Company law for CA/CS Mcq part 1

1. Property of the Company belongs to --.

a. Company b. Shareholders c. Members d. Promoters

2. Mr. X, shareholder of A Ltd. used the property of the Company for his personal use, he did not enter into any contract with the Company for such sale, whether the shareholder of the Company can use

the property of the Company for their own personal purpose?

a. Yes b. No c. Partly Yes d. Partly No

3. The term Company is defined under which section of the Companies Act, 2013?

a. Section 2 (20) b. Section 2 (10) c. Section 2 (4) d. Section 2 (3)

4. Minimum number of partners required under Partnership Firm?

a. 2 b. 7 c. 3 d. None of the above

5. Partnership firm is separate legal entity from its partners. True or False.

a. True b. False c. Partly True d. Partly False

6. How to dissolve Partnership Firm under Partnership Act, 1932?

a. By agreement

of partners b. By mutual consent of

partners and by court order c. By insolvency and by

certain contingencies d. All of the

above

7. Registration of Partnership Firm is optional. True or False.

a. True b. False c. Partly True d. Partly False

8. Mr. M, assessee earned huge income from dividend, he formed 2 private companies and contributed his income as capital against shares of the Company, and he took back all the contributed by him in company as capital by way of pretended loan. Whether assessee is exempted from tax? Or he will be

liable for the tax?

a. Liable for the tax b. Exempted from tax c. Partly exempted d. None of the above

9. Company registered under Companies Act, 2013 is separate legal entity from its members?

a. Yes b. No c. Partly Yes d. Partly No

10. How to dissolve Company under Companies Act, 2013?

a. Voluntary b. Order of National Company Law

Tribunal c. Either a or b d. None of the

above

11. Minimum number of members in case of Public Company?

a. 1 b. 2 c. 5 d. 7

12. Minimum number of members in case of Private Company?

a. 1 b. 7 c. 2 d. 4

13. Maximum number of members in case of Public Company?

a. 0 b. Unlimited c. 50 d. 100

14 Maximum number of members in case of Private Company?

a. Unlimited b. 50 c. 200 d. 7

15. Which company shares can be freely transferable?

a. Private Company b. Public Company c. Both a and b d. None of the above

16. Minimum number of directors in case of a Public Company is --.

a. 1 b. 2 c. 3 d. 4

17. Minimum number of directors in case of a Private company is --.

a. 1 b. 2 c. 3 d. 4

18. Maximum paid up share capital in case of Private Company --.

a. Rs. 50 Lakhs b. Rs. 1 Crore c. Unlimited d. None of the above

19. Maximum paid up share capital in case of Public Company --.

a. Rs. 50 Lakhs b. Unlimited c. Rs. 1 Crore d. None of the above

20. Maximum paid up share capital in case of One Person Company --.

a. Rs. 50 Lakhs b. Rs. 1 Crore c. Unlimited d. None of the above

21. Maximum paid up share capital in case Small Company --.

a. Rs. 50 Lakhs to Rs. 5 Cr. b. As per Central Govt. c. Either a or b d. None of the above

22. M/s ABC, is a Private Limited Company is desirous for inviting the public for subscription of its issue.

Can the Company do so?

a. Yes b. No c. Partly Yes d. Partly No

23. Which Company is free to invite public for subscription?

a. Public Company b. Private Company c. One Person Company d. Small Company

24. Maximum annual turnover in case of One Person Company --.

a. Rs. 2 Crore b. 1 Crore c. Rs. 10 Crore d. 5 Crore

25. The Private Company which is the subsidiary of the Public Company will also be considered as the

Public Company under Section 2 (71) of the Companies Act, 2013. True or False.

a. True b. False c. Partly True d. Partly False

Answers

1. a (Hint: As per Section 9 of Companies Act, 2013, (Property of the Company is not the property of the shareholders, it is property of the Company because Company is separate legal entity from shareholders)

2. b ( Hint: As per Section 9 of Companies Act, 2013, Property of the Company is not the property of the shareholders, it is property of the Company because Company is separate legal entity from

shareholders)

3. a

4. a

5. b ( Hint: Partnership firm is not a separate legal entity from its partners)

6. d

7. a ( Hint: As per Partnership Act, registration of Partnership Firm is optional)

8. a (Lifting of corporate veil- Company is formed just for the purpose of avoid tax)

9. a( Hint: As per Section 9 of Companies Act, 2013, Company have its own identity, its own legal entity like other human)

10. c

11. d ( Hint: Public Company is incorporated by minimum 7 members)

12. c ( Hint: Private Company is incorporated by minimum 2 members)

13. b ( Hint: there is no max limit on members of the company)

14. c ( Hint: there is max limit on members of the company)

15. b ( Hint: members of the Company have right to transfer their share)

16. c ( Hint: As per section 149 (1) of the companies Act, 2013)

17. b ( Hint: As per section 149 (1) of the companies Act, 2013)

18. c ( Hint: there is no max limit on capital of the company)

19. b ( Hint: there is no max limit on capital of the company)

20. a ( Hint: there is max limit on capital of the company)

21. B

22. b( Hint: right of members to transfer the shares can be restricted by article)

23. a

24. a( Hint: there is max limit on turnover of the company)

25. a