Companies Act Mcqs for CSEET - Part 1

Q.1:- As per Section 2(84) Share means share in the share capital of a Company and includes__________

a) Debentures

b) Preference Shares

c) Stocks

d) Bonds

Correct Option: C

Q.2:- Small Shareholders means a shareholder holding shares of nominal value of not more than..................or such other sum as may be prescribed:

a) 10,000

b) 15,000

c) 5,000

d) 20,000

Correct Option: D

Q.3:- KMP may be a director of any company with permission.

a) CG

b) ROC

c) Board

d) Shareholders

Correct Option: C

Q.4:- A company which has a paid-up share capital of 10 crores or more shall have a whole-time..................:

a) CFO

b) Managing Director

c) Manager

d) Company Secretary

Correct Option: D

Q.5:- Section 43 provides for__________

a) Issue of shares at Premium

b) Kinds of Shares

c) Buy Back of Shares

d) Reduction in Share Capital

Correct Option: B

Q.6:- A company limited by shares may, if so authorized by its articles, issue preference shares which are liable to be redeemed within a period not exceeding.....from the date of their issue:

a) 10 year

b) 12 year

c) 20 year

d) 3 year

Correct Option: C

Q.7:- Notice of right offer shall be dispatched to all the shareholders at least___days before opening of the offer.

a) 2 days

b) 5 days

c) 10 days

d) 3 days

Correct Option: D

Q.8:- A Company may issue equity shares with differential rights upon expiry of _________ years from the end of the financial year in which such default was made good

a) 7

b) 2

c) 5

d) 3

Correct Option: C

Q.9:- The section 71 of the Companies Act, 2013 prohibits issue of debentures carrying:

a) Differential voting rights

b) Voting rights

c) Both (a) and (b)

d) None of the above

Correct Option: B

Q.10:- The minimum capital of the company for which the whole time company secretary is required to be appointed as per Companies Act is ________.

a) Rs. 2 crore

b) Rs. 5 crore

c) Rs. 10 crore

d) None of above

Correct Option: B

Q.11:- Sweat Equity share means equity shares issued by a company to its directors or employee:

a) At a discount

b) For consideration, other than cash, for providing their know-how.

c) For making available rights in the nature of intellectual property rights or value addition.

d) All of the above

Correct Option: D

Q.12:- Securities Premium cannot be utilized towards:-

a) Reduction in Share Capital

b) Buy Back of Shares

c) Issuing fully paid up Bonus Shares

d) Writing off the expenses or commission paid.

Correct Option: A

Q.13:- In a private Ltd. co. at the time of incorporation there were 48 members. After than 1 employee joined having 15 debentures and having 2 shares. Did the company Crossed the maximum limit.

a) No

b) Yes

c) Nothing written in law about it

d) None of above

Correct Option: A

Q.14:- Form SH-9 provides for ___________

a) Declaration of Solvency

b) Return of Buy Back

c) Letter of Buy Back

d) Registered of Buy Back

Correct Option: B

Q.15:- The..... undertakes the guarantee of buying the whole of shares or debenture place before public in the event of non-subscription.

a) Share transfer agent

b) Del Cruder Agent

c) Underwriter

d) Analyzer

Correct Option: C

Q.16:- The detail with respect to issue to DVR shares shall be provided by company in its________

a) Board Report

b) Annual Return

c) Internal Audit Report

d) Annual Report

Correct Option: A

Q.17:- 3. In case of Redemption of Preference shares, the Company is required to submit SH-7 to ROC in__________

a) 7 days

b) 14 days

c) 30 days

d) 60 days

Correct Option: C

Q.18:- The securities premium account may not be applied for which of the following:

a) Towards the issue of unissued shares of the company to the members of the company partly paid bonus shares.

b) Towards the issue of unissued shares of the company to the members of the company fully paid bonus shares.

c) In providing for the premium payable on the redemption of any redeemable preference shares or of any debentures of the company.

d) For the purchase of its own shares or other securities under section 68.

Correct Option: A

Q.19:- Preferential Allotment of shares can be made by Company if authorized by ________ of members

a) Unanimous Resolution

b) Super majority

c) Ordinary Resolution

d) Special Resolution

Correct Option: D

Q.20:- Where a Company is not in a position to redeem its Preference shares, it may redeem unredeemed preference shares by issue of further preference shares with consent of holder’s of_________ in value of such preference shares.

a) 75%

b) 10%

c) 100%

d) 51%

Correct Option: A

Q.21:- A company prefer to raise more debt capital rather than equity:

a) To maximize liquidity

b) To maximize its profit

c) To minimize its tax expenses

d) To minimize interest expenses

Correct Option: C

Q.22:- The equity capital with differential voting rights shall not exceed_______ of the total post issue paid u equity share Capital

a) 10 %

b) 24%

c) 26%

d) 51%

Correct Option: C

Q.23:- Individual who has been allotted a DIN as on 31st March 2018 shall submission or before.............. .

a) DIR- 4 - KYC; 5th October 2018

b) DIR 1 - KYC; 30th April 2018

c) DIR 2 - KYC; 30th April 2018

d) DIR-3 - KYC; 5th October 2018

Correct Option: D

Q.24:- The shares or debentures or other interest of any member in a company shall be?

a) Non-transferable immovable property

b) Transferable movable property

c) Transferable immovable property

d) Non-transferable movable property

Correct Option: B

Q.25:- Which of the following section of company act 2013 define the definition of "share "?

a) Section 2(85)

b) Section 2(84)

c) Section 2(19)

d) Section 2(17)

Correct Option: B