Question 1

Company can close the Register after publishing a notice in a local daily? ____

Accepted Answer

A)  Seven days before the Register is closed.
B)  Fourteen days before the Register is closed
C)  Twenty-one days before the Register is closed
D)  One month before the Register is closed A

Question 2

In one particular year, the company can close the Register for a period of, ____

Accepted Answer

A)  Seven days at any one time
B)  Fourteen days at any one time
C)  Twenty-one days at any one time
D)  Thirty days at any one time D

Question 3

Duration of interval between one general meeting and another general meeting should not be more than ____________

Accepted Answer

A)  6 months.
B)  12 months.
C)  15 months.
D)  24 months. C

Question 4

The Prospectus must be issued within___________

Accepted Answer

A)  90days of its registration
B)  60days of the certificate of Incorporation
C)  90days of the Statutory Meeting
D)  60days of the first Annual General Meeting

Question 5

Power to set up the Tribunal is vested in ______________

Accepted Answer

A)  Supreme Court.
B)  State Government.
C)  Central Government with the permission of the Supreme Court.
D)  Central Government.

Question 6

The time gap between two Annual General Meetings should not exceed______

Accepted Answer

A)  Six months.
B)  Twelve months.
C)  Fifteen months.
D)  Eighteen months.

Question 7

Who of the following persons brings about the incorporation, and organization of a company ______________

Accepted Answer

A)  A member
B)  A promoter
C)  A manager
D)  A director

Question 8

Which of the following document brings a company into existence as a legal person? __________

Accepted Answer

A)  Memorandum of Association
B)  Certificate of Incorporation.
C)  Article of Association.
D)  The agreement.

Question 9

Which of the following companies must have Articles of Association________

Accepted Answer

A)  Foreign Company.
B)  Unlimited Company.
C)  Holding Company.
D)  Government Companies.

Question 10

Who of the following is the most important functionary of a company?__________

Accepted Answer

A)  Secretary.
B)  Treasurer.
C)  Managing Director.
D)  Manager

Question 11

Annual Returns are required to be filed within___________

Accepted Answer

A)  Within 30 days from the date annual General Meeting
B)  Within 60 days from the date of the Annual General Meeting
C)  Within 90 days from the Date of the Annual General Meeting
D)  Within six Months from the date of the Annual General Meeting

Question 12

No company limited by shares shall issue any preference share which is redeemable or irredeemable after the expiry of a period of____________

Accepted Answer

A)  One year from the date of issue
B)  Two year from the date of issue
C)  Five years from the date of issue
D)  Ten years from the date of issue

Question 13

From below, point out which of the following is not a requirement or condition needs to be complied with to make allotment of shares effective__________

Accepted Answer

A)  Allotment by proper authority
B)  Within reasonable time
C)  Absolute and unconditional
D)  Issuance of a certificate.

Question 14

Which of the following is not the way of acquiring a membership of the a company under the Companies Act, 1956___________

Accepted Answer

A)  By allotment of shares
B)  By transfer of shares
C)  By appointment.
D)  By nomination.

Question 15

The public trustee may attend the meeting of the company_______

Accepted Answer

A)  Himself
B)  Appoint a government officer
C)  Both a and b.
D)  Secretary.

Question 16

Every company making an allotment of shares or debentures is obliged to the allottee a certificate of shares within____________

Accepted Answer

A)  14 days of the allotment
B)  One month of the allotment
C)  Two months of the allotment
D)  Three months of the allotment of shares.

Question 17

Issuance of a share warrant is necessary, so that __________

Accepted Answer

A)  Shares are fully paid up
B)  Shares are paid up to 50%
C)  Shares are paid up to 25%
D)  Shares are paid up to 10%

Question 18

At the same time a person cannot hold office of a Director in more than ______

Accepted Answer

A)  Two companies
B)  Seven companies
C)  Twenty companies
D)  Thirty companies

Question 19

"Directors are trustees of the company and not of individual shareholders". This principle was laid down in_____________

Accepted Answer

A)  Perceival v/s. Wright
B)  Ramswamy Iyer v/s. Brahmayya & Co.
C)  Ferguson v/s. Wilson
D)  Lee v/s. Lee's Air Farming Ltd

Question 20

The quorum for the meeting of Board is _______________

Accepted Answer

A)  One fourth of its total strength.
B)  One third of its total strength.
C)  Two third of its total strength.
D)  One half of its total strength.

Exam 1: Key Concepts and Procedures in Company Law