Commerce exams sample papers

Company Law Important Multiple Choice Questions

Company Law mcqs

Ques. Transmission is effected by
(a) Sale
(b) Death
(c) Insolvency
(d) Both (b) & (c)
Ans. (d)

Ques. 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
Ans. (d)

Ques. Deposits should issued with in__________ weeks from the date of receipt of money.
(a) 2
(b) 4
(c) 6
(d) 8
Ans. (d)

Ques. There is no need to held statutory meeting in case of Government company?
(a) Yes
(b) No
Ans. (a)

Ques. Public company can allot shares without receiving minimum subscription?
(a) Yes
(b) No
Ans. (b)

Ques. For every special resolution passed the form attached should be
(a) Form no.32
(b) Form no. 18
(c) Form no.23
(d) None of these
Ans. (c)

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Ques. Buy back securities should be physically destroyed with in_____________ days
(a) 7
(b) 17
(c) 21
(d) 28
Ans. (a)

Ques. After buy back company can’t issue the same kind of shares for____________ months
(a) 6
(b) 12
(c) 18
(d) 24
Ans. (a)

Ques. If minimum subscription is not received application money should be refunded with in ____  days
(a) 20

(b) 25
(c) 30
(d) 10
Ans. (d)

Ques. Information memorandum + shelf prospectus together constitutes_____
(a) Memorandum
(b) Articles
(c) Prospectus
(d) None of the above
Ans. (c)

Ques. In the event of appointing a proxy joint holders shall sign the proxy form
(a) Singularly
(b) Jointly
(c) None of the above
(d) both (a) & (b)
Ans. (b)company law book

Ques. Balance in securities premium A/c should be utilized for declaring dividends.
(a) Yes
(b) No
Ans. (b)

Ques. In case of alternation of AOA to deletion or insertion of provisions defining private company shall
be passed by resolution through postal ballot.
(a) Yes
(b) No
Ans. (a)

Ques. While calculating Direct tax payable u/s 7 of the payment of Bonus Act. Which of the following.
Should not be considered?
(a) Exemption under I.T. Act
(b) Deduction under I.T. Act
(c) Loss carried forward
(d) All of the above
Ans. (d)

Ques. Minimum number of members in case of private company is
(a) 1
(b) 2
(c) 3
(d) 4
Ans. (b)

Ques. Maximum no .of members in case of public company is
(a) 0
(b) unlimited
(c) 50
(d) 100
Ans. (b)

Ques. What is minimum bonus u/s 10 of the payment of Bonus Act
(a) 8.3% or Rs. 100 ↓
(b) 8.33% or Rs. 100↓
(c) 8.33% or Rs. 60↓
(d) None of the above
Ans. (a)

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Ques. The liability of members if company is limited by guarantee.
(a) Unpaid value of shares
(b) Guarantee amount
(c) Unlimited liability
(d) None of the above
Ans. (b)

Ques. Which one of the following has a right to claim compensation for any loss due to mis-statement in prospectus
(a) Purchasing shares in Primary Market
(b) Secondary Market
(c) Subscribers to memo
(d) All the above
Ans. (a)

Ques. Is a document showing title
(a) Share certificate
(b) Share warrant
|(c) Both (a) & ((b)
(d) None of the above
Ans. (c)

Ques. Extension of time limit is possible only in which of the following?
(a) Shares
(b) Debentures
(c) Both (a) & (b)
(d) None of the above
Ans. (b)

Ques. ______ years of imprisonment will be imposed in case  of issue  of prospectus with untrue statements
(a) 1
(b) 2
(c) 3
(d) 4
Ans. (b)

Ques. The liability of members if company is limited by shares
(a) Unpaid value of shares
(b) Guarantee amount
(c) Unlimited liability
(d) None of the above
Ans. (a)

Ques. In case of company opting for buy back of own shares. It should pass resolutions through postal ballot
(a) Yes
(b) No
Ans. (a)

Ques. In case of a company going for public issue premium can be declared by BOD.
(a) Yes
(b) No
Ans. (b)

Ques. If the permission has not been granted or not applied for permission for listing through stock
exchange. The allotment of shares will be void in case of public company
(a) Yes
(b) No
Ans. (a)

Ques. Forfeiture can be made only if it is authorized by ______
(a) AOA
(b) MOA
(c) ROC
(d) C.G
Ans. (b)

Ques. Name of the member is struck off from the register in case of____________
(a) Issue of share certificate
(b) Share warrant
(c) Forfeiture
(d) None of the above
Ans. (b)

Ques. If the company has not received permission for listing from stock exchange and repayment of amount delayed by more than 8 days the minimum interest should be paid is
(a) 4%
(b) 3%
(c) 2%
(d) none of these
Ans. (a)

Ques. A company can become a members of another company if it is so authorized by______
(a) MOA
(b) AOA
(c) Both (a) & (b)
(d) None of the above
Ans. (a)

Ques. Validity period of information memorandum is___________
(a) 1 year
(b) 2 years
(c) 3 years
(d) 4 years
Ans. (a)

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Ques. Liability of a member in case of a private company is
(a) Limited
(b) Unlimited
(c) Both (a) or (b)
(d) None of the above
Ans. (c)

Ques. Generally Company liability is
(a) Limited
(b) Unlimited
(c) Situation does not arise
Ans. (a)

Ques. Can private company go for public issue?
(a) Yes
(b) No
Ans. (b)

Ques. Can a company sign on behalf of a person in memorandum and articles
(a) Yes
(b) No
Ans. (a)

Ques. X, is a director of X Company and X is also a director of Y Company this means X Co. and Y Co. both are same
(a) True
(b) False
Ans. (b)

Ques. Members of a company can enter contract with the company
(a) True
(b) False
Ans. (a)

Related: Company Law Assignment Questions

Ques. Can a Minor be a subscriber
(a) Yes
(b) No
Ans. (b)

Ques. Can private company accept deposits from the public?
(a) Yes
(b) No
Ans. (b)

Ques. Generally partnership firm liability is
(a) Limited
(b) Unlimited
(c) Situation does not arise
Ans. (b)

Ques. Central Government permission is required in case of_____ conversion____
(a) Private to public
(b) Public to private
(c) Both (a) or (b)
(d) None of the above
Ans. (b)

Ques. How many members should sign the MOA in case of private company_____________
(a) 1
(b) 2
(c) 3
(d) 4
Ans. (b)

Ques. In case minimum subscription is not received and refund is delayed____ % of interest to be paid by the company.
(a) 5
(b) 6
(c) 7
(d) 8
Ans. (b)

Ques. Paying back of capital is called
(a) Redemption
(b) Conversion
(c) Participation
(d) None
Ans. (a)

Ques. Proxies cannot vote on_________
(a) Show of hands
(b) Poll
(c) Both (a) & (b)
(d) None of the above
Ans. (a)company law books

Ques. Share holders are
(a) Owners
(b) Creditors
(c) Debtors
(d) None of the above
Ans. (a)

Ques. To Apply EPF Act in which more than or equal to ____ employed
(a) 20
(b) 15
(c) 10
(d) None of these
Ans. (a)

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Ques. While Calculating 20 employee salary above 6500 shall not be included
(a) Yes
(b) No
Ans. (a)

Ques. Minimum number of members in case of public company
(a) 1
(b) 2
(c) 5
(d) 7
Ans. (d)

Ques. Maximum no. of persons in case of partnership banking business ___________
(a) 10
(b) 20
(c) 30
(d) 5
Ans. (a)

Ques. Minimum no. of Directors in case of private company is __________
(a) 1
(b) 2
(c) 3
(d) 4
Ans. (b)

Ques. XYZ Company conducted an AGM on 8tht August.2016. On that day due to fire accident in the hall.
All shareholders died. Will the company will be in existence.
(a) Yes
(b) No
Ans. (a)

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Ques. If the company failed to refund application money with in 130 days from the date of issue of
prospectus on non-receipt of minimum subscription who will be personally liable.
(a) Company
(b) Directors
(c) Shareholders
(d) None of these
Ans. (b)

Ques. Can the partners enter into the contract with the firm?
(a) Yes
(b) No
Ans. (b)

Ques. Basic wages as per EPF Act will not include the cash value of any food concessions
(a) True
(b) False
Ans. (a)

Ques. Basic wages as per EPF Act does not include D.A.
(a) True
(b) False
Ans. (a)

Ques. X Company is holding majority of shares in Y company. Will X and Y companies will be the same.
(a) Yes
(b) No
Ans. (b)

Ques. A company is named as govt. company if it is holds_________ % of paid up share capital
(a) more than 30
(b) more than 40
(c) more than 50
(d) None
Ans. (c)

Ques. Contribution shall be made by the employer is ____________  of basic wages and D.A allowance and retaining
(a) 12%
(b) 10%
(c) 15%
(d) None of these
Ans. (a)

Ques. Contribution made by employer towards EPF fund shall be deducted from employee wages
(a) True
(b) False
Ans. (b)

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Ques. In addition to the contribution employer has to pay ______________  % of wages as inspection charges
(a) 0.19%
(b) 0.18%
(c) 0.17%
(d) None of these
Ans. (b)

Ques. _______ % of shares should be held by a company in another company so as to become subsidiary
(a) more than 50
(b) more than 40
(c) more than 30
(d) more than 20
Ans. (a)

Ques. In case of Non -Profit making Companies books of accounts are required to be preserved for _____ years
(a) 2
(b) 4
(c) 6
(d) 8
Ans. (b)

Ques. Basic wages as per EPF Act include HRA
(a) True
(b) False
Ans. (b)

Ques. Basic wages as per EPF Act include Time wages and piece rate wages.
(a) True
(b) False
Ans. (a)

Ques. Accepting of deposits from public in case of private company is
(a) Prohibited
(b) Restricted
(c) Acceptable
(d) None of these
Ans. (a)

Ques. XYZ Co, is having 10% share capital held by another Public Company and 35% held by Central
Government and 55% held by people then that Company is
(a) Government Company
(b) Private Company
(c) Public Company
(d) None of these
Ans. (c)

Ques. XYZ Co, is having 15% share capital held by X Company and 50% held by Central Government and 10% held by State Government and 25% held by other people then that company will be
(a) Government Company
(b) Private Company
(c) Public Company
(d) None of these
Ans. (a)

Ques. Sec.25 Companies should pay stamp duty for registering MOA and AOA.
(a) Yes
(b) No
Ans. (b)

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Ques. XYZ Co. is a holding of XZ Pvt. Company. XZ Co. issued deferred shares. The issue is valid or void
(a) Valid
(b) Void
(c) Situation does not arise
Ans. (b)

Ques. Stamp duty on registration of the company is payable based on____________ capital.
(a) Nominal
(b) Authorized
(c) Both (a) & (b)
(d) None
Ans. (c)

Ques. ____ are the shares issued by the company to it employees or directors for consideration other than cash
(a) Bonus
(b) Sweat
(c) Right
(d) None of the above
Ans. (b)

Ques. ________ 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
Ans. (a)

Ques. For reducing its share capital it should give notice to whom?
(a) Debtors
(b) Creditors
(c) Both (a) & (b)
(d) None of the above
Ans. (b)

Ques. NCLT came into force instead of company Law Board from
(a) June 4 th
(b) May 4 th
(c) June 5 th
(d) None of these
Ans. (a)

Ques. How many members should sign the MOA in case of public company________
(a) 1
(b) 3
(c) 5
(d) 7
Ans. (d)

Ques. Private company can start business only after getting certificate of
(a) Incorporation
(b) Commencement of business
(c) None of these
Ans. (a)

Ques. The doctrine of indoor management is an_________ to the doctrine of constructive notice
(a) Exception
(b) Extension
(c) Alternative
(d) None of the above
Ans. (b)

Ques. Companies are now allotted a_________ in addition to their name
(a) PAN
(b) SIN
(c) PIN
(d) CIN
Ans. (d)

Ques. In how many days did the company have its registered office after incorporation
(a) 10
(b) 20
(c) 30
(d) 40
Ans. (c)

Ques. Signature of memorandum and articles should be done by ______ number of persons in case of public company
(a) 7
(b) 5
(c) 4
(d) None of these
Ans. (a)

Ques. MOA should be in form_______ in case of company limited by guarantee not having share
capital
(a) Table A
(b) Table B
(c) Table C
(d) Table D
Ans. (c)

Ques. In the MOA there are 6 classes. We can alter all clauses expect one clause. What is that clause?
(a) Objects clause
(b) Name clause
(c) Association clause
(d) None of these
Ans. (c)

Ques. If any body wants to file a case against the company they should file at what place _____
(a) Company
(b) Registered Office
(c) BOD
(d) Books of accounts
Ans. (b)

Ques. Ultra vires loans granted by the company are
(a) Void
(b) Voidable
(c) Valid
(d) None of the above
Ans. (a)

Ques. conceives the idea of the business
(a) Promoters
(b) Directors
(c) Auditors
(d) None of the above
Ans. (a)

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