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) .

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101.	A ‐‐‐‐‐‐‐‐‐‐‐‐‐‐ may be defined as a person having aontrol over the affairs, conduct and management of a company.
A.	Share holders
B.	Director
C.	Body Corporate
D.	Member
Answer» B. Director

102.	‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ is the supreme policy framing and decision making organ of a company.
A.	Board of directors
B.	Share holders
C.	Auditor
D.	Body corporate
Answer» A. Board of directors

103.	According to sec.225, the directors should be appointed in he ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
A.	Office of the Registrar
B.	General Meeting
C.	Company
D.	Share holders
Answer» B. General Meeting

104.	The office of a director becomes vacant if he fails to obtain his qualification shares within ‐‐‐‐‐‐‐‐‐‐‐‐‐
A.	30 days
B.	1 month
C.	2 months
D.	3 month
Answer» C. 2 months

105.	A elected director can be terminated by the
A.	Company
B.	High Court
C.	State Government
D.	Central Government
Answer» D. Central Government

106.	‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ vacancy is caused by resignation, death, insolvency or insanity
A.	Casual
B.	General
C.	Special
D.	None of the above
Answer» A. Casual

107.	The maximum remuneration paid to a manager cannot exceed ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ percent of the annual net profit
A.	10%
B.	5%
C.	15%
D.	25%
Answer» B. 5%

108.	The managing directors hold the ‐‐‐‐‐‐‐‐‐‐‐‐‐ shares of the company.
A.	Deemed
B.	Equity
C.	Qualification
D.	Preference
Answer» C. Qualification

109.	Directors are ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ of he powers conferred on then and they must exercise those powers bonafide and for the benefit of the company.
A.	Trustee
B.	Management
C.	Representative
D.	None of the above
Answer» A. Trustee

110.	‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ Member of directors need to retire every year
A.	2/3
B.	2
C.	¼
D.	1/3
Answer» D. 1/3

111.	The directors may be held ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ liable on their failure to fulfill the formalities imposed upon them by the Act
A.	General law
B.	Criminal
C.	Civil
D.	All of the above
Answer» B. Criminal

112.	A person cannot hold directorship of more than ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐companies at a time
A.	15
B.	50
C.	25
D.	10
Answer» A. 15

113.	‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐is the executive authority of the company
A.	Partners
B.	Shareholders
C.	Board of Directors
D.	Expert
Answer» C. Board of Directors

114.	A meeting of Board of Directors shall be held at least ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
A.	One month
B.	Once in every 3 months and at least 4 such meetings shall be held every year.
C.	Two month
D.	4 months and at least 3 such meetings must be held in every year.
Answer» B. Once in every 3 months and at least 4 such meetings shall be held every year.

115.	The quorum for a meeting of the board of directors shall be ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ of its total strength or 2 directors whichever is higher.
A.	3
B.	½
C.	¼
D.	1/3
Answer» D. 1/3

116.	Minimum number of directors in public company is ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
A.	3
B.	2
C.	4
D.	1
Answer» A. 3

117.	Minimum number of directors in private company is ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
A.	3
B.	2
C.	4
D.	1
Answer» B. 2

118.	‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ is a group of people who are acting on behalf of the company
A.	Managing Director
B.	Partnership
C.	Board of Directors
D.	All of the above
Answer» C. Board of Directors

119.	A managing Director can be appointed for a maximum period of ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
A.	2 years
B.	10 years
C.	3 years
D.	5 years
Answer» D. 5 years

120.	‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ can be imposed on directors for non compliance of requirements’of companies Act
A.	Penalty
B.	Fine
C.	Statutory penalty
D.	Criminal liability
Answer» B. Fine

121.	When a director voluntarily remains absent from the three consecutive meetings of the Board of Directors, and
A.	He become liable to be punished with @Rs.500 for every default
B.	He is disqualified for becoming a director of any company
C.	His office falls vacant
D.	None of the above
Answer» C. His office falls vacant

122.	‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ is a manufacturing process
A.	Railway running shed
B.	Existing films
C.	Making of Bidi
D.	Mere‐storage of salable articles in refrigerator.
Answer» C. Making of Bidi

123.	The term whole time director is defined in sec.‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ of the Companies Act 1956
A.	2(25)
B.	2(24)
C.	3(25)
D.	3(24)
Answer» B. 2(24)

124.	‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ director act during the absence of the original director.
A.	First director
B.	Additional director
C.	Alternative director
D.	Representative director
Answer» C. Alternative director

125.	‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ is the first general meeting of the share holders odf a public company
A.	Extra ordinary meeting
B.	Class meeting
C.	General meeting
D.	Statutory meeting.
Answer» D. Statutory meeting.

190+ Corporate Laws Solved MCQs

A ‐‐‐‐‐‐‐‐‐‐‐‐‐‐ may be defined as a person having aontrol over the affairs, conduct and management of a company.

‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ is the supreme policy framing and decision making organ of a company.

According to sec.225, the directors should be appointed in he ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐

The office of a director becomes vacant if he fails to obtain his qualification shares within ‐‐‐‐‐‐‐‐‐‐‐‐‐

A elected director can be terminated by the

‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ vacancy is caused by resignation, death, insolvency or insanity

The maximum remuneration paid to a manager cannot exceed ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ percent of the annual net profit

The managing directors hold the ‐‐‐‐‐‐‐‐‐‐‐‐‐ shares of the company.

Directors are ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ of he powers conferred on then and they must exercise those powers bonafide and for the benefit of the company.

‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ Member of directors need to retire every year

The directors may be held ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ liable on their failure to fulfill the formalities imposed upon them by the Act

A person cannot hold directorship of more than ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐companies at a time

‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐is the executive authority of the company

A meeting of Board of Directors shall be held at least ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐

The quorum for a meeting of the board of directors shall be ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ of its total strength or 2 directors whichever is higher.

Minimum number of directors in public company is ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐

Minimum number of directors in private company is ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐

‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ is a group of people who are acting on behalf of the company

A managing Director can be appointed for a maximum period of ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐

‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ can be imposed on directors for non compliance of requirements’of companies Act

When a director voluntarily remains absent from the three consecutive meetings of the Board of Directors, and

‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ is a manufacturing process

The term whole time director is defined in sec.‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ of the Companies Act 1956

‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ director act during the absence of the original director.

‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ is the first general meeting of the share holders odf a public company

Statutory meeting held within a period of ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐

The first annual general meeting of the company must be held within ‐‐‐‐‐‐‐‐‐‐‐‐‐‐

‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ called for dealing with some urgent special business which cannot e postponed till the next annual general meeting.

‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ is the minimum number that should be present at the meeting as per the articles of the company before any business can be validly transacted.

For the proper conduct of business in a meeting a ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ is necessary

‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ is the official records of the meeting of the company

The chairman of the company has ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ vote

‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ means the list of business or thing to be done at the meeting

‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ refers to the instrument by which a person is appointed to act for another at a meeting of the company.

Decisions of a company are made by ‐‐‐‐‐‐‐‐‐ of its members passed at meeting of members

‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ is the resolution which is passed at validly called general meeting, by simple majority of the members.

‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ is the resolution which is passed , at valid called general meeting, by special majority of the meeting.

Special resolution is passed by majority ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ of the members voting by show of hands or on poll either in person or by proxy.

‐‐‐‐‐‐‐‐‐‐‐‐ is a proposal put before a meeting.

‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ is a decision on the proposal

winding up by the order of Tribunal is ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐

Winding up by special resolution passed by the company

In case of members voluntary winding up , the liquidation for conducting the winding up proceedings is appointed by ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐.

The company is dissolved when the tribunal passes in order of dissolution and the Tribunal shelf pass such order ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐.

A past member can also be placed on the list of contributories of he has ceased to be a member within ‐‐‐‐‐‐‐‐‐‐‐‐‐

The name of a defunct company can be resorted to register on an application made to the Tribunal by the company, or any member or a creditor within ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐.

‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐is the first state in which assists realized liabilities are paid off and surplus is distributed

The order of dissolution can be issued only by the company

In members voluntary winding up control of winding up in the hands of the ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐

A person who completed 15th year and below 18 year

126.	Statutory meeting held within a period of ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
A.	90 days from the date at which the company is entitled to start its business
B.	6 months from the date of incorporation
C.	Not less one month & not more than 6 month which the company is entitled to start its business
D.	18 months from the date of incorporation
Answer» C. Not less one month & not more than 6 month which the company is entitled to start its business

127.	The first annual general meeting of the company must be held within ‐‐‐‐‐‐‐‐‐‐‐‐‐‐
A.	6 months of incorporation
B.	6 months from the date at which the company’s entitled to start its business
C.	18 months from the date at which the company is entitled to start its business
D.	18 months of incorporation.
Answer» D. 18 months of incorporation.

128.	‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ called for dealing with some urgent special business which cannot e postponed till the next annual general meeting.
A.	Extra ordinary general meeting
B.	Ordinary general meeting
C.	Class meeting
D.	None of the above.
Answer» A. Extra ordinary general meeting

129.	‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ is the minimum number that should be present at the meeting as per the articles of the company before any business can be validly transacted.
A.	Minutes
B.	Quorum
C.	Register
D.	Proxies
Answer» B. Quorum

130.	For the proper conduct of business in a meeting a ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ is necessary
A.	Director
B.	Managing director
C.	Chairman
D.	Shareholders
Answer» C. Chairman

131.	‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ is the official records of the meeting of the company
A.	Quorum
B.	Register
C.	Report
D.	Minute
Answer» D. Minute

132.	The chairman of the company has ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ vote
A.	1
B.	3
C.	2
D.	None of these.
Answer» C. 2

133.	‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ means the list of business or thing to be done at the meeting
A.	Quorum
B.	Register
C.	Minutes
D.	Agenda
Answer» D. Agenda

134.	‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ refers to the instrument by which a person is appointed to act for another at a meeting of the company.
A.	Proxy
B.	Quorum
C.	Motion
D.	None of the above
Answer» A. Proxy

135.	Decisions of a company are made by ‐‐‐‐‐‐‐‐‐ of its members passed at meeting of members
A.	Notice
B.	Resolution
C.	Quorum
D.	Circular
Answer» B. Resolution