Deck 4: Company Share Capital and Buy Back Regulations

Question 1

_________have fixed denomination

A)Share
B)Stock
C)Both a & b
D)None of the above

Answer 1

Share

Question 2

________resolution should be passed by the company to offer shares to outsiders

A)Special resolution
B)Ordinary resolution
C)C.G
D)None of the above

Answer 2

Special resolution

Question 3

Company must pass ________ for reducing its share capital

A)O.R
B)S.R
C)C.G permission
D)None of the above

Answer 3

S.R

Question 4

Court order the company to add _________ after reducing its share capital

A)And reduced
B)Ltd
C)Both a or b
D)None of the above

Question 5

For reducing its share capital it should give notice to whom?

A)Debtors
B)Creditors
C)Both a & b
D)None of the above

Question 6

Reduction & diminution is done under which sec.

A)100 & 94
B)94 & 100
C)100 & 96
D)96 & 100

Question 7

Which of the following can be used for buy back of shares

A)Free reserves
B)Securities premium
C)Proceeds of fresh issue of shares
D)All of the above

Question 8

Buy back by board resolution can only be upto _________

A)15
B)10
C)25
D)20

Question 9

Buy back should be less than or equal to _________% of total paid up capital

A)25
B)30
C)35
D)40

Question 10

In case of buy back debt equity ratio should be ________

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

Question 11

Every buy back shall be completed within _____ month from the date of passing the S.R.

A)6
B)8
C)10
D)12

Question 12

__________companies are permitted to buy back its shares

A)Insolvent
B)Solvent
C)Both a & b
D)None of the above

Question 13

Buy back securities should be physically destroyed within ________days

A)7
B)17
C)21
D)28

Question 14

After buy back company can't issue the same kind of shares for ________months

A)6
B)12
C)18
D)24

Question 15

Within 30 days of completion of buy back company shall file the details with whom _________

A)Registrar
B)SEBI
C)Both a & b
D)None of the above

Question 16

If buy back is made from free resources then what should be created __________

A)Debenture Redemption Reserve
B)Capital Redemption Reserve
C)Statutory liquid Ratio.
D)None of the above

Question 17

The premium amount that can be charged as per companies Act.

A)10%
B)15%
C)20%
D)None of these

Question 18

A company to issue sweat equity shares must pass a.

A)Special resolution
B)Ordinary resolution
C)Unanimous resolution
D)None of these

Question 19

The notice offering right shares must allow the members ________to exercise their option to accept, reject or renounce it

A)10 days
B)14 days
C)15 days
D)20 days

Question 20

The company must deliver share certificate within ___________ if the shares allotted by company.

A)2 months
B)3 months
C)4 months
D)none of these

Question 21

The company must deliver share certificate within ___________ if the shares applied for transfer.

A)3 months
B)2 months
C)5 months
D)none of these

Question 22

Share warrants can be issued with the prior approval of the _____________

A)Company law board
B)Dept of company affairs
C)Registrar
D)None

Question 23

Stamp duty to be paid at the time of issue of share certificate is.

A)Nominal
B)High
C)Very high
D)None of these

Question 24

Stamp duty to be paid at the time of issue of share warrant.

A)Nominal
B)High
C)Very high
D)None of these

Question 25

______ specifies the time limit with in which share certificate is to be delivered

A)sec 110
B)sec 111
C)sec 112
D)sec 113