McqMate
These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Bachelor of Commerce (B Com) .
| 151. |
Every company can have a maximum number of directors up to |
| A. | 10 |
| B. | 15 |
| C. | 20 |
| D. | 25 |
| Answer» B. 15 | |
| 152. |
The _____________is not an employee nor a servant of the company, but a director who is entrusted with any substantial powers of management |
| A. | Whole time director |
| B. | Women director |
| C. | Managing director |
| D. | All of the above |
| Answer» C. Managing director | |
| 153. |
No person can be managing director of __________public or private company (which is a subsidiary of a public company). |
| A. | more than 1 |
| B. | more than 2 |
| C. | more than 3 |
| D. | more than 4 |
| Answer» A. more than 1 | |
| 154. |
According to Companies Act, 2013, the first annual general meeting of a company should be held within a period of ________from the date of closing of the first financial year of the company. |
| A. | 7 months |
| B. | 8 months |
| C. | 9 months |
| D. | 10 months |
| Answer» C. 9 months | |
| 155. |
The Board of Directors can call a general meeting of the members any time by giving not less than _________notice. |
| A. | days‟ |
| B. | 21 days‟ |
| C. | 22 days‟ |
| D. | 25 days‟ |
| Answer» B. 21 days‟ | |
| 156. |
In case of a private company, __________personally present shall be the quorum for a meeting of the company. |
| A. | members |
| B. | 2 members |
| C. | 3 members |
| D. | 4 members |
| Answer» B. 2 members | |
| 157. |
A person appointed by any member of the company to attend and vote at the meeting on his behalf is called _________ |
| A. | the Proxy |
| B. | Alternate director |
| C. | Qualifier |
| D. | Agent |
| Answer» A. the Proxy | |
| 158. |
If no person is named in the articles of association as director, the person who sign the memorandum of association of the company become ____________ |
| A. | Managing director |
| B. | Independent director |
| C. | Whole time director |
| D. | First director |
| Answer» D. First director | |
| 159. |
_____________ is a misdemeanor committed by majority shareholders, who under control of their majority power wrongfully inflict upon the minority shareholder or minority shareholders any harm of injury. |
| A. | Mismanagement |
| B. | Minority Right |
| C. | Majority Right |
| D. | Oppression |
| Answer» D. Oppression | |
| 160. |
An application for the winding up of a company can be made to the court by |
| A. | The company |
| B. | Any creditor or creditors |
| C. | The registrar |
| D. | All of the above |
| Answer» D. All of the above | |
| 161. |
Misuse of company funds is one form of |
| A. | Oppression |
| B. | Mismanagement |
| C. | Violation of official liquidators |
| D. | None of the above |
| Answer» B. Mismanagement | |
| 162. |
When the company is a mere bubble and does not carry on any business it is a just and equitable clause to |
| A. | Compulsorily winding up |
| B. | Inspect the company |
| C. | Report it to the authority for mismanagement |
| D. | None of the above |
| Answer» A. Compulsorily winding up | |
| 163. |
The affairs of the company are being conducted in a manner prejudicial to public interest or in a manner prejudicial to the interests of the company is known as- |
| A. | Oppression |
| B. | Mismanagement |
| C. | Winding up |
| D. | None of the above |
| Answer» B. Mismanagement | |
| 164. |
A person liable to contribute to the assets of a Company in the event of its being wound up is called |
| A. | Shareholder |
| B. | Company Member |
| C. | Contributory |
| D. | None of the above |
| Answer» C. Contributory | |
| 165. |
If the company is not in a position to pay its debts and the directors make no declaration of solvency it is called- |
| A. | Members Voluntary Winding up |
| B. | Creditors Voluntary Winding up |
| C. | Compulsory Winding Up |
| D. | Voluntary Winding Up by the Supervision of the Tribunal |
| Answer» B. Creditors Voluntary Winding up | |
| 166. |
The duties of the Official Liquidator includes- |
| A. | To make a list of Creditors |
| B. | To keep proper books for making entries or recording minutes of the proceedings at meetings |
| C. | To summon general meetings of creditors and contributories, in order to find out their wishes |
| D. | All of the above |
| Answer» D. All of the above | |
| 167. |
The act is not held oppressive when there is: |
| A. | Mere inefficiency on the management |
| B. | Unreasonable conducts of directors of a private company refusing to register transfer of some shares |
| C. | Majority shareholders of a company engaged in forward contract business |
| D. | Majority of shareholders tries to force an unwilling minority to invest their money in new and risky objects. |
| Answer» A. Mere inefficiency on the management | |
| 168. |
In the administration of the affairs of the company, who determine the fate of the company: |
| A. | Minority shareholders |
| B. | Directors |
| C. | Majority shareholders |
| D. | Chairman |
| Answer» C. Majority shareholders | |
| 169. |
In order to prevent the majority from misusing their power and to ensure justice to minority shareholders, certain exceptions have been admitted. Which of the following is among the exceptions: |
| A. | Acts supported by insufficient majority |
| B. | Acts which are ultra vires |
| C. | Wrongdoers in control |
| D. | All the above |
| Answer» D. All the above | |
| 170. |
The following persons may apply to the Company Law Board for relief in case of oppression & mismanagement: |
| A. | In the case of a company having a share capital not less than 100 members of the company |
| B. | In the case of a company not having a share capital not less than 1/5th of the total number of its members |
| C. | By an order of the Central government |
| D. | All of the above |
| Answer» D. All of the above | |
| 171. |
A company may be wound up by the Court by: |
| A. | Special resolution |
| B. | Inability to pay debts |
| C. | Default |
| D. | All of the above |
| Answer» D. All of the above | |
| 172. |
Which section provides for voluntary winding up of a company |
| A. | Section 484 |
| B. | Section 348 |
| C. | Section 224 |
| D. | Section 228 |
| Answer» A. Section 484 | |
| 173. |
If the directors make o declaration of solvency before the members pass a winding up resolution, the winding up will be: |
| A. | Members‟ voluntary winding up |
| B. | Winding up by the Court |
| C. | Creditors‟ voluntary winding up |
| D. | Winding up subject to supervision of the court |
| Answer» C. Creditors‟ voluntary winding up | |
| 174. |
The following persons are liable as contributories: |
| A. | Liability as contributories of past & present member |
| B. | Legal representative in case of a member‟s death |
| C. | Official assignee or receiver in case of a member‟s insolvency |
| D. | All of the above |
| Answer» D. All of the above | |
| 175. |
The word oppressive means |
| A. | burdensome |
| B. | harsh |
| C. | wrongful |
| D. | all of the above |
| Answer» D. all of the above | |
| 176. |
The rule of “Majority shall prevail” was inferred from which famous case law |
| A. | Reylands v/s Fletcher |
| B. | Mohinibibis v/s Dharmodas Ghose |
| C. | Balfour v/s Balfour |
| D. | Foss v/s Horbottle |
| Answer» D. Foss v/s Horbottle | |
| 177. |
Which of the following does not amount to mismanagement? |
| A. | merely because company is making losses |
| B. | arrangement with creditors in company‟s bonafide interest |
| C. | removal of directors |
| D. | all of the above |
| Answer» D. all of the above | |
| 178. |
Which of the following is an act of oppression & mismanagement? |
| A. | Continuous losses to the company in spite of the efforts by the members and directors |
| B. | Payment of no dividend or low dividend |
| C. | Payment of salary to the directors and not declaring the dividend |
| D. | Sale of asset for the benefits of directors themselves |
| Answer» D. Sale of asset for the benefits of directors themselves | |
| 179. |
Winding up by the members themselves without the intervention of the court |
| A. | Voluntary winding up |
| B. | Compulsory winding up |
| C. | Members winding up |
| D. | None of the above |
| Answer» A. Voluntary winding up | |
| 180. |
Who can apply for winding up? |
| A. | The Company |
| B. | Any Creditor |
| C. | Any Contributory |
| D. | All of the above |
| Answer» D. All of the above | |
| 181. |
For winding up,the companies act provides that in each High Court ther shall be an officer known as the official liquidator appointed by the |
| A. | Central Government |
| B. | State Government |
| C. | Municipal Administration |
| D. | None of the Above |
| Answer» A. Central Government | |
| 182. |
Which of the following is applicable in case of winding up of a company? |
| A. | Companies Act,2013 |
| B. | Insolvency and Bankruptcy Code,2016 |
| C. | Both a and b |
| D. | Neither (a) nor (b) |
| Answer» C. Both a and b | |
| 183. |
The different modes of winding up are: |
| A. | Compulsory winding up under order of the court |
| B. | Voluntary winding up |
| C. | Winding up subject to supervision of the court |
| D. | All of the above |
| Answer» D. All of the above | |
| 184. |
Compulsory winding up means |
| A. | If a company unable to pay its debt |
| B. | If the number of members of company reduced below statutory limit |
| C. | If a company does commence its business within a year from its incorporation. |
| D. | All of the above. |
| Answer» D. All of the above. | |
| 185. |
Voluntary winding up means |
| A. | If period fixed for the company is expired. |
| B. | If company passes a special resolution the company wound up voluntarily. |
| C. | Members voluntary winding up is applicable to solvent companies only. |
| D. | All of the above |
| Answer» D. All of the above | |
| 186. |
In case of compulsory winding up Liquidator is appointed by |
| A. | Court |
| B. | Members |
| C. | Shareholders |
| D. | None of the above |
| Answer» A. Court | |
| 187. |
Who are the persons who can file petition for winding up of the company |
| A. | Company & its Contributories. |
| B. | The Central Government or State Government. |
| C. | Both (a) and (b) |
| D. | Registrar on his own account |
| Answer» C. Both (a) and (b) | |
| 188. |
A voluntary winding-up commences when |
| A. | the members of the company pass a special resolution to wind up |
| B. | an application is filed with the court by the members of the company |
| C. | the company is unable to pay its debts |
| D. | an unpaid creditor applies for the winding up |
| Answer» A. the members of the company pass a special resolution to wind up | |
| 189. |
The first item in order of payment to be made by liquidator is: |
| A. | Secured creditors |
| B. | Liquidation expenses |
| C. | Preferential creditors |
| D. | Preferential creditors |
| Answer» B. Liquidation expenses | |
| 190. |
In case of creditors voluntarily winding up,liquidator is appointed by |
| A. | Creditors |
| B. | Members |
| C. | Both Creditors &Menbers |
| D. | None of the above |
| Answer» C. Both Creditors &Menbers | |
| 191. |
In which of the following cases majority rule does not prevail? |
| A. | Where the act is ultra vires the company |
| B. | where the act is illegal to the company |
| C. | where the act infringes personal rights |
| D. | all of the above |
| Answer» D. all of the above | |
| 192. |
Which of the following is an act of oppression &mismanagement |
| A. | Continuous losses to the company in spite of the efforts by the members and directors |
| B. | Payment of no dividend or low dividend |
| C. | Payment of salary to the directors and not declaring the dividend |
| D. | Sale of asset for the benefits of directors themselves |
| Answer» D. Sale of asset for the benefits of directors themselves | |
| 193. |
Within how many days should the certified copy of order of Tribunal be filled with Registrar |
| A. | 30 days |
| B. | As per specified in order |
| C. | 60 days |
| D. | 90 days |
| Answer» A. 30 days | |
| 194. |
Compulsory winding up of a company will take place if |
| A. | The company is unable to pay its debts |
| B. | company passes special resolution to be wind up |
| C. | The number of members is reduced below the specified numbers in the act |
| D. | All of the Above |
| Answer» D. All of the Above | |
| 195. |
In case of winding up of a company, the liquidator appointed is required to give a declaration disclosing their interest or lack of independence if any, within |
| A. | 10 days |
| B. | 15 days |
| C. | 7 days |
| D. | 30 days |
| Answer» C. 7 days | |
| 196. |
What are the powers of the tribunal on receipt of petition for winding up? |
| A. | To dismiss it with or without cost |
| B. | To make interim orders |
| C. | To appoint provisional liquidator |
| D. | All of above |
| Answer» D. All of above | |
| 197. |
Which of the following are permitted to present the petition for winding up? |
| A. | Creditors |
| B. | Contributories |
| C. | Company |
| D. | All of the above |
| Answer» D. All of the above | |
| 198. |
Amount remained unclaimed in “Company Liquidation Dividend and Undistributed Asset account” shall be transferred to general revenue account of Central Government after |
| A. | 10 Years |
| B. | 12 Years |
| C. | 15 Years |
| D. | 20 Years |
| Answer» C. 15 Years | |
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