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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)

Related: Fundamental Accounting Questions

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)

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. Bonus shall be paid to employees who are earning more than 3500 per month
(a) Yes
(b) No
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)

Related: Logical Reasoning Questions

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. Once an establishment covered under EPF Act will be continue to cover even if employees are less than 20.
(a) Yes
(b) No
Ans. (a)

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. In case of extension of time limit for issue of debenture certificate should be given by ____
(a) NCLT
(b) ROC
(c) DCA
(d) None of the above
Ans. (a)

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)

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. The period of extension granted by NCLT for issue of debenture certificate is ____
(a) 5
(b) 7
(c) 9
(d) 11
Ans. (c)

Ques. In case of debentures underwriting commission will be
(a) 3%
(b) 4%
(c) 2.5%
(d) None of these
Ans. (c)

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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)

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. Basic wages as per EPF Act does not include Bonus, Commission etc.
(a) True
(b) False
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)

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)

Related: Reasoning Questions: Puzzle Practice Questions Exercise

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. _____ Preference shares carry the right to cumulate the dividends
(a) Converted
(b) Cumulative
(c) Non-converted
(d) None
Ans. (b)

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

Ques. Length of notice in the case of AGM is 21 clear days. Articles provided that 15 clear days for length of notice. Is the AGM valid
(a) Valid
(b) Invalid
Ans. (b)

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)

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)

Ques. Which of the following company can held the AGM on public holiday ____
(a) Public company
(b) Private company
(c) Govt company
(d) Association not for profits
Ans. (d)

Ques. In case of failure to convene the AGM fine is upto Rs. _____
(a) 25,000
(b) 50,000
(c) 75,000
(d) 80,000
Ans. (b)

Related: General Knowledge Online Test

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.Unsecured debentures does not require any registration because it is not secured by__
(a) Fixed
(b) Floating charge
(c) Both (a) & (b)
(d) None of the above
Ans. (c)

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. Central Government can exempt company from holding AGM
(a) Yes
(b) No
Ans. (b)

Ques. Failure to convene AGM  u/s 166 penalty will be
(a) 50,000+250 per every day
(b) 75,000+250 per every day
(c) 1,00,000+250 per every day
(d) 25,000+250 per every day
Ans. (a)

Ques. Length of notice in the case of AGM is 21 clear days. Articles provided 25 clear days for length of notice. Is the AGM valid
(a) Valid
(b) Invalid
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)

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)

Related: Company Law PDF Questions Answers

Ques. A Temporary workman will be entitled to bonus.
(a) Yes
(b) No
Ans. (a)

Ques. A Temporary workman entitled to bonus on the basis of
(a) Total No. of days worked
(b) All working days
(c) No bonus will be allowable
(d) None of the above.
Ans. (a)

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)

Related: Fundamentals of Accounting Questions

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. Where any employee dismissed because of Riotous/ Violent behaviour in the premises whether
he is eligible for bonus.
(a) Yes
(b) No
Ans. (b)

Ques. Where an employee dismissed but reinstated with back wages will be entitled to bonus.
(a) Yes
(b) No
Ans. (a)

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)

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)

Related: Ratio & Proportion Aptitude Questions

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)

Ques. Debentures which have the charge on the property of the company is ______
(a) Secured
(b) Unsecured
(c) Registered
(d) None of the above
Ans. (a)

Ques. What is maximum Bonus u/s 11 of the payment of Bonus Act
(a) 20% of wages
(b) 15% of wages
(c) 17.5% of wages
(d) None of the above
Ans. (a)

Ques. Debenture which are repayable only on the happening of an event of winding up is called
(a) Redeemable
(b) Irredeemable
(c) Perpetual
(d) Both (b) & (c)
Ans. (d)

Ques. Return paid on debentures is _______
(a) Interest
(b) dividend
(c) Commission
(d) Tax
Ans. (a)

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)

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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. Basic wages as per EPF Act. Does not include over time allowance
(a) True
(b) False
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)

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