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COMPANY LAW MCQ SERIES NEW 1

1. K is public limited company in which 53% of paid up share capital held by Central Government, whether K limited is government company as per Section 2(45) of the Companies Act, 2013.

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

2. XYZ is public limited company in which 54% of paid up 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

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

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

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

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

5. 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

6. 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

7. 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

8. KK Private Limited is subsidiary of the BB Company which is foreign Company, can KK Private Limited company considered as Private Limited?

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

9. 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

10. 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

11. 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

12. The company can take away ownership from management?

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

13. 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

14. 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

15. 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

16. 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 (4) d. Section 2 (3)

17. Everything which is done in the company will be known by the name of the company?

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

18. Which Company do not have capital clause?

a. Limited by shares b. Limited by Guarantee c. Both a and b d. None of the above

19. There can be a transfer of property from a company to the ------------ & vice- versa.

a. Member b. Employee c. Promoter d. None of the above

20. The Limited company have subtypes namely ------------

a. Company limited by shares

b. Company limited by Guarantee

c. Company limited by shares as well as Guarantee

d. All of above

21. A person can be a member, director, employee and creditor of the company same time?

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

ANSWERS

1. 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)

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

Government or Governments)

3. 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)

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

5. a

6. a

7. a

8. a

9. d

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

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

12. a ( Hint: As per Section 9 of Companies Act, 2013, the Company is combination of separate 3 pillar i.e. Investor, Management and Auditor. Investor invest the money which is used by management to run business and auditor checked whether money is being properly used or not)

13. a ( Hint: As per Section 9 of Companies Act, 2013, the Company is combination of separate 3 pillar i.e. Investor, Management and Auditor. Investor invest the money which is used by management to run business and auditor checked whether money is being properly used or not )

14. a( Hint: As per Section 9 of Companies Act, 2013, Company is created by human, it’s not natural)

15. a

16. a

17. a

18. b

19. a

20. d

21. a ( Hint: A person can be a member, director, employee and creditor of the company at the same time)

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