Company Law Multiple Choice Questions

aibe law entrance exam questions

Question: _________ Order to call a EGM even though 1 member present in person or by proxy.
(a) ROC
(b) C.G
(c) NCLT
(d) D.C.A

Ans. (b)

Question: Ajit is a director who has experience of 20 years on this basis Annapurna Pvt Ltd taken him as a director. Can the Annapurna Pvt Ltd say that the director Ajit experience is company’s experience
(a) Yes
(b) No
(c) Situation does not arise.

Ans. (a)

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Question: Maximum rate of discount that can be allowed on issue of shares
(a) 5%
(b) 10%
(c) 15%
(d) 20%

Ans. (b)

Question: In case of public company towards quorum proxies will also be counted
(a) Yes
(b) No

Ans. (b)

Question: Liability under_____ sec. may be imposed only if it is proved that the companies business has been carried on with a view to defraud the creditors
(a) 540
(b) 541
(c) 542
(d) 543

Ans. (c)

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Question: Age limit of Directors in case of private company is ___________
(a) 65
(b) 70
(c) 75
(d) No limit

Ans. (d)

Question: Advance money received from any purchasing agent, selling agent in the ordinary course of the business will be treated as deposit.
(a) Yes
b) No

Ans. (b)

Question: Minimum paid up share capital in case of a public company is _____
(a) 1 Lakh
(b) 3 Lakhs
(c) 5 Lakhs
(d) 7 Lakhs

Ans. (c)

Question: 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

Ans. (b)

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Question: The lending of funds ultra vires, the company has no rights
(a) under the company’s Act
(b) contract Act
(c) under equity
(d) None of the above

Ans. (a)

Question: If the company failed to comply with the order of NCLT they will be punishable with fine and
imprisonment up to
(a) 2 years
(b) 3 years
(c) 4 Years
(d) None of these

Ans. (b)

Question: Share warrants can be issued with the prior approval of the____
(a) Company law board
(b) Dept of company affairs
(c) Registrar
(d) None

Ans. (c)

Question: Minimum no. of Directors in case of a public company is ___
(a) 1
(b) 2
(c) 3
(d) 4

Ans. (c)

Question: Which of the following is not a member of a company?
(a) Partnership firm
(b) Foreigner
(c) Government
(d) HUF

Ans. (a)

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Question: 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

Ans. (c)

Question: ___ is issued in acknowledgement of any indebtedness
(a) Debenture certificate
(b) Share certificate
(c) Share warrant
(d) None of the above

Ans. (a)

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Question: XYZ Company accepted deposits on March 1 st 2016 and at the time of acceptance the repayment will be as per the company is March 1 st , 2021. Is the company and deposits are valid.
(a) Yes
(b) No

Ans. (b)

Question: In case of Non -Profit making Companies notice of general meeting should be given with in _____ days
(a) 14
(b) 15
(c) 21
(d) 22

Ans. (a)

Question: In case of private company towards quorum proxies will be counted
(a) Yes
(b) No

Ans. (a)

Question: If the statutory meeting is not held .The company may be wound up. Is it correct
(a) Yes
(b) No

Ans. (a)

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Question: To issue the shares at discount company at least how many years should complete how many years ___
(a) 1
(b) 2
(c) 3
(d) 4

Ans. (a)

Question: _____ can vote at the meeting even though not a member.
(a) Body corporate
(b) President
(c) Governor
(d) All the above

Ans. (d)

Question: What is the liability of an expert for mis-statement _____
(a) Fine – 50,000
(b) Imprison – 2 years
(c) Both (a) & (b)
(d) None of the above

Ans. (a)

Question: 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

Ans. (b)

Question: Which of the following is a right of the members of a company_____
(a) Right to have share
(b) Right Appoint Auditor
(c) Right Appoint Director
(d) All the above

Ans. (d)

Question: Which of the following can issue the share warrant
(a) Public
(b) Private
(c) Both (a) & (b)
(d) None of the above

Ans. (a)

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Question: Employees of RBI will not cover under payment of Bonus Act 1965.
(a) Yes
(b) No.

Ans. (a)

Question: Transfer of shares in the case of public company is
(a) Prohibited
(b) Restricted
(c) Freely transferable
(d) None of these

Ans. (c)

Question: In the given below who are required to hold A.G.M___________
(a) Public company
(b) Private company
(c) Government company
(d) All the three

Ans. (a)

Question: Generally rights and obligations of the Partnership firm are regulated in
(a) A.O.A
(b) M.O.A
(c) Partnership deed
(d) None of these

Ans. (c)

Question: In an establishment 15 employees working with a salary below than Rs.3500 and 7 employees working with a salary more than Rs.3500. Is the establishment covered under payment of Bonus Act 1956?
(a) Covered
(b) Not covered

Ans. (a)

Question: U/s 274 (f) (g) directors are disqualified for how many________ years.
(a) 1
(b) 3
(c) 5
(d) 7

Ans. (c)

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Question: Where the registrar strikes off the register the name of a company as a defunct one, the court has the power to order restoration of name with in:
(a) 5 years
(b) 7 years
(c) 10 years
(d) 20 years

Ans. (c)

Question: In case of default with regards to deposits intimation to NCLT should be made with how many
days.
(a) 10
(b) 20
(c) 30
(d) 40

Ans. (c)

Question: The person to whom the rights and duties are endorsed is called ______________
(a) Transferee
(b) Transferor
(c) Endorser
(d) Endorsee

Ans. (a)

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Question: A body corporate appointed a person as a proxy he will be counted for quorum or not
(a) Counted
(b) Not counted

Ans. (a)

Question: Is there any chance under payment of Bonus Act to cover any establishment which is having employees less than 20?
(a) Yes
(b) No

Ans. (a)

Question: Consideration is necessary. In case of transfer
(a) Yes
(b) No

Ans. (a)

Question: A share warrant is transferable by ____________
(a) By Execution of transfer deed
(b) By delivery
(c) both (a) and (b)
(d) None of the above

Ans. (b)

Question: In a private company 49 members are there who were first appointed as a member then joined as an employee 2 members holding 1 share and 15 debenture holders. Did the Company crossed maximum limit?
(a) Yes
(b) No

Ans. (b)

Question: After the expiry of how much time the company must think that the permission was not granted
(a) 11 weeks
(b) 12 weeks
(c) 10 weeks
(d) None of these

Ans. (c)

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Question: The person who transfer his rights and duties is called ______________
(a) Transferee
(b) Transferor
(c) Promisor
(d) Promisee

Ans. (b)

Question: _____  are attached to the share warrant
(a) Dividend coupon
(b) Warrant

Ans. (a)

Question: 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

Ans. (a)

Question: Public Company and Public Sector Company both the companies are same.
(a) True
(b) False

Ans. (b)

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Question: Employees employed under Dock workers Act will cover under payment of Bonus Act 1956.
(a) Yes
(b) No.

Ans. (b)

Question: Employee also required to match the contribution.
(a) True
(b) False

Ans. (b)

Question: Own funds are called
(a) Debenture capital
(b) Share capital
(c) Loan capital
(d) None of the above

Ans. (b)

Question: If an establishment in previous year covered under payment of Bonus Act. But in this year the employees had reduced to below 20. Is that establishment covered under payment of Bonus Act
(a) Covered
(b) Not covered

Ans. (a)

Question: If there  is  any variation in  case  of R.H.P ___ days should be given for withdrawal  of application
(a) 1
(b) 3
(c) 5
(d) 7

Ans. (d)

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Question: Preference shareholders will be counted towards quorum at General meeting
(a) Yes
(b) No

Ans. (b)

Question: From the above how much will be maximum interest
(a) 10%
(b) 12%
(c) 15%
(d) None of these

Ans. (c)

Question: Public deposit matures and claimed but remains unpaid, penal interest will be
(a) 17%
(b) 16%
(c) 18%
(d) None of these

Ans. (c)

Question: If a new company get registered with a name which resembles the name of existing company then it should apply to whom?
(a) NCLT
(b) SEBI
(c) ROC
(d) None of the above

Ans. (a)

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Question: In case of red-herring prospectus the refund is made with an interest @_____
(a) 12
(b) 13
(c) 15
(d) 16

Ans. (c)

Question: If the guarantee Co. having no share capital the liability of shareholders will be
(a) To the extent of guarantee
(b) Unpaid value of shares
(c) Unlimited
(d) None of the above

Ans. (a)

Question: The company can issue shares for a discount at their first issue.
(a) Yes
(b) No

Ans. (b)

Question: The company’s nationality is decided by its
(a) Shareholders
(b) Registered office
(c) Place at books of accounts are kept
(d) None of the above

Ans. (b)

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Question: Employees of the Agricultural Refinance Corporation will cover under payment of Bonus Act 1956.
(a) Yes
(b) No.

Ans. (b)

Question: The doctrine of__________ does not apply to acts void ab initio.
(a) Ultra virus
(b) Intra virus
(c) constructive notice
(d) Indoor management

Ans. (d)

Question: Deposit holder can file winding up petition under which sec.
(a) 433 (a)
(b) 433 (c)
(c) 433 (e)
(d) 433 (f)

Ans. (c)

Question: All special business can only be transected by passing a special resolution. Do you agree with this statement
(a) Agree
(b) Disagree

Ans. (b)

Question: Statutory meeting must be held in case of a private company
(a) Yes
(b) No

Ans. (b)

Question: If the employer is a corporation deduction will be allowed under 3 rd schedule is while determining
available surplus_________ % of its reserves, shown in its B/S as at the commencement of the
accounting year
(a) 5%
(b) 6%
(c) 7%
(d) None of these

Ans. (b)

Question: _____ form is to be find in case of variation rights of share holders
(a) 23
(b) 19
(c) 18
(d) 20

Ans. (b)

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Question: If the employer is a co-operative Society deduction will be allowed under 3 rd schedule is while determining   available    surplus ____ %   of   the   capital   invested   by   such   society   in   its establishment at the commencement of the accounting year.
(a) 8.5%
(b) 6.5%
(c) 7.5%
(d) None of these

Ans. (a)

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Jaspreet Singh

Jaspreet (Masters in Commerce) not only have exceptional command of Accounts and Commerce subjects but also have keen interest in Law. He is consistent in producing high quality assignments.

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