Deck 12: Company Registration and Management: Understanding Articles and Memorandum of Association, Directorship, and Liability

Question 1

The capital with which the company is registered is called the ______

A)Subscribed capital
B)Nominal capital
C)Working capital
D)None of the above

Answer 1

Nominal capital

Question 2

The procedure for change of registered office from one city to another within the same state is by passing ______

A)Special resolution only
B)Ordinary resolution only
C)Special resolution and approval of central government
D)Ordinary resolution and approval of company law board

Answer 2

Special resolution only

Question 3

_______ document contains the rules, regulations and bye-laws for the internal management of the company.

A)Memorandum of association
B)Article of association
C)Prospectus
D)Statement in lieu

Answer 3

Article of association

Question 4

________ is subordinate to and controlled by the memorandum of association.

A)Prospectu
B)Statement in lieu
C)Articles of Association
D)None of the above

Question 5

______ lays down the objects and powers of the company.

A)Memorandum of Association
B)Articles of Association
C)Prospectus
D)Statement in lieu

Question 6

_______ lays down the modes in which the objects of the company are to be carried out by the members.

A)Statement in lieu
B)Prospectus
C)Memorandum of Association
D)Articles of Association

Question 7

The doctrine of indoor Management has its origin in

A)Saloman V Salona U& Co. Ltd.
B)Ryland V Turquand
C)Royal British Bank V Turquand
D)None of these

Question 8

Offers may be invited from the public by issuing a document known as _____

A)Prospectu
B)Notice
C)Circular
D)All of the above

Question 9

Articles of Association are not required to be registered in case of ____

A)An Unlimited Company
B)A Company limited by guarantee
C)A public company limited by shares
D)A private company limited by shares.

Question 10

Doctrine of constructive notice means _____

A)Notice of alteration of object clause to the registrar
B)Notice to outside dealing with the registrar as to contents of memorandum and articles.
C)Notice of change of name to members
D)Notice to public as to issue of prospectus.

Question 11

A _______may be defined as a person having control over the affairs, conduct and management of a company.

A)Shareholder
B)Director
C)Body Corporate
D)Member

Question 12

____________ is the Supreme policy framing and decision making organ of a company.

A)Board of director
B)Share holders
C)Auditor
D)Body Corporate

Question 13

According to Sec. 225, the Directors should be appointed in the ________-

A)Office of the Registrar
B)General Meeting
C)Office company
D)Share holders

Question 14

The office of a director becomes vacant if he fails to obtain his qualification shares within _____

A)30 day
B)1 month
C)2 months
D)3 month

Question 15

A elected director can be terminated by the

A)Company
B)High Court
C)State Government
D)Central Government

Question 16

__________ vacancy is caused by resignation, death, insolvency or insanity.

A)Casual
B)General
C)Special
D)None of the above

Question 17

The maximum remuneration paid to a manager cannot exceed _________ percent of the annual net profit.

A)10%
B)5%
C)15%
D)25%

Question 18

The managing directors hold the _______ shares of the company.

A)Deemed
B)Equity
C)Qualification
D)Preference

Question 19

Directors are _________ of the Powers conferred on then and they must exercise those powers bonafide and for the benefit of the company.

A)Trustee
B)Management
C)Representative
D)None of the above

Question 20

_________ member of directors need to retire every year

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

Question 21

The directors may be held _______ liable on their failure to fulfill the formalities imposed upon them by the Act.

A)General law
B)Criminal
C)Civil
D)All of the above

Question 22

A person cannot hold directorship of more than _______ companies at a time.

A)15
B)50
C)25
D)10