Indian Companies Act — Part 2 MCQs with Explanations

All of these is the correct answer to “Which among the following remedies is available for a person who acted upon a false prospectus”. This question is standard in competitive examination syllabi for Indian Companies Act.

Section 3A is the correct answer to “Under which provision of the Companies Act, 2013, will members be liable for a reduction of the statutory minimum number of members, in the Company”. This question is standard in competitive examination syllabi for Indian Companies Act.

All of the above is the correct answer to “A company shall be deemed to be unable to pay its debts:”. This question is standard in competitive examination syllabi for Indian Companies Act.

Where the instrument is the articles of association of a company is the correct answer to “In which of the following cases, the Court cannot order rectification of instrument-”. This question is standard in competitive examination syllabi for Indian Companies Act.

Trustees of company is the correct answer to “Directors of a company are”. This question is standard in competitive examination syllabi for Indian Companies Act.

Share holders by passing a special resolution is the correct answer to “Articles of a company can be altered by”. This question is standard in competitive examination syllabi for Indian Companies Act.

Section 135 is the correct answer to “Which section of the Companies Act, 2013 deals with corporate social responsibility”. This question is standard in competitive examination syllabi for Indian Companies Act.

Conscience is the correct answer to “Which one of the following is primary source of equity”. This question is standard in competitive examination syllabi for Indian Companies Act.

Government company is the correct answer to “Starax Ltd. has the paid-up equity capital structure in the following proportion - Central Government: 38%; State Government: 10%; Subsidiary of a Government Company: 17.50%; and remaining shares by retail shareholders. Which of the following classes of companies would it belong to”. This question is standard in competitive examination syllabi for Indian Companies Act.

Section 166 is the correct answer to “The statutory formulation of directors' duties under Companies Act, 2013 have been spelt out in”. This question is standard in competitive examination syllabi for Indian Companies Act.

People Pleasure Park Co. v. Rohleder is the correct answer to “In which of the following cases corporate veil of the company has not been lifted by the court:”. This question is standard in competitive examination syllabi for Indian Companies Act.

a-4, b-1, c-2, d-3 is the correct answer to “Match List-I with List-II and select the correct answer using the given below the Lists: List-I (Decided Cases) List-II (Principle Stated) a. Royal British Bank v. Turquand 1. Corporate personality b. Salomon v. Salomon & Co. Ltd. 2. Rule of majority c. Foss v. Harbottle 3. Doctrine of ultra vires d. Ashbury Railway Carriage and Iron Co. Ltd. v. Riche 4. Indoor management”. This question is standard in competitive examination syllabi for Indian Companies Act.

Registrar of Companies is the correct answer to “Who is authorized to issue license to Section 8 company under Companies Act, 2013”. This question is standard in competitive examination syllabi for Indian Companies Act.

Attorney General v. Great Eastern Railway Co. is the correct answer to “Which of the following case is about doctrine of ultra vires”. This question is standard in competitive examination syllabi for Indian Companies Act.

The turnover of the company is INR 1,000 crores or more is the correct answer to “The Companies Act, 2013 has done a tremendous job by providing Company's Social Responsibility (CSR) as a mandatory activity. A company has to comply with mandatory CSR norms where”. This question is standard in competitive examination syllabi for Indian Companies Act.

Mutual Assistance is the correct answer to “Producer company is based on the principles of . .”. This question is standard in competitive examination syllabi for Indian Companies Act.

To restrain the Company from taking action to any resolution passed by members is the correct answer to “To safeguard the interest of the shareholders through class action suits, an application may be made to the Tribunal. Which one of the following is wrong? An application”. This question is standard in competitive examination syllabi for Indian Companies Act.

No fixed is the correct answer to “How much amount of the profits of a company can be distributed as dividend amongst its shareholders”. This question is standard in competitive examination syllabi for Indian Companies Act.

Regional Director is the correct answer to “A public company can be converted into a private company only after the approval of the”. This question is standard in competitive examination syllabi for Indian Companies Act.

Authorized capital is the correct answer to “The capital with which a company is registered is called”. This question is standard in competitive examination syllabi for Indian Companies Act.

Certificate of Incorporation is the correct answer to “Which of the following is most essential for a company”. This question is standard in competitive examination syllabi for Indian Companies Act.

Ten is the correct answer to “What is the maximum number of partners in Banking business”. This question is standard in competitive examination syllabi for Indian Companies Act.

Directors, banks and financial institutions is the correct answer to “Under the Companies Act, 2013, a private company can borrow funds for its financial needs from”. This question is standard in competitive examination syllabi for Indian Companies Act.

Shareholder of the company is the correct answer to “Liability of directors of a public company is towards”. This question is standard in competitive examination syllabi for Indian Companies Act.

Ashbury Railway Carriage and Iron Company v. Rick L. R. is the correct answer to “A shareholder of a company can enter into a contract with a company because it is a separate legal entity from its shareholders' was held in”. This question is standard in competitive examination syllabi for Indian Companies Act.

Internal Audit is the correct answer to “Which of the following services cannot be provided to the Company by an auditor appointed under the provisions of the Companies Act, 2013”. This question is standard in competitive examination syllabi for Indian Companies Act.

Take action for striking off the name of the Company from the registrar of Companies is the correct answer to “Which of the following actions can be taken by a Registrar under section 4(5) of the Companies Act, 2013”. This question is standard in competitive examination syllabi for Indian Companies Act.

1 lakh rupees is the correct answer to “In case of Private Company, as per section 2(68) of the Companies Act, 2013, what is the minimum paid up capital”. This question is standard in competitive examination syllabi for Indian Companies Act.

(1), (2), (3) and (4) is the correct answer to “"Directors are agents of the company". In which of the following cases above principle was laid down. Answer using given below: (1) Ferguson v. Wilson (2) Elkington and Co. v. Harter (3) Hampshire Land Co., Re (4) Allen v. Hyatt”. This question is standard in competitive examination syllabi for Indian Companies Act.

Both (A) and (R) are correct and (R) is the correct explanation of (A) is the correct answer to “Read Assertion (A) and Reason (R) and answer by using given below: Assertion (A): Under the Company Law, though any outsider is presumed to be aware of the documents which are publicly accessable, but not the internal proceedings of which he can not reasonably aware of, because those are not accessible to the public. Reason (R): The Doctrine of indoor management evolved as a partial exception to the Doctrine of Constructive Notice and the rule was laid down in Royal British Bank v. Turquand.”. This question is standard in competitive examination syllabi for Indian Companies Act.

Red Herring Prospectus is the correct answer to “A Prospectus which does not include complete particulars of the quantum or price of the securities included therein in known as:”. This question is standard in competitive examination syllabi for Indian Companies Act.

2 and 7 is the correct answer to “The minimum number of the members for a private company and for a public company are respectively”. This question is standard in competitive examination syllabi for Indian Companies Act.

Doctrine of ultra vires is the correct answer to “Ashbary Railway Carriage & Iron Co. v. Riche is the case which is related with which topic of the Company Law”. This question is standard in competitive examination syllabi for Indian Companies Act.

7 is the correct answer to “The Minimum number of persons required to incorporate a Public Company is”. This question is standard in competitive examination syllabi for Indian Companies Act.

Reserve Bank of India is the correct answer to “A foreign company intends to merge with an Indian Company. As per the relevant provision in the Companies (Compromises, Arrangements and Amalgamation) Rules, 2016, it needs to obtain prior approval of”. This question is standard in competitive examination syllabi for Indian Companies Act.

The offer can be made to a maximum of fifty people is the correct answer to “Which of the following actions can be taken when an issue is made under the provisions of Section 42 of the Companies Act, 2013”. This question is standard in competitive examination syllabi for Indian Companies Act.