Question 1

Every AGM must be held with ___ from the date of the Balance Sheet.

Accepted Answer

C

Question 2

After the expiry of how much time the company must think that the permission was not granted

Accepted Answer

The company should consider that permission was not granted after 10 weeks, as this is typically the standard time frame for such decisions.

Question 3

The resolution passed at AGM are__________

Accepted Answer

Resolutions passed at an Annual General Meeting (AGM) are considered valid as long as they are made in accordance with the law and the company's articles of association.

Question 4

Own funds are called

Accepted Answer

Own funds in a company typically refer to the money that comes from within the company's owners or shareholders, which is known as share capital. This contrasts with borrowed funds, such as debentures or loans, which must be repaid.

Question 5

If a new company get registered with a name which resembles the name of existing company then it should apply to whom?

Accepted Answer

The answer of If a new company get registered with...

Question 6

In case of red-herring prospectus the refund is made with an interest @_____

Accepted Answer

In the case of a red-herring prospectus, if the refund is delayed, the interest is typically paid at a rate of 15% per annum.

Question 7

If the guarantee Co. having no share capital the liability of shareholders will be

Accepted Answer

In a guarantee company having no share capital, the liability of its members (shareholders) is limited to the amount they agree to contribute to the assets of the company in the event of its being wound up, which is the extent of their guarantee. This is different from companies with share capital, where the liability can be limited by shares.

Question 8

First AGM must be held within_____________ from the incorporation of the company

Accepted Answer

The first Annual General Meeting (AGM) of a company must be held within 18 months from the date of its incorporation. This allows new companies sufficient time to organize their first AGM.

Question 9

The doctrine of__________ does not apply to acts void ab initio.

Accepted Answer

The doctrine of indoor management protects outsiders dealing with a company, assuming internal procedures are followed. It does not apply to acts that are void ab initio, as such acts are invalid from the outset and cannot be legitimized by internal compliance.

Question 10

Cumulative preference share holders have voting right if dividend are in arrears for years

Accepted Answer

Cumulative preference shareholders typically have the right to vote if dividends are in arrears for a specified period, often stated in the company's articles of association or the terms of the preference shares. This period is commonly set at 2 years, but it can vary depending on the company's specific policies or the terms of issuance of the preference shares.

Question 11

In case of Partly Convertible Debentures non-convertible portion is classified as_____

Accepted Answer

The non-convertible portion of partly convertible debentures is classified as debt because it represents a portion that will not convert into equity shares and remains as a borrowing to be repaid to the investors.

Question 12

Transmission is effected by

Accepted Answer

Transmission of shares or interests occurs upon the death or insolvency of a member, not through sale. Sale involves a transfer, not transmission.

Question 13

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

Accepted Answer

Companies can use free reserves, securities premium, or the proceeds from a fresh issue of shares for the buyback of their shares. This provides flexibility in financing the buyback.

Question 14

Deposits should issued with in__________ weeks from the date of receipt of money.

Accepted Answer

The answer of Deposits should issued with in__________ weeks from...

Question 15

Information memorandum + shelf prospectus together constitutes_____

Accepted Answer

Information memorandum and shelf prospectus together constitute a prospectus, which is a formal document that companies use to inform potential investors about an investment offering.

Question 16

In the event of appointing a proxy joint holders shall sign the proxy form

Accepted Answer

In the case of joint holders, all holders must sign the proxy form jointly to ensure that the appointment of the proxy is valid and represents the collective decision of all joint holders.

Question 17

Minimum number of members in case of private company is

Accepted Answer

A private company must have at least 2 members according to most jurisdictions' company laws.

Question 18

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

Accepted Answer

Purchasing shares in the primary market directly involves the issuance of new shares by the company, and the prospectus is a key document that investors rely on to make their investment decisions. If there are mis-statements in the prospectus, investors who purchased shares based on that information have a right to claim compensation for any loss incurred due to those mis-statements.

Question 19

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

Accepted Answer

The answer of ______ years of imprisonment will be imposed...

Question 20

Forfeiture can be made only if it is authorized by ______

Accepted Answer

The answer of Forfeiture can be made only if it...

Quiz 3: Company Law and Regulations: Part 1