Deck 1: Key Concepts and Procedures in Company Law

Question 1

At the same time a person cannot hold office of a Director in more than ______

A)Two companies
B)Seven companies
C)Twenty companies
D)Thirty companies

Answer 1

Twenty companies

Question 2

The quorum for the meeting of Board is _______________

A)One fourth of its total strength.
B)One third of its total strength.
C)Two third of its total strength.
D)One half of its total strength.

Answer 2

One third of its total strength.

Question 3

The time gap between two Annual General Meetings should not exceed______

A)Six months.
B)Twelve months.
C)Fifteen months.
D)Eighteen months.

Answer 3

Fifteen months.

Question 4

Power to set up the Tribunal is vested in ______________

A)Supreme Court.
B)State Government.
C)Central Government with the permission of the Supreme Court.
D)Central Government.

Question 5

Duration of interval between one general meeting and another general meeting should not be more than ____________

A)6 months.
B)12 months.
C)15 months.
D)24 months.

Question 6

Issuance of a share warrant is necessary, so that __________

A)Shares are fully paid up
B)Shares are paid up to 50%
C)Shares are paid up to 25%
D)Shares are paid up to 10%

Question 7

Which of the following companies must have Articles of Association________

A)Foreign Company.
B)Unlimited Company.
C)Holding Company.
D)Government Companies.

Question 8

Which of the following document brings a company into existence as a legal person? __________

A)Memorandum of Association
B)Certificate of Incorporation.
C)Article of Association.
D)The agreement.

Question 9

The Prospectus must be issued within___________

A)90days of its registration
B)60days of the certificate of Incorporation
C)90days of the Statutory Meeting
D)60days of the first Annual General Meeting

Question 10

Who of the following is the most important functionary of a company?__________

A)Secretary.
B)Treasurer.
C)Managing Director.
D)Manager

Question 11

Every company making an allotment of shares or debentures is obliged to the allottee a certificate of shares within____________

A)14 days of the allotment
B)One month of the allotment
C)Two months of the allotment
D)Three months of the allotment of shares.

Question 12

Company can close the Register after publishing a notice in a local daily? ____

A)Seven days before the Register is closed.
B)Fourteen days before the Register is closed
C)Twenty-one days before the Register is closed
D)One month before the Register is closed

Question 13

In one particular year, the company can close the Register for a period of, ____

A)Seven days at any one time
B)Fourteen days at any one time
C)Twenty-one days at any one time
D)Thirty days at any one time

Question 14

The public trustee may attend the meeting of the company_______

A)Himself
B)Appoint a government officer
C)Both a and b.
D)Secretary.

Question 15

Annual Returns are required to be filed within___________

A)Within 30 days from the date annual General Meeting
B)Within 60 days from the date of the Annual General Meeting
C)Within 90 days from the Date of the Annual General Meeting
D)Within six Months from the date of the Annual General Meeting

Question 16

No company limited by shares shall issue any preference share which is redeemable or irredeemable after the expiry of a period of____________

A)One year from the date of issue
B)Two year from the date of issue
C)Five years from the date of issue
D)Ten years from the date of issue

Question 17

"Directors are trustees of the company and not of individual shareholders". This principle was laid down in_____________

A)Perceival v/s. Wright
B)Ramswamy Iyer v/s. Brahmayya & Co.
C)Ferguson v/s. Wilson
D)Lee v/s. Lee's Air Farming Ltd

Question 18

Who of the following persons brings about the incorporation, and organization of a company ______________

A)A member
B)A promoter
C)A manager
D)A director

Question 19

Which of the following is not the way of acquiring a membership of the a company under the Companies Act, 1956___________

A)By allotment of shares
B)By transfer of shares
C)By appointment.
D)By nomination.

Question 20

From below, point out which of the following is not a requirement or condition needs to be complied with to make allotment of shares effective__________

A)Allotment by proper authority
B)Within reasonable time
C)Absolute and unconditional
D)Issuance of a certificate.