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190+ Regulatory Framework for Companies Solved MCQs

These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Bachelor of Commerce (B Com) .

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

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