ICSI Company Law Quiz Questions

ICSI Company Secretary Test

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

Ans. (a)

Ques. In case of Public Company the quorum should be
(a) 5 members
(b) 7 members
(c) 2 members
(d) None of these

Ans. (a)

Ques. _____ declares a company as a sick company.
(a) B.I.F.R
(b) M.R.T.P
(c) FERA
(d) None of the above

Ans. (a)

Ques. A company can change its name at its own discretion by passing _____
(a) Ordinary resolution
(b) Special resolution
(c) Boards resolution
(d) None of the above

Ans. (b)

Ques. Employees of UTI will not cover under payment of Bonus Act 1956
(a) Yes
(b) No

Ans. (a)

Ques. The company can issue shares for a discount immediately after getting certificate of commencement of business.
(a) Yes
(b) No

Ans. (b)

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Ques. If the guarantee Co. having share capital the liability of shareholders will be
(a) Guarantee +unpaid value of shares
(b) Unpaid value of shares
(c) Unlimited
(d) None of the above

Ans. (a)

Ques. Share premium amount is treated as the _____ capital of a company
(a) issued
(b) Reserve
(c) Subscribe
(d) None of the above

Ans. (b)

Ques. A company can create ‘reserve capital’ by passing_____________
(a) an ordinary resolution
(b) a special resolution
(c) a board resolution
(d) None of the above

Ans. (b)

Ques. M.M. Obtained, the incorporation on Jan 1, 1993 and C.C.B on June 1, 1993. The earliest date on which it can hold the statutory meeting is_____
(a) Feb 1, 1993
(b) March 1, 1993
(c) July 1, 1993
(d) August 1, 1993

Ans. (d)

Ques. For changing name of a company Central Govt. permission must be taken
(a) Yes
(b) No

Ans. (a)

Ques. If the name of the company is identical with or similar to an existing company then which resolution should be passed to change name
(a) Ordinary resolution
(b) Special Resolution

Ans. (a)

Ques. Majority rule is not applicable when
(a) The act done is illegal
(b) The act done is ultra vires the company
(c) The act done constitutes a fraud
(d) all the above

Ans. (d)

Ques. XYZ Company is a Government Company and X Co. is a subsidiary of XYZ Co. Then X Co. will be
(a) Public Company
(b) Private Company
(c) Government Company
(d) None of these

Ans. (c)

Ques. In case of shares under writing commission will be
(a) 2%
(b) 3%
(c) 5%
(d) None of these

Ans. (c)

Ques. If the employer is a foreign company.  Deduction will be allowed under 3 rd schedule is while determining available surplus __ of the aggregate of the value of the net fixed assets and the current assets.
(a) 7.5%
(b) 9.5%
(c) 8.5%
(d) None of these

Ans. (c)

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Ques. _____ is an aggregate of fully paid share that have been legally consolidated.
(a) Share
(b) Stock
(c) Both (a) & (b)
(d) None of the above

Ans. (b)

Ques. Board of directors has the authority to issue notice of the GM’S
(a) Yes
(b) No

Ans. (a)

Ques. Notice of the G.M. should be sent to preference share holder also
(a) Yes
(b) No

Ans. (a)

Ques. ____ have fixed denomination
(a) Share
(b) Stock
(c) Both (a) & (b)
(d) None of the above

Ans. (a)

Ques. If the employer is a Banking company. Deduction will be allowed under 3 rd schedule is while determining   available surplus _____ of its paid up equity share capital as at the commencement of accounting year
(a) 7.5%
(b) 8.5%
(c) 9.5%
(d) None of these

Ans. (a)

Ques. Every Government Company may be a Public Company but every public company need not be Government Company. Do you agree with this statement
(a) Yes
(b) No

Ans. (a)

Ques. ______ arises in respect of debt due on shares as well as on other transactions.
(a) Forfeiture
(b) Lien
(c) Both (a) & (b)
(d) None of the above

Ans. (b)

Ques. How many months did the company can continue its business u/s 45 _____
(a) 1
(b) 2
(c) 5
(d) 6

Ans. (d)

Ques. Alteration of articles must be done only by passing
(a) Special resolution
(b) Ordinary resolution

Ans. (a)

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Ques. Ultra vires means
(a) Beyond the power
(b) with in the power
(c) Both
(d) None of the above

Ans. (a)

Ques. Minimum subscription should be received within ____ days
(a) 120
(b) 125
(c) 130
(d) 135

Ans. (a)

Ques. When there  is  a untrue  statement in the  prospectus.  The  shareholder who  subscribed in secondary market can sue the company
(a) Yes
(b) No

Ans. (b)

Ques. In the given below who are not required to hold Statutory General Meeting
(a) Private company
(b) Government Company
(c) Public company
(d) Both ((a) & ((b)

Ans. (d)

Ques. In case of Statutory General Meeting receipts & payments are prepared up to ____ days before the date of report
(a) 3
(b) 5
(c) 7
(d) 9

Ans. (c)

Ques. When there is any untrue statement in the prospectus. The shareholder who was A subscriber to the memorandum can sue the company
(a) Yes
(b) No

Ans. (b)

Ques. Return of partly paid shares by the shareholders to the company is_______
(a) Surrender
(b) Forfeiture
(c) Lien
(d) None of the above

Ans. (a)

Ques. A Company can issue sweat equity shares as soon as it started business.
(a) Yes
(b) No

Ans. (b)

Ques. Qualification shares for a director are provided in the____
(a) Company Act
(b) MOA
(c) AOA
(d) Contract b/w Company & Directors

Ans. (a)

Ques. Directors are ______ of the company
(a) Employees
(b) Employers
(c) Both (a) & (b)
(d) None of the above

Ans. (d)

Ques. ___ are required to file prior to making second and subsequent issue of securities in case shelf prospectus are filed:
(a) Information memorandum
(b) Information articles
(c) Form 13
(d) None of the above

Ans. (a)

Ques. Company limited by guarantee and having share capital needs to hold statutory meeting
(a) Yes
(b) No

Ans. (a)

Ques. Which of the following need not have MOA
(a) Public company
(b) Private company
(c) Government company
(d) Statutory Corporation

Ans. (d)

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Ques. With in 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

Ans. (a)

Ques. Which of the following are not required to issue prospectus?
(a) Private company
(b) Incase of right issue
(c) Sweat equity issue
(d) All the above

Ans. (d)

Ques. Deferred shares are also known as ___ shares
(a) Founders
(b) Equity
(c) Preference
(d) None

Ans. (a)

Ques. Commencement of winding up of a company does not affect the nature of______
(a) A fixed charge
(b) A floating charge
(c) Both (a) & (b)
(d) None of the above

Ans. (c)

Ques. Which of the following authorities is empowered to extent time for registration of charges _____ ?
(a) C.G
(b) Company law board
(c) Court
(d) NCLT

Ans. (d)

Ques. _______ are the prospectus issued instead of full prospectus
(a) Abridged
(b) Statement in lieu
(c) Shelf
(d) Red herring

Ans. (a)

Ques. Partners are ___ of the firm
(a) Owners
(b) Employers
(c) Agents
(d) None of these

Ans. (c)

Ques. XYZ private company had reduced to a single member and continued business more than 6 months. The company’s liability will be.
(a) Limited
(b) Unlimited
(c) None of the above.

Ans. (b)

Ques. Can the company accept public deposits which are payable on demand?
(a) Yes
(b) No

Ans. (b)

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Ques. Rate of brokerage for the deposits which have term up to 1 year
(a) 1%
(b) 1.5%
(c) 2%
(d) None of these

Ans. (a)

Ques. A shareholder appointed a proxy. The proxy must be a member of the company. Do you agree with this statement.
(a) Agree
(b) Disagree

Ans. (b)

Ques. XYZ Company provided in articles that quorum for the company should be 2 members. Is the company correct
(a) Correct
(b) Wrong

Ans. (b)

Ques. _____ is a short cut to forfeiture
(a) Lien
(b) Surrender
(c) Right issue
(d) None of the above

Ans. (b)

Ques. Quorum should be present at the
(a) Commencement of meeting
(b) Middle of the meeting
(d) End of the meeting
(d) Any time during meeting.

Ans. (a)

Ques. When the shares are transferred to X from Y. Y will be a ________  of the company
(a) Member
(b) Shareholder
(c) Partner
(d) None of these

Ans. (b)

Ques. Which of the given below members are not shareholders
(a) Death of members
(b) Insolvent
(c) Share warrant holders
(d) All of the above

Ans. (d)

Ques. For quorum the Joint holders will be collectively counted as ___ members.
(a) 1
(b) 2
(c) 3
(d) 4

Ans. (a)

Ques. XYZ company goes for a public issue each share of face value Rs. 10 the application money is Rs.2 allotment Rs.3, first call Rs.4, final call Rs. 1. Is this valid
(a) Yes
(b) No

Ans. (b)

Ques. ______ Days be given for payment of call money from the date of service of notice
(a) 14
(b) 13
(c) 12
(d) 11

Ans. (a)

Ques. Who should certify that company allotted the shares and cash received in respect there of_____________
(a) Auditor
(b) Director
(c) Share holder
(d) Members

Ans. (a)

Ques. _______ opined that ROC could grant extension only when application for extension is made
before the expiry of period u/s 166 (1)
(a) DCA
(b) NCLT
(c) Govt
(d) Both (b) & (c)

Ans. (a)

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Ques. Every business transacted at an EGM is a ____ business
(a) Ordinary
(b) Special
(c) Both (a) & (b)
(d) None of the above

Ans. (b)

Ques. Which of the following charge is not registered with the ROC ______
(a) Charge on immovable property
(b) Charge on uncalled share capital
(c) Charge on called made but not paid
(d) Charge on call made but paid

Ans. (a)

 

Ques. In case of any default is made in filing the particulars related to charge then penalty is upto ____ thousands
(a) 5 to 10
(b) 10 to 15
(c) 15 to 20
(d) None of the above

Ans. (a)

Ques. When a charge become void, the money secured there under becomes repayable with in _____ months
(a) 1
(b) 2
(c) 10
(d) immediately

Ans. (d)

Ques. What is the time limit for conducting statutory meeting?
(a) 1 to 5 months
(b) 1 to 6 months
(c) 1 to 9 months
(d) None of these

Ans. (b)

Ques. Notice of statutory meeting should be given with a period not less than
(a) 21 clear days
(b) 14 clear days
(c) 7 clear days
(d) None of these

Ans. (a)

Ques. A copy of the contents of statutory report should be sent to Registrar also
(a) Yes
(b) No

Ans. (a)

Ques. When there is any untrue statement in the prospectus. The shareholder who was A subscriber to the memorandum can sue the company
(a) Yes
(b) No

Ans. (b)

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Ques. Return of partly paid shares by the shareholders to the company is ________
(a) Surrender
(b) Forfeiture
(c) Lien
(d) None of the above

Ans. (a)

Ques. A Company can issue sweat equity shares as soon as it started business.
(a) Yes
(b) No

Ans. (b)

Ques. Statutory meeting shall be conducted immediately after getting the certificate of commencement of business?
(a) Yes
(b) No

Ans. (b)

Ques. What is the  maximum period for redemption in case  of preference  shares issued by the company
(a) 10 years
(b) 15 years
(c) 20 years
(d) None of these

Ans. (c)

Ques. Capital redemption reserve must be used for issue of
(a) Fully paid bonus shares
(b) Fully paid equity shares
(c) Preference shares
(d) None of the above

Ans. (a)

Ques. Under which sec. if company fails to commence its main object the court may order winding up
(a) 403 (f)
(b) 413 (f)
(c) 423 (f)
(d) 433 (f)

Ans. (d)

Ques. In case of forgeries acts done in the name of the company are
(a) Valid
(b) Void
(c) Void ab initio
(d) None of the above

Ans. (c)

Ques. A public company can borrow money _____
(a) before incorporation
(b) Soon after incorporation
(c) after issuing a proposal
(d) after obtaining certificate to commerce business.

Ans. (d)

Ques. Transfer deed should in form No.
(a) 6 B
(b) 5 B
(c) 7 B
(d) None of these

Ans. (c)

Ques. ______ is voluntary passage of the rights and duties of member from a share holder.
(a) Transfer
(b) Transmission
(c) Both (a) & (b)
(d) None of the above

Ans. (a)

Ques. A private company can borrow funds
(a) after incorporation
(b) after obtaining certificate to commerce business
(c) after holding first annual general meeting
(d) None of the above

Ans. (a)

Ques. ______  gets all liabilities of original owner
(a) Transferor
(b) Transferee
(c) Endorser
(d) Endorsee

Ans. (b)

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Ques. In the case of Company. Audit is
(a) Compulsory
(b) Optional
(c) None of the above

Ans. (a)

Ques. According to which sec. name of the company should end with “Ltd” or “Pvt Ltd”
(a) 10
(b) 11
(c) 12
(d) 13

Ans. (d)

Ques. The companies which are formed under special charter granted by the king or queen of England are called
(a) Statutory companies
(b) Registered companies
(c) Chartered companies
(d) None of these

Ans. (c)

Ques. Invitation to public offering shares or debentures in case of private company
(a) Prohibited
(b) Restricted
(c) Acceptable
(d) None of these

Ans. (a)

Ques. The person who is holding share warrant will be a ______  of the company.
(a) Member
(b) Shareholder
(c) Partner
(d) None of these

Ans. (b)

Ques. Can an insolvent be a member of the company
(a) Yes
(b) No

Ans. (a)

Ques. Any amount received from Central Government or State Government can be termed as deposit
(a) Yes
(b) No

Ans. (b)

Ques. Any amount received as a loan from banking company, SBI and nationalized banks including a co-operative Bank will be treated as deposit
(a) Yes
(b) No

Ans. (b)

Ques. Maximum paid up capital in case of public company.
(a) 50 Lakhs
(b) 100 Lakhs
(c) 125 Lakhs
(d) None of these

Ans. (b)

Ques. Can a partnership firm become a member of Sec.25 companies
(a) Yes
(b) No

Ans. (a)

Ques. Every Company needs company secretary. So in the case of sec.25 companies the same is the
case. Do you agree with this statement?
(a) Agree
(b) Disagree

Ans. (b)

Ques. Any change in the address of the registered office must be communicated to the registrar within:
(a) 15 days
(b) 30 days
(c) 1 Month
(d) 12 months

Ans. (c)

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Ques. Which of the following have voting rights__________
(a) Share holders
(b) Debenture holder
(c) Both (a) & (b)
(d) None of the above

Ans. (a)

Ques. A company must inform the registrar about redemption of preference shares with in
(a) 21 days
(b) 15 days
(c) 30 days
(d) None of the above

Ans. (c)

Ques. An act ultra virus the directors can be rectified if it is not ultra vires
(a) the articles
(b) the memorandum
(c) Company Act
(d) None of the above

Ans. (c)

Ques. Address of the registered office is situated in
(a) MOA
(b) AOA
(c) Prospectus
(d) None of these

Ans. (b)

Ques. Company limited by shares needs to hold statutory meeting
(a) Yes
(b) No

Ans. (a)

Ques. __ are the prospectus issued by the issuing house
(a) Deemed prospectus
(b) Shelf prospectus issued by the issuing house
(c) Red herring
(d) None of the above

Ans. (a)

About the author

Jaspreet

Jaspreet (Masters in Commerce-LLB) 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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