170+ Corporate Regulations Solved MCQs
Chapters
Chapter: Incorporation of Companies
1.
|
How many members should sign the MOA in case of public company ______.
|
A. |
1 |
B. |
3 |
C. |
5 |
D. |
7 |
Answer»
D. 7
|
2.
|
How many members should sign the MOA in case of private company ________
|
A. |
1 |
B. |
2 |
C. |
3 |
D. |
4 |
Answer»
B. 2
|
3.
|
In case of appointment of Directors ______ form is to be filed
|
A. |
29 |
B. |
32 |
C. |
18 |
D. |
1 |
Answer»
A. 29
|
4.
|
______ is the conclusive evidence in case of company that statutory requirements have
complied with
|
A. |
certificate of incorporation |
B. |
certificate of commencement of business |
C. |
both |
D. |
none of the above |
Answer»
A. certificate of incorporation
|
5.
|
Private company can start its business immediately after the issue of
|
A. |
certificate of commencement of business |
B. |
certificate of incorporation |
C. |
both |
D. |
none of the above |
Answer»
B. certificate of incorporation
|
Chapter: Memorandum and Articles of Association
6.
|
The doctrine of indoor management is an ______to the doctrine of constructive notice
|
A. |
Exception |
B. |
Extension |
C. |
Alternative |
D. |
None of the above |
Answer»
B. Extension
|
7.
|
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
|
8.
|
A company can change its name at its own discretion by passing _________
|
A. |
Ordinary resolution |
B. |
Special resolution |
C. |
Boards resolution |
D. |
None of the above |
Answer»
B. Special resolution
|
9.
|
Any change in the address of the registered office must be communicated to the registrar
within:
|
A. |
15 days |
B. |
30 days |
C. |
1 Month |
D. |
12 months |
Answer»
C. 1 Month
|
10.
|
An act ultra virus the directors can be rectified if it is not ultra vires
|
A. |
the articles |
B. |
the memorandum |
C. |
Company Act |
D. |
None of the above |
Answer»
C. Company Act
|
11.
|
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
|
12.
|
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
|
13.
|
Companies are now allotted a _______ in addition to their name
|
A. |
PAN |
B. |
SIN |
C. |
PIN |
D. |
CIN |
Answer»
D. CIN
|
14.
|
In how many days did the company have its registered office after incorporation
|
A. |
10 |
B. |
20 |
C. |
30 |
D. |
40 |
Answer»
C. 30
|
15.
|
Under which sec. if company fails to commence its main object the court may order
winding up
|
A. |
403 (f) |
B. |
413 (f) |
C. |
423 (f) |
D. |
433 (f) |
Answer»
D. 433 (f)
|
16.
|
In case of forgeries acts done in the name of the company are
|
A. |
Valid |
B. |
Void |
C. |
Void ab initio |
D. |
None of the above |
Answer»
C. Void ab initio
|
17.
|
Signature of memorandum and articles should be done by ___________ number of
persons in case of public company
|
A. |
7 |
B. |
5 |
C. |
4 |
D. |
None of these |
Answer»
A. 7
|
18.
|
Signature of memorandum and articles should be done by ___________number of
persons in case of private company
|
A. |
3 |
B. |
4 |
C. |
2 |
D. |
None of these |
Answer»
C. 2
|
19.
|
MOA should be in form ____________ in case of company limited by shares
|
A. |
Table A |
B. |
Table B |
C. |
Table C |
D. |
Table D |
Answer»
B. Table B
|
20.
|
MOA should be in form ____________ in case of company limited by guarantee not
having share capital
|
A. |
Table A |
B. |
Table B |
C. |
Table C |
D. |
Table D |
Answer»
C. Table C
|
21.
|
MOA should be in form ________ in case of company limited by guarantee and having
share capital
|
A. |
Table A |
B. |
Table B |
C. |
Table C |
D. |
Table D |
Answer»
D. Table D
|
22.
|
MOA should be in form ____________ in case of a unlimited liability
|
A. |
Table A |
B. |
Table B |
C. |
Table E |
D. |
None of these |
Answer»
C. Table E
|
23.
|
In the MOA there are 6 clauses. We can alter all clauses expect one clause. What is that
clause?
|
A. |
Objects clause |
B. |
Name clause |
C. |
Association clause |
D. |
None of these |
Answer»
C. Association clause
|
24.
|
If anybody 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 |
Answer»
B. Registered Office
|
25.
|
Address of the registered office is situated in
|
A. |
MOA |
B. |
AOA |
C. |
Prospectus |
D. |
None of these |
Answer»
B. AOA
|
26.
|
Which of the following need not have MOA
|
A. |
Public company |
B. |
Private company |
C. |
Government company |
D. |
Statutory Corporation. |
Answer»
D. Statutory Corporation.
|
27.
|
A company can change its name by passing
|
A. |
Ordinary resolution |
B. |
Special resolution |
C. |
Either by special resolution or by ordinary resolution |
D. |
None of the above |
Answer»
D. None of the above
|
28.
|
Ultra vires means
|
A. |
Beyond the power |
B. |
Within the power |
C. |
Both |
D. |
None of the above |
Answer»
A. Beyond the power
|
29.
|
Ultra vires loans granted by the company are
|
A. |
Void |
B. |
Voidable |
C. |
Valid |
D. |
None of the above |
Answer»
A. Void
|
30.
|
What is known as a charter of a Company?
|
A. |
Memorandum |
B. |
Articles |
C. |
Bye laws |
D. |
Prospectus |
Answer»
A. Memorandum
|
31.
|
The granting of the certificate of incorporation renders the illegal objects include in the
memorandum:
|
A. |
Legal |
B. |
Void |
C. |
Voidable |
D. |
None of the above |
Answer»
B. Void
|
32.
|
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
|
33.
|
The capital clause of a company can be changed with the permission of _____________
|
A. |
Company law board |
B. |
Registrar |
C. |
Court |
D. |
None of the above |
Answer»
C. Court
|
Chapter: Promoters
34.
|
______ conceives the idea of the business
|
A. |
Promoters |
B. |
Directors |
C. |
Auditors |
D. |
None of the above |
Answer»
A. Promoters
|
35.
|
_______stands in the fiduciary position of the company
|
A. |
Directors |
B. |
Promoters |
C. |
Auditors |
D. |
None of the above |
Answer»
B. Promoters
|
36.
|
______ are the contracts entered into by promoters on behalf of a prospectus company.
|
A. |
Provisional contracts |
B. |
Pre Incorporation contracts |
C. |
Preliminary contracts |
D. |
Both a) & b) |
Answer»
D. Both a) & b)
|
37.
|
Contracts made after incorporation but before the grant of Certificate of commencement
of Business _____
|
A. |
Provisional contracts |
B. |
Pre incorporation contracts |
C. |
Preliminary contracts |
D. |
Both (b) & (c) |
Answer»
C. Preliminary contracts
|
38.
|
Pre incorporation contract is also known as _________
|
A. |
Provisional |
B. |
Preliminary |
C. |
illegal |
D. |
legal |
Answer»
B. Preliminary
|
39.
|
A public company can borrow money ___________
|
A. |
before incorporation |
B. |
Soon after incorporation |
C. |
after issuing a proposal |
D. |
after obtaining certificate to commerce business. |
Answer»
D. after obtaining certificate to commerce business.
|
40.
|
A private company can borrow funds
|
A. |
after incorporation |
B. |
after obtaining certificate to commerce business |
C. |
after holding first annual general meeting |
D. |
None of the above |
Answer»
A. after incorporation
|
41.
|
A promoter is a person who
|
A. |
is a director. |
B. |
is a relative of the company. |
C. |
is a wellwisher of the company. |
D. |
takes part in the companys incorporation. |
Answer»
D. takes part in the companys incorporation.
|
Chapter: Prospectus
42.
|
When there is a untrue statement in a prospectus who can sue
|
A. |
Subscribed in primary market |
B. |
Subscribed in secondary market |
C. |
Rights issue |
D. |
None of the above |
Answer»
A. Subscribed in primary market
|
43.
|
Definition of prospectus was given under which sec.
|
A. |
2 (30) |
B. |
2 (32) |
C. |
2 (34) |
D. |
2 (36) |
Answer»
D. 2 (36)
|
44.
|
Which of the following are not required to issue prospectus?
|
A. |
Private company |
B. |
In case of right issue |
C. |
Sweat equity issue |
D. |
All the above |
Answer»
D. All the above
|
45.
|
_______are the prospectus issued instead of full prospectus
|
A. |
Abridged |
B. |
Statement in lieu |
C. |
Shelf |
D. |
Red herring |
Answer»
A. Abridged
|
46.
|
Which one of the following has a right to claim compensation for any loss due to
misstatement 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.
|
What is the liability not delivering that can be imposed for statement in lieu of
prospectus_________
|
A. |
Fine – 10,000 |
B. |
Imprisonment – 2 years |
C. |
Both (a) & (b) |
D. |
None of the above |
Answer»
A. Fine – 10,000
|
49.
|
_______ are the prospectus issued by the issuing house
|
A. |
Deemed prospectus |
B. |
Shelf prospectus issued by the issuing house |
C. |
Red herring |
D. |
None of the above |
Answer»
A. Deemed prospectus
|
50.
|
_________ prospectus were issued in case securities were issued in stages
|
A. |
Deemed |
B. |
Shelf |
C. |
Red herring |
D. |
None of the above |
Answer»
B. Shelf
|
51.
|
________are required to file prior to making second and subsequent issue of securities
in case shelf prospectus are filed:
|
A. |
Information memorandum |
B. |
Information articles |
C. |
Form 13 |
D. |
None of the above |
Answer»
A. Information memorandum
|
52.
|
Information memorandum + shelf prospectus together constitutes ________
|
A. |
Memorandum |
B. |
Articles |
C. |
Prospectus |
D. |
None of the above |
Answer»
C. Prospectus
|
53.
|
Validity period of information memorandum is _______
|
A. |
1 year |
B. |
2 years |
C. |
3 years |
D. |
4 years |
Answer»
A. 1 year
|
54.
|
_________ prospectus were issued in order to test the market before finalizing issue size/
price.
|
A. |
Deemed |
B. |
Shelf |
C. |
Red herring |
D. |
None of the above |
Answer»
C. Red herring
|
55.
|
What is the punishment for directors, promoters and other persons for Misrepresentation
in prospectus
|
A. |
Fine 50,000 |
B. |
2 years imprisonment |
C. |
Both of the above |
D. |
None |
Answer»
C. Both of the above
|
56.
|
When a private company is converted into public company. In which form it should be
|
A. |
Schedule III |
B. |
Schedule IV |
C. |
Schedule VI |
D. |
None of these |
Answer»
B. Schedule IV
|
57.
|
A statement in lieu of prospectus is required to be issued
|
A. |
by all companies which issue shares or debentures |
B. |
by public companies when shares are issued among friends and relatives |
C. |
by private companies as they do not issue shares to the public |
D. |
by all companies |
Answer»
B. by public companies when shares are issued among friends and relatives
|
Chapter: Share Capital
58.
|
A company must inform the registrar about redemption of preference shares with in
|
A. |
21 days |
B. |
15 days |
C. |
30 days |
D. |
None of the above |
Answer»
C. 30 days
|
59.
|
Share premium amount is treated as the __________ capital of a company
|
A. |
issued |
B. |
Reserve |
C. |
Subscribe |
D. |
None of the above |
Answer»
B. Reserve
|
60.
|
A company can create ‘reserve capital’ by passing__________
|
A. |
an ordinary resolution |
B. |
a special resolution |
C. |
a board resolution |
D. |
None of the above |
Answer»
B. a special resolution
|
61.
|
The capital which is part of the uncalled capital of the company which can be called up
only in the event of its winding up it is called
|
A. |
Issued capital |
B. |
Nominal capital |
C. |
Authorised Capital |
D. |
Reserve capital |
Answer»
D. Reserve capital
|
62.
|
XYZ Co. is a holding of XZ Pvt. Company. XZ Co. issued deferred shares. The issue is
valid or void
|
A. |
Valid |
B. |
Void |
C. |
Situation does not arise |
D. |
None of these |
Answer»
B. Void
|
63.
|
What is the maximum period for redemption in case of preference shares issued by the
company?
|
A. |
10 years |
B. |
15 years |
C. |
20 years |
D. |
None of these |
Answer»
C. 20 years
|
64.
|
Capital redemption reserve must be used for issue of
|
A. |
Fully paid bonus shares |
B. |
Fully paid equity shares |
C. |
Preference shares |
D. |
None of the above. |
Answer»
A. Fully paid bonus shares
|
65.
|
Part of the issued capital taken by public is called ___________
|
A. |
Subscribed |
B. |
Called - up capital |
C. |
Un called capital |
D. |
Paid up capital |
Answer»
A. Subscribed
|
66.
|
Part of authorized capital which is offered by the company for subscription.
|
A. |
Subscribed |
B. |
Issued |
C. |
Un called |
D. |
called up |
Answer»
B. Issued
|
67.
|
Stamp duty on registration of the company is payable based on _________capital.
|
A. |
Nominal |
B. |
Authorised |
C. |
Both a & b |
D. |
None |
Answer»
C. Both a & b
|
68.
|
Deferred shares are also known as ____________ shares
|
A. |
Founders |
B. |
Equity |
C. |
Preference |
D. |
None |
Answer»
A. Founders
|
69.
|
_________ Preference shares carry the right to cumulate the dividends
|
A. |
Converted |
B. |
Cumulative |
C. |
Nonconverted |
D. |
None |
Answer»
B. Cumulative
|
70.
|
Paying back of capital is called
|
A. |
Redemption |
B. |
Conversion |
C. |
Participation |
D. |
None |
Answer»
A. Redemption
|
71.
|
Premium amount on the securities are transferred to ________account
|
A. |
Securities premium |
B. |
Reserve fund |
C. |
Capital Reserve |
D. |
None |
Answer»
D. None
|
72.
|
____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 |
Answer»
B. Sweat
|
73.
|
Cumulative preference share holders have voting right if dividends are in arrears for years
|
A. |
1 |
B. |
2 |
C. |
3 |
D. |
4 |
Answer»
B. 2
|
74.
|
_______ form is to be find in case of variation rights of share holders
|
A. |
23 |
B. |
19 |
C. |
18 |
D. |
20 |
Answer»
B. 19
|
75.
|
_________ is an aggregate of fully paid share that have been legally consolidated.
|
A. |
Share |
B. |
Stock |
C. |
Both a & b |
D. |
None of the above |
Answer»
B. Stock
|
76.
|
_________have fixed denomination
|
A. |
Share |
B. |
Stock |
C. |
Both a & b |
D. |
None of the above |
Answer»
A. Share
|
77.
|
________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 |
Answer»
A. Special resolution
|
78.
|
Company must pass ________ for reducing its share capital
|
A. |
O.R |
B. |
S.R |
C. |
C.G permission |
D. |
None of the above |
Answer»
B. S.R
|
79.
|
Court order the company to add _________ after reducing its share capital
|
A. |
And reduced |
B. |
Ltd |
C. |
Both a or b |
D. |
None of the above |
Answer»
A. And reduced
|
80.
|
For reducing its share capital it should give notice to whom?
|
A. |
Debtors |
B. |
Creditors |
C. |
Both a & b |
D. |
None of the above |
Answer»
B. Creditors
|
81.
|
Reduction & diminution is done under which sec.
|
A. |
100 & 94 |
B. |
94 & 100 |
C. |
100 & 96 |
D. |
96 & 100 |
Answer»
A. 100 & 94
|
82.
|
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
|
83.
|
Buy back by board resolution can only be upto _________
|
A. |
15 |
B. |
10 |
C. |
25 |
D. |
20 |
Answer»
B. 10
|
84.
|
Buy back should be less than or equal to _________% of total paid up capital
|
A. |
25 |
B. |
30 |
C. |
35 |
D. |
40 |
Answer»
A. 25
|
85.
|
In case of buy back debt equity ratio should be ________
|
A. |
1:2 |
B. |
2:1 |
C. |
3:1 |
D. |
1:3 |
Answer»
B. 2:1
|
86.
|
Every buy back shall be completed within _____ month from the date of passing the S.R.
|
A. |
6 |
B. |
8 |
C. |
10 |
D. |
12 |
Answer»
D. 12
|
87.
|
__________companies are permitted to buy back its shares
|
A. |
Insolvent |
B. |
Solvent |
C. |
Both a & b |
D. |
None of the above |
Answer»
B. Solvent
|
88.
|
Buy back securities should be physically destroyed within ________days
|
A. |
7 |
B. |
17 |
C. |
21 |
D. |
28 |
Answer»
A. 7
|
89.
|
After buy back company can’t issue the same kind of shares for ________months
|
A. |
6 |
B. |
12 |
C. |
18 |
D. |
24 |
Answer»
A. 6
|
90.
|
Within 30 days of completion of buy back company shall file the details with whom
_________
|
A. |
Registrar |
B. |
SEBI |
C. |
Both a & b |
D. |
None of the above |
Answer»
A. Registrar
|
91.
|
If buy back is made from free resources then what should be created __________
|
A. |
Debenture Redemption Reserve |
B. |
Capital Redemption Reserve |
C. |
Statutory liquid Ratio. |
D. |
None of the above |
Answer»
B. Capital Redemption Reserve
|
92.
|
The premium amount that can be charged as per companies Act.
|
A. |
10% |
B. |
15% |
C. |
20% |
D. |
None of these |
Answer»
D. None of these
|
93.
|
A company to issue sweat equity shares must pass a.
|
A. |
Special resolution |
B. |
Ordinary resolution |
C. |
Unanimous resolution |
D. |
None of these |
Answer»
A. Special resolution
|
94.
|
The notice offering right shares must allow the members ________to exercise their
option to accept, reject or renounce it
|
A. |
10 days |
B. |
14 days |
C. |
15 days |
D. |
20 days |
Answer»
C. 15 days
|
Chapter: Share Certificate and Warrant
95.
|
The company must deliver share certificate within ___________ if the shares allotted by
company.
|
A. |
2 months |
B. |
3 months |
C. |
4 months |
D. |
none of these |
Answer»
B. 3 months
|
96.
|
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
|
97.
|
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
|
98.
|
Stamp duty to be paid at the time of issue of share certificate is.
|
A. |
Nominal |
B. |
High |
C. |
Very high |
D. |
None of these |
Answer»
A. Nominal
|
99.
|
Stamp duty to be paid at the time of issue of share warrant.
|
A. |
Nominal |
B. |
High |
C. |
Very high |
D. |
None of these |
Answer»
C. Very high
|
100.
|
______ specifies the time limit with in which share certificate is to be delivered
|
A. |
sec 110 |
B. |
sec 111 |
C. |
sec 112 |
D. |
sec 113 |
Answer»
D. sec 113
|
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Corporate Regulations,
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Corporate Regulations
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