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

Accepted Answer

As per the Companies Act, 2013, a person cannot hold the office of a director in more than 20 companies at the same time. This limit includes both private as well as public 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.

Accepted Answer

The quorum for the meeting of the Board is typically one third of its total strength, as this is a common standard in many organizations and governance structures to ensure that a significant portion of members are present to make decisions.

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.

Accepted Answer

The time gap between two Annual General Meetings (AGMs) should not exceed fifteen months, as per corporate governance norms and regulations in many jurisdictions. This allows companies to organize, prepare, and present their annual financial statements and reports to their shareholders.

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.

Accepted Answer

The power to set up tribunals is vested in the Central Government, as per various laws enacted by the Parliament of India. Tribunals are specialized courts designed to handle specific types of disputes or cases, and their establishment is typically outlined in the legislation that deals with those specific areas of law.

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.

Accepted Answer

The duration of the interval between one general meeting and another should not be more than 15 months. This is a standard regulation to ensure that shareholders are regularly updated and involved in the governance of the company.

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%

Accepted Answer

Issuance of a share warrant requires that the shares are fully paid up to ensure that the company has received full payment for the shares before issuing a warrant, which is a document entitling the holder to receive shares.

Question 7

Which of the following companies must have Articles of Association________
A)Foreign Company.
B)Unlimited Company.
C)Holding Company.
D)Government Companies.

Accepted Answer

An Unlimited Company must have Articles of Association as it defines the rules for the company's operations and outlines the company's purpose.

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.

Accepted Answer

The Certificate of Incorporation is the document that brings a company into existence as a legal person. It is issued by a governmental body after the necessary incorporation documents are filed and approved.

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

Accepted Answer

A prospectus must be issued within 90 days of its registration according to company law regulations.

Question 10

Who of the following is the most important functionary of a company?__________
A)Secretary.
B)Treasurer.
C)Managing Director.
D)Manager

Accepted Answer

The Managing Director is the most important functionary of a company as they are responsible for the overall operation and performance of the company, making strategic decisions, and leading the organization towards achieving its objectives.

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.

Accepted Answer

The answer of Every company making an 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

Accepted Answer

The Companies Act, 2013 requires companies to publish a notice in a local daily at least seven days 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

Accepted Answer

The answer of In one particular year, the company can...

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.

Accepted Answer

The public trustee has the flexibility to attend the meeting of the company either in person (himself) or by appointing a government officer to attend on their behalf, making both options viable.

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

Accepted Answer

Annual Returns are required to be filed within 60 days 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

Accepted Answer

Preference shares must not be issued with a redemption period exceeding twenty years from the date of their issue, according to most jurisdictions' corporate laws. However, the specific choice provided here, "Ten years from the date of issue," is a common standard for the maximum redemption period for redeemable preference shares, aligning with many regulatory frameworks to ensure companies retain the ability to manage their capital structure effectively over time.

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

Accepted Answer

This principle was established in the case of Percival v Wright (1902), where it was held that directors are trustees for the company itself, rather than for individual shareholders. This means their duties are owed to the company as a whole, not to specific shareholders.

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

Accepted Answer

A promoter is involved in the initial steps of forming a company, including its incorporation and organization, by undertaking the necessary legal and procedural steps to establish the company.

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.

Accepted Answer

Membership in a company under the Companies Act, 1956, can be acquired through allotment of shares, transfer of shares, or nomination. However, acquiring membership by appointment is not a recognized method under the Act.

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.

Accepted Answer

The issuance of a certificate is not a requirement for the allotment of shares to be effective. The key requirements for an effective allotment include the allotment being made by proper authority, within a reasonable time, and on an absolute and unconditional basis. The issuance of a share certificate is a subsequent step that formally evidences the shareholder's title to the shares but is not a condition for the allotment itself to be effective.

Quiz 1: Key Concepts and Procedures in Company Law

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

The quorum for the meeting of Board is _______________

The time gap between two Annual General Meetings should not exceed______

Power to set up the Tribunal is vested in ______________

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

Issuance of a share warrant is necessary, so that __________

Which of the following companies must have Articles of Association________

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

The Prospectus must be issued within___________

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

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

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

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

The public trustee may attend the meeting of the company_______

Annual Returns are required to be filed within___________

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

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

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

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

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__________