rule
B.	Golden rule
C.	General rule
D.	Special rule
Answer» B. Golden rule

56.	A Public company May issue a prospectus called ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
A.	Red herring Prospectus
B.	Shelf prospectus
C.	A bridged prospectus
D.	Deemed prospectus
Answer» A. Red herring Prospectus

57.	The statement in lieu of prospectus is drafted in accordance with the particulars set in part I of the ‐‐ ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ the Act
A.	Schedule I
B.	Schedule IV
C.	Schedule III
D.	Schedule II
Answer» D. Schedule II

58.	Golden rule was laid down by ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
A.	KINDERSELY VC in new Brun Wick Co. V Marreride
B.	Edington V Fitzmaurice
C.	Treeman V Buckhcats
D.	Royal British Bank V Turquand
Answer» A. KINDERSELY VC in new Brun Wick Co. V Marreride

59.	‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ is a shorter version of the prospectus and contains all the salient features of a prospectus that forms a part of the memorandum.
A.	Deemed prospectus
B.	A bridged prospectus
C.	Red herring prospectus
D.	Shelf prospectus
Answer» B. A bridged prospectus

60.	‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐Acts as the official signature of the company.
A.	Registration
B.	Special resolution
C.	Legal entity
D.	Common seal
Answer» D. Common seal

61.	The association that are not registered under sec. II of the companies act is ‐‐‐‐‐‐‐‐‐‐‐‐‐
A.	Incorporated Association
B.	Illegal Association
C.	]Non Licensed Association
D.	Unregistered Association
Answer» B. Illegal Association

62.	‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ is a person who has signed company’s memorandum of association
A.	Individual
B.	Corporate body
C.	Member
D.	Legal person
Answer» C. Member

63.	‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ is a person who holds the shares for the benefit persons
A.	Trustee
B.	Member
C.	Shareholder
D.	Company
Answer» A. Trustee

64.	The right given to a particular class of shareholders are called the ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
A.	Special rights
B.	General rights
C.	Class right
D.	None of the above
Answer» C. Class right

65.	The power to order rectification of register of members vests in the ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
A.	Court
B.	Tribunal
C.	Central Government
D.	Board of directors
Answer» B. Tribunal

66.	On which of the following dates the companies Act,1956 come in to force?
A.	31st March 1956
B.	1st April 1956
C.	31st March 1957
D.	1st April 1957.
Answer» B. 1st April 1956

67.	The history of the Indian Company Law began in the year of
A.	1850
B.	1908
C.	1913
D.	1956
Answer» A. 1850

68.	The privilege of limited liability was introduced in the Indian Company Law, in the year of
A.	1850
B.	1857
C.	1927
D.	1956
Answer» B. 1857

69.	Statutory companies are also known as ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
A.	State legislative
B.	Govt. Company
C.	Corporation
D.	None of the above
Answer» C. Corporation

70.	The auditor of government company is appointed by the ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ of India
A.	High court
B.	Supreme court
C.	State legislative
D.	Controller and Auditor General.
Answer» D. Controller and Auditor General.

71.	A Statutory company is one which incorporated by
A.	An Act of Parliament
B.	By an Act of state legislature
C.	Under the companies Act,1956
D.	By either a or b.
Answer» D. By either a or b.

72.	In case of a company limited by guarantee, the liability of the members can be enforced
A.	Only at the time of winding up of the company
B.	At any time when the company so decide
C.	Only by an order of court
D.	Only by an order of Registrar of companies
Answer» A. Only at the time of winding up of the company

73.	‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ is compulsory for unlimited companies, private companies limited by guarantee.
A.	Memorandum of association
B.	Articles of Association
C.	Prospectus
D.	Statement in lieu
Answer» B. Articles of Association

74.	‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ describes the scope of company activities
A.	Memorandum of association
B.	Prospectus
C.	Articles of Association
D.	Documents
Answer» A. Memorandum of association

75.	The first important document to be filed with the Registrar is ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
A.	Articles of Association
B.	Prospectus
C.	Memorandum of Association
D.	None of these.
Answer» C. Memorandum of Association

190+ Corporate Laws Solved MCQs

A company may change its name by passing ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ with the approval of central govt.

The company shall give notice of alteration to the Register within ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ of passing the resolution

‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ consists of a series of regulations framed by the legislature for the conduct of the affair of company.

If a public company limited by shares does not register its own articles ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐apply

Prospectus must therefore make full and honest declaration of materials facts without concealing or omitting any relevant fact. This is known as ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐

A Public company May issue a prospectus called ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐

The statement in lieu of prospectus is drafted in accordance with the particulars set in part I of the ‐‐ ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ the Act

Golden rule was laid down by ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐

‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ is a shorter version of the prospectus and contains all the salient features of a prospectus that forms a part of the memorandum.

‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐Acts as the official signature of the company.

The association that are not registered under sec. II of the companies act is ‐‐‐‐‐‐‐‐‐‐‐‐‐

‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ is a person who has signed company’s memorandum of association

‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ is a person who holds the shares for the benefit persons

The right given to a particular class of shareholders are called the ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐

The power to order rectification of register of members vests in the ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐

On which of the following dates the companies Act,1956 come in to force?

The history of the Indian Company Law began in the year of

The privilege of limited liability was introduced in the Indian Company Law, in the year of

Statutory companies are also known as ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐

The auditor of government company is appointed by the ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ of India

A Statutory company is one which incorporated by

In case of a company limited by guarantee, the liability of the members can be enforced

‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ is compulsory for unlimited companies, private companies limited by guarantee.

‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ describes the scope of company activities

The first important document to be filed with the Registrar is ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐

If the company’s Act go beyond the provisions of the Memorandum, its act will be ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐

‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ is the construction of a company

‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ of schedule I of the companies Act, which gives the specimen of memorandum of a company limited by shares

‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ can be passed by the support of three fourth majority a share holders who are present and entitle to vote at a meeting.

‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ contain the rules and regulation of the company

‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ signed by the required number of persons which are necessary for the formation of company.

A public company having a share capital, becomes entitled to commence business only after obtaining a further certificate known as a ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐

If at the registration, a company limited by shares does not file articles of association with the registrar, then

The annual return should be filed by a company with the Registrar within the date of the annual general meeting of the company.

Every share holder of a company is also known as ‐‐‐‐‐‐‐‐‐‐‐‐‐‐

A foreigner can become a member of a company registered in India but permission of

Registered Office clause of memorandum of Association contain‐‐‐‐‐‐‐‐

The capital with which the company is registered is called the ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐

The procedure for change of registered office from one city to another within the state is by passing‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐

‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ document contains the rules, regulations and bye‐laws for the internal management of the company

‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ is subordinate to and controlled by the memorandum of association

‐‐‐‐‐‐‐‐‐‐‐‐ lays down the objects and powers of the company.

‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ lays down the modes in which the objects of the company are to be carried out by the members.

Articles of association adopt the rules and regulations contained in ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ of schedule I of the companies Act

The forms of articles of association are given in tables ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ is schedule I of the companies Act 1956

The forms of Memorandum of association are given in tables ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ in schedule I of the companies Act 1956

The doctrine of indoor Management has its own origin in

Offers may be invited from the public by issuing a document known as ‐‐‐‐‐‐‐‐‐‐‐‐

Articles of Association are not required to be registered in case of ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐

Doctrine of constructive notice means‐‐‐‐‐‐‐‐‐‐‐‐‐

76.	If the company’s Act go beyond the provisions of the Memorandum, its act will be ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
A.	Constructive notice
B.	Circular
C.	Ultra virus
D.	None of the above
Answer» C. Ultra virus

77.	‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ is the construction of a company
A.	Promotion
B.	Certificate of incorporation
C.	Memorandum
D.	Documents
Answer» C. Memorandum

82.	A public company having a share capital, becomes entitled to commence business only after obtaining a further certificate known as a ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
A.	Company formation
B.	Certificate of incorporation
C.	Provisional contracts
D.	Certificate of commence business
Answer» D. Certificate of commence business

83.	If at the registration, a company limited by shares does not file articles of association with the registrar, then
A.	The company deemed to have adopted Table A
B.	The company cannot be registered without this document
C.	The company is deemed to have become a company with unlimited liability
D.	None of the above
Answer» A. The company deemed to have adopted Table A

84.	The annual return should be filed by a company with the Registrar within the date of the annual general meeting of the company.
A.	40
B.	60
C.	30
D.	50
Answer» B. 60

85.	Every share holder of a company is also known as ‐‐‐‐‐‐‐‐‐‐‐‐‐‐
A.	Member
B.	Partner
C.	Director
D.	All of the above
Answer» A. Member

86.	A foreigner can become a member of a company registered in India but permission of
A.	SEBI
B.	High Court
C.	RBI
D.	Supreme court
Answer» C. RBI

87.	Registered Office clause of memorandum of Association contain‐‐‐‐‐‐‐‐
A.	The complete postal address
B.	The name of Registrar of companies
C.	The name of City/ Town only and not that of the state
D.	The name of the state in which registered office of the company is to situate
Answer» D. The name of the state in which registered office of the company is to situate

88.	The capital with which the company is registered is called the ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
A.	Subscribed Capital
B.	Nominal Capital
C.	Working Capital
D.	None of these
Answer» B. Nominal Capital

89.	The procedure for change of registered office from one city to another within the state is by passing‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
A.	Special resolution only
B.	Ordinary resolution only
C.	Special resolution and approval of central government
D.	Ordinary resolution and approval of company law board
Answer» A. Special resolution only