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Company Law MCQ basics Part 2

1. Mr. H wants to incorporate One Person Company individually. Can he do so?

a. Yes

b. No

c. Central Government permission required

d. Registrar of Companies permission needed

Ans A

2. Mr. cyber is a truck driver formed company for testing trucks. The name of the company is Sharp Ltd. Mr. Cyber was also an employee having a contract of compensation with Sharp Ltd. in case of damage to him or his life. At one day Mr. Cyber drove a truck and went into accident with bicycle and lost his life. Now his widow want to claim compensation from Sharp Ltd. Whether wife of the Cyber can receive the compensation from the company?

a. Yes

b. No

c. no sufficient data

d. Partly No

Ans A

3. BN Limited Company, desirous for inviting the public for subscription of its issue. Can the Company do so?

a. Yes

b. No

c. SEBI approval needed

d. Partly No

Ans A

4. As per Section 2(87) of the Companies Act, 2013, Subsidiary Company in relation to any other company means a company in which the holding company-----------.

a. Controls the composition of the board of directors

b. Exercises or controls more than one – half of the total voting power either at its own or together with one or more of its subsidiary companies

c. Either a or b

d. None of these

Ans C

5. H Ltd. holds more than 52% voting rights of S Ltd., Whether S Ltd. is a subsidiary of H Ltd.?

a. Yes

b. No

c. No sufficient data

d. Can’t say

Ans A

6. K Ltd. Controls the composition of the board of directors of H Ltd., whether H Ltd. is a subsidiary of K Ltd.?

a. Yes

b. No

c. No sufficient data

d. Can’t say

Ans A

7. As per Section 2(6) of the Companies Act, 2013, --------------- Company means a company in which other company has a significant influence (control of at least 20% of total voting power), but which is not a subsidiary company of the company having such influence

a. Associate

b. Holding

c. Subsidiary

d. Joint Venture

Ans A

8. As per Section 2(45) of the Companies Act, 2013, Government Company means any company in which not less than 51% of the paid up share capital is held by-----------

a. By the Central Government

b. By any state Government or Governments

c. Partly by the Central Government and partly by one or more state Governments

d. All of the above

Ans D

9. As per Section 2(45) of the Companies Act, 2013, Government Company means any company in which not less than 51% of the paid up share capital is held by the Central Government only. True or false.

a. Right

b. Wrong

Ans B

10. N is public limited company in which 52% of paid up share capital held by Central Government, whether N limited is government company as per Section 2(45) of the Companies Act, 2013.

a. Yes

b. No

c. Partly Yes

d. Partly No

Ans A

11. ABC is public limited company in which 52% of paid up share capital held by State Government, whether ABC limited is government company as per Section 2(45) of the Companies Act, 2013.

a. Yes

b. No

c. Partly Yes

d. Insufficient data

Ans A

12. XYZ is public limited company in which 30% of paid up share capital held by Central Government and 30% of the paid share capital held by State Government, whether XYZ limited is government company as per Section 2(45) of the Companies Act, 2013.

a. Yes

b. No

c. Partly Yes

d. Partly No

Ans A

13. Whether Foreign LLP are also considered under Foreign Company under the Companies Act, 2013

a. Yes

b. No

c. Partly yes

d. No correct option

Ans A

14.Whether shares held in fiduciary capacity are to be counted for making company a subsidiary?

a. Yes

b. No

c. Partly Yes

d. Partly No

Ans A

15. Whether shares held by virtue of provisions of any debentures are to be counted for making company a subsidiary?

a. Yes

b. No

c. Partly Yes

d. Partly No

Ans A

16. What will be the status of the Private Company which is subsidiary of the foreign Company?

a. Private Company

b. Public Company

c. Option a or b

d. Can’t say

Ans A

17. ABC Private Limited is subsidiary of the PQR Company which is foreign Company, can ABC Private Limited company considered as Private Limited?

a. Yes

b. No

c. Partly Yes

d. Partly No

Ans A

18. According to Section 2(42) of the Companies Act, 2013, Foreign Company means any company or body corporate incorporated outside India which-----------

a. Company or body corporate incorporated outside India and majority of shareholders are out of India

b. Conduct any business activity in India in any manner

c. Has a place of business in India whether by itself or through agent, physically or through electronic mode

d. All of the above

Ans D

19. If the foreign Company have place of business in India but does not conduct the business from such place, whether that Company is considered as Foreign Company according to Section 2(42) of the Companies Act, 2013?

a. Yes

b. No

c. Partly Yes

d. Partly No

Ans B

20. The subsidiary Company hold shares in the holding company before the holding company becomes the holding company of such subsidiary. True or False.

a. True

b. False

c. Partly True

d. Partly False

And A\

21. The company can take away ownership from management?

a. Yes

b. No

c. Partly Yes

d. Partly No

Ans A

22. The investor need not enter in to day to day transaction of the Company or management of the Company. True or false.

a. True

b. False

c. Partly True

d. Can’t say

Ans A

23. The Company is an artificial judicial person, it is not a natural person. True or False.

a. True

b. False

c. Partly True

d. Can’t say

Ans A

24. The Company has to right to enter into contract on its own name. True or False

a. True

b. False

c. Partly True

d. Partly False

Ans A

25. The term Public Company is defined under which Section of the Companies Act, 2013?

a. Section 2 (71)

b. Section 2 (10)

c. Section 2 (68)

d. Section 2 (42)

Ans A

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