Deck 10: Companies Act and Company Formation

Question 1

The Board of Directors delegate the power to ____

A)Issue debentures
B)Issue of shares
C)Invest the fund
D)Make loans

Answer 1

Make loans

Question 2

_________ are subordinate to and controlled by the memorandum.

A)Articles of Association
B)Prospectus
C)Statement in law
D)All the above

Answer 2

Articles of Association

Question 3

A copy of special resolution has to be filed with the Registrar within ___ days.

A)90 day
B)30 days
C)60 days
D)120 days

Answer 3

30 days

Question 4

A printed copy of the articles as altered shall be filed by the company with the Registrar within __________of order of approval from cential.

A)3 month
B)6 months
C)one month
D)2 months

Question 5

Sec __________ of the companies Act defines foreign company

A)4 (4)
B)3 (1) (i)
C)3 (1) (ii)
D)591

Question 6

Sec 25 related to ________ companies

A)Holding
B)Licensed
C)Subsidiary
D)Existing

Question 7

Holding company is defined in Section ______ of the companies Act.

A)4(4)
B)2 (2)
C)3 (4)
D)3(1)

Question 8

_________ is the first stage in the formation of a company.

A)Promotion
B)Raising of Capital
C)Incorporation
D)Commencement of business

Question 9

The idea of carrying on a business is conceived by a person or by a group of persons called __________

A)Exploit
B)Promoters
C)Directors
D)None of these

Question 10

A company is said to be incorporated when it is registered with registrar of the __________ company.

A)Licensing
B)Government
C)Existing
D)Joint stock

Question 11

When one company controls the management of another company, the former is called a __________ company.

A)Existing
B)Holding
C)Subsidiary
D)Licensed

Question 12

_________ is issued by any financial constitution or bank for one or more of issues of securities or class of securities specified in the prospectus.

A)A bridged Prospectu
B)Shelf Prospectus
C)Deemed Prospectus
D)Red Herring prospectus

Question 13

The other name of indoor management is called _________

A)Golden rule
B)Constructive notice
C)Indoor rule
D)Tarquand rule

Question 14

A Company may change its name by passing ______ with the approval of central govt.

A)Special resolution
B)Ordinary resolution
C)Both a & b
D)None of the above

Question 15

The company shall give notice of alteration to the Registrar within ________of passing the resolution.

A)3 month
B)6 months
C)30 days
D)60 days

Question 16

_________ consists of a series of regulations framed by the legislature for the conduct of the affair of company.

A)Table B
B)Table A
C)Table C
D)Table D

Question 17

If a public company limited by shares does not register its own articles ________apply automatically to a company.

A)Table C
B)Table B
C)Table A
D)Table D

Question 18

Prospectus must therefore make full and honest declaration of materials facts without concealing or omitting any relevant fact. This is known as ________

A)Twiquant rule
B)Golden rule
C)General rule
D)Special rule

Question 19

A public company may issue a prospectus called _________

A)Red herring prospectu
B)Shelf prospectus
C)A bridged prospectus
D)Deemed prospectus

Question 20

Golden rule was laid down by________________

A)KINDERSELY VC in New Brun Wick Co. V Maggeride
B)Edington V Fitzmaurice
C)Treeman V Buckhcats
D)Royal British Bank V Turquand

Question 21

______________ is a shorter version of the prospectus and contains all the salient features of a prospectus that forms a part of the memorandum.

A)Deemed Prospectu
B)Abridged prospectus
C)Red herring prospectus
D)Shelf prospectus

Question 22

__________ Acts as the official signature of the company.

A)Registration
B)Special resolution
C)legal entity
D)common seal

Question 23

The association that are not registered under Sec. 11 of the companies Act is _____________

A)Incorporated Association
B)Illegal Association
C)Non licenses Association
D)Unregistered Association

Question 24

___________ is a person who has singed company's memorandum of association.

A)Individual
B)Corporate body
C)Member
D)Legal person