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Company Law

41 questions from 15 papers

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AIBE XIII Q.69 Walkthrough

A Prospectus which does not include complete particulars of the quantum or price of the securities included therein is known as:

a. Shelf Prospectus
b. Memorandum
c. Red Herring Prospectus
d. Issuing house
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AIBE XIII Q.70 Walkthrough

When there is no profit in one year or the profit of a company is not enough to pay the fixed divided on preference shares, the arrears of dividend are to be carried forward and paid before a dividend is paid on the ordinary shares. This is called:

a. Participating preference shares
b. Cumulative preference shares
c. Non-cumulative preference shares
d. Non-participating preference shares
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AIBE XIV Q.5 Walkthrough

In which case Justice J.C. Shah of Supreme Court observed “Since by the exercise of the power a serious invasion is made upon the rights, privacy and freedom of the tax payer, the power must be exercised strictly in accordance with law and only for the purpose for which law authorises it to be exercised”.

a. Director of Inspection v. Pooranmal
b. ITO v. Seth Brothers
c. P .R. Metrani v. CIT
d. None of the above
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AIBE XIV Q.23 Walkthrough

Which Court or Authority has the power to punish any person for contempt of the National Company Law Tribunal:

a. Supreme Court
b. High Court
c. National Company Law Appellate Tribunal
d. National Company Law Tribunal
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AIBE XV Q.96 Walkthrough

Minimum number of Directors in a Public company:

a. 3
b. 10
c. 12
d. 5
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AIBE XV Q.97 Walkthrough

An associate company, in relation to another company, means:

a. a company in which that other company has a significant influence, but which is a subsidiary company of the company having such influence and includes a joint venture company
b. a company in which that other company has a significant influence, but which is not a subsidiary company of the company having such influence and includes a joint venture company
c. a company in which that other company has a significant influence, but which is not a subsidiary company of the company having such influence and does not include a joint venture company
d. a company in which that other company has full shares, and is a subsidiary company of the company having such influence and includes a joint venture company
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AIBE XVI Q.32 Walkthrough

Health and education cess is applicable to-

a. All assesses
b. All assesses except company
c. Individual/HUF
d. Company only
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AIBE XVI Q.48 Walkthrough

Section 8 of the Companies Act; 2013 contains provision relating to-

a. incorporation of company
b. formation of companies with charitable objects, etc.
c. effect of registration
d. Effect of memorandum and articles.
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AIBE XVI Q.49 Walkthrough

The verification of the registered office shall be furnished to the registrar within a period of incorporation-

a. 30 days
b. 60 days
c. 90 days
d. 120 days
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AIBE XVI Q.53 Walkthrough

A company wishes to ensure that no one else can use their logo-

a. Copy rights
b. Trade mark
c. Patent
d. Industrial designs
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AIBE XVI Q.100 Walkthrough

A company which is not a domestic company will pay income tax at the rate of:-

a. 25 %
b. 30%
c. 40%
d. 20%
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AIBE XVII Q.30 Walkthrough

A is a tradesman in Ahmedabad, B carries on business in Delhi. B, by his agent in Ahmedabad, buys goods of A and requests A to deliver them to the Western Roadways Transport Company. A delivers the goods accordingly in Ahmedabad. A may sue B for the price of the goods

a. In Ahmedabad only
b. In Delhi only
c. In either Ahmedabad or Delhi
d. Anywhere in India
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AIBE XVII Q.71 Walkthrough

“Doctrine of lifting of or piercing the corporate veil” is associated with

a. Labour Law
b. Company Law
c. Banking Law
d. Service Law
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AIBE XVII Q.98 Walkthrough

‘Specified person’ under Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 means any person other than ______

a. appropriate Government
b. Government company
c. association of persons or trust or society wholly or partially aided by the appropriate Government or controlled by the appropriate Government
d. All of these
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AIBE XVIII Q.94 Walkthrough

In which situation will a one person company (OPC) mandatorily get converted into private or public company?

a. Paid-up share capital exceeds Rs. 25 lakh
b. Paid-up share capital exceeds Rs. 50 lakh
c. Paid-up share capital exceeds Rs. 75 lakh
d. Paid-up share capital exceeds Rs. 1 crore
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AIBE XVIII Q.95 Walkthrough

What is the minimum number of directors required for a public company as per the Companies Act, 2013?

a. 2
b. 3
c. 5
d. 7
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AIBE XIX Q.70 Walkthrough

As per Section 2(84) Share means share in the share capital of a Company and includes: (1) Debentures (2) Preference Shares (3) Stocks (4) Bonds

a. (1) and (2)
b. (4)
c. (1), (2) and (3)
d. (1), (2), (3) and (4)
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AIBE XIX Q.71 Walkthrough

Section 43 of the Companies Act, 2013 provides for _______.

a. Issue of Shares at Premium
b. Kinds of Shares Capital
c. Buy Back of Shares
d. Reduction in Share Capital
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AIBE IV Q.59 Walkthrough

Upon failure to hold Statutory Meeting, the penalty for the defaulting Company shall be-

a. Rs. 500 per day of default
b. Wound up
c. Rs. 1000 per day of the default
d. None of these
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AIBE IV Q.60 Walkthrough

Free transferability of shares is mandatory in a-

a. Listed Company
b. Company Ltd. by shares
c. Public Ltd. Company
d. Foreign Company
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AIBE VI Q.26 Walkthrough

Amalgamation of Companies in National Interest is dealt under-

a. Section 388 of the Companies Act, 1956
b. Section 378 of the Companies Act, 1956
c. Section 396 of the Companies Act, 1956
d. Section 390 of the Companies Act, 1956
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AIBE VI Q.28 Walkthrough

A private limited company limits the number of members to

a. 30
b. 50
c. 40
d. 150
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AIBE VI Q.84 Walkthrough

Trading activities of a company were stopped temporarily in view of the trade depression with an intention to continue the same when the conditions improve. A petition was preferred into the Tribunal for winding-up of the company. The petition

a. is liable to be dismissed
b. will succeed
c. will be kept pending till the conditions improve
d. will not be admitted.
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AIBE VII Q.23 Walkthrough

Under the Companies Act, 2013, any company having a net worth of rupees 500 crore or more or a turnover of rupees 1,000 crores or more or a net profit of rupees 5 crore or more should mandatorily spend ____ of their net profits per fiscal on Corporate Social Responsibility activities

a. 3%
b. 5%
c. 10%
d. 2%
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AIBE VII Q.49 Walkthrough

The Companies Act, 2013 has increased the limit of the number of members in Private Company from 50 to-

a. 100
b. 200
c. 300
d. 150
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AIBE VII Q.50 Walkthrough

The Standards on Auditing have been accorded legal sanctity in the Companies Act, 2013 and would be subject to notification by the-

a. NFRA
b. NRFA
c. NARG
d. SEBI
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AIBE VIII Q.4 Walkthrough

The Companies Act of 1956 accords recognition only to accounting standards whereas under Section 2(7) of the Companies Act of 2013 the recognition is accorded to both accounting and_____standards.

a. Financing
b. Auditing
c. Business
d. Responsibility
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AIBE VIII Q.5 Walkthrough

Companies Act, 2013 allows the formation of

a. Two persons company only
b. Seven persons company only
c. Two or more persons company only
d. One person company also
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AIBE VIII Q.15 Walkthrough

_______of the Companies Act, 2013 requires disclosure in the prospectus of names and addresses of CFO about sources of promoters’ contribution among other things.

a. Section 36
b. Section 37
c. Section 26
d. Section 38
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AIBE IX Q.15 Walkthrough

How is the net worth of a foreign Company calculated for the purpose of Corporate Social Responsibility?

a. The networth will be calculated as per section 198 of Companies Act, 2013
b. It shall be calculated as per section 197 of the Companies Act 2013
c. It shall be calculated as per section 197 and section 381 of the Companies Act, 2013
d. It shall be calculated as per section 198 and section 381 of the Companies Act, 2013.
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AIBE IX Q.31 Walkthrough

Who among the following is authorized to issue regulations regarding shelf prospectus:

a. SEBI
b. Central Government
c. Company Law Board
d. National Company Law Tribunal
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AIBE IX Q.34 Walkthrough

Which of the following services cannot be provided to the Company by an auditor appointed under the provisions of the Companies Act, 2013

a. Internal Audit
b. Actuarial Services
c. Managerial Services
d. All of these
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AIBE IX Q.39 Walkthrough

The provisions of _____ do not apply to trade unions registered under the provisions of Trade Unions Act, 1926.

a. The Co-operative Societies Act, 1912
b. The Companies Act, 1956
c. Both (A) and (B)
d. Neither (A) nor (B)
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AIBE IX Q.69 Walkthrough

Who is liable to pay compensation in case of death or permanent disablement?

a. Owner of the vehicle
b. State Government
c. Driver
d. Insurance Company
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AIBE IX Q.84 Walkthrough

Which of the following Companies will have to constitute Corporate Social Responsibility Committee under the Companies Act, 2013

a. A Company having a net profit of 2.5 crores in a financial year, a net worth of 300 crores and a turnover of rupees 800 crores
b. A Company having a net profit of 3 crores, in a financial year, a net worth of 300 crores and a turnover of rupees 600 crores
c. A Company having a net profit of 5 crores or more, a net worth of 500 crores and a turnover of rupees 1000 crores or more
d. A Company having a net profit of 5 crores or more, a net worth of 500 crores and a turnover of rupees 5000 crores or more
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AIBE X Q.11 Walkthrough

Minimum number of members required to apply for Incorporation Certificate in a Public Ltd. Company is:

a. 7
b. 3
c. 2
d. 50
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AIBE X Q.33 Walkthrough

‘A’ does not fall under the clause of Memorandum of Association. ‘A’ here is:

a. Subscription
b. Director
c. Capital
d. Situation
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AIBE XI Q.64 Walkthrough

The Minimum number of persons required to incorporate a Public Company is:

a. 5
b. 10
c. 7
d. 2
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AIBE XI Q.65 Walkthrough

A Private company can commence business as soon as it receives:

a. Certification of incorporation
b. Letter of intent
c. Occupation certificate
d. None of the above
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AIBE XI Q.68 Walkthrough

What is the maximum number of partners in Banking business?

a. Eight
b. Ten
c. Twelve
d. Sixteen
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AIBE XX Q.44 Walkthrough

In the following question, a Statement is followed by two Conclusions, I and II. Statement:As per Section 157 of the Companies Act, 2013 every company must, within fif- teen days of receiving intimation under Section 156, furnish the Director Identification Number (DIN) of all its Directors to the Registrar with prescribed fees. Failure to comply attracts penalties. Conclusions:I. If a company fails to furnish the DIN, it can be penalized. II. Every officer of the company in default is also liable for penalties. In the context of the above Statement and Conclusions, which one of the following is correct?

a. Only Conclusion I follows
b. Only Conclusion II follows
c. Both Conclusions I and II follow
d. Neither Conclusion I nor II follows
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