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Company Law MCQs - Incorporation

1. Mr. Xavier age 17 years) is an Indian citizen and he also resident in India more than 182 days, does he shall be a nominee for the sole member of a One Person Company?

a. Yes

b. No

c. Partly Yes

d. Partly No

2. One Person Company cannot be converted into ------------ company.

a. Private

b. Public

c. Section 8

d. All of the above

3. One Person Company cannot carry out Non-Banking Financial Investment activities including investment in securities of anybody corporate. True or False

a. True

b. False

c. Partly True

d. Partly False

4. One Person Company cannot convert voluntarily into any kind of company unless ……….years have expired from the date of incorporation , except where the paid up share capital is increase beyond Rs.50 lakhs and its average annual turnover during the relevant period exceed Rs.2 Cr.

a. 1

b. 2

c. 3

d. 4

5. One Person Company cannot convert voluntarily into any kind of company unless 2 years have expired from the date of incorporation, except where the paid up share capital is increase beyond Rs. ---------- and its average annual turnover during the relevant period exceed Rs. ------------

a. Rs.50 lakhs, Rs.2 Cr.

b. Rs.40 lakhs, Rs.2 Cr.

c. Rs.50 lakhs, Rs. 1 Cr.

d. Rs.25 lakhs, Rs.3 Cr

6. As per schedule I, form of Memorandum of Company Limited by Shares is mentioned in which Table?

a. Table A

b. Table B

c. Table C

d. Table D

7. Whether the member of the One Person company has right to change the name of Nominee as and when he think fit only by giving notice of such change in name. True or False.

a. True

b. False

c. Partly True

d. Partly False

8. In case of One Person Company, name of another person as ………………… also be mentioned in the Memorandum who will not be the subscriber of the company but who agrees to become subscriber of the company in case of death or incapacity of the subscriber.

a. Creditor

b. Member

c. Promoter

d. Nominee

9. As per schedule I, form of Memorandum of Company Limited by Shares and not having share capital (Guarantee Company) is mentioned in which Table?

a. Table A

b. Table B

c. Table C

d. Table D

10. In case of One Person Company, as per Section 3(1) of the companies Act, 2013, written consent of nominee has to be filed with ROC in which E form at the time of filing Memorandum and Article of association

a. INC 3

b. INC 6

c. INC 4

d. INC 2

11. In case of officially handing over the documents to registrar, they can be sent to him by …………….

a. Registered/Speed post or courier

b. Deliver to his office/ address

c. Electronic mode or any other mode as prescribed

d. All of the above

12. In case of members of company they can demand delivery of documents in mode of their choice and such member will be liable to pay for expenses borne by company in respect of such delivery. True or False.

a. True

b. False

c. Partly True

d. Can’t say

13. A subsidiary company cannot hold any shares in its own capacity or through its nominees in its holding company & if holding company does any transfer or allotment of shares to its subsidiary or their nominees then transfer or allotment will not be valid, except in case when subsidiary ……………

a. Holds such shares holding company in as a legal representative of a deceased member of holding company

b. Holds shares as trustee

c. It was shareholder before becoming subsidiary of that company

d. All of the above

14. Net Income of Non-Profit Organization from business and donation shall be used only for……….

a. Charitable purpose

b. Dividend to members

c. All of the above

d. None

15. M/S ABC Ltd. is Limited company having share capital wants to alter its share capital, how company will alter its share capital as per Section 61 of the Companies Act, 2013?

a. Alteration of share capital can be done only if AOA authorizes it.

b. Alteration to be done by alteration of MOA in general meeting

c. Ordinary resolution passed for such alteration

d. All of the above

16. Name of Companies according to ownership…….

a. Government company

b. Foreign company

c. Company regulated by 3rd person or others

d. All of the above

17. Mr. Mohan and Mr. Soman are members of company. They want to check the Profit and Loss Account and Balance Sheet of past 2 financial years of the Company. They can demand delivery of such documents in mode of their choice. Whether they have right to do that?

a. Yes

b. No

c. Partly Yes

d. Partly No

18. Where a company has been got incorporated by furnishing false or incorrect information or representation or by suppressing any material fact or information in any of the documents or declaration filed or made incorporating such company or by any fraudulent action, the Tribunal may, on an application made to it, on being satisfied that the situation so warrants, Tribunal can take action of………………

a. Pass such orders, as it may think fit, for regulation of the management of the company including changes , if any, in its memorandum and articles, in public interest or in the interest of the company and its members and creditors.

b. Direct that liability of the members shall be unlimited or direct. removal of the name of the company from the register of companies

c. Pass an order for the winding up of the company or pass such orders as it may deem fit.

d. All or any one of the above

19. …………. Is legal & constitutional document of the company which states the matters like Name, Place of business, Object, Capital, Liability, Subscription of the company

a. Article of Association

b. Memorandum of Association

c. Certificate of incorporation

d. None of the above

20. East India Company is an example of……

a. Statutory Company.

b. Registered company.

c. Chartered company.

d. None of these.

21. Convert or reconvert only fully paid up shares into stock and such stock into fully paid up shares of any denomination?

a. Yes

b. No

c. Partly Yes

d. Partly No

22. M/S Lunar Ltd. is Limited company having share capital wants to convert its paid up shares into stock, how company will alter its share capital as per Section 61 of the Companies Act, 2013?

a. Alteration of share capital can be done only if AOA authorizes it.

b. Alteration to be done by alteration of MOA in general meeting

c. Ordinary resolution passed for such alteration

d. All of the above

23. How Limited company having a share capital will sub divide all or any of its shares into shares of smaller amount than fixed by MOA as per Section 61 of the Companies Act, 2013?

a. Alteration of share capital can be done only if AOA authorizes it.

b. Alteration to be done by alteration of MOA in general meeting

c. Ordinary resolution passed for such alteration

d. All of the above

24. If the Central Government permits, then only a public company can be converted into a private company. True or False

a. True

b. False

c. Partly True

d. Partly False

25. M/S Moon Ltd. is Limited company having share capital wants to sub divide its 1 share of Rs. 100, Rs. 60 paid up into 10 shares of Rs. 10, Rs. 6 paid up, how company will alter its share capital as per Section 61 of the Companies Act, 2013?

a. Alteration of share capital can be done only if AOA authorizes it.

b. Alteration to be done by alteration of MOA in general meeting

c. Ordinary resolution passed for such alteration

d. All of the above

1. b

2. c

3. a

4. b

5. a

6. a

7. a

8. d

9. b

10. a

11. d

12. a

13. d

14. a

15. d

16. d

17. a

18. d

19. b

20. c

21. a

22. d

23. d

24. b

25. d

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