Converting a public company into a private company requires a special resolution.

passed by the members and approved by the registrar of companies.

passed by the members and with sanction of the central government.

passed by the members and approved by the registrar of companies.

passed by the members and approved by the company law tribunal.

passed by the members and approved by the auditors.

In which of the following conditions, a company will be reckoned a foreign company?

a company incorporated outside india having shareholders who are all indian citizens and having its business outside india.

if the company is established outside india and has a place- of business in india.

a company incorporated outside india having shareholders who are all indian citizens and having its business outside india.

a company incorporated in india but having all foreign shareholders.

Tribunal may appoint the official liquidator to be the liquidator provisionally at any time.

after making the winding up order.

after the presentation of petition for winding up.

after making the winding up order.

One of the following is the instance where the just and equitable clause for winding up can be adopted by the Tribunal.

oppression of minority by the majority.

reduction of members below minimum.

Notice of the statutory meeting to all the members of the company is required to be sent at least.

25 days before the date of the meeting.

14 days before the date of meeting.

21 days before the date of the meeting.

25 days before the date of the meeting.

30 days before the date of the meeting.

When can an annual General Meeting be called giving shorter notice than that specified?

if consent is accorded to by 30% of the members entitled to vote.

if consent is accorded to by all the members entitled to vote.

if consent is accorded to by 30% of the members entitled to vote.

if board of directors takes a majority decision in this rega

Change of registered office of a company from one place to another in the same city requires.

special resolution with central government approval.

As per Sec.274, a person shall not be appointed as director if he is found to be of unsound mind by

a court of competent jurisdiction

When an act is performed or a transaction is carried out, which though legal in itself, is not authorized by the objects clause in the Memorandum or by Statute, it is said to be.

intra vires the powers of the company.

ultra vires the powers of the company.

intra vires the powers of the company.

ultra vires the powers of the company.

ultra vires the implied authority.

98 + Mcqs in Regulatory Framework for Companies in Bachelor of Commerce (B Com) Page 1 McqOptions

1.	Converting a public company into a private company requires a special resolution.
A.	passed by the members and with sanction of the central government.
B.	passed by the members and approved by the registrar of companies.
C.	passed by the members and approved by the company law tribunal.
D.	passed by the members and approved by the auditors.
Answer» B. passed by the members and approved by the registrar of companies.

Discussion

2.	In which of the following conditions, a company will be reckoned a foreign company?
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.

Discussion

3.	The companies (Amendment) Act , 2000 provides new section 292 A for constitution 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.

Discussion

4.	Audit committee shall act in accordance with the terms of reference to be specified by.
A.	statutory auditors.
B.	sebi.
C.	board of directors.
D.	central government.
Answer» D. central government.

Discussion

5.	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» B. special meeting

Discussion

6.	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» B. divisional

Discussion

7.	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» C. d

Discussion

8.	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» D. e

Discussion

9.	Table .. is for memorandum of association of a company limited by shares.
A.	b
B.	c
C.	d
D.	e
Answer» C. d

Discussion

10.	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» D. none

Discussion

11.	..may appoint additional directors from time to time if so authorized by articles.
A.	manager
B.	secretary
C.	promoters
D.	board of directors
Answer» E.

Discussion

12.	.. 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» C. statutory

Discussion

13.	..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» B. secretary

Discussion

14.	Meeting cannot transact any business unless a . is present at every stage of the meeting
A.	proxy
B.	manager
C.	quorum
D.	secretary
Answer» D. secretary

Discussion

15.	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» B. three months

Discussion

16.	Where there is a non-executive chairman, at least ..of board should comprise of independent directors.
A.	1/3
B.	2/3
C.
D.	none of these
Answer» B. 2/3

Discussion

17.	A private company is one which has a minimum paid up capital Rs .lakhs.
A.	1
B.	5
C.	8
D.	10
Answer» B. 5

Discussion

18.	The contracts signed by the promoters of a company continue to be the liability of .
A.	promoters
B.	company
C.	partners
D.	none
Answer» B. company

Discussion

19.	The altered memorandum must be filed with the registrar within .months.
A.	30 days
B.	three months
C.	60 days
D.	six months
Answer» C. 60 days

Discussion

20.	A promoter of a company stands in the position of .to future allottees of shares.
A.	agent
B.	fiduciary
C.	solicitor
D.	trustee
Answer» C. solicitor

Discussion

21.	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» B. three months

Discussion

22.	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» C. 60 days

Discussion

23.	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» D. public notice

Discussion

24.	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» C. indoor management

Discussion

25.	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» D. 5

Discussion

26.	The official liquidator after receipt of statement of affairs of the company must submit a preliminary report to the Tribunal not later than . of the order.
A.	6 month.
B.	one year.
C.	two weeks.
D.	one month.
Answer» B. one year.

Discussion

27.	Tribunal may appoint the official liquidator to be the liquidator provisionally at any time.
A.	after the presentation of petition for winding up.
B.	after making the winding up order.
C.	after dissolution.
D.	before the statutory meeting.
Answer» B. after making the winding up order.

Discussion

28.	On a winding up order being made, the company s property comes under the custody of.
A.	liquidator.
B.	tribunal.
C.	central government.
D.	share holders.
Answer» B. tribunal.

Discussion

29.	In the event of Company being wound up the Tribunal shall prepare list of contributories 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.

Discussion

30.	One of the following is the instance where the just and equitable clause for winding up can be adopted by the Tribunal.
A.	oppression of minority by the majority.
B.	inability to pay debts.
C.	commercial insolvency.
D.	reduction of members below minimum.
Answer» B. inability to pay debts.

Discussion

31.	As per Sec.488, Declaration of Solvency of company by the Directors in the case of voluntary winding up may be made within.
A.	5 weeks of passing resolution.
B.	one month.
C.	6 months.
D.	none of these.
Answer» B. one month.

Discussion

32.	Notice of the statutory meeting to all the members of the company is required 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.

Discussion

33.	For general meeting of any kind (statutory, Annual or Extraordinary) at least .. Notice must be given to members.
A.	21 days.
B.	22 days.
C.	23 days.
D.	25 days.
Answer» B. 22 days.

Discussion

34.	When can an annual General Meeting be called giving shorter notice than that specified?
A.	if consent is accorded to by all the members entitled to vote.
B.	if consent is accorded to by 30% of the members entitled to vote.
C.	if board of directors takes a majority decision in this rega
Answer» B. if consent is accorded to by 30% of the members entitled to vote.

Discussion

35.	On dissolution the name of the company is struck off from the of the company.
A.	schedule
B.	charter
C.	register
D.	none
Answer» D. none

Discussion

36.	Under section 269, every public company and a private company which is a subsidiary of a public company must have a managing director or a whole time director if its paid-up share capital is.
A.	rs.1 crore or more.
B.	rs.2 crore or more.
C.	rs.5 crore or more.
D.	rs.10 crore or more.
Answer» D. rs.10 crore or more.

Discussion

37.	A document which lays down the fundamental conditions upon which the company is allowed to form is called.
A.	memorandum of association.
B.	article of association.
C.	prospects.
D.	certificate of incorporation.
Answer» B. article of association.

Discussion

38.	A transfer in which the signature of the transferor is forged is called transfer.
A.	blank
B.	forged
C.	mutual
D.	none
Answer» C. mutual

Discussion

39.	Change of registered office of a company from one place to another in the same city requires.
A.	board resolution.
B.	special resolution.
C.	ordinary resolution.
D.	special resolution with central government approval.
Answer» B. special resolution.

Discussion

40.	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» B. negligence

Discussion

41.	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» C. 6

Discussion

42.	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» C. board of directors

Discussion

43.	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» C. departmental

Discussion

44.	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» D. none of these

Discussion

45.	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» E.

Discussion

46.	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» E.

Discussion

47.	When an act is performed or a transaction is carried out, which though legal in itself, is not authorized by the objects clause in the Memorandum or by Statute, it is said to be.
A.	ultra vires the powers of the company.
B.	intra vires the powers of the company.
C.	ultra vires the powers of the company.
D.	ultra vires the implied authority.
Answer» B. intra vires the powers of the company.

Discussion

48.	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» C. 2/4

Discussion

49.	.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» B. forged

Discussion

50.	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» D. board of directors

Discussion

Explore topic-wise MCQs in Bachelor of Commerce (B Com).

Converting a public company into a private company requires a special resolution.

In which of the following conditions, a company will be reckoned a foreign company?

The companies (Amendment) Act , 2000 provides new section 292 A for constitution of audit committees by every public company having a paid- up capital of.

Audit committee shall act in accordance with the terms of reference to be specified by.

The meeting other than statutory and the annual general meeting of the company is

The minutes of the share holder s meeting are to be kept at the .office of the company and must be open to inspection.

Table ..is for memorandum of association of a company limited by guarantee and not having a share capital.

Table ..is for memorandum of association of a company limited by guarantee and having a share capital.

Table .. is for memorandum of association of a company limited by shares.

The procedure to write facts about a resolution and its decision is called

..may appoint additional directors from time to time if so authorized by articles.

.. liability is imposed on the directors if they manipulate or falsify the accounts of the company.

..is entitled to the management of the whole or substantially the whole of the affairs of the company.

Meeting cannot transact any business unless a . is present at every stage of the meeting

The company shall send a duplicate copy of the contents of Register of directors to the registrar within .of the appointment of the directors.

Where there is a non-executive chairman, at least ..of board should comprise of independent directors.

A private company is one which has a minimum paid up capital Rs .lakhs.

The contracts signed by the promoters of a company continue to be the liability of .

The altered memorandum must be filed with the registrar within .months.

A promoter of a company stands in the position of .to future allottees of shares.

Notice of the registered office of the company shall be given to the registrar of companies within

The statement in lieu of prospectus must be filed with the registrar at least before any allotment of shares is made.

The famous case of Royal British Bank Vs Turquand laid down the rule of .

All those who are dealing with the company are expected to know the contents of the memorandum and articles. This doctrine is called ..

The office of the director becomes vacant if he fails to obtain his qualification shares within ..months.

The official liquidator after receipt of statement of affairs of the company must submit a preliminary report to the Tribunal not later than . of the order.

Tribunal may appoint the official liquidator to be the liquidator provisionally at any time.

On a winding up order being made, the company s property comes under the custody of.

In the event of Company being wound up the Tribunal shall prepare list of contributories into.

One of the following is the instance where the just and equitable clause for winding up can be adopted by the Tribunal.

As per Sec.488, Declaration of Solvency of company by the Directors in the case of voluntary winding up may be made within.

Notice of the statutory meeting to all the members of the company is required to be sent at least.

For general meeting of any kind (statutory, Annual or Extraordinary) at least .. Notice must be given to members.

When can an annual General Meeting be called giving shorter notice than that specified?

On dissolution the name of the company is struck off from the of the company.

Under section 269, every public company and a private company which is a subsidiary of a public company must have a managing director or a whole time director if its paid-up share capital is.

A document which lays down the fundamental conditions upon which the company is allowed to form is called.

A transfer in which the signature of the transferor is forged is called transfer.

Change of registered office of a company from one place to another in the same city requires.

Any breach of duty in the conduct of the company s affairs which causes loses to the company is called

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.

As per Sec.274, a person shall not be appointed as director if he is found to be of unsound mind by

As per Sec 260, the additional directors are entitled to hold office only upto next meeting

The alteration of the objects of a company must be confirmed by the Company law ..

According to sec 297, a director shall not enter into any contract with the company except with the consent of ..

A director who is interested in any transaction of the company is bound to disclose his interest to

When an act is performed or a transaction is carried out, which though legal in itself, is not authorized by the objects clause in the Memorandum or by Statute, it is said to be.

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.

.transfer whereby the transferor hands over to the buyer the share certicate and a blank transfer deed.

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