380+ MCQs Question Bank on Corporate Law – Part 1

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 2 can be accessed here.

1. As per Section 2(84) Share means share in the share capital of a Company and includes
A. Debentures
B. Preference Shares
C. Stocks
D. Bonds

2. Small Shareholders means a shareholder holding shares of nominal value of not more than
A. 10,000
B. 15,000
C. 5,000
D. 20,000

3. KMP may be a director of any company with permission of
A. CG
B. ROC
C. Board
D. Shareholders

4. A company which has a paid-up share capital of 5 crores or more shall have a whole-time
A. CFO
B. Managing Director
C. Manager
D. Company Secretary

5. Section 43 provides for
A. Issue of shares at Premium
B. Kinds of Shares
C. Buy Back of Shares
D. Reduction in Share Capital

6. A company limited by shares may, if so authorized by its articles, issue preference shares which are liable to be redeemed within a period not exceeding
A. 10 years
B. 12 years
C. 20 years
D. 3 years

7. Notice of right offer shall be dispatched to all the shareholders at least ___ days before opening of the offer.
A. 2 days
B. 5 days
C. 10 days
D. 3 days

8. A Company may issue equity shares with differential rights upon expiry of ______ years from the end of the financial year in which such default was made good
A. 7
B. 2
C. 5
D. 3

9. Section 71 of the Companies Act, 2013 prohibits issue of debentures carrying
A. Differential voting rights
B. Voting rights
C. Both (A) and (B)
D. None of the above

10. The minimum capital of the company for which the whole-time company secretary is required to be appointed as per Companies Act is
A. Rs. 2 crore
B. Rs. 5 crore
C. Rs. 10 crore
D. None of above

11. Sweat Equity share means equity shares issued by a company to its directors or employee
A. At a discount
B. For consideration, other than cash, for providing their know-how
C. For making available rights in the nature of intellectual property rights or value addition
D. All of the above

12. Securities Premium cannot be utilized towards
A. Reduction in Share Capital
B. Buy Back of Shares
C. Issuing fully paid up Bonus Shares
D. Writing off the expenses or commission paid

13. In a private Ltd. co. at the time of incorporation there were 48 members. After that 1 employee joined having 15 debentures and 2 shares. Did the company cross the maximum limit?
A. No
B. Yes
C. Nothing written in law about it
D. None of above

14. Form SH-9 provides for
A. Declaration of Solvency
B. Return of Buy Back
C. Letter of Buy Back
D. Register of Buy Back

15. The _____ undertakes the guarantee of buying the whole of shares or debenture placed before public in the event of non-subscription.
A. Share transfer agent
B. Del Credere Agent
C. Underwriter
D. Analyzer

16. The detail with respect to issue of DVR shares shall be provided by company in its
A. Board Report
B. Annual Return
C. Internal Audit Report
D. Annual Report

17. In case of Redemption of Preference shares, the Company is required to submit SH-7 to ROC in
A. 7 days
B. 14 days
C. 30 days
D. 60 days

18. The securities premium account may not be applied for which of the following:
A. Towards the issue of unissued shares of the company to the members partly paid bonus shares
B. Towards the issue of unissued shares of the company to the members fully paid bonus shares
C. In providing for the premium payable on the redemption of any redeemable preference shares or debentures
D. For the purchase of its own shares or other securities under section 68

19. Preferential Allotment of shares can be made by Company if authorized by
A. Unanimous Resolution
B. Super majority
C. Ordinary Resolution
D. Special Resolution

20. Where a Company is not in a position to redeem its Preference shares, it may redeem unredeemed preference shares by issue of further preference shares with consent of holders of ______ in value of such preference shares.
A. 75%
B. 10%
C. 100%
D. 51%

21. A company prefers to raise more debt capital rather than equity
A. To maximize liquidity
B. To maximize its profit
C. To minimize its tax expenses
D. To minimize interest expenses

22. The equity capital with differential voting rights shall not exceed ______ of the total post issue paid up equity share capital
A. 10%
B. 24%
C. 26%
D. 51%

23. Individual who has been allotted a DIN as on 31st March 2018 shall submit on or before
A. DIR-4 KYC; 5th October 2018
B. DIR-1 KYC; 30th April 2018
C. DIR-2 KYC; 30th April 2018
D. DIR-3 KYC; 5th October 2018

24. The shares or debentures or other interest of any member in a company shall be
A. Non-transferable immovable property
B. Transferable movable property
C. Transferable immovable property
D. Non-transferable movable property

25. Which of the following section of Companies Act 2013 defines the term “share”?
A. Section 2(85)
B. Section 2(84)
C. Section 2(19)
D. Section 2(17)

26. Which of the following statement about Securities Premium is False?
A. Cannot be treated as free reserves
B. Can be treated as profits
C. To be maintained with same sanctity as share capital
D. To be kept in Securities Premium Account

27. Appropriation account is also called
A. Statement of change in owner’s equity
B. Statement of change in shareholder’s fund
C. Statement of change in cash flow
D. Statement of change in outsider’s fund

28. Preference shares are entitled to vote on every resolution placed before the company at any meeting if the dividend due on such shares is in arrears for a period of
A. 4 Years
B. 3 Years
C. 2 Years
D. 1 Year

29. The meeting of all the debenture holders shall be convened by the debenture trustee on
A. Requisition signed by holders holding at least one-tenth in value
B. Requisition signed by holders holding at least one-fifth in value
C. Happening of any breach/default affecting interest of holders
D. Both A and C

30. Shareholders Section 162 is not applicable to
A. Listed Company
B. Specified IFSC Public company
C. Private company
D. Both B & C

31. The provisions relating to debenture trustees shall not be applicable to the
A. Public offer of debentures
B. Board of directors
C. Company
D. Debenture holder

32. Voting Rights for 1st year of registration, in case Producer Company is formed by Producer Institutions shall be
A. On the basis of Shareholding
B. 1 Institution 1 vote
C. On the basis of Participation in the Business
D. None of the Above

33. Section 71 of the Act enables a company to issue debentures with an option to convert such debentures into shares, ______ at the time of redemption
A. Wholly
B. Partly
C. Either wholly or partly
D. None

34. Where ________ resolution is passed, the offer for buy back may remain open for a period less than 15 days
A. Ordinary Resolution
B. Unanimous Resolution
C. Special Resolution
D. Supermajority

35. Letter of Buy Back offer shall be as per the format prescribed in
A. SH-8
B. MHT-4
C. PAS-8
D. PAS-4

36. Which of the following shares can be issued at discount?
A. Sweat Equity share
B. Preference share
C. Equity share
D. All of the above

37. Where a company issues shares at a premium, a sum equal to the premium received shall be transferred to
A. General reserve account
B. Capital reserve account
C. Securities premium account
D. Capital redemption reserve account

38. Which of the following is not true: the company repurchases its own shares
A. To return surplus cash to shareholders
B. To reduce cost of capital
C. To manipulate share market prices
D. Shares are undervalued

39. Which of the following are kinds of share capital?
A. Preference share capital and Equity Share Capital
B. Equity share capital and Bonds
C. Equity share capital and Debenture
D. Preference share capital and Debenture

40. Share means a share in the share capital of a company and includes
A. Preference share
B. Stock
C. Debenture
D. All of the above

41. Which of the following capital is issued at par?
A. Paid Up Capital
B. Issued Capital
C. Authorized Capital
D. Called up Capital

42. Preference shares are entitled to vote on every resolution placed before the company at any meeting if the dividend due on such shares is in arrears for a period of
A. 4 Years
B. 3 Years
C. 2 Years
D. 1 Year

43. A company may issue Bonus shares out of
A. Capital redemption reserve Account
B. Securities Premium Account
C. Free reserves
D. All of the above

44. A company may issue Bonus shares out of
A. Capital redemption reserve Account
B. Securities Premium Account
C. Free reserves
D. All of the above

45. The ______ measures the amount of the company’s net income theoretically available for payment to the holder of its common stock.
A. DPS Ratio
B. TNW/TOL Ratio
C. EPS Ratio
D. PE Ratio

46. The ______ measures the amount of the company’s net income theoretically available for payment to the holder of its common stock.
A. TNW/TOL Ratio
B. DPS Ratio
C. EPS Ratio
D. PE Ratio

47. Any director or KMP shall be allowed to buy in the company, or its holding/subsidiary/associate company
A. Right to call for/make delivery at a specified price/time
B. Right, as he may elect, to call for or make delivery at a specified price/time
C. Both A & B
D. None of the above

48. Every share certificate shall be in
A. Form no SH-4
B. Form no SH-3
C. Form no SH-2
D. Form no SH-1

49. Form SH-9 provides for
A. Return of Buy Back
B. Declaration of Solvency
C. Letter of Buy Back
D. Register of Buy Back

50. A small shareholder’s director shall not be liable to retire by rotation
A. True
B. False
C. May be or may not be
D. None of the above

51. Which one of the following is Not an essential feature of a company?
A. Perpetual Succession
B. Unlimited Liability
C. Separate Property
D. Transferability of shares

52. Companies Act of 2013 consists of how many sections?
A. 440
B. 430
C. 470
D. 465

53. The paid-up share capital means
A. aggregate amount of money credited as paid-up as is equivalent to the amount received as paid-up in respect of shares issued
B. It also includes any amount credited as paid-up in respect of company shares,
C. It also includes any other amount received in respect of such shares, by whatever name called
A. A & B are correct
B. A & C are correct
C. B & C are correct
D. All of the above

54. Government company means:
A. Any company in which not less than fifty-one percent of the paid-up share capital is held by the Central Government
B. Any company in which not less than fifty-one percent of the paid-up share capital is held by the State Government
C. Any company in which not less than fifty-one percent of the paid-up share capital is held by the Central as well as State Government
D. All of the above

55. Government Company is defined under:
A. Section 2(44)
B. Section 2(45)
C. Section 2(46)
D. Section 2(48)

56. The liability of members if shares limit the company:
A. Guarantee amount
B. Unlimited liability
C. Unpaid value of shares
D. None of the above

57. Company Liquidator, in so far as it relates to the winding up of a company, means a person appointed by:
A. The Tribunal in case of winding up by the Tribunal
B. The company or creditors in case of voluntary winding up
C. Both (a) and (b)
D. None of the above

58. Private Company is defined under which section of the Companies Act:
A. Section 2 (68)
B. Section 2 (64)
C. Section 2 (69)
D. Section 2 (65)

59. Promoter is a person:
A. Who has been named as such in a prospectus or is identified by the company in the annual return referred to in section 92
B. Who has control over the affairs of the company, directly or indirectly whether as a shareholder, director or otherwise
C. In accordance with whose advice, directions or instructions the Board of Directors of the company is accustomed to act
D. All of the above

60. Public company is defined under which section?
A. Section 2 (68)
B. Section 2 (71)
C. Section 2 (73)
D. Section 2 (74)

61. The Article of Association of a company is dealt under?
A. Section 5
B. Section 4
C. Section 9
D. Section 10

62. Article of Association of a company contains:
A. Subdivision of share capital
B. Appointment of Directors
C. Provisions for entrenchment
A. A & B are correct
B. A & C are correct
C. All are correct
D. B & C are correct

63. In which of the following cases the issue of Corporate Veil was decided first?
A. Solomon v. Solomon
B. Lee v. Lee
C. Dhulia Amalner
D. In Re Kondali Tea Co

64. The auditor of a Government company is appointed by:
A. Central Government
B. Comptroller and Auditor General of India
C. Directors of the Company
D. Shareholders of the Company

65. Which of the following Sections of the Companies Act fixes the maximum number of partners in a partnership firm?
A. Section 464
B. Section 463
C. Section 460
D. Section 450

66. Match the following:

A. A:1, B:2, C:4, D:3
B. A:1, B:2, C:3, D:4
C. A:4, B:3, C:2, D:1
D. A:4, B:2, C:3, D:1

67. Match the following:

A. A:1, B:2, C:3, D:4
B. A:2, B:1, C:3, D:4
C. A:4, B:3, C:2, D:1
D. A:4, B:2, C:3, D:1

68. In the case of a private company, what is the minimum paid-up capital?
A. 1 lakh rupees
B. 5 lakh rupees
C. No minimum amount prescribed
D. 10 lakh rupees

69. A private company gets converted to a public company on the day:
A. When the Special resolution is passed
B. When the State government notifies
C. When it is entered in the register
D. When the registrar grants the certificate

70. Which of the following are the Characteristics of a small company under the Companies Act, 2013?
A. The paid-up capital does not exceed 50 lakh rupees
B. The turnover of the company does not exceed 50 lakh rupees
C. Both (a) and (b)
D. None of the above

71. What is considered conclusive evidence in the case of a company that statutory requirements have complied with:
A. Certificate of Incorporation
B. Certificate of Commencement of Business
C. Both
D. None of the above

72. Memorandum of Association is a:
A. Public Document
B. Partially Public
C. Private document
D. None of the above

73. An act ultra vires to the Memorandum of Association:
A. Can be ratified by the Company
B. Can be ratified by the Company with a special resolution
C. Cannot be ratified by the Company
D. Can be ratified by a simple majority

74. Which of the following cases is related to the doctrine of Ultra Vires?
A. Lakshmanaswami Mudaliar case
B. Ashbury case
C. Both (a) and (b)
D. None of the above

75. The doctrine of constructive notice applies to:
A. Article of Association
B. Memorandum of Association
C. Both (a) and (b)
D. Prospectus

76. Which of the following cases is related to the doctrine of Indoor Management?
A. Lakshmanaswami Mudaliar case
B. London County Council Case
C. Rama Corporation case
D. Ashbury case

77. Exceptions to the doctrine of indoor management include:
A. The outsider has actual or constructive knowledge of an irregularity
B. The outsider behaves negligently
C. Forgery
A. A & B are correct
B. B & C are correct
C. Only B is correct
D. All are correct

78. Under which Section of the Companies Act, any person may, after payment of the prescribed fees inspect by electronic means any documents kept with the Registrar of Companies:
A. Section 340
B. Section 350
C. Section 399
D. Section 400

79. In which of the following cases, the Court cannot order rectification of the instrument:
A. Where the instrument through fraud does not express its real intention
B. Where the instrument through mutual mistake does not express real intention
C. Where the instrument is the articles of association of company
D. Where the rectification of the instrument can be done without prejudice to the right acquired by third persons in good faith and for value

80. Article of Association is a concept in:
A. Partnership Act
B. Negotiable Instrument Act
C. Companies Act
D. Indian Penal Code

81. Which is the appellate authority for the order against the National Company Law Tribunal?
A. District Court
B. High Court
C. Supreme Court
D. Company Board Committee

82. 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

83. Liability of directors of a public company is towards:
A. Shareholder of the Company
B. Public
C. Government
D. Company Law Board

84. In what way is the doctrine of ultra vires 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 the director commits a breach of duty

85. Which of the following is most essential for a company?
A. Memorandum of Association
B. Share Capital
C. Certificate of Incorporation
D. Prospectus

86. An independent director in relation to a company, means:
A. Who, in the opinion of the Board, is a person of integrity and possesses relevant expertise and experience
B. Who is or was a promoter of the company or its holding, subsidiary or associate company
C. Both 1 & 2
D. None of the above

87. 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 800 crore
B. A company having a net profit of 3 crores in a financial year, a net worth of 300 crores and a turnover of 600 crore
C. A company having a net profit of 5 crores in a financial year, a net worth of 500 crores and a turnover of 1000 crore
D. A company having a net profit of 5 crores in a financial year, a net worth of 600 crores and a turnover of 700 crore

88. Section 135 of the Companies Act deals with:
A. Class Action
B. Corporate Social Responsibility
C. Duties of Directors
D. Auditor

89. How is the net worth of a foreign Company calculated for the purpose of Corporate Social Responsibility?
A. The net worth will be calculated as per Section 198 of Companies Act, 2013
B. The net worth will be calculated as per Section 197 of Companies Act, 2013
C. The net worth will be calculated as per Section 381 of Companies Act, 2013
D. The net worth will be calculated as per Section 197 and Section 381 of the Companies Act, 2013

90. 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
C. Order winding up of the Company on his own accord
D. All of the above

91. Which one of the following is correct?
A. A Company may do an act which is necessary for or incidental to the attainment of its objects or which is otherwise not authorised by the Act
B. A Company may not do an act which is necessary for or incidental to the attainment of its objects or which is otherwise not authorised by the Act
C. None of these
D. A Company may do an act which is necessary for or incidental to the attainment of its objects or which is otherwise authorised by the Act

92. Which Section of the Companies Act deals with the ‘Alteration of Memorandum of Association’?
A. Section 15
B. Section 14
C. Section 13
D. Section 12

93. Match the following:

A. A:1, B:2, C:3, D:4
B. A:2, B:3, C:4, D:1
C. A:4, B:3, C:2, D:1
D. A:4, B:3, C:1, D:2

94. Assertion: Doctrine of Indoor management protects an outsider dealing with a company from irregularities inside a company.
Reason: Doctrine of Ultra Vires protects an outsider dealing with a company for corporate capacity not mentioned in the objects clause.
A. (A) and (R) are true, but (R) is not an explanation for (A)
B. (A) and (R) are true and (R) is a correct explanation for (A)
C. (A) is true but (R) is false
D. (A) is false but (R) is true

95. 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

96. Which one of the following is incorrect? Any misstatement 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 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 is liable in respect of every content in the prospectus

97. Dovey v. Cory case is related to the:
A. Liability of the directors for Co-director’s fault
B. Liability of the directors for shareholder’s fault
C. Liability of the directors for Co-promoter’s fault
D. Liability of the directors for his own mistake

98. Directors are the agents of the Company:
In which of the following cases above principle was laid down:
A. Ferguson v. Wilson
B. Elkington and Co. v. Harter
C. Re: Hampshire Land Co.
D. Allen v. Hyatt
A. A
B. A, B
C. A, B, C
D. A, B, C, D

99. Consider the Following Statements:
A. A public company should have at least five directors
B. Only individuals can be appointed as directors
C. Directors are both agents and trustees of the Company
A. A & C are Correct
B. All are correct
C. B & C are correct
D. None of them is correct

100. Directors of the Company can be removed by:
A. Shareholders
B. Tribunal
C. Both
D. None of the above

101. The Annual return of a Company is filed under which section of the Companies Act, 2013?
A. Section 91
B. Section 93
C. Section 92
D. Section 94

102. Consider the Following Statements:
A. Rule of Constructive Notice protects the outsiders against the Company.
B. Turquand rule protects the company against the outsiders.
A. Both are true
B. Both are wrong
C. A is true, B is wrong
D. A is wrong, B is true

103. Match the Following:

A. A:3, B:2, C:1, D:4
B. A:3, B:4, C:1, D:2
C. A:4, B:3, C:2, D:1
D. A:3, B:4, C:2, D:1

104. Number of Directorships a person can hold in different companies is:
A. 25 including 10 public companies
B. 15 including 10 public companies
C. 12 including 10 public companies
D. 20 including 10 public companies

105. Section 12 of the Companies Act 2013, deals with:
A. Registered office
B. Share capital
C. Number of Directors
D. Shareholders

106. The articles of association need to be signed by:
A. All proposed directors
B. Registrar
C. Subscribers of memorandum
D. None of the above

107. The company will be considered as separate person and different from its members from:
A. Start of business
B. Apply for registration
C. Receive incorporation certificate
D. Mentioned in certificate

108. If a company is instructed to change its name which resembles the name of an existing company then the company can change the name by:
A. Passing a special resolution
B. Obtaining permission from the Central government
C. Passing an ordinary resolution
D. Both a & b

109. Number of clauses in the Memorandum of Association is:
A. Six
B. Seven
C. Five
D. Eight

110. Which of the following clauses of the Memorandum of Association cannot be altered?
A. Name
B. Object
C. Situation
D. Liability

111. A company is known as the _______ company of another company if it has control over that other company.
A. Subsidiary
B. Holding
C. Controlling
D. Statutory

112. Private company prohibits any invitation or acceptance of deposits from persons other than its:
A. Members
B. Directors
C. Partners
D. Banks

113. Which of the following cases will be acted upon based on Section 38, Companies Act, 2013?
A. A person fraudulently inducing persons to invest money in securities.
B. A person making an application in a fictitious name.
C. Mis-statements in the prospectus.
D. 1 and 3

114. Variation of the terms of contract or objects in a prospectus is mentioned in which of the following sections of the Companies Act, 2013?
A. Section 27
B. Section 25
C. Section 29
D. Section 32

115. According to Section 43 of the Companies Act, 2013, how many types of share capital exist?
A. 2
B. 3
C. 4
D. 5

116. Which of the following alterations of share capital requires the approval of the NCLT (National Company Law Tribunal)?
A. Increase of authorized share capital.
B. Conversion of all or any of the fully paid-up shares into stock.
C. Consolidation and division of all or any share capital which increases the voting percentage of shareholders.
D. Sub-division of shares or any of them into smaller amounts.

117. Section 62, Companies Act 2013 mentions that further issue of share capital applies to which of the following companies?
A. Private Companies.
B. Public Companies
C. Listed Companies
D. All of the above

118. Assertion: The creditors of a limited company are particularly happy due to the doctrine of indoor management, it would be happier still if the company could escape liability by denying the authority of the officials to act on its behalf.
Reason: Because L.C.B. Gower has written so.
A. Both (A) and (R) are right and (R) is the correct explanation of (A)
B. Both (A) and (R) are wrong
C. (A) is right, (R) is wrong
D. (A) is wrong, (R) is right

119. Various cases have established that the rule in the case of “Royal British Bank v. Turquand” did not operate in a completely unrestricted manner. Keeping this in view, answer which one of the following is incorrect:
A. This rule only protects outsiders that is persons dealing externally with the company.
B. Actual notice of the failure to comply with the internal procedures precluded reliance upon the rule
C. An outsider could not rely upon this rule where the nature of the transaction is suspicious
D. If the transaction in question could not in the circumstance have been validly entered into by the company, even then the third party could enforce the rule.

120. “Nothing connected with the internal disputes between the shareholders is subject to an action by a shareholder.” This majority rule was laid down in the celebrated case of:
A. Bharat Insurance Co. Ltd v. Kanhaiya Lal
B. Brown v. British Abrasive Wheel Co.
C. Foss v. Harbottle
D. Lagunas Nitrate Co. v. Lagunas Syndicate

121. According to provisions of Companies Act, 2013 an individual auditor cannot be appointed for more than how many consecutive years?
A. 4
B. 5
C. 6
D. 7

122. What is the time limit within which the entire proceedings shall be completed and the company be dissolved after submission of the report by the Company Liquidator?
A. Within 60 days of submission of report
B. Within 3 months of submission of report
C. Within 6 months of submission of report
D. Time limit fixed by the Tribunal

123. As per Companies Act, 2013 winding up means:

1.Winding up under this Act

2.Dissolution of company

3.Liquidation under the Insolvency and Bankruptcy Code, 2016, as applicable.

A. Only (1) and (2)
B. Only (1) and (3)
C. Only (2) and (3)
D. All of the above

124. As far as it relates to the winding up of companies by the Tribunal, Official Liquidators may be appointed by:
A. Central Government
B. Tribunal
C. Winding up Committee
D. Creditors and Contributors

125. Winding up committee shall comprise of the following persons, namely:
(i) Official Liquidator attached to the Tribunal
(ii) a nominee of secured creditors
(iii) a professional nominated by the Tribunal
A. Only (i) and (ii)
B. Only (i) and (iii)
C. Only (ii) and (iii)
D. All of the above

126. The Corporate Social Responsibility Committee of the Board shall consist of:
A. Three or more directors, with the condition of not a single director should be an independent director.
B. Three or more directors, with the condition of at least two independent directors.
C. Three or more directors, out of which at least one director shall be an independent director.
D. Three or more directors and all should be independent directors.

127. Where the Tribunal has made a winding up order or appointed a Company Liquidator, within how many days, such liquidator shall submit to the Tribunal, a report:
A. Within 90 days from the order
B. Within 30 days from the order
C. Within 120 days from the order
D. Within 60 days from the order

128. What is the qualification for being a President of the National Company Law Tribunal?
A. He/She shall be a person who is or has been a Judge of a High Court for five years.
B. He/She shall be a person who is or has been a Judge of a High Court for three years.
C. He/She shall be a person who is or has been a Judge of a High Court for six years.
D. He/She shall be a person who is or has been a Judge of a High Court for four years

129. The President of the Tribunal shall hold office as such until he attains:
A. The age of 67 years
B. The age of 58 years
C. The age of 61 years
D. The age of 64 years

130. Consider the following Statements:
A. President of the Tribunal shall be appointed after consultation with the Chief Justice of India and Central Government.
B. Chairperson and Judicial Members of the Appellate Tribunal shall be appointed after consultation with the Chief Justice of India.
A. Only A is Correct
B. Only B is Correct
C. Both are Correct
D. None of the above

131. The Registrar of Companies shall refuse to register a prospectus:
A. If it is not dated.
B. Contains a statement of an expert who has not signed the edit.
C. Contains information which is six months old.
D. In all the above cases.

132. An interest or lien created on the property or assets of a company or any of its undertakings or both as security is known as:
A. Debt
B. Charge
C. Liability
D. Hypothecation

133. A resolution shall be a special resolution when the votes cast in favour of the resolution by members are not less than _________ the number of votes, if any, cast against the resolution.
A. Twice
B. Three times
C. One third
D. One fourth

134. Match the following:

A. A:2, B:1, C:4, D:3
B. A:1, B:2, C:4, D:3
C. A:1, B:2, C:3, D:4
D. A:4, B:3, C:2, D:1

135. The Company has no eyes and ears. Who works as the eyes and ears of the Company?
A. Employees
B. Shareholders
C. Directors
D. Promoters

136. The Board of every Company shall ensure that the company spends in every financial year on account of CSR Policy at least:
A. 5% of average Net Profit
B. 3% of average Net Profit
C. 2.5% of average Net Profit
D. 2% of average Net Profit

137. The general principle of company law is that _________ with other members of the company in the same class.
A. Every member holds equal rights
B. Members may have differential rights
C. Members may or may not have differential rights
D. None of the above

138. According to Section 2(6) of Companies Act, 2013 an associate company, in relation to another company, means a company in which that other company has a significant influence. Here significant influence means:
A. Control of at least twenty percent of the total voting power.
B. Control of at least twenty percent of total voting power, or control of or participation in business decisions under an agreement.
C. Control of at least twenty-five per cent of the total voting power.
D. Control of at least twenty-five per cent of total voting power, or control of or participation in business decisions under an agreement.

139. A copy of the Inspector’s report under Section 223 of the Companies Act, 2013 may be obtained by:
A. By members, creditors or any other person whose interest is likely to be affected by making an application in this regard to the Central Government
B. By making an application in this regard to the Central Government
C. Option (A) or (B)
D. None of the above

140. A company registered under ______________ shall amalgamate only with another company registered under this Section and having similar objects:
A. Section 7 of Companies Act, 2013
B. Section 8 of Companies Act, 2013
C. Section 9 of Companies Act, 2013
D. Section 10 of Companies Act, 2013

141. Any person aggrieved by an order of NCLT may prefer an appeal to the Appellate Tribunal within a period of how many days from the date on which a copy of the order of the Tribunal is made available to the person aggrieved.
A. 120 days
B. 60 days
C. 45 days
D. 30 days

142. In addition to a listed company, which other company is required to appoint a woman director?
A. A company having paid-up share capital of one hundred crore
B. A company having a turnover of three hundred crore
C. A company meeting both the parameters mentioned at (a) and (b)
D. A company meeting any one of the parameters i.e. either (a) or (b)

143. Every company is required to furnish Director Identification Numbers of all its directors to the Registrar within ____________ of the receipt of intimation regarding DIN from the directors.
A. Ten days
B. Fifteen days
C. Twenty days
D. Thirty days

144. The provision regarding conducting four Board meetings every year does not apply to:
A. One Person Company (OPC), small company and dormant company
B. One Person Company (OPC), dormant company and associate company
C. Small company and dormant company
D. One Person Company (OPC) and small company

145. According to Section 23 of the Companies Act, 2013, in how many ways can a public company raise funding?
A. Through Public Offering
B. Through Private Placement
C. Through existing shareholders
D. All of the above

146. Can the subsidiary company hold shares in its holding company:
A. Yes
B. No
C. Generally No. Except in some cases
D. None of the above

147. What are the requirements for signing of Annual Return?
A. In the case of a Small Company and OPC, the annual return shall be signed by the Company Secretary or where there is no Company Secretary, by the Director of the Company.
B. In the case of other companies, the annual return shall be signed by a Director and the Company Secretary, or where there is no Company Secretary, by a Practising Company Secretary
C. Both
D. None of the above

148. The ‘Golden Rule’ for framing a prospectus was laid down in the case of:
A. Royal British Bank
B. Rex v. Kylsant
C. New Brunswick & Canada Rly. & Land Co. v. Muggeridge
D. Derry v. Peek

149. When can an Annual General Meeting be called giving shorter notice than that specified?
A. If consent is accorded to by 95% members are entitled to vote.
B. If consent is accorded to by 30% of the members entitled to vote
C. If the Board of Directors takes a majority decision in this regard
D. If the Company Secretary so wishes

150. For general meetings of any kind (statutory, Annual or Extraordinary) at least ___________ notice must be given to members:
A. 21 days
B. 22 days
C. 23 days
D. 25 days

151. Companies Act 1956 was repealed by:
a. Companies Act’ 2002
b. Companies Act’ 2010
c. Companies Act’ 2013
d. Companies Act’ 2015

152. When did the Companies Act 2013 come into force?
a. 5th August 2013
b. 10th August 2013
c. 15th August 2013
d. 20th August 2013

153. Companies Act 2013 consists of _____ sections.
a. 250
b. 270
c. 360
d. 470

154. Which new type of company was introduced in Companies Act 2013?
a. One Person Company (OPC)
b. Associate Company
c. Small Company
d. All of the above

155. Which of the following is the feature of a registered company?
a. Transferability of shares
b. Perpetual succession
c. Limited liability
d. All of the above

156. Registration of a company is:
a. Optional
b. Compulsory
c. Compulsory for Pvt companies only
d. Compulsory for public companies only

157. Minimum number of members in case of private company is:
a. 2 (Two)
b. 7 (Seven)
c. 50 (Fifty)
d. 200 (Two hundred)

158. Minimum number of members in case of public company is:
a. 2 (Two)
b. 7 (Seven)
c. 50 (Fifty)
d. 200 (Two hundred)

159. Maximum number of members in case of public company is:
a. 2 (Two)
b. 7 (Seven)
c. 50 (Fifty)
d. No Limit

160. MOA of a company defines it:
a. Scope of operation
b. Borrowing powers
c. Capital
d. Nature of business

161. A company incorporated by the act of the parliament is:
a. Statutory Company
b. Private Company
c. Chartered Company
d. Government Company

162. Which of the following is not filed to the registrar at the time of incorporation?
a. Memorandum of Association (MOA)
b. Articles of Association (AOA)
c. Statutory declaration of Compliance
d. Prospectus

163. East India Company was an example of:
a. Public Company
b. Private Company
c. Foreign Company
d. Chartered Company

164. Minimum paid-up capital of a public company is:
a. 1 Lac
b. 2 Lacs
c. 3 Lacs
d. No limit

165. Property of the company belongs to:
a. Company
b. Shareholders
c. Promoters
d. Members

166. Which of the following cannot be a member of a company?
a. Subscriber of MOA
b. Holder of equity shares of company
c. Every person whose name is entered in the register of member
d. Insolvent persons

167. The company’s nationality is decided by its:
a. Shareholders
b. Its registered office
c. Place where books of accounts are kept
d. None of the above

168. In which section of Companies Act board committees are formulated?
a. Sec. 10
b. Sec. 177
c. Sec. 202
d. Sec. 470

169. Under Sec 149 of the Companies Act 2013, every company shall have how many woman directors?
a. 1 (One)
b. 2 (Two)
c. 3 (Three)
d. 4 (Four)

170. The first directors of a public company are appointed by the:
a. Central Government
b. Registrar of Companies
c. Shareholders in General Meeting
d. Auditor

171. A person cannot hold office of a director simultaneously in more than:
a. 10 Companies
b. 15 Companies
c. 20 Companies
d. 50 Companies

172. Which of the following type of company requires only one director?
a. Public Company
b. Private Company
c. One Person Company
d. Small Companies

173. The minimum number of members necessary for a meeting is called as:
a. Quorum
b. Proxy
c. Company Secretaries
d. Board of Directors

174. Class meeting is a meeting of:
a. Meeting of members
b. Meeting of directors
c. Meeting of Creditors
d. Final meeting at dissolution

175. For increasing the number of directors of more than 15:
a. Approval of central government
b. Pass a special resolution
c. Pass an ordinary resolution
d. All of the above

176. Which of the following is not a disqualification for a director u/s 165?
a. A person of unsound mind
b. A person convicted of an offence
c. An undischarged insolvent
d. None of the above

177. What is the period for which books of account must be retained by the company?
a. 2 Years
b. 4 Years
c. 6 Years
d. 8 Years

178. Who among the following cannot file a petition for winding up?
a. The Company
b. Contributory
c. Registrar
d. Promoter

179. The company liquidator has to submit the reports on the progress of winding up:
a. Daily
b. Monthly
c. Quarterly
d. Half yearly

180. Official liquidators are appointed from a panel of professional firms of:
a. Chartered Accountants
b. Advocates
c. CS and CMAs
d. All of the above

181. Which among the following is regarded as the most important document of a company?
a. Annual Report
b. Prospectus
c. Articles of Association
d. Memorandum of Association

182. When there is no profit in one year or the profit of a company is not enough to pay the fixed dividend 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

183. Under the Companies Act every person subscribing to the Memorandum of a company must take at least
a. 100 shares
b. 20 shares
c. 10 shares
d. 1 share

184. What do you mean by pursuit?
a. Authorising the destruction of corporations for the purpose of engaging in any lawful enterprise, business, pursuit, or occupation, is not restricted in meaning to a scheme for making money, but includes any object consistent with the interest of society
b. Authorising the dissolution of corporations for the purpose of engaging in any lawful enterprise, business, pursuit, or occupation, is not restricted in meaning to a scheme for making money, but includes any object consistent with the interest of society
c. Authorising the formation of corporations for the purpose of engaging in any lawful enterprise, business, pursuit, or occupation, is not restricted in meaning to a scheme for making money, but includes any object consistent with the interest of society
d. Authorising the reconstruction of corporations for the purpose of engaging in any lawful enterprise, business, pursuit, or occupation, is not restricted in meaning to a scheme for making money, but includes any object consistent with the interest of society

185. A public company can borrow money
a. After one year of incorporation
b. After obtaining certificate of commencement of business
c. Before incorporation
d. Soon after incorporation

186. A Director appointed to fill up casual vacancy will hold office
a. For a term of 5 years
b. For a term of 3 years
c. Up to next meeting of the Board
d. Up to date of expiry of term of office of outgoing Director

187. On incorporation of a company, the Registrar of Companies, in addition to the Certificate of Incorporation, issues a unique identification number, namely . . . . . . . .
a. Unique corporate number
b. Corporate identification number
c. Company identification number
d. Unique identification number

188. 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

189. Articles of Association are not to be registered in case of
a. A public company limited by share
b. A company limited by guarantees
c. An unlimited company
d. A private company limited by share

190. Memorandum of a company under the Company Law is like a
a. Directory
b. Constitution
c. Schedule
d. None of the above

191. Article of Association is a concept in
a. Partnership Act
b. Negotiable Instruments Act
c. Companies Act
d. Indian Penal Code

192. Contracts made after incorporation of a public company, but before issuing the certificate of commencement of business are . . . .
a. Provisional contracts
b. Post-incorporation contracts
c. Preliminary contracts
d. Contracts in the normal course of business

193. Director may be removed by
(a) Other Directors
(b) Creditors
(c) Central Government
(d) Shareholders in a general meeting
a. Only (1) and (2) are correct
b. Only (2) and (3) are correct
c. Only (3) and (4) are correct
d. Only (4) and (1) are correct

194. Which of the following activities cannot be considered as relating to social responsibility under Section 135 of the Companies Act, 2013?
a. Amount spent on activities which only benefit the employees of the company
b. Amount spent to benefit people who are not economically backward
c. Amount spent on activities which only benefit the consumers of the organisation
d. Amount spent on activities which only benefit the suppliers of the organisation
e. All of the above

195. Minimum number of members required to apply for incorporation Certificate in a Public Ltd. Company is:
a. 7
b. 3
c. 2
d. 50

196. 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 crore
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 crore
c. A company having a net profit of 5 crore or more, a net worth of 500 crores and a turnover of rupees 1000 crore 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 crore or more

197. A company having paid-up share capital of rupees ten lakhs or more is required to submit a certificate to the Registrar of Companies. This certificate is called Compliance Certificate. By whom this certificate is issued?
a. Chartered Accountant
b. Company Secretary
c. Chartered Accountant and Company Secretary both
d. Registrar of Companies

198. In the conflict between equity on one hand and the text of law on the other, the court shall
a. Choose equity
b. Choose law
c. Have the discretions to choose between equity and law
d. Be bound by precedents

199. Which among the following authorities is vested with the power to investigate on matters of professional misconduct committed by a Chartered Accountant or a Chartered Accountant’s Firm under Section 132 of the Companies Act, 2013?
a. National Advisory Committee on Accounting Standards
b. Institute of Chartered Accountants of India
c. The Serious Fraud Investigation Office
d. National Financial Reporting Authority200.Which of the following statement is correct?
(1) Doctrine of indoor management apply in case of knowledge of irregularity in company.
(2) Doctrine of indoor management does not apply in case of suspicion of irregularity.
(3) Doctrine of indoor management apply in case of forgery.
(4) Doctrine of indoor management does not apply if the act of an officer of a company is one which would ordinarily be beyond the powers of such an officer.
a. Only (1) is correct
b. Only (2) is correct
c. Only (3) is correct
d. Only (4) is correct