380+ MCQs Question Bank on Corporate Law – Part 2

Practice and revise with 380+ MCQs on Corporate Law. This comprehensive question bank is perfect for law students and exam aspirants aiming to strengthen their grasp on company law concepts.

Part 1 contains 200 questions and Part 2 contains 180+ questions.

Part 1 can be accessed here.

201. The Central Government has been empowered to conduct investigation into the affairs of the company under section 210 of the Companies Act 2013
(1) On the report of Registrar of Companies
(2) In public interest
(3) On passing of the special resolution
(4) On order of the court or tribunal
Select the correct answer:
a. (1) and (2) only
b. (3) and (4) only
c. (2) and (3) only
d. All (1), (2), (3) and (4)

202. In what way the doctrine of ultra vires is applied to the companies?
a. The activities should be confined within the objects as specified in the Memorandum of Association
b. The members are not allowed to file a suit on behalf of the company
c. Employees of the company must work during the office hours
d. A contract in which directors commit breach of fiduciary duty

203. Which of the following is true about an incorporated company?
a. Its life depends on the life of its members
b. Its nationality depends on the nationality of its shareholders
c. Audit is not compulsory of its account
d. As such it never dies

204. In which of the following cases, the doctrine of Indoor Management was laid down?
a. Solomon v. Solomon & Co. Ltd.
b. Ashbury Railway Carriage and Iron Co. Ltd. v. Riche
c. Foss v. Harbottle
d. Royal British Bank v. Turquand

205. It deals with the Internal Management and Affairs of company:
a. Prospectus
b. Article of Association
c. Memorandum of Association
d. Debenture

206. The provision of Companies Act, 2013 relating to application to Tribunal for prevention of oppression and mismanagement is contained in
a. Section 241
b. Section 349
c. Section 361
d. Section 344

207. For dissolution of a company, the Tribunal shall pass order
a. Immediately after winding-up order
b. When affairs of the company are completely wound up
c. At the instance of the Central Government
d. At the instance of the Company Law Board

208. According to section 2(45) of the Companies Act (as amended in 1974), a Company Secretary must possess the qualifications prescribed from time to time by the
a. Company Law Board
b. Central Government
c. Registrar of Companies
d. Parliament

209. An application for prevention of oppression and mismanagement in a company should be made to the
a. High Court
b. Central Government
c. National Company Law Tribunal
d. Registrar of Companies

210. “Company is a separate legal entity.” It was laid down in
a. Royal British Bank v. Turqund case
b. Solomon and Solomon Co. case
c. Dr. Laxmanswami Mudalior v. LIC case
d. State Trading Corporation v. CTO case

211. Which two types of business structures are created via a process of incorporation?
a. Companies and sole proprietorships
b. Partnerships and limited liability partnerships
c. Companies and limited liability partnerships
d. Companies and partnerships

212. 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 Companies Act, 2013

213. The proper authority for convening a General Meeting of a company is the
a. Chairman of the Board of Directors
b. Managing Director
c. Board of Directors
d. Shareholders

214. The first Annual General Meeting of a Company must be held
a. Within nine months from the date of closing of the first financial year
b. Within five months from the date of closing of the first financial year
c. Within four months from the date of closing of the first financial year
d. Within three months from the date of closing of the first financial year

215. With which topic the case of Earlanger v. New Sombero Phosphate Co., is related to the Company Law?
a. Prospectus
b. Promoters
c. Directors
d. Memorandum

216. The Companies Act, 2013 has provided that in listed companies, appointment of independent directors is mandatory and the independent directors will be appointed
a. From the list provided by the Company Law Board
b. From the list of persons given by the Ministry of Law and Company Affairs
c. From the Data Bank maintained for this purpose
d. From the list of persons nominated by the shareholders of the company

217. What is the appellate authority for the order against National Company Law Appellate Tribunal?
a. District Court
b. High Court
c. Supreme Court
d. Company Board Committee

218. According to the new Companies Act, 2013, what is the minimum number of person/s required to form a Private Limited Company?
a. 1
b. 2
c. 3
d. 4

219. Which one of the following is incorrect? Any mis-statement made in the Prospectus would attract the liability of the following persons under the Companies Act:
a. Every person who is a director of the company at the time of the issue of the prospectus
b. Every person who has authorised himself to be named and is named in the prospectus either as director or as having agreed to become a director either immediately or after an interval of time
c. Every person who is a promoter of the company
d. An Expert, whose consent has not been endorsed to the registration and liable in respect of every content in the prospectus

220. No person can hold the office of the director in more than . . . . . .
a. 10 Public companies at a time
b. 15 Public companies at a time
c. 20 Public companies at a time
d. 50 Public companies at a time

221. Which among the following remedies is available for a person who acted upon a false prospectus?
a. Damages for fraudulent misrepresentation
b. Compensation for untrue statement
c. Damages for non-compliance with the requirements of section 26 of the Companies Act, 2013
d. All of these

222. 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?
a. Section 3A
b. Section 7
c. Section 3
d. Section 4

223. A company shall be deemed to be unable to pay its debts:
a. If the company has failed to pay the sum within 21 days after the receipt of such demand
b. If any execution process issued on a decree in favour of a creditor is returned unsatisfied
c. If it is proved to the satisfaction of the Tribunal that the company is unable to pay its debts
d. All of the above

224. In which of the following cases, the Court cannot order rectification of instrument-
a. Where the instrument through fraud does not express their real intention
b. Where the instrument through mutual mistake does not express their real intention
c. Where the instrument is the articles of association of a company
d. Where the rectification of the instrument can be done without prejudice to right acquired by third persons in good faith and for value

225. Directors of a company are
a. Debtors of company
b. Trustees of company
c. Landlords of company
d. Tenants of company

226. Articles of a company can be altered by
a. The directors of the company
b. The official of the company
c. Share holders by passing an ordinary resolution
d. Share holders by passing a special resolution

227. Which section of the Companies Act, 2013 deals with corporate social responsibility?
a. Section 133
b. Section 134
c. Section 135
d. Section 136

228. Which one of the following is primary source of equity?
a. Custom
b. Written law
c. Judicial decision
d. Conscience

229. 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?
a. Government company
b. Non-government company
c. Deemed public company
d. Deemed private company

230. The statutory formulation of directors’ duties under Companies Act, 2013 have been spelt out in
a. Section 166
b. Section 151
c. Section 171
d. Section 289

231. In which of the following cases corporate veil of the company has not been lifted by the court
a. gilford motor co. ltd. v. horne
b. daimler co. ltd. v. continental tyre & rubber co. ltd.
c. dinshaw maneckjee petit, re
d. people pleasure park co. v. rohleder

232. Match list-i with list-ii and select the correct answer using the given below the lists

a. a-4, b-1, c-2, d-3
b. a-4, b-3, c-2, d-1
c. a-3, b-2, c-1, d-4
d. a-1, b-2, c-3, d-4

233. Which of the following statements is not correct
a. A company cannot have more than one manager at the same time
b. A company can have more than one manager at the same time
c. A firm cannot be appointed as manager of a company
d. A manager can be appointed for a period of 5 years at a time

234. Who is authorized to issue license to section 8 company under companies act, 2013
a. NCLT
b. any one of the above
c. registrar of companies
d. regional director
e. none of the above

235. Which of the following case is about doctrine of ultra vires
a. royal british bank v. turquand
b. premier industrial bank ltd. v. carlton mfg. co. ltd.
c. rajendra nath dutta v. shibendra mukherjee
d. attorney general v. great eastern railway co.

236. 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
a. the net worth of the company is inr 1,000 crores or more
b. the turnover of the company is inr 1,000 crores or more
c. its net profit during any financial year is inr 50 crores or more
d. its paid-up share capital is inr 200 crores or more

237. The producer company is based on the principles of
a. patronage
b. mutual assistance
c. limited return
d. all of these

238. 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
a. to restrain the company from committing an act which is ultra vires the articles or memorandum
b. to restrain the company from committing breach of any provision of the company’s memorandum and articles
c. to restrain the company from taking action to any resolution passed by members
d. to restrain the company and its directors from acting on a resolution obtained by mis-statement to the members or depositors

239. How much amount of the profits of a company can be distributed as dividend amongst its shareholders
a. 10% of the profit
b. 15% of the profit
c. 5% of the profit
d. no fixed

240. A public company can be converted into a private company only after the approval of the
a. state government
b. high court
c. regional director
d. national company law tribunal

241. The capital with which a company is registered is called
a. working capital
b. subscribed capital
c. authorized capital
d. none of the above

242. Which of the following is most essential for a company
a. memorandum of association
b. share capital
c. prospectus
d. certificate of incorporation

243. What is the maximum number of partners in banking business
a. eight
b. ten
c. twelve
d. sixteen

244. Under the companies act, 2013, a private company can borrow funds for its financial needs from
a. directors, banks and financial institutions
b. directors, shareholders and relatives of directors
c. directors
d. banks and financial institutions

245. Liability of directors of a public company is towards
a. shareholder of the company
b. public
c. government
d. Company Law Board

246. 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
a. dalmer company v. continental type company
b. ashbury railway carriage and iron company v. rick l. r.
c. solomon v. solomon
d. s. t. corporation of india v. commercial tax officer

247. 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

248. Which of the following actions can be taken by a registrar under section 4(5) of the companies act, 2013
a. he can direct the company to change its name within a period of 6 months after passing an ordinary resolution
b. take action for striking off the name of the company from the registrar of companies
c. order winding up of the company on his own accord
d. all of these

249. In case of private company, as per section 2(68) of the companies act, 2013, what is the minimum paid up capital
a. no minimum amount prescribed
b. 1 lakh rupees
c. 5 lakh rupees
d. 10 lakh rupees

250. 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
a. only (1)

b. only (1) and (2)

c. only (1), (2) and (3)

d. (1), (2), (3) and (4)

251. equality means
a. literal equality
b. proportional equality
c. both (a) and (b)
d. neither (a) nor (b)

252. 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 accessible, but not the internal proceedings of which he cannot reasonably be 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.
a. both (a) and (r) are correct and (r) is the correct explanation of (a)
b. both (a) and (r) are correct but (r) is not the correct explanation of (a)
c. (a) is true but (r) is false
d. (a) is false but (r) is true

253. 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

254. The minimum number of the members for a private company and for a public company are respectively
a. 10 and 50
b. 10 and 100
c. 7 and 2
d. 2 and 7

255. Ashbury railway carriage & iron co. v. riche is the case which is related with which topic of the company law
a. doctrine of indoor management
b. doctrine of ultra vires
c. prospectus of company
d. promoters of company

256. The minimum number of persons required to incorporate a public company is
a. 5
b. 10
c. 7
d. 2

257. 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
a. cabinet committee on economic affairs
b. securities and exchange board of india
c. reserve bank of india
d. department of economic affairs

258. Which of the following actions can be taken when an issue is made under the provisions of section 42 of the companies act, 2013
a. An advertisement can be issued in a local newspaper having city coverage
b. The money payable towards subscription can be received in cash
c. The share can be allotted within sixty days of the date of offer
d. The offer can be made to a maximum of fifty people

259. The definition of ‘director’ is contained in_____________
a. Clause (10) of Sec. 2
b. Clause (34) of Sec. 2
c. Clause (33) of Sec. 2
d. Clause (32) of Sec. 2

260. A company may have more than 15 directors, without passing a special resolution, if the company is _____________.
a. A Government company
b. A company licenced under section 8
c. Both (a) and (b)
d. A private company

261. A company may have more than 15 directors _____________.
a. By passing an ordinary resolution
b. By passing a special resolution
c. With the approval of the Central Government
d. With the approval of the tribunal

262. “Statement (1): A One Person Company cannot have more than 1 director.
Statement (2): A One Person Company can have more than 1 director if a special resolution is passed.
Statement (3): A One Person Company can have 1 or more directors, but the number of directors shall not exceed 15 unless a special resolution is passed.
Statement (4): A One Person Company can have any number of directors without passing a special resolution.”
a. Statement (1) is correct
b. Statement (2) is correct
c. Statement (3) is correct
d. Statement (4) is correct

263. The minimum number of directors in a One Person Company, public company and private company are respectively _______.
a. 1, 2 and 3
b. 1, 2 and 7
c. 1, 3 and 2
d. 2, 3 and 2

264. Bharat Steels Ltd. is a Government company which has defaulted in filing of its financial statements with the Registrar, but there is no default in filing of annual return. Bharat Steels Ltd. can appoint more than 15 directors _________.
a. By passing a special resolution
b. With the approval of the Tribunal
c. With the approval of the Central Government
d. Without passing a special resolution and without obtaining the approval of the Central Government or Tribunal

265. Jai Ho Papers Ltd. is a Government company which has defaulted in filing of its financial statements with the Registrar, but there is no default in filing of annual return. Jai Ho Papers Ltd. can have directors without passing a special resolution.
a. 12
b. 15
c. 18
d. Any number

266. “Helpage India is a company licenced under section 8. It has not made any default in filing of financial statements or annual returns with the Registrar. Consider the following statements:
Statement (1): Helpage India Ltd. can have any number of directors without passing a special resolution and without obtaining the approval of the Central Government.
Statement (2): Helpage India Ltd. can have more than 15 directors by passing a special resolution.
Statement (3): Helpage India Ltd. can have more than 15 directors by obtaining the approval of the Central Government.
Statement (4): Helpage India Ltd. can have more than 15 directors by passing a special resolution and obtaining the approval of the Central Government.”
a. Statement (1) is correct
b. Statement (2) is correct
c. Statement (3) is correct
d. Statement (4) is correct

267. A director who is entrusted with substantial powers of management of the affairs of the company is termed as _________.
a. Whole-time director
b. Managing director
c. Chairman
d. Director-cum-manager

268. The power to do administrative acts of a routine nature when so authorised by the Board shall ________ deemed to be included within the substantial powers of management, and a director performing such acts shall _________ a managing director.
a. Be; be
b. Be; not be
c. Not be; be
d. Not be; not be

269. The power to affix the common seal of the company to any document or to draw and endorse any cheque on the account of the company in any bank or to draw and endorse any negotiable instrument or to sign any certificate of share or to direct registration of transfer of any share, shall ____.
a. Be deemed to be administrative acts not amounting to substantial powers of management
b. Be deemed to be administrative acts amounting to substantial powers of management
c. Not amount to substantial powers of management
d. None of these

270. The power to ________, shall not make the person exercising such powers, a managing director.
a. Affix the common seal of the company to any document
b. Draw and endorse any cheque on the account of the company in any bank or to draw and endorse any negotiable instrument
c. Sign any certificate of share or to direct registration of transfer of any share
d. Any of these

271. ‘Managing director’ means a director who, by virtue of ______, is entrusted with substantial powers of management of the affairs of the company.
a. The articles of a company
b. An agreement with the company
c. A resolution passed in general meeting or by the Board of directors
d. Any of these

272. The term ‘managing director’ _______ a _____ occupying the position of managing director, by whatever name called.
a. Means; director
b. Includes; director
c. Means; manager
d. Includes; manager

273. During the calendar year 2018, a company licenced under section 8 held only 2 Board meetings; first Board meeting on 25th June, 2018 and second Board meeting on 25th July, 2018. The company has ___________.
a. Complied with the provisions of Sec. 173
b. Complied with the provisions of Sec. 173, if it has been granted approval by the Central Government
c. Complied with the provisions of Sec. 173, if it has been granted permission by the Tribunal
d. Contravened the provisions of Sec. 173

274. Zara Si Pvt. Ltd. is a small company. It held only 2 Board meetings in the calendar year 2018. There shall be no contravention of section 173, if these Board meetings were held on __________.
a. 10th January, 2018 and 10th June, 2018
b. 10th January, 2018 and 10th December, 2018
c. 10th June, 2018 and 10th August, 2018
d. Both (b) and (c)

275. A company shall not hold more than ______ Board meetings in a calendar year.
a. 4
b. 6
c. 10
d. None of these

276. No Board meeting is required to be held by ________.
a. Small companies, dormant companies and companies licenced under section 8
b. All One Person Companies
c. A One Person Company in which there is only 1 director
d. All of these

277. The Central Government is empowered to grant exemption from the provisions relating to holding of Board meetings. Such exemption may be granted to ___________.
a. Any class of companies
b. Any company
c. Small companies
d. Dormant companies

278. Infant Ltd. is incorporated on 20th January, 2018. It is required to hold its first Board meeting on or before _________.
a. 27th January, 2018
b. 18th February, 2018
c. 19th February, 2018
d. 20th February, 2018

279. On 10th October, 2018, Vishwas Ltd. conducted its Board meeting through video conferencing. The draft minutes of this meeting shall be circulated among all the directors within __________ of the meeting either in writing or in electronic mode as may be decided by the Board.
a. 7 days
b. 15 days
c. 30 days
d. 60 days

280. The Central Government shall, by _______, establish an office to be called the Serious Fraud Investigation Office to investigate frauds relating to _______.
a. An order; companies and other persons
b. A notification; companies and other persons
c. An order; companies
d. A notification; companies

281. The appointment of Director of the Serious Fraud Investigation Office shall be made by _______.
a. The Central Government
b. Registrar
c. Inspector
d. The Tribunal

282. An investigation into the affairs of a company may be assigned to the Serious Fraud Investigation Office by _______.
a. Director of the Serious Fraud Investigation Office
b. The Central Government
c. Registrar
d. The Tribunal

283. Any person who is arrested by any officer of Serious Fraud Investigation Office shall, within _________, be taken to a Special Court or a Judicial Magistrate or a Metropolitan Magistrate.
a. 24 hours
b. 48 hours
c. 72 hours
d. 3 days

284. “With respect to release of a person on bail, consider the following conditions:
Condition (1): The Public Prosecutor has been given an opportunity to oppose the application for release of the accused.
Condition (2): The Special Court is satisfied that there are reasonable grounds for believing that the accused is not guilty of offence and that he is not likely to commit any offence while on bail.
A person accused of an offence punishable under section 447 shall not be released on bail or on his own bond unless _______.”
a. Condition (1) is satisfied
b. Condition (2) is satisfied
c. Either Condition (1) or Condition (2) is satisfied
d. Condition (1) as well as Condition (2) is satisfied

285. ________ may be released on bail, even without giving an opportunity to the public prosecutor to oppose the application for release of the accused, if the Special Court so directs.
a. A person who is under the age of 16 years
b. A woman
c. A person who is sick or infirm
d. Any of these

286. A scheme of merger or amalgamation proposed in accordance with the provisions of section 233, is required to be approved by the creditors or class of creditors of the transferor company or companies and the transferee company. Such approval of creditors shall be obtained in a meeting convened by the company of which ______ notice, along with the scheme, is given to all the creditors _____ in writing.
a. 14 days; and
b. 14 days; or
c. 21 days; and
d. 21 days; or

287. Where a scheme of merger or amalgamation is approved in accordance with the provisions of section 233, the transferee company shall file a copy of the approved scheme with ___________.
a. The Central Government
b. Registrar
c. The Official Liquidator
d. All of these

288. Beta Ltd. is a wholly owned subsidiary of Papa Ltd. A merger of Beta Ltd. and Papa Ltd. can be effected by __________.
a. Complying with the provisions of section 232 read with section 230
b. Complying with the provisions of section 233
c. Either (a) or (b)
d. Complying with the provisions of section 234

289. Prior approval of ________ shall be required for merger of a foreign company into a company registered under the Companies Act, 2013 or vice-versa.
a. The Reserve Bank of India
b. The Tribunal
c. The Central Government
d. All of these

290. The terms and conditions of the scheme of merger of foreign company into a company registered under this Act or vice-versa may provide that consideration to the shareholders of the merging company shall be paid ______.
a. In cash
b. In Depository Receipts
c. Partly in cash and partly in Depository Receipts
d. None of these

291. Giant Ltd. prepares a scheme by which an offer is made to the shareholders of Small Ltd. to acquire their shares. Such offer shall remain open for a period of ____.
a. 6 months
b. 4 months
c. 2 months
d. 1 month

292. River Ltd. is merged into Ocean Ltd. The books and papers of River Ltd. shall not be disposed of __________.
a. For a period of 3 years from the date of such merger
b. For a period of 8 years from the date of such merger
c. For such period as may be directed by the Tribunal
d. Except with the prior permission of the Central Government

293. If a company, without obtaining the permission of the Tribunal, makes any alteration in the memorandum or articles which is inconsistent with the alterations made by the Tribunal, every officer of the company who is in default shall be punishable with fine which shall not be less than _______ but which may extend to ______.
a. 50,000; Rs. 5 lakh
b. 25,000; Rs. 5 lakh
c. 25,000; Rs. 1 lakh
d. 50,000; Rs. 10 lakh

294. Pending the final order, the Tribunal may make an interim order for regulating the company’s affairs. The Tribunal may make the interim order _______.
a. Where an application is made to the Tribunal by any party to the proceedings
b. Suo moto
c. Either (a) or (b)
d. Where an application is made to the Tribunal by the Central Government

295. Where an application claiming relief from oppression or mismanagement is made to the Tribunal, and the Tribunal makes an order on such application, ________ shall, within ______, file a certified copy of order of the Tribunal with the Registrar.
a. The person who had made the application to the Tribunal; 7 days
b. The company; 7 days
c. The company; 30 days
d. The person who had made the application to the Tribunal; 30 days

296. Where the Tribunal, with a view to bringing to an end the matters complained of, in an application made to it for claiming relief from oppression or mismanagement, makes an order terminating or setting aside the agreement between the company and any director or manager of the company, such director or manager shall not act as the director or manager of such company for a period of ______ except with the permission of _________. Before granting such permission, an opportunity of being heard shall be given to ____________.
a. 3 years; the Central Government; the Tribunal
b. 5 years; the Tribunal; the Central Government
c. 3 years; the Tribunal; the Central Government
d. 3 years; the Registrar; the Central Government

297. The Tribunal, with a view to bringing to an end the matters complained of, in an application made to it for claiming relief from oppression or mismanagement, makes an order terminating or setting aside the agreement between Jackson Ltd. and Mr. Dishonest, a director of Jackson Ltd. However, Mr. Dishonest, without obtaining the leave of the Tribunal, starts acting as manager of Jackson Ltd. after a period of 2 months. Mr. Dishonest and every director of Jackson Ltd. who is knowingly a party to such contravention, shall be punishable with fine which may extend to _________.
a. 50,000
b. 1 lakh
c. 2 lakh
d. 5 lakh

298. In case of a company having a share capital, an application under section 241 may be made by ______.
a. 100 members or 1/10th of the total number of members
b. One or more members holding not less than 1/10th of the issued share capital
c. Higher of (a) or (b)
d. Lower of (a) or (b)

299. Where a petition for winding up is presented before the Tribunal by _________, such petition shall be admitted only if it is accompanied by a statement of affairs.
a. Any contributory of the company
b. The company
c. The Registrar
d. The Central Government

300. A contributory shall be entitled to present the petition only if the shares were originally allotted to him or he has held his shares for at least _______ during the ______ immediately preceding the commencement of winding up or the shares have been devolved on him by reason of the death of a member.
a. 6 months; 18 months
b. 6 months; 12 months
c. 3 months; 18 months
d. 3 months; 12 months

301. The Registrar shall not be entitled to present a petition for winding up on the ground that _____.
a. The company has acted against the security of the country or public order or decency or morality, etc.
b. The affairs of the company have been conducted fraudulently
c. The company has not filed its financial statements or annual returns for immediately preceding 5 financial years
d. The company has passed a special resolution

302. A copy of every petition made to the Tribunal for winding up of a company shall also be filed with ______ who shall submit his/its views to the Tribunal within ______ of receipt of such petition.
a. The Registrar; 60 days
b. The Central Government; 60 days
c. The Registrar; 30 days
d. The Central Government; 30 days

303. The previous approval of the Central Government is required before a petition for winding up is made by the _________.
a. The company
b. The Registrar
c. Any contributory of the company
d. Any of these

304. On receipt of a petition for winding up under section 272, the Tribunal shall pass its order within ______ from the date of presentation of the petition.
a. 30 days
b. 60 days
c. 90 days
d. 120 days

305. ‘Winding up’ means _____.
a. Winding up under the Companies Act, 2013
b. Liquidation under the Insolvency and Bankruptcy Code, 2016
c. Both (a) and (b)
d. Winding up or liquidation or dissolution

306. “Foreign company” means any company or body corporate incorporated __________ which has a place of business ________ whether by itself or through an agent, physically or through electronic mode, and conducts any business activity in India in any other manner.
a. In India; in India
b. Outside India; in India
c. Outside India; outside India
d. In India; outside India

307. Sections _________ shall apply to all foreign companies.
a. 380 to 386
b. Sections 392 and 393
c. Both (a) and (b)
d. 380 to 393

308. 60% of the paid-up equity share capital of ABC Inc. is held by 10 Indian citizens. ABC Inc. shall, in respect of its Indian business, comply with _______, as if it were a company incorporated in India.
a. Chapter XXII of the Companies Act, 2013
b. Such provisions of the Act as may be prescribed by the Central Government
c. Both (a) and (b)
d. None of these

309. If ________ or more of ________ of a foreign company is held (whether singly or in the aggregate) by one or more Indian citizens or one or more companies or bodies corporate incorporated in India or one or more Indian citizens and one or more bodies corporate incorporated in India, then, such a foreign company shall, in respect of its Indian business, comply with Chapter XXII of the Companies Act, 2013 (viz. the Chapter Companies Incorporated Outside India’ consisting of sections 379 to 393A) and such other provisions of the Act as may be prescribed by the Central Government, as if it were a company incorporated in India.
a. 51%; the paid-up equity share capital
b. 51%; the paid-up share capital (whether equity or preference or partly equity and partly preference)
c. 50%; the paid-up equity share capital
d. 50%; the paid-up share capital (whether equity or preference or partly equity and partly preference)

310. Within _______ of the establishment of place of business in India by a foreign company, it shall deliver to _________ the documents and information specified in section 380 along with Form No. ______.
a. 15 days; the Directorate of Enforcement; FC-1
b. 30 days; the Registrar; FC-1
c. 15 days; the Ministry of External Affairs; FC-2
d. 30 days; the Central Government; FC-2

311. Any document which any foreign company is required to deliver to the Registrar shall be delivered to _______.
a. The Registrar having jurisdiction over the principal place of business of the foreign company
b. The Registrar having jurisdiction over the place of business established by the foreign company
c. The Registrar having jurisdiction over New Delhi
d. None of these

312. Which of the following is not required to be delivered for registration by a foreign company to the Registrar, when a foreign company establishes a place of business in India?
a. Expert’s consent to the issue of the prospectus
b. Full address of registered office or principal office of the company
c. The particulars of opening and closing of a place of business in India on earlier occasion
d. The full address of the principal place of business in India

313. ‘Nidhi’ or ‘Mutual Benefit Society’ means a company which _________ may, by notification in the Official Gazette, declare to be a Nidhi or Mutual Benefit Society, as the case may be.
a. The Central Government
b. The Tribunal
c. The Regional Director
d. Any of these

314. Where any notification granting any exemption to any Nidhi is proposed to be issued, a copy of such notification shall be laid in draft before each House of Parliament, while it is in session, for a total period of _______.
a. 7 days
b. 15 days
c. 30 days
d. 60 days

315. A Nidhi may be incorporated as ________.
a. A private company
b. A public company
c. Either (a) or (b)
d. None of these

316. Every Nidhi shall ensure that its membership is not reduced to less than ________ members at any time.
a. 100
b. 200
c. 500
d. 1000

317. Deposits may be accepted in the name of a minor, if such deposits are made by __________.
a. The natural or legal guardian
b. The natural or legal guardian who is a member of Nidhi
c. Any person who is a member of Nidhi
d. None of these

318. The director of a Nidhi shall hold office for a term up to ______ consecutive years.
a. 10
b. 5
c. 3
d. 2

319. Statement (1): A director of Nidhi may not be a member of Nidhi.
Statement (2): A director of Nidhi shall be a depositor of Nidhi.
a. Only Statement (1) is correct
b. Only Statement (2) is correct
c. None of the Statements is correct
d. Both the Statements are correct

320. Application for mediation and conciliation can be made by:
Any parties to the proceedings.
The Registrar
The Central Government or the Tribunal or the Appellate Tribunal before which any proceeding is pending may, suo motu refer any matter pertaining to such proceeding to such number of experts as it may deem fit.
Choose the correct one:
a. 1 and 2
b. 1 and 3
c. 2 and 3
d. Any of the above

321. For the purpose of Sec. 438 of Companies Act, 2013, the Special Court shall be deemed to be_______.
a. a Court of Session
b. the Court of Metropolitan Magistrate
c. the Court of a Judicial Magistrate of the First Class
d. Any of the above

322. Any offence committed under the Companies Act, 2013, which is triable by a Special Court shall, until a Special Court is established, be tried by __________.
a. A Court of Session or the Court of Metropolitan Magistrate or a Judicial Magistrate of the First Class
b. Tribunal
c. Appellate Court
d. Central Government

323. Company prosecutors may be appointed for the conduct of prosecutions arising out of Companies Act, 2013. Who may appoint such company prosecutors?
a. A Court of Session or the Court of Metropolitan Magistrate or a Judicial Magistrate of the First Class
b. Tribunal
c. Appellate court
d. Central Government

324. The Court or the Special Court, while deciding the amount of fine or imprisonment under Companies Act, 2013, shall have due regard to which of the following factors:
a. Size of the company and nature of business carried on by the company
b. Inquiry to public interest
c. Nature of the default and reception of the default
d. All of the above

325. If a OPC or a small company fails to comply with any of the provisions of Companies Act, 2013, such company and officer in default of such company shall be liable to a penalty which shall not be more than _____________ of the penalty specified in such sections.
a. One fourth
b. One third
c. One half
d. Three forth

326. ___________ may, by an order published in the Official Gazette, appoint as many officers as adjudicating officers for adjudging penalty under the provisions of Companies Act, 2013 in the prescribed manner:
a. Supreme Court
b. Special Court
c. Central Government
d. Registrar of Companies

327. Statement (1): The Tribunal shall not amend any order passed by it if an appeal has been preferred against such order.
Statement (2): The Tribunal shall send a copy of every order passed by it to the Appellate Tribunal.
a. Only Statement (1) is correct
b. Only Statement (2) is correct
c. Both the Statements are correct
d. None of the Statements is correct

328. Any person aggrieved by an order of the Tribunal may, within _______ from the date of receipt of a copy of the order of the Tribunal, prefer an appeal to the Appellate Tribunal. The Appellate Tribunal may allow a further period not exceeding _____ for filing the appeal, if it is satisfied that the appellant was prevented by sufficient cause from filing the appeal within that period.
a. 30 days; 30 days
b. 45 days; 45 days
c. 60 days; 60 days
d. None of these

329. On the receipt of an appeal, the Appellate Tribunal shall not pass _______.
a. An order confirming the order appealed against
b. An order modifying the order appealed against
c. An order setting aside the order appealed against
d. An order remanding the matter back to the Tribunal

330. The Appellate Tribunal shall endeavour to dispose of the appeal filed before it, within __________ from the date of filing of such appeal. Where any appeal could not be disposed of within such period, the Chairperson may extend such period by such further period not exceeding _________ as he may consider necessary.
a. 3 months; 90 days
b. 30 days; 30 days
c. 45 days; 45 days
d. 60 days; 60 days

331. The Tribunal shall endeavour to dispose of every application or petition presented before it, within ________ from the date of filing of such application or petition. Where any application or petition could not be disposed of within such period, the President may, extend such period by such further period not exceeding _______, as he may consider necessary.
a. 3 months; 90 days
b. 30 days; 30 days
c. 45 days; 45 days
d. 60 days; 60 days

332. Any person aggrieved by an order of the Appellate Tribunal may, within ______ from the date of receipt of order of the Appellate Tribunal, prefer an appeal to the Supreme Court. The Supreme Court may allow a further period not exceeding ________ for filing the appeal, if it is satisfied that the appellant was prevented by sufficient cause from filing the appeal within that period.
a. 30 days; 30 days
b. 45 days; 45 days
c. 60 days; 60 days
d. None of these

333. A party to any proceeding or appeal before the Tribunal or the Appellate Tribunal may __________
a. Appear in person
b. Authorise one or more chartered accountants or company secretaries or cost accountants or legal practitioners
c. Any person other than (a) or (b)
d. Either (a) or (b) or (c)

334. Consider the following:
(i) Ordinary resolutions
(ii) Special resolutions
(iii) Unanimous resolutions
(iv) Resolution passed without any vote cast against it
The resolutions passed by the members may be classified as:
a. (i) to (iii) above
b. (i) to (iv) above
c. (i), (ii) and (iv) above
d. (iii) and (iv) above

335. An ordinary resolution or a special resolution, as the case may be, may be passed ________.
a. In general meeting
b. By postal ballot
c. Either (a) or (b)
d. By circulation

336. Postal ballot may be used for transacting any item of business requiring the approval of the members, other than ________.
a. Ordinary business
b. Any business in respect of which directors or auditors have a right to be heard at the meeting
c. Both (a) and (b)
d. Special business

337. _________ shall be transacted only by means of voting through a postal ballot.
a. Election of a Small Shareholders’ Director u/s 151
b. Sale of the whole or substantially the whole of an undertaking u/s 180(1)(a)
c. Giving loans, or extending guarantees or providing security in excess of the limits specified u/s 186(3)
d. All of these

338. ________ are not required to transact any business through postal ballot.
a. One Person Companies
b. Companies having members upto 200
c. Both (a) and (b)
d. Small companies

339. Consider the following:
(i) Ordinary resolutions
(ii) Special resolutions
(iii) Unanimous resolutions
(iv) Resolution passed without any vote cast against it
(v) Resolutions by majority
The resolutions passed by the Board of directors may be classified as:
a. (i) to (v) above
b. (i), (ii), (iii) and (v) above
c. (iii), (iv) and (v) above
d. (iii) and (v) above

340. The Board may exercise any of its powers by _______ except where the Act requires exercise of such a power by passing a unanimous resolution.
a. Passing the resolution by circulation
b. Passing the resolution in a Board meeting
c. Either (a) or (b)
d. Postal ballot

341. SEBI Act, 1992, provide for
a. the establishment of a Board to protect the interests of investors in securities
b. to promote the development of securities market
c. to regulate the securities market
d. all of the above

342. Vide Sec. 3 of SEBI Act, 1992, Central Government has been given powers to issue notification for establishing a Board, by the name of the Securities and Exchange Board of India. The Board has been established as a ________________, having perpetual succession and a common seal, with power to acquire, hold and dispose of property, both movable and immovable, and to contract, and shall, by the said name, sue or be sued.
a. Society
b. Trust
c. Body Corporate
d. Constitutional authority

343. What is the tenure of the Chairman of SEBI?
a. 2 years
b. 3 years
c. 5 years
d. Not fixed

344. On completion of 60 years of age as on 31 March 2017, Mr. Jain retired as Professor from a university. From 1 April 2017, he was appointed as Chairman of the SEBI for a period of 3 years. Under the provisions of the SEBI Act, 1992, decide whether he can be re-appointed on the same post after expiry of the original tenure?
a. Jain can be reappointed for further 3 years.
b. Jain can be reappointed for further 2 years.
c. Jain can be reappointed for further 3 years after giving a gap of 1 year.
d. Jain cannot be appointed.

345. For the purpose of Sec. 438 of Companies Act, 2013, the Special Court shall be deemed to be _______.
a. a Court of Session
b. the Court of Metropolitan Magistrate
c. the Court of a Judicial Magistrate of the First Class
d. Any of the above

346. Any offence committed under the Companies Act, 2013, which is triable by a Special Court shall, until a Special Court is established, be tried by __________.
a. A Court of Session or the Court of Metropolitan Magistrate or a Judicial Magistrate of the First Class
b. Tribunal
c. Appellate Court
d. Central Government

347. Company prosecutors may be appointed for the conduct of prosecutions arising out of Companies Act, 2013. Who may appoint such company prosecutors?
a. A Court of Session or the Court of Metropolitan Magistrate or a Judicial Magistrate of the First Class
b. Tribunal
c. Appellate court
d. Central Government

348. The Court or the Special Court, while deciding the amount of fine or imprisonment under Companies Act, 2013, shall have due regard to which of the following factors:
a. Size of the company and nature of business carried on by the company
b. Inquiry to public interest
c. Nature of the default and reception of the default
d. All of the above

349. FEMA, 1999 aims to consolidate and amend the law relating to foreign exchange with the objective of
a. to facilitate external trade and payments and promoting the orderly development and maintenance of foreign exchange market in India
b. to regulate the acceptance and utilisation of foreign contribution or foreign hospitality by certain individuals or associations or companies
c. to prohibit acceptance and utilisation of foreign contribution or foreign hospitality for any activities detrimental to the national interest
d. all of the above

350. FEMA, 1999 applies to
a. whole of India excluding state of Jammu and Kashmir
b. whole of India including state of Jammu and Kashmir
c. whole of India and all branches, offices and agencies outside India owned or controlled by a person resident in India and also to any contravention thereunder outside India by any person to whom this Act applies
d. whole of India and all branches, offices and agencies outside India owned or controlled by a person resident outside India and also to any contravention thereunder committed outside India by any person to whom this Act applies

351. The preamble to the Foreign Exchange Management Act, 1999 states that it is an Act to ________ the law relating to foreign exchange with the objective of facilitating external trade and payments and for promoting the orderly development and maintenance of foreign exchange market in India.
a. Consolidate
b. Amend
c. Consolidate and amend
d. None of these

352. The objective of the Act is to ________ and for promoting the orderly development and maintenance of foreign exchange market in India.
a. Facilitating external trade and payments
b. Promote the orderly development of foreign exchange market in India
c. Promote the maintenance of foreign exchange market in India
d. All of these

353. “The Act applies to –
Statement (1): The whole of India, including the State of Jammu and Kashmir.
Statement (2): All branches, offices and agencies outside India owned or controlled by a person resident in India.
Statement (3): Any contravention committed outside India by any person to whom this Act applies.”
a. Only one of the above Statements is correct
b. Only two of the above Statements is correct
c. All the above three Statements are correct
d. None of the above Statements is correct

354. The Act came into force on _____.
a. 1st May, 1999
b. 1st June, 1999
c. 1st October, 1999
d. 1st June, 2000

355. Where redemption or any form of return such as interest or dividends is payable in Indian currency, but the security is denominated in foreign currency, it is _______.
a. Indian security
b. Foreign security
c. Any of these
d. None of these

356. While determining as to whether a person is a resident in India or not, the period for which he has resided in India is to be considered from the
a. Current financial year
b. Current calendar year
c. Preceding financial year
d. Preceding calendar year

357. Objectives of the Prevention of Money Laundering Act, 2002 is:
a. to prevent money laundering
b. to provide for confiscation of property derived from, or involved in, money laundering
c. to provide for matters connected or incidental to matters stated in (a) and (b) above
d. all of the above

358. Money laundering is a –
a. civil offence
b. criminal offence
c. both (a) and (b)
d. none of the above

359. The process of money laundering involves three stages. Choose the correct answer as to sequence of the stages generally occurs:
a. placement, integration followed by layering
b. placement, layering followed by integration
c. layering, placement followed by integration
d. layering, integration followed by placement

360. The process of money laundering involves three stages, placement, layering and integration. Which of the following activity forms part of placement stage?
a. introducing the legal funds into the financial systems
b. engaging in a series of continuous conversions or movements of funds, within the financial or banking system by way of numerous accounts, so as to hide their true origin and to distance them from their criminal source
c. money enters the financial system in such a way that original association with crime is sought to be obliterated so that the money can then be used by the offender or person receiving as clean money
d. all of the above

361. Every reporting entity shall maintain record of documents evidencing identity of its ______ and ______.
a. clients; beneficial owners
b. employees; officers
c. employees; directors
d. directors; members

362. The record of documents evidencing identity of clients and beneficial owners shall be maintained by a reporting entity for a period of _________ after the business relationship between a client and the reporting entity has ended or the account has been closed, whichever is _________.
a. 8 years; later
b. 5 years; later
c. 8 years; earlier
d. 5 years; earlier

363. Where the Director calls for any information from any reporting entity, such reporting entity shall furnish such information to the director within ______.
a. 7 days
b. 15 days
c. 30 days
d. such time as may be specified by the Director

364. No ________ shall deliver any currency which has been accepted from any foreign source, to any person if he knows or has reasonable cause to believe that such other person is likely to deliver such currency to any political party.
a. person resident in India
b. citizen of India resident outside India
c. both (a) and (b)
d. citizen of a foreign country resident outside India

365. A candidate for election may receive foreign contribution from any foreign source in the ordinary course of business transacted in India by such foreign source ________.
a. only after obtaining permission of the Central Government
b. without obtaining any permission of the Central Government
c. if the amount of such foreign contribution is upto Rs. 1 lakh
d. none of these

366. A Member of any Legislature can accept foreign contribution from a relative ________.
a. upto Rs. 25,000
b. upto Rs. 1 lakh
c. without any limit
d. upto such amount as is permitted by the Central Government

367. Mr. Amit, an office-bearer of a political party, receives foreign contribution amounting to Rs. 9 lakh during the financial year 2017-2018 from one of his relatives. Mr. Amit is required to inform such receipt to the Central Government within ____________ from the date of receipt of such foreign contribution.
a. 7 days
b. 15 days
c. 30 days
d. none of these

368. Statement (1): Any person or organisation, other than a person or organisation referred to in section 3, can accept foreign contribution from a relative subject to the condition that if such amount exceeds Rs. 1 lakh equivalent thereto in a financial year, such person or organisation shall inform the Central Government within 30 days from the date of receipt of such contribution.
Statement (2): Where any person or organisation, other than a person or organisation referred to in section 3, accepts foreign contribution from a relative, such person or organisation is not required to inform the Central Government irrespective of the amount of foreign contribution received by it.
a. only Statement (1) is correct
b. only Statement (2) is correct
c. both the Statements are correct
d. none of the Statements is correct

369. Any person referred to in section 3 can accept foreign contribution from a relative subject to the condition that if such amount exceeds _________ or equivalent thereto in a financial year, such person shall inform the Central Government regarding the details of the foreign contribution received by him, in electronic form in ______ within 30 days from the date of receipt of such contribution.
a. 25,000; Form FC-1
b. 1 lakh; Form FC-1
c. 25,000; Form FC-2
d. 1 lakh; Form FC-2

370. Government servant is authorised to receive foreign contribution by way of a gift or presentation made to him as a member of any Indian delegation __________.
a. upto Rs. 25,000
b. upto Rs. 1 lakh
c. upto Rs. 10 lakh
d. in accordance with the rules made by the Central Government

371. The conventional method of resolving disputes between the parties by approaching the court is called as _______.
a. litigation
b. mediation
c. arbitration
d. conciliation

372. The method of resolving disputes by submitting the dispute to one or more neutral persons, whose decision shall be binding on the parties, and who shall be appointed by the parties to resolve the dispute, is called as ________.
a. conciliation
b. mediation
c. litigation
d. arbitration

373. The provisions relating to conciliation are contained in _________ of the Act and provisions relating to conciliation are contained in _______ of the Act.
a. Part I; Part II
b. Part II; Part III
c. Part I; Part IV
d. Part I; Part III

374. Some of the methods of _________ are arbitration, mediation, conciliation and negotiation.
a. prosecution
b. litigation
c. alternative dispute resolution
d. trial

375. Any _________ may be submitted to arbitration.
a. existing dispute
b. future dispute
c. (a) and / or (b)
d. industrial dispute

376. In case of international commercial arbitration, if the ‘seat of arbitration’ is India, it means that the Indian courts shall have the authority to –
Statement (1): Supervise and provide supportive measures for the arbitral proceedings.
Statement (2): Entertain any challenge against the arbitral award.
a. only Statement (1) is correct
b. only Statement (2) is correct
c. both the Statements are correct
d. none of the Statements is correct

377. _________ means a voluntary, confidential and flexible process by which the parties to a dispute seek to mutually settle their dispute with the assistance of a neutral third party.
a. arbitration
b. conciliation
c. litigation
d. negotiation

378. IBC, 2016 was notified in the Official Gazette on _______.
a. 5th May, 2016
b. 11th May, 2016
c. 28th May, 2016
d. 21st December, 2016

379. The Insolvency and Bankruptcy Board of India was established on ______.
a. 1st July, 2016
b. 1st September, 2016
c. 1st October, 2016
d. 1st December, 2016

380. ________ is empowered to establish the Insolvency and Bankruptcy Board of India.
a. The Comptroller and Auditor General of India
b. The Central Government
c. The Securities and Exchange Board of India
d. The Reserve Bank

381. The head office of Insolvency and Bankruptcy Board of India is situated at _________.
a. Mumbai
b. Kolkata
c. Hyderabad
d. New Delhi

382. IBC, 2016 is divided into ________ parts and it has _______ schedules.
a. 4; 11
b. 4; 12
c. 5; 11
d. 5; 12

383. The provisions relating to insolvency resolution and liquidation for corporate persons are contained in _______.
a. Part I of the Code
b. Part II of the Code
c. Part III of the Code
d. Part IV of the Code

384. The purpose of the Code is _______.
a. To provide time bound settlement of insolvency
b. To resolve India’s bad debt problem by creating a database of defaulters
c. Facilitate easy exit of bankrupt corporates and individuals
d. All of these