Question 1

On a winding up order being made, the co9mpany's property comes under the custody of ------------

Accepted Answer

Upon a winding-up order being made, the company's property comes under the custody of the liquidator, who is responsible for settling the company's debts and distributing the remaining assets to the shareholders.

Question 2

A proxy can vote only in case of ------------------

Accepted Answer

A proxy can vote only in case of a poll, which is a voting method used in meetings or gatherings to make decisions or express opinions on a particular matter. Unlike general elections or votes, where individuals must cast their own vote, polls can allow for proxy voting, where one person votes on behalf of another.

Question 3

Where a directors acts dishonestly to the interest of the company. He will be held liable for ---------- ------

Accepted Answer

A director acting dishonestly breaches their fiduciary duty, which requires them to act in the best interest of the company.

Question 4

Shelf Prospectus means a prospectus issued by ---------------------

Accepted Answer

A shelf prospectus is issued by financial institutions or banks to raise funds through multiple issues of securities without having to issue a separate prospectus for each offering.

Question 5

The most clause in the memorandum of Association of a company is---------------

Accepted Answer

The objects clause is crucial as it defines the purpose and range of activities the company is allowed to undertake, guiding its operations and legal standing.

Question 6

The alteration of the memorandum has to be certified by the Registrar within

Accepted Answer

The alteration of the memorandum has to be certified by the Registrar within 30 days.

Question 7

The charter of a company is its ----------------

Accepted Answer

The Memorandum of Association is considered the charter of a company as it outlines the company's structure and defines its relationship with the outside world.

Question 8

Notice of the registered office of the company shall be given to the registration of companies within ------------------------

Accepted Answer

The correct answer is 30 days. This is a standard regulatory requirement in many jurisdictions, where a company must notify the registrar of companies about the location of its registered office within 30 days of incorporation or of any change in its location. This is crucial for legal and communication purposes.

Question 9

An act which is to be ultra virus a company is ----------------

Accepted Answer

An act that is ultra vires (beyond the powers) of a company is considered void because it is outside the scope of the powers granted to the company by its constitution or charter.

Question 10

The statement in lieu of prospectus must be filed with the Registrar at least --------------- days before any allotment of shares is made.

Accepted Answer

The answer of The statement in lieu of prospectus must...

Question 11

Legal position of a promoter of a company is ----------------

Accepted Answer

The answer of Legal position of a promoter of a...

Question 12

The common seal of the company should have

Accepted Answer

The common seal of a company, often considered its official signature, traditionally includes the company's name, the phrase "Corporate Seal," and the place where the company is incorporated or established. This makes it a formal representation of the company's identity and authority.

Question 13

Shelf prospects relates under Sec. ---------------

Accepted Answer

Shelf prospects relate to Section 60A of the Companies Act, which allows companies to issue a prospectus for securities in one or more issues over a period without having to issue a new prospectus each time.

Question 14

The doctrine of indoor management provides protection to ----------------

Accepted Answer

The doctrine of indoor management, also known as the Turquand Rule, protects outsiders who deal with a company in good faith, assuming that the internal requirements and procedures of the company are properly followed.

Question 15

The exception to the doctrine of constructive notice is provided in ------------------

Accepted Answer

The exception to the doctrine of constructive notice is provided in the Doctrine of Indoor Management, which protects outsiders dealing with a company in good faith and without knowledge of irregularities within the company's internal management.

Question 16

The procedure to write facts about resolution and its decision is called

Accepted Answer

Minutes of narration is the correct term for the procedure used to write facts about resolutions and their decisions during meetings.

Question 17

For declaration of dividend no -------------------- resolution is required

Accepted Answer

The answer of For declaration of dividend no -------------------- resolution...

Question 18

Minutes of company meeting should e prepared with in ---------------- of the meeting

Accepted Answer

Minutes of a company meeting should be prepared within 30 days of the meeting to ensure accurate and timely documentation of decisions and actions agreed upon during the meeting.

Question 19

Voting in a company meeting can be through

Accepted Answer

Voting in a company meeting can be conducted through various methods, including ballot (a system of secret voting), raising hands (a public method of voting), and raising votes (which could refer to either of the previous methods or any method of expressing a vote). Therefore, all the options listed are valid methods of voting in a company meeting.

Question 20

An official liquidator is appointed by the -------------

Accepted Answer

The answer of An official liquidator is appointed by the...

Quiz 8: Common Company Law in India