McqMate
| 101. |
who among the following has no right to speak at the AGM? |
| A. | chairman of the company. |
| B. | whole time director of the company. |
| C. | proxy holders. |
| D. | none of the above, as everybody has the right to speak at the agm. |
| Answer» C. proxy holders. | |
| 102. |
Voting in a company Meeting can be through. |
| A. | ballot. |
| B. | raising hands. |
| C. | raising voice. |
| D. | all of these. |
| Answer» D. all of these. | |
| 103. |
Which document should be annexed to the notice of the statutory meeting? |
| A. | statutory report. |
| B. | proxy form. |
| C. | explanatory statement. |
| D. | both (a) and (b). |
| Answer» D. both (a) and (b). | |
| 104. |
The first Chairman is generally. |
| A. | elected by the board of directors. |
| B. | elected by the members. |
| C. | named in the article. |
| D. | named in the memorandum. |
| Answer» C. named in the article. | |
| 105. |
East India Company is an example of. |
| A. | statutory company. |
| B. | registered company. |
| C. | chartered company. |
| D. | none of these. |
| Answer» C. chartered company. | |
| 106. |
Where there is a non-executive chairman, at least …..of board should comprise of independent directors. |
| A. | 1/3 |
| B. | 2/3 |
| C. | ½ |
| D. | none of these |
| Answer» A. 1/3 | |
| 107. |
The Whistle Blower Policy was recommended by……………. |
| A. | n.r.narayana moorthy |
| B. | anil ambani |
| C. | chris gopalakrishnan |
| D. | asim premji |
| Answer» A. n.r.narayana moorthy | |
| 108. |
Audit Committee shall meet at least ………..times a year |
| A. | 5 |
| B. | 2 |
| C. | 4 |
| D. | 3 |
| Answer» C. 4 | |
| 109. |
A public company is one which has a minimum paid up capital Rs...lakhs. |
| A. | 1 |
| B. | 5 |
| C. | 8 |
| D. | 10 |
| Answer» B. 5 | |
| 110. |
A private company is one which has a minimum paid up capital Rs…….lakhs. |
| A. | 1 |
| B. | 5 |
| C. | 8 |
| D. | 10 |
| Answer» A. 1 | |
| 111. |
The contracts signed by the promoters of a company continue to be the liability of ………. |
| A. | promoters |
| B. | company |
| C. | partners |
| D. | none |
| Answer» A. promoters | |
| 112. |
A promoter of a company stands in the position of …….to future allottees of shares. |
| A. | agent |
| B. | fiduciary |
| C. | solicitor |
| D. | trustee |
| Answer» B. fiduciary | |
| 113. |
……persons shall subscribe to the memorandum of a public company. |
| A. | 7 |
| B. | 9 |
| C. | 8 |
| D. | 10 |
| Answer» A. 7 | |
| 114. |
The altered memorandum must be filed with the registrar within ………….months. |
| A. | 30 days |
| B. | three months |
| C. | 60 days |
| D. | six months |
| Answer» B. three months | |
| 115. |
An act which is to be ultra vires a company is…………… |
| A. | valid |
| B. | voidable |
| C. | void |
| D. | none |
| Answer» C. void | |
| 116. |
A company issues prospectus within………….of its registration. |
| A. | 30 days |
| B. | three months |
| C. | 60 days |
| D. | six months |
| Answer» C. 60 days | |
| 117. |
The altered memorandum must be filed with the registrar within………. |
| A. | 30 days |
| B. | three months |
| C. | 60 days |
| D. | six months |
| Answer» B. three months | |
| 118. |
The statement in lieu of prospectus must be filed with the registrar at least ………before any allotment of shares is made. |
| A. | 30 days |
| B. | three days |
| C. | 60 days |
| D. | six months |
| Answer» B. three days | |
| 119. |
Notice of the registered office of the company shall be given to the registrar of companies within………… |
| A. | 30 days |
| B. | three months |
| C. | 60 days |
| D. | six months |
| Answer» A. 30 days | |
| 120. |
The judgement in the case of Foss Vs Hurbottle lays down the principle of …… |
| A. | rule of majority |
| B. | constructive notice |
| C. | indoor management |
| D. | public notice |
| Answer» A. rule of majority | |
| 121. |
All those who are dealing with the company are expected to know the contents of the memorandum and articles. This doctrine is called…………………….. |
| A. | rule of majority |
| B. | constructive notice |
| C. | indoor management |
| D. | public notice |
| Answer» B. constructive notice | |
| 122. |
The famous case of Royal British Bank Vs Turquand laid down the rule of…………. |
| A. | rule of majority |
| B. | constructive notice |
| C. | indoor management |
| D. | public notice |
| Answer» C. indoor management | |
| 123. |
The new section 60A relates to………… |
| A. | memorandum of association |
| B. | articles of association |
| C. | prospectus |
| D. | shelf prospectus |
| Answer» D. shelf prospectus | |
| 124. |
The office of the director becomes vacant if he fails to obtain his qualification shares within …………..months. |
| A. | 6 |
| B. | 3 |
| C. | 2 |
| D. | 5 |
| Answer» C. 2 | |
| 125. |
The management of every company is controlled by ……………….. |
| A. | manager |
| B. | secretary |
| C. | director |
| D. | none of these |
| Answer» C. director | |
| 126. |
As per Sec.274, a person shall not be appointed as director if he is found to be of unsound mind by……… |
| A. | manager |
| B. | a court of competent jurisdiction |
| C. | board of directors |
| D. | none of these |
| Answer» B. a court of competent jurisdiction | |
| 127. |
As per Sec 260, the additional directors are entitled to hold office only upto next ………… meeting |
| A. | board |
| B. | annual general |
| C. | departmental |
| D. | statutory |
| Answer» B. annual general | |
| 128. |
A director who is interested in any transaction of the company is bound to disclose his interest to……… |
| A. | manager |
| B. | secretary |
| C. | employees |
| D. | board of directors |
| Answer» D. board of directors | |
| 129. |
Any breach of duty in the conduct of the company’s affairs which causes loses to the company is called |
| A. | misfeasance |
| B. | negligence |
| C. | breach of fiduciary duty |
| D. | mala fide acts |
| Answer» A. misfeasance | |
| 130. |
According to sec 297, a director shall not enter into any contract with the company except with the consent of …….. |
| A. | manager |
| B. | secretary |
| C. | employees |
| D. | board of directors |
| Answer» D. board of directors | |
| 131. |
When a director does an act which is in excess of his powers and company suffers a loss … is liable to make good the loss |
| A. | manager |
| B. | secretary |
| C. | director |
| D. | board of directors |
| Answer» C. director | |
| 132. |
Unless the articles provide for the retirement of all directors at every annual general meeting, at least ………of the total number of directors retire by rotation. |
| A. | 1/3 |
| B. | 2/3 |
| C. | 2/4 |
| D. | 1/2 |
| Answer» B. 2/3 | |
| 133. |
The new Sec 60B introduced by the Companies (Amendment)Act 2000 is related to…….. |
| A. | articles of association |
| B. | memorandum of association |
| C. | prospectus |
| D. | information memorandum |
| Answer» D. information memorandum | |
| 134. |
The alteration of the objects of a company must be confirmed by the Company law…….. |
| A. | board |
| B. | act |
| C. | tribunal |
| D. | none of these |
| Answer» C. tribunal | |
| 135. |
Which of the following statements are true - |
| A. | the charter of a company is its articles of association |
| B. | the object clause is divided into three parts |
| C. | every company should have its own articles |
| D. | an advertisement can be treated as a prospectus |
| Answer» C. every company should have its own articles | |
| 136. |
Doctrine of indoor management is an exception to the principle of ……. |
| A. | rule of majority |
| B. | constructive notice |
| C. | public notice |
| D. | ultra vires |
| Answer» B. constructive notice | |
| 137. |
A company can change its name by passing ……….resolution. |
| A. | special |
| B. | extra ordinary |
| C. | ordinary |
| D. | none of these |
| Answer» A. special | |
| 138. |
The Companies (Amendment) Act 1988 provide that the companies should furnish along with the application form for shares or debentures, an………….instead of complete prospectus. |
| A. | shelf prospectus |
| B. | red herring prospectus |
| C. | abridged prospectus |
| D. | deemed prospectus |
| Answer» C. abridged prospectus | |
| 139. |
………….means a prospectus issued by any financial institution or bank for one or more issues of the securities specified in that document. |
| A. | shelf prospectus |
| B. | red herring prospectus |
| C. | abridged prospectus |
| D. | deemed prospectus |
| Answer» A. shelf prospectus | |
| 140. |
……….. gives only a general idea about securities. |
| A. | shelf prospectus |
| B. | red herring prospectus |
| C. | abridged prospectus |
| D. | deemed prospectus |
| Answer» B. red herring prospectus | |
| 141. |
The main advantage of …………. is that company can save underwriting expenses. |
| A. | shelf prospectus |
| B. | red herring prospectus |
| C. | abridged prospectus |
| D. | deemed prospectus |
| Answer» D. deemed prospectus | |
| 142. |
Prospectus by implication is also known as…. |
| A. | shelf prospectus |
| B. | red herring prospectus |
| C. | abridged prospectus |
| D. | deemed prospectus |
| Answer» D. deemed prospectus | |
| 143. |
Not less than ……. Days notice for a general meeting of a company must be given. |
| A. | 10 |
| B. | 15 |
| C. | 21 |
| D. | 30 |
| Answer» C. 21 | |
| 144. |
The minimum number of members that must be present at a valid meeting is called……… |
| A. | simple majority |
| B. | quorum |
| C. | proxy |
| D. | none of these |
| Answer» B. quorum | |
| 145. |
A proxy can vote in case of ………. |
| A. | poll |
| B. | meeting |
| C. | both |
| D. | none |
| Answer» A. poll | |
| 146. |
A special resolution is one to pass with the votes cast in favour must be ………..times the votes cast against it. |
| A. | 2 |
| B. | 3 |
| C. | 4 |
| D. | 6 |
| Answer» B. 3 | |
| 147. |
A special resolution must be filed with the registrar for registration within …….days. |
| A. | 10 |
| B. | 15 |
| C. | 21 |
| D. | 30 |
| Answer» D. 30 | |
| 148. |
To make the liability of directors unlimited a………..resolution is required. |
| A. | ordinary |
| B. | special |
| C. | both |
| D. | none |
| Answer» B. special | |
| 149. |
For declaration of dividend no ……...resolution is required. |
| A. | ordinary |
| B. | special |
| C. | both |
| D. | none |
| Answer» B. special | |
| 150. |
The demand for a poll may be withdrawn before ……….of the poll is declared. |
| A. | commencement |
| B. | closing |
| C. | result |
| D. | none |
| Answer» C. result | |
| 151. |
The minutes of the share holder’s meeting are to be kept at the ……….office of the company and must be open to inspection. |
| A. | registered |
| B. | divisional |
| C. | head |
| D. | none |
| Answer» A. registered | |
| 152. |
The meeting other than statutory and the annual general meeting of the company is………… |
| A. | extra ordinary meeting |
| B. | special meeting |
| C. | board |
| D. | none of these |
| Answer» A. extra ordinary meeting | |
| 153. |
The statutory meeting is required to be held by ………..companies |
| A. | private |
| B. | public |
| C. | both |
| D. | none |
| Answer» B. public | |
| 154. |
……….is the proper authority to call annual general meeting. |
| A. | promoters |
| B. | manager |
| C. | board of directors |
| D. | secretary |
| Answer» C. board of directors | |
| 155. |
Which of the following is the feature of a registered company |
| A. | separate property |
| B. | perpetual succession |
| C. | common seal |
| D. | all of these |
| Answer» D. all of these | |
| 156. |
………. defines the extent of powers of powers of the company. |
| A. | articles of association |
| B. | memorandum of association |
| C. | prospectus |
| D. | information memorandum |
| Answer» B. memorandum of association | |
| 157. |
Table………….. is for memorandum of association of a company limited by shares. |
| A. | b |
| B. | c |
| C. | d |
| D. | e |
| Answer» B. c | |
| 158. |
Table…………..is for memorandum of association of a company limited by guarantee and not having a share capital. |
| A. | b |
| B. | c |
| C. | d |
| D. | e |
| Answer» B. c | |
| 159. |
Table…………..is for memorandum of association of a company limited by guarantee and having a share capital. |
| A. | b |
| B. | c |
| C. | d |
| D. | e |
| Answer» C. d | |
| 160. |
Table…………..is for memorandum of association of an unlimited company |
| A. | b |
| B. | c |
| C. | d |
| D. | e |
| Answer» D. e | |
| 161. |
The procedure to write facts about a resolution and its decision is called…………… |
| A. | explanatory statement |
| B. | statutory report |
| C. | minutes of narration |
| D. | none |
| Answer» C. minutes of narration | |
| 162. |
Which of the following is not true- |
| A. | a meeting of the board of directors must be held at least once in every 3 months. |
| B. | nobody corporate, association or firm can be appointed director of a company. |
| C. | the nominal value of qualification shares should not exceed rs.5000. |
| D. | directors are always liable for any misstatement in a prospectus. |
| Answer» D. directors are always liable for any misstatement in a prospectus. | |
| 163. |
The first directors are usually named in the ………… |
| A. | articles |
| B. | memorandum |
| C. | prospectus |
| D. | none |
| Answer» A. articles | |
| 164. |
……………..may appoint additional directors from time to time if so authorized by articles. |
| A. | manager |
| B. | secretary |
| C. | promoters |
| D. | board of directors |
| Answer» D. board of directors | |
| 165. |
……………..is entitled to the management of the whole or substantially the whole of the affairs of the company. |
| A. | manager |
| B. | secretary |
| C. | promoters |
| D. | board of directors |
| Answer» A. manager | |
| 166. |
……….. liability is imposed on the directors if they manipulate or falsify the accounts of the company. |
| A. | civil |
| B. | criminal |
| C. | statutory |
| D. | none |
| Answer» B. criminal | |
| 167. |
Meeting cannot transact any business unless a……. is present at every stage of the meeting |
| A. | proxy |
| B. | manager |
| C. | quorum |
| D. | secretary |
| Answer» C. quorum | |
| 168. |
The company shall send a duplicate copy of the contents of Register of directors to the registrar within …….of the appointment of the directors. |
| A. | 30 days |
| B. | three months |
| C. | 60 days |
| D. | six months |
| Answer» A. 30 days | |
| 169. |
………….meeting is the first meeting of the members of the public company after its incorporation |
| A. | board |
| B. | annual general |
| C. | departmental |
| D. | statutory |
| Answer» D. statutory | |
| 170. |
A person liable to contribute towards the assets of the company on the event of its being wound up is a ………… |
| A. | liquidator |
| B. | solicitor |
| C. | contributory |
| D. | tribunal |
| Answer» C. contributory | |
| 171. |
On a winding up order being made in respect of a company, the official Liquidator shall, become the ………….. of the company. |
| A. | liquidator |
| B. | solicitor |
| C. | contributory |
| D. | tribunal |
| Answer» A. liquidator | |
| 172. |
When a winding up order has been made by the tribunal but there is no liquidator, the property of the company vests in the ……………….. . |
| A. | liquidator |
| B. | solicitor |
| C. | contributory |
| D. | tribunal |
| Answer» D. tribunal | |
| 173. |
After obtaining of certificate to commence business a company may be wound up if it does not commence business within ………………….. . |
| A. | one month |
| B. | three months |
| C. | six months |
| D. | one year |
| Answer» D. one year | |
| 174. |
A company may be wound up by the Tribunal by passing …………………… Resolution. |
| A. | special |
| B. | extra ordinary |
| C. | ordinary |
| D. | none of these |
| Answer» A. special | |
| 175. |
A company has to submit a statement of affairs to the Official Liquidator within …… days of the appointment of the official liquidator. |
| A. | 10 |
| B. | 14 |
| C. | 21 |
| D. | 30 |
| Answer» B. 14 | |
| 176. |
In a members voluntary winding up the notice of the resolution for winding up shall be filed with the registrar within ………….. days of passing of the resolution. |
| A. | 10 |
| B. | 14 |
| C. | 21 |
| D. | 30 |
| Answer» B. 14 | |
| 177. |
A public company may be wound up by the Tribunal if the number of its members is reduced below ………… |
| A. | 7 |
| B. | 14 |
| C. | 21 |
| D. | 28 |
| Answer» A. 7 | |
| 178. |
An official liquidator is appointed by the ………….. |
| A. | manager |
| B. | a court of competent jurisdiction |
| C. | board of directors |
| D. | central govt. |
| Answer» D. central govt. | |
| 179. |
A voluntary winding up is deemed to commence from the date when the declaration of solvency is made by the …………………. . . |
| A. | manager |
| B. | a court of competent jurisdiction |
| C. | board of directors |
| D. | central govt. |
| Answer» C. board of directors | |
| 180. |
List A of contributories contains …………………. members of the company. |
| A. | existing |
| B. | past |
| C. | future |
| D. | ex-officio |
| Answer» A. existing | |
| 181. |
List B of contributories contains ……………… members of the company. |
| A. | existing |
| B. | past |
| C. | future |
| D. | ex-officio |
| Answer» B. past | |
| 182. |
On dissolution the name of the company is struck off from the …… of the company. |
| A. | schedule |
| B. | charter |
| C. | register |
| D. | none |
| Answer» C. register | |
| 183. |
The Cadbury Committee suggests that the non- executive directors can play a crucial role in |
| A. | meetings |
| B. | management |
| C. | decision-making |
| D. | corporate governance |
| Answer» D. corporate governance | |
| 184. |
SEBI’s code of Corporate Governance provides from the constitution of share holders committee under the chairmanship of ……………….. . |
| A. | board of directors |
| B. | director |
| C. | non executive director |
| D. | manager |
| Answer» C. non executive director | |
| 185. |
Mandatory requirements of the revised clause 49 of the listing agreement, requires that non- executive directors in the Board of Directors are not less than …………….. of the Board of Directors. |
| A. | 25% |
| B. | 36% |
| C. | 50% |
| D. | 75% |
| Answer» C. 50% | |
| 186. |
Which of the following are known as Board Committees |
| A. | audit committee |
| B. | remuneration committee |
| C. | nomination committee |
| D. | all of these. |
| Answer» D. all of these. | |
| 187. |
The company agrees that the remuneration of non- executive directors shall be decided by |
| A. | board of directors |
| B. | director |
| C. | non executive director |
| D. | manager |
| Answer» A. board of directors | |
| 188. |
………….carries out the winding up proceedings. |
| A. | liquidator |
| B. | solicitor |
| C. | contributory |
| D. | tribunal |
| Answer» A. liquidator | |
| 189. |
The order of dissolution can be issued only by the ………… |
| A. | liquidator |
| B. | solicitor |
| C. | contributory |
| D. | tribunal |
| Answer» D. tribunal | |
| 190. |
A company which has not commenced operation or which is not in operation or has no assets to dive is called……….company. |
| A. | public |
| B. | private |
| C. | sick |
| D. | defunct |
| Answer» D. defunct | |
| 191. |
The presiding officer and every other member of a securities appellate tribunal shall hold office for a term of ………. Years from the date on which he enters upon his office. |
| A. | 2 |
| B. | 5 |
| C. | 6 |
| D. | 10 |
| Answer» B. 5 | |
| 192. |
A transfer in which the signature of the transferor is forged is called…………transfer. |
| A. | blank |
| B. | forged |
| C. | mutual |
| D. | none |
| Answer» B. forged | |
| 193. |
…………….transfer whereby the transferor hands over to the buyer the share certicate and a blank transfer deed. |
| A. | blank |
| B. | forged |
| C. | mutual |
| D. | none |
| Answer» A. blank | |
| 194. |
Which of the following is not true- |
| A. | rbi is an example of a statutory company |
| B. | suit can be maintained in the name of a company |
| C. | lic is an example of registered company |
| D. | the persons who form the company are called promoters |
| Answer» C. lic is an example of registered company | |
| 195. |
When a public company has issued prospectus without receiving the minimum subscription it is called…………… |
| A. | splitting of allotment |
| B. | return of allotment |
| C. | renunciation of allotment |
| D. | irregular allotment |
| Answer» D. irregular allotment | |
| 196. |
When a large block of shares has been allotted to a single person, the company may at his request, divide the original allotment letter into a number of small allotment letters. This is called |
| A. | splitting of allotment |
| B. | return of allotment |
| C. | renunciation of allotment |
| D. | irregular allotment |
| Answer» A. splitting of allotment | |
| 197. |
Many public companies provide in their articles for an allottee to give up the right over the shares allotted to him either wholly or partly and transfer the allotment made to him to some other person. This is known as….. |
| A. | splitting of allotment |
| B. | return of allotment |
| C. | renunciation of allotment |
| D. | irregular allotment |
| Answer» C. renunciation of allotment | |
| 198. |
The number and nominal amount of shares allotted must be stated in…… |
| A. | splitting of allotment |
| B. | return of allotment |
| C. | renunciation of allotment |
| D. | irregular allotment |
| Answer» B. return of allotment | |
| 199. |
The return of allotment must be filed with the registrar of companies within………….. of allotment |
| A. | 30 days |
| B. | three months |
| C. | 60 days |
| D. | six months |
| Answer» A. 30 days | |
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