MCQOPTIONS
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MCQOPTIONS
This section includes 657 Mcqs, each offering curated multiple-choice questions to sharpen your Testing Subject knowledge and support exam preparation. Choose a topic below to get started.
| 1. |
As per Sec.444 when the Tribunal makes an order for the winding up itshould be communicated within two weeks to. |
| A. | official liquidator. |
| B. | company. |
| C. | central government. |
| D. | national company law board. |
| Answer» B. company. | |
| 2. |
A promoter of a company stands in the position of …….to future allotteesof shares. |
| A. | agent |
| B. | fiduciary |
| C. | solicitor |
| D. | trustee |
| Answer» C. solicitor | |
| 3. |
Which of the following are known as Board Committees |
| A. | audit committee |
| B. | remuneration committee |
| C. | nomination committee |
| D. | all of these. |
| Answer» E. | |
| 4. |
A prospectus may contain a statement purporting to be made by an expert.The term “expert” includes. |
| A. | an engineer. |
| B. | a valuer. |
| C. | an accountant and any other person whose profession gives authority to a statement made by him. |
| D. | all the above. |
| Answer» E. | |
| 5. |
Notice of the statutory meeting to all the members of the company isrequired to be sent at least. |
| A. | 14 days before the date of meeting. |
| B. | 21 days before the date of the meeting. |
| C. | 25 days before the date of the meeting. |
| D. | 30 days before the date of the meeting. |
| Answer» C. 25 days before the date of the meeting. | |
| 6. |
A special resolution must be filed with the registrar for registration within…….days. |
| A. | 10 |
| B. | 15 |
| C. | 21 |
| D. | 30 |
| Answer» E. | |
| 7. |
The office of the director becomes vacant if he fails to obtain hisqualification shares within …………..months. |
| A. | 6 |
| B. | 3 |
| C. | 2 |
| D. | 5 |
| Answer» D. 5 | |
| 8. |
List A of contributories contains …………………. members of the company. |
| A. | existing |
| B. | past |
| C. | future |
| D. | ex-officio |
| Answer» B. past | |
| 9. |
The return of allotment must be filed with the registrar of companieswithin………….. of allotment |
| A. | 30 days |
| B. | three months |
| C. | 60 days |
| D. | six months |
| Answer» B. three months | |
| 10. |
The demand for a poll may be withdrawn before ……….of the poll is declared. |
| A. | commencement |
| B. | closing |
| C. | result |
| D. | none |
| Answer» D. none | |
| 11. |
The doctrine of constructive notice protects the interest of. |
| A. | the company. |
| B. | the shareholders. |
| C. | the creditors. |
| D. | the debtors. |
| Answer» B. the shareholders. | |
| 12. |
A company may be wound up by the Tribunal by passing ……………………Resolution. |
| A. | special |
| B. | extra ordinary |
| C. | ordinary |
| D. | none of these |
| Answer» B. extra ordinary | |
| 13. |
The alteration of the objects of a company must be confirmed by theCompany law…….. |
| A. | board |
| B. | act |
| C. | tribunal |
| D. | none of these |
| Answer» D. none of these | |
| 14. |
A person is disqualified from being appointed as a director of a company if. |
| A. | he has applied to be adjudged insolvent. |
| B. | he is of unsound mind. |
| C. | he is an undischarged insolvent. |
| D. | all the above. |
| Answer» E. | |
| 15. |
In which of the following conditions, a company will be reckoned a foreigncompany? |
| A. | if the company is established outside india and has a place- of business in india. |
| B. | a company incorporated outside india having shareholders who are all indian citizens and having its business outside india. |
| C. | a company incorporated in india but having all foreign shareholders. |
| D. | both (a) and (b). |
| Answer» B. a company incorporated outside india having shareholders who are all indian citizens and having its business outside india. | |
| 16. |
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» D. none of the above, as everybody has the right to speak at the agm. | |
| 17. |
As per Sec 439, who can file a petition to the tribunal for winding up? |
| A. | the registrar. |
| B. | company. |
| C. | contributory. |
| D. | any one of these. |
| Answer» E. | |
| 18. |
The word ‘Limited’ can be dropped from a company’s name only when. |
| A. | the company is formed for promotion of commerce, art, science, religion, charity or any other useful object. |
| B. | the company prohibits the payment of dividends. |
| C. | both (a) and (b). |
| D. | the central government deems it fit. |
| Answer» D. the central government deems it fit. | |
| 19. |
Not less than ……. Days notice for a general meeting of a company mustbe given. |
| A. | 10 |
| B. | 15 |
| C. | 21 |
| D. | 30 |
| Answer» D. 30 | |
| 20. |
Statutory meeting need to be held by. |
| A. | a public company limited by guarantee and having a share capital. |
| B. | a public company having liability of its members unlimited. |
| C. | a government company. |
| D. | a public company not having share capital. |
| Answer» B. a public company having liability of its members unlimited. | |
| 21. |
Table…………..is for memorandum of association of a company limitedby guarantee and having a share capital. |
| A. | b |
| B. | c |
| C. | d |
| D. | e |
| Answer» D. e | |
| 22. |
The ‘Golden Rule’ for framing of a prospectus was laid down in the case of. |
| A. | royal british bank. |
| B. | rex vs kylsant. |
| C. | new brunswick & canada rly. & land co. vs muggeridge. |
| D. | derry vs peek. |
| Answer» D. derry vs peek. | |
| 23. |
The companies (Amendment) Act , 2000 provides new section 292 A forconstitution of audit committees by every public company having a paid- up capital of. |
| A. | rs.10 lakh or more. |
| B. | rs. 50 lakh or more. |
| C. | rs.1 crore or more. |
| D. | rs.50 million or more. |
| Answer» E. | |
| 24. |
On a winding up order being made, the company’s property comes underthe custody of. |
| A. | liquidator. |
| B. | tribunal. |
| C. | central government. |
| D. | share holders. |
| Answer» B. tribunal. | |
| 25. |
In the event of Company being wound up the Tribunal shall prepare list ofcontributories into. |
| A. | list a. |
| B. | list b. |
| C. | list a and list b. |
| D. | list a or list b. |
| Answer» D. list a or list b. | |
| 26. |
Who may be appointed as a director of a company? |
| A. | an individual. |
| B. | a body corporate. |
| C. | a firm. |
| D. | an association. |
| Answer» B. a body corporate. | |
| 27. |
The famous case of Royal British Bank Vs Turquand laid down the ruleof…………. |
| A. | rule of majority |
| B. | constructive notice |
| C. | indoor management |
| D. | public notice |
| Answer» D. public notice | |
| 28. |
Compulsory winding up means winding up. |
| A. | by the tribunal. |
| B. | by the members. |
| C. | by the creditors. |
| D. | all of them. |
| Answer» B. by the members. | |
| 29. |
The nominal value of the qualification shares of a director must not exceed. |
| A. | rs. 1000 |
| B. | rs.2000. |
| C. | rs.4000. |
| D. | rs. 5000 or the nominal value of one share where it exceeds rs.5000. |
| Answer» E. | |
| 30. |
……….is the proper authority to call annual general meeting. |
| A. | promoters |
| B. | manager |
| C. | board of directors |
| D. | secretary |
| Answer» D. secretary | |
| 31. |
All those who are dealing with the company are expected to know thecontents of the memorandum and articles. This doctrine is called…………………….. |
| A. | rule of majority |
| B. | constructive notice |
| C. | indoor management |
| D. | public notice |
| Answer» C. indoor management | |
| 32. |
Remuneration Committee is made up of. |
| A. | independent directors. |
| B. | executive directors. |
| C. | auditors. |
| D. | investors. |
| Answer» B. executive directors. | |
| 33. |
On dissolution the name of the company is struck off from the …… of thecompany. |
| A. | schedule |
| B. | charter |
| C. | register |
| D. | none |
| Answer» D. none | |
| 34. |
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» D. an advertisement can be treated as a prospectus | |
| 35. |
For general meeting of any kind (statutory, Annual or Extraordinary) atleast ………….. Notice must be given to members. |
| A. | 21 days. |
| B. | 22 days. |
| C. | 23 days. |
| D. | 25 days. |
| Answer» B. 22 days. | |
| 36. |
………….carries out the winding up proceedings. |
| A. | liquidator |
| B. | solicitor |
| C. | contributory |
| D. | tribunal |
| Answer» B. solicitor | |
| 37. |
The contracts signed by the promoters of a company continue to be theliability of ………. |
| A. | promoters |
| B. | company |
| C. | partners |
| D. | none |
| Answer» B. company | |
| 38. |
The presiding officer and every other member of a securities appellatetribunal 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» C. 6 | |
| 39. |
Article of Association can be altered by. |
| A. | a resolution of board of directors. |
| B. | an ordinary resolution in annual general meeting by the shareholders. |
| C. | a special resolution. |
| D. | obtaining permission of the company law tribunal. |
| Answer» D. obtaining permission of the company law tribunal. | |
| 40. |
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» D. 75% | |
| 41. |
The statutory meeting is required to be held by ………..companies |
| A. | private |
| B. | public |
| C. | both |
| D. | none |
| Answer» C. both | |
| 42. |
To make the liability of directors unlimited a………..resolution is required. |
| A. | ordinary |
| B. | special |
| C. | both |
| D. | none |
| Answer» C. both | |
| 43. |
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» D. deemed prospectus | |
| 44. |
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» D. named in the memorandum. | |
| 45. |
The statement in lieu of prospectus must be filed with the registrar atleast ………before any allotment of shares is made. |
| A. | 30 days |
| B. | three days |
| C. | 60 days |
| D. | six months |
| Answer» C. 60 days | |
| 46. |
Audit Committee shall meet at least ………..times a year |
| A. | 5 |
| B. | 2 |
| C. | 4 |
| D. | 3 |
| Answer» D. 3 | |
| 47. |
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» E. | |
| 48. |
A special resolution is passed by. |
| A. | simple majority. |
| B. | 2/3 majority. |
| C. | 3/4 majority. |
| D. | none of these. |
| Answer» D. none of these. | |
| 49. |
Notice of the registered office of the company shall be given to theregistrar of companies within………… |
| A. | 30 days |
| B. | three months |
| C. | 60 days |
| D. | six months |
| Answer» B. three months | |
| 50. |
When a public company has issued prospectus without receiving theminimum subscription it is called…………… |
| A. | splitting of allotment |
| B. | return of allotment |
| C. | renunciation of allotment |
| D. | irregular allotment |
| Answer» E. | |