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Writer's pictureArtha Institute of Management

Company law MCQ CA/CS mcq part 2



1. “M” is Private Limited Company, subsidiary of the Public Limited Company. Whether M Private Limited is considered as Private Limited and also deemed Public Limited Company?

a. Yes b. No


2. Minimum number of directors in case of a One Person Company is --.

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


3. Minimum number of members in case of One Person Company?

a. 1 b. 2 c. 7 d. None of the above


4. A Company is a legal entity but not a citizen. Is this statement true?

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


5. Punishment for improper use of word “Limited” or “Private Limited”.

a. Rs. 500 per day during use of such name

b. Rs. 2000 per day during use of such name

c. Rs. 500 to Rs.2000 per day during use of such name

d. None of the above


6. Mr. A wants to incorporate One Person Company individually. Can he do so?

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


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

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


8. MN Limited Company, 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


9. 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 option a or b

d. None of the above


10. 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.Partly Yes d. Can’t say


11. S Ltd. Controls the composition of the board of directors of H Ltd., whether H Ltd. is a subsidiary of H Ltd.?

a. Yes b. No c.Partly Yes d. Can’t say


12 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.None of the above


13. 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


14. 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. True b. False

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

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


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

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


17. MNN 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 MNN limited is government company as per Section 2(45) of the Companies Act, 2013.

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


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

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


19. 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


20. 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


21. 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

22. SS Private Limited is subsidiary of the TMT Company which is foreign Company, can SS Private Limited company considered as Private Limited?

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


23. 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

24. 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


25. 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


Answers

1. a

2. d ( Hint: s per section 149 (1) of the companies Act, 2013)

3. a ( Hint: One member is also sufficient for incorporation of One Person Company)

4. a ( Hint: the citizenship in India is available for Individual only. As the company is not an individual)

5. c

6. a ( Hint: One member is also sufficient for incorporation of One Person Company)

7. a ( Hint: There was valid contract between the company and Mr. Superman )

8. a( Hint: Public Company is free to invite public for subscription)

9. c

10. a( Hint: 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)

11. a ( Hint: Controls the composition of the board of directors)

12. a

13. d

14. b

15. a ( Hint: any company in which not less than 51% of the paid up share capital is held by central Government Company is called Government company)

16. a ( Hint: any company in which not less than 51% of the paid up share capital is held by any state Government or Governments)

17. a ( Hint: any company in which not less than 51% of the paid up share capital is Partly by the Central Government and partly by one or more state Governments)

18. a ( Hint: because it is body corporate)

19. a

20. a

21. a

22. a

23. d

24. b ( Hint: One of the basic condition is to conduct the business from India)

25. a ( Hint: Section 19 of the Companies Act prohibits the subsidiary company from holding the shares in the Holding Company except in above situation)

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