Company Law MCQs Part 3 - CSEET

1. What are the limits of number of members in a Private Company?

(a) Fifty (b) Seven (c) Twenty (d) Two hundred

Answer: D

2. If XYZ is the holding company of P&R Ltd. then, which of the following

statement is not true in this regard.

(a) XYZ Ltd. controls the composition of Board of P&R

(b) XYZ Ltd. holds more than 50% of the nominal value of the equity shares

(c) Both (a) & (b)

(d) None of the above

Answer: D

3. Which of the following is not a stage of the development of company?

(a) Promotion (b) ProductionD(c) Incorporation (d) Commencement of Business

Answer: B

4. which of the following company/companies are registered by the Companies Act, 2013?

(a) Government Company (b) Private Company (c) Public Company (d) All of the above

Answer: D

5. A public company must have at least------------- directors whereas a private company must have at least -------------------directors.

(a) 3;2 (b) 2;3 (C)2;5 (d)8;10

Answer: A

6. A subsidiary of a government company is also treated as a

(a) Government Company (b) Public Company

(c) Private Company (d) All of the above

Answer: A

7. The_____________ of a government company is appointed or reappointed by the Comptroller and Auditor General of India.

(a) Auditor (b) Company Secretary (c) Both (a) and (b) (d) None of the above

Answer: A

8. Which of the following company is incorporated in a country outside India?

(a) Private Company (b) Foreign Companies (c) Government Company (d) None of the above

Answer: B

9. Which of the following statement is false?

(a) No legal formality is required to form a company.

(b) The shareholders of a company have limited liability.

(c) A company can own property in its own name.

(d) A company is managed by the elected representatives of shareholders.

Answer: A

10. A is one who performs the preliminary duties necessary to bring a company into being and float it.

(a) Auditor (b) Promoter (c) Director I (d) Financer

Answer: B

11. The registered office clause of memorandum of association contains

(a) The name of the state in which the registered office of the company is to be situated.

(b) The name of the city/town only and not that of the state.

(c) The name of registrar of companies

(d) The complete postal address.

Answer: A

12. "One who undertakes to form a company with reference to a given object and set it going and who takes the necessary steps to accomplish that purpose

(a) Promoter (b) Directors (c) C.E.O. (d) Board of Directors

Answer: A

13. Which of the following are the functions of a promoter?

(a) Decides name of a company

(b) Nomination of directors

(c) Settles the details of memorandum and articles

(d) All of these

Answer: D

14. A is neither an agent, nor a trustee of a company.

(a) Directors (b) Company Secretary

(c) Employees (d) Promoters

Answer: D

15. Which documents contains the constitution of a company?

(a) Memorandum of Association

(b) Articles of Association

(c) Both (a) and (b)

(d) None of these

Answer: A

16. Which documents contains the regulations relating to the internal management of a company?

(a) Memorandum of Association

(b) Articles of Association

(c) Both (a) and (b)

(d) None

Answer: B

17. For vetting the MOA and AOA, as per SPICE, eMOA and eAOA is required.

(a) True (b) False

(c) Partly True (d) None of the above.

Answer: A

18. The companies are regulated under .

(a) Companies Act, 1596 (b) Companies Act, 1957A(c) Indian Partnership Act,1932 (d) Companies Act, 2013

Answer: D

19. The certificate of incorporation is that the company is entitled to commence business.

(a) Exclusive (b) Conclusive

(c) Supportive (d) Either (a) or (b)

Answer: D

20. The whole process of the company formation may be divided into three direct stages, the sequence is-

(a) Promotion, incorporation by registration, commencement of business.

(b) Incorporation by registration, commencement of business, promotion.

(c) Commencement of business, promotion, incorporation by registration.

(d) Commencement of business, incorporation by registration, promotion.

Answer: A

21. Company is managed by

(a) Shareholders (b) Board of Directors (c) Karta (d) Both(a)&(b)

Answer: . B

22. H.U.F. consists of which type of members

(a) Both (b) & (c) (b) Heterogeneous

(c) Homogeneous (d) None of the above

Answer: C

23. Partnership is governed by Partnership Act

(a) 1956 (b) 1948 (c) 1932 (d) 1982

Answer: C

24. which is not a case of lifting of corporate veil

(a) Connors Bros. v. Connors (b) Jones v. Lipren

(c) Pearce v. Brookes (d) CIT v. Meenakshi Mills Ltd.

Answer: C

25. Word Corporation' is------------ than company

(a) Narrow (b) Wider (c) (a) or (b) I (d) All of the above

Answer: B