Deck 2: Company Law and Formation: Part A

Question 1

On a share of Rs.200 of a company a shares holder has already paid Rs.150 . His L9iability is now limited to:-

A)200
B)50
C)150
D)0

Answer 1

50

Question 2

----------------- refers to a voluntary association of individuals formed for the purpose of obtaining a particular social or economical goal.

A)Illegal Association
B)Partnership
C)Incorporation
D)Company

Answer 2

Company

Question 3

A ----------------------- is a document but invites the public to subscribe for share and debentures

A)Memorandum
B)Articles
C)Prospectus
D)Certificate

Answer 3

Prospectus

Question 4

The ---------------- issues the certificate of incorporation

A)Register
B)Director
C)Court
D)All of the above

Question 5

Corporate veil ensures -------------------- of the company

A)Protection
B)Legal Immunity
C)Both A and B
D)None of the above.

Question 6

The articles of Association and the memorandum of Association are drafted by -----------------

A)Auditor
B)Director
C)Secretary
D)Register

Question 7

Doctrine of Ultra virus has reference to ----------------- clause

A)Object
B)Subscription
C)Liability
D)None of these.

Question 8

Which doctrine protects the out of the outsiders from the company-

A)The doctrine of Ultra virus
B)The doctrine of indoor management
C)Both A and B
D)None of the above

Question 9

Which Doctrine seeks to promote the company from the outsiders-

A)The doctrine of indoor management
B)The doctrine of Ultra virus
C)The doctrine of constructive notice
D)None of these.

Question 10

Sec. --------------------- of the companies Act deals with the meaning and provisions related to the shelf prospectus.

A)50
B)4(1)
C)2(2)
D)60

Question 11

Sec. ------------------------ of the companies act states that, a public company making an issue of securities shall circulate information memorandum to the public before filling of a prospectus.

A)60(B)
B)60(a)
C)16(B)
D)16(a)

Question 12

The person of group who being a company into existence are called-----------------

A)A firm
B)Incorporation
C)Promoters
D)Promotion

Question 13

The board of directors delegate the power to -------------------

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

Question 14

------------------ are subordinate to and controlled by the memorandum.

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

Question 15

A copy special resolution has to be filed with the register within -------------- days

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

Question 16

A printed copy articles as altered shall be filed by the company with the register within ----------------- --- of order of approval from central

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

Question 17

Sec. ------------------------- of the companied Act defines foreign company

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

Question 18

Sec.25 related to ------------------- companies

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

Question 19

Holding company is defined in section -------------------- of the companies Act.

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

Question 20

--------------------- is the first stage in the formation of a company

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

Question 21

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

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

Question 22

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 23

When one company controls the management of another company, the format is called a -------------- ------- company

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

Question 24

-------------------- is issued by any financial constitution or bank for on e or more of issues of securities or class of securities specified in the prospectus.

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

Question 25

The other name of indoor management is called --------------

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