Deck 2: Company Law and Prospectus Regulations

Question 1

Which of the following need not have MOA

A)Public company
B)Private company
C)Government company
D)Statutory Corporation.

Answer 1

Statutory Corporation.

Question 2

A company can change its name by passing

A)Ordinary resolution
B)Special resolution
C)Either by special resolution or by ordinary resolution
D)None of the above

Answer 2

None of the above

Question 3

Ultra vires loans granted by the company are

A)Void
B)Voidable
C)Valid
D)None of the above

Answer 3

Void

Question 4

What is known as a charter of a Company?

A)Memorandum
B)Articles
C)Bye laws
D)Prospectus

Question 5

The granting of the certificate of incorporation renders the illegal objects include in the memorandum:

A)Legal
B)Void
C)Voidable
D)None of the above

Question 6

Change in objects clauses can be effected

A)For any reason
B)For special reason only
C)to comply with C.G order
D)None of the above

Question 7

The capital clause of a company can be changed with the permission of _____________

A)Company law board
B)Registrar
C)Court
D)None of the above

Question 8

______ conceives the idea of the business

A)Promoters
B)Directors
C)Auditors
D)None of the above

Question 9

_______stands in the fiduciary position of the company

A)Directors
B)Promoters
C)Auditors
D)None of the above

Question 10

______ are the contracts entered into by promoters on behalf of a prospectus company.

A)Provisional contracts
B)Pre Incorporation contracts
C)Preliminary contracts
D)Both a) & b)

Question 11

Contracts made after incorporation but before the grant of Certificate of commencement of Business _____

A)Provisional contracts
B)Pre incorporation contracts
C)Preliminary contracts
D)Both (b) & (c)

Question 12

Pre incorporation contract is also known as _________

A)Provisional
B)Preliminary
C)illegal
D)legal

Question 13

A public company can borrow money ___________

A)before incorporation
B)Soon after incorporation
C)after issuing a proposal
D)after obtaining certificate to commerce business.

Question 14

A private company can borrow funds

A)after incorporation
B)after obtaining certificate to commerce business
C)after holding first annual general meeting
D)None of the above

Question 15

A promoter is a person who

A)is a director.
B)is a relative of the company.
C)is a wellwisher of the company.
D)takes part in the companys incorporation.

Question 16

When there is a untrue statement in a prospectus who can sue

A)Subscribed in primary market
B)Subscribed in secondary market
C)Rights issue
D)None of the above

Question 17

Definition of prospectus was given under which sec.

A)2 (30)
B)2 (32)
C)2 (34)
D)2 (36)

Question 18

Which of the following are not required to issue prospectus?

A)Private company
B)In case of right issue
C)Sweat equity issue
D)All the above

Question 19

_______are the prospectus issued instead of full prospectus

A)Abridged
B)Statement in lieu
C)Shelf
D)Red herring

Question 20

Which one of the following has a right to claim compensation for any loss due to misstatement in prospectus

A)Purchasing shares in Primary Market
B)Secondary Market
C)Subscribers to memo.
D)All the above

Question 21

_______ years of imprisonment will be imposed in case of issue of prospectus with untrue statements

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

Question 22

What is the liability not delivering that can be imposed for statement in lieu of prospectus_________

A)Fine - 10,000
B)Imprisonment - 2 years
C)Both (a) & (b)
D)None of the above

Question 23

_______ are the prospectus issued by the issuing house

A)Deemed prospectus
B)Shelf prospectus issued by the issuing house
C)Red herring
D)None of the above

Question 24

_________ prospectus were issued in case securities were issued in stages

A)Deemed
B)Shelf
C)Red herring
D)None of the above