A prospectus may contain a statement purporting to be made by an expert. The term expert includes.

an accountant and any other person whose profession gives authority to a statement made by him.

A change in the registered office of the company from one state to another can be effected by.

a resolution of the board of directors.

a resolution passed in the general meeting of the company.

a special resolution of the company and approval of the central government.

a special resolution and confirmation of the company law tribunal.

An act of a director which is intra vires the Memorandum and ultra vires the Articles of Association.

cannot be ratified by the company.

must necessarily be ratified by the company.

may be ratified by the company.

Under the companies Act, which one of the following powers can be exercised by the Board of Directors?

power to borrow money in excess of the paid up capital.

power to sell the company s undertakings.

power to borrow money in excess of the paid up capital.

When the Directors have acted mala fide and are themselves the wrong doers, the only option left with the shareholders is.

to approach the central government.

approach the company law tribunal.

to interfere in management by a majority in the general meeting.

to approach the central government.

What is the amount of contribution that a company can make for political purposes?

10% of net profits of the preceding financial year on which the tax has been paid.

5% of gross profit of the current assessment year.

amount not exceeding 5% of the net profits of three immediately preceding financial years.

According to section 283 (1) (g) if a director absents himself from 3 consecutive board meetings or from all meetings consecutively for a period of 3 months without obtaining leave of absence.

he shall be held accountable to the registrar.

his office shall become vacant.

A voluntary winding up is deemed to commence from the date when the declaration of solvency is made by the . . .

a court of competent jurisdiction

98 + Mcqs in Regulatory Framework for Companies in Bachelor of Commerce (B Com) Page 2 McqOptions

51.	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.

Discussion

52.	A change in the registered office of the company from one state to another can be effected by.
A.	a resolution of the board of directors.
B.	a resolution passed in the general meeting of the company.
C.	a special resolution of the company and approval of the central government.
D.	a special resolution and confirmation of the company law tribunal.
Answer» E.

Discussion

53.	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» E.

Discussion

54.	The document which invites the public for subscribing capital in the form of shares and debenture is called.
A.	memorandum of association.
B.	article of association.
C.	prospectus.
D.	legal announcement.
Answer» D. legal announcement.

Discussion

55.	.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» B. red herring prospectus

Discussion

56.	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

Discussion

57.	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» E.

Discussion

58.	Not less than . Days notice for a general meeting of a company must be given.
A.	10
B.	15
C.	21
D.	30
Answer» D. 30

Discussion

59.	The prospectus must be issued within after the date on which a copy thereof has been delivered for registration.
A.	30 days.
B.	60 days.
C.	90 days.
D.	120 days
Answer» D. 120 days

Discussion

60.	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» C. proxy

Discussion

61.	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» D. irregular allotment

Discussion

62.	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» C. 4

Discussion

63.	A special resolution must be filed with the registrar for registration within .days.
A.	10
B.	15
C.	21
D.	30
Answer» E.

Discussion

64.	According to the companies Act, 1956 a Private limited company must have at least directors.
A.	seven.
B.	three.
C.	two.
D.	one.
Answer» D. one.

Discussion

65.	The remuneration payable to a whole time director of the company should not exceed.
A.	5% of the net profits.
B.	6 % of the net profits.
C.	7 % of the net profits.
D.	10% of the net profits.
Answer» B. 6 % of the net profits.

Discussion

66.	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» E.

Discussion

67.	Maximum managerial remuneration permissible under the Companies Act, 1956 for public limited companies is.
A.	10% of the net profits.
B.	5% of net profit.
C.	11% of net profit.
D.	8% of net profit.
Answer» D. 8% of net profit.

Discussion

68.	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» B. return of allotment

Discussion

69.	An act of a director which is intra vires the Memorandum and ultra vires the Articles of Association.
A.	cannot be ratified by the company.
B.	must necessarily be ratified by the company.
C.	may be ratified by the company.
D.	is void ab inito.
Answer» D. is void ab inito.

Discussion

70.	Under the companies Act, which one of the following powers can be exercised by the Board of Directors?
A.	power to sell the company s undertakings.
B.	power to make call.
C.	power to borrow money in excess of the paid up capital.
D.	power to reappoint an auditor.
Answer» C. power to borrow money in excess of the paid up capital.

Discussion

71.	A person cannot be a director of more than as per the Companies (Amendment) Act, 2000.
A.	5 companies.
B.	10 companies.
C.	15 companies.
D.	20 companies.
Answer» D. 20 companies.

Discussion

72.	According to section 255 of the companies Act, the Directors must be appointed by the.
A.	central government.
B.	company law tribunal.
C.	company in general meeting.
D.	board of directors.
Answer» D. board of directors.

Discussion

73.	Any document filed with the registrar will be deemed to have been read and understood by all those who deal with the company. It is as per the doctrine of.
A.	constructive notice.
B.	indoor management.
C.	public notice.
D.	ultra vires.
Answer» B. indoor management.

Discussion

74.	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» B. three months

Discussion

75.	Where a director acts dishonestly to the interest of the company, he will be held liable for.
A.	ultra vires acts.
B.	negligence.
C.	breach of fiduciary duty.
D.	mala fide acts.
Answer» D. mala fide acts.

Discussion

76.	Except with the approval of the central Government, remuneration of a whole time director or a managing director shall not exceed of the net profits for one such director.
A.	3%.
B.	5%.
C.	10%.
D.	11%.
Answer» D. 11%.

Discussion

77.	When the Directors have acted mala fide and are themselves the wrong doers, the only option left with the shareholders is.
A.	to go to the court.
B.	approach the company law tribunal.
C.	to interfere in management by a majority in the general meeting.
D.	to approach the central government.
Answer» D. to approach the central government.

Discussion

78.	What is the amount of contribution that a company can make for political purposes?
A.	10% of net profits of the preceding financial year on which the tax has been paid.
B.	5% of gross profit of the current assessment year.
C.	amount not exceeding 5% of the net profits of three immediately preceding financial years.
D.	none of these.
Answer» D. none of these.

Discussion

79.	According to section 283 (1) (g) if a director absents himself from 3 consecutive board meetings or from all meetings consecutively for a period of 3 months without obtaining leave of absence.
A.	he shall be fined with rs.500.
B.	he shall be held accountable to the registrar.
C.	his office shall become vacant.
D.	all the above.
Answer» D. all the above.

Discussion

80.	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» E.

Discussion

81.	Which of the documents is not filed to the registrar at the time of incorporation?
A.	memorandum.
B.	article of association.
C.	consent of the director.
D.	prospectus.
Answer» E.

Discussion

82.	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» B. 14

Discussion

83.	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» D. central govt.

Discussion

84.	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» C. 21

Discussion

85.	As per Sec.444 when the Tribunal makes an order for the winding up it should be communicated within two weeks to.
A.	official liquidator.
B.	company.
C.	central government.
D.	national company law board.
Answer» B. company.

Discussion

86.	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» B. director

Discussion

87.	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%

Discussion

88.	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» D. manager

Discussion

89.	An ordinary resolution at a general meeting of the shareholders is sufficient for.
A.	reduction of share capital.
B.	issue of shares at a discount.
C.	creation of reserve capital.
D.	all the above.
Answer» C. creation of reserve capital.

Discussion

90.	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» E.

Discussion

91.	.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» E.

Discussion

92.	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» D. tribunal

Discussion

93.	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» B. solicitor

Discussion

94.	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» E.

Discussion

95.	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» E.

Discussion

96.	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

Discussion

97.	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» C. 21

Discussion

98.	The company agrees that the remuneration of non- executive directors shall be decided by.
A.	board of directors.
B.	company.
C.	share holders.
D.	central government.
Answer» B. company.

Discussion

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

A prospectus may contain a statement purporting to be made by an expert. The term expert includes.

A change in the registered office of the company from one state to another can be effected by.

The new Sec 60B introduced by the Companies (Amendment)Act 2000 is related to ..

The document which invites the public for subscribing capital in the form of shares and debenture is called.

.means a prospectus issued by any financial institution or bank for one or more issues of the securities specified in that document.

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.

The main advantage of . is that company can save underwriting expenses.

Not less than . Days notice for a general meeting of a company must be given.

The prospectus must be issued within after the date on which a copy thereof has been delivered for registration.

The minimum number of members that must be present at a valid meeting is called

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 special resolution is one to pass with the votes cast in favour must be ..times the votes cast against it.

A special resolution must be filed with the registrar for registration within .days.

According to the companies Act, 1956 a Private limited company must have at least directors.

The remuneration payable to a whole time director of the company should not exceed.

When a public company has issued prospectus without receiving the minimum subscription it is called

Maximum managerial remuneration permissible under the Companies Act, 1956 for public limited companies is.

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

An act of a director which is intra vires the Memorandum and ultra vires the Articles of Association.

Under the companies Act, which one of the following powers can be exercised by the Board of Directors?

A person cannot be a director of more than as per the Companies (Amendment) Act, 2000.

According to section 255 of the companies Act, the Directors must be appointed by the.

Any document filed with the registrar will be deemed to have been read and understood by all those who deal with the company. It is as per the doctrine of.

The return of allotment must be filed with the registrar of companies within .. of allotment

Where a director acts dishonestly to the interest of the company, he will be held liable for.

Except with the approval of the central Government, remuneration of a whole time director or a managing director shall not exceed of the net profits for one such director.

When the Directors have acted mala fide and are themselves the wrong doers, the only option left with the shareholders is.

What is the amount of contribution that a company can make for political purposes?

According to section 283 (1) (g) if a director absents himself from 3 consecutive board meetings or from all meetings consecutively for a period of 3 months without obtaining leave of absence.

A company which has not commenced operation or which is not in operation or has no assets to dive is called .company.

Which of the documents is not filed to the registrar at the time of incorporation?

A public company may be wound up by the Tribunal if the number of its members is reduced below

A voluntary winding up is deemed to commence from the date when the declaration of solvency is made by the . . .

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.

As per Sec.444 when the Tribunal makes an order for the winding up it should be communicated within two weeks to.

The company agrees that the remuneration of non- executive directors shall be decided by

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.

SEBI s code of Corporate Governance provides from the constitution of share holders committee under the chairmanship of .. .

An ordinary resolution at a general meeting of the shareholders is sufficient for.

The Cadbury Committee suggests that the non- executive directors can play a crucial role in

.meeting is the first meeting of the members of the public company after its incorporation

A person liable to contribute towards the assets of the company on the event of its being wound up is a

On a winding up order being made in respect of a company, the official Liquidator shall, become the .. of the company.

When a winding up order has been made by the tribunal but there is no liquidator, the property of the company vests in the .. .

After obtaining of certificate to commence business a company may be wound up if it does not commence business within .. .

A company may be wound up by the Tribunal by passing Resolution.

A company has to submit a statement of affairs to the Official Liquidator within days of the appointment of the official liquidator.

The company agrees that the remuneration of non- executive directors shall be decided by.