Company Law MCQs for Law Aspirants: Solved High-Quality MCQs for Judiciary Prelims

Boost your Judiciary Prelims prep with Solved Company Law MCQs. High-quality practice for law aspirants. Excel in every question!

Update: 2024-09-03 04:20 GMT

Company Law - Solved High-Quality MCQs for Judiciary Prelims

A ready compilation of 100 Company Law MCQs for ease and regularity of practice to enhance students' general understanding of the subject and boost their preparation by familiarising them with questions similar to the exam pattern of popular law and judiciary exams.

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Q.1) 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

Q.2) Companies Act of 2013 consists of how many sections?

[A] 440

[B] 430

[C] 470

[D] 465

Q.3) 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

Q.4) 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

Q.5) Government Company is defined under:

[A] Section 2(44)

[B] Section 2(45)

[C] Section 2(46)

[D] Section 2(48)

Q.6) 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

Q.7) 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

Q.8) 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)

Q.9) 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

Q.10) Public company is defined under which section?

[A] Section 2 (68)

[B] Section 2 (71)

[C] Section 2 (73)

[D] Section 2 (74)

Q.11) The Article of Association of a company is dealt under?

[A] Section 5

[B] Section 4

[C] Section 9

[D] Section 10

Q.12) 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

Q.13) 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

Q.14) 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

Q.15) 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

Q.16) Match the following: 

A. Banking Company

1. Section 2(9)

B. Board of Directors

2. Section 2(10)

C. Company

3. Section 2(30)

D. Debenture

4. Section 2(20)

[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

Q.17) Match the following:

A. Dividend

1. Section 2(41)

B. Financial Year

2. Section 2(35)

C. Foreign Company

3. Section 2(42)

D. Government Company

4. Section 2(45)

[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

Q.18) 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

Q.19) 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

Q.20) 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

Q.21) 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

Q.22) Memorandum of Association is a:

[A] Public Document

[B] Partially Public

[C] Private document

[D] None of the above

Q.23) 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

Q.24) 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

Q.25) The doctrine of constructive notice applies to:

[A] Article of Association

[B] Memorandum of Association

[C] Both (a) and (b)

[D] Prospectus

Q.26) 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

Q.27) 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

Q.28) 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

Q.29) 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.

Q.30) Article of Association is a concept in:

[A] Partnership Act

[B] Negotiable Instrument Act

[C] Companies Act

[D] Indian Penal Code

Q.31) 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

Q.32) In which of the following cases corporate veil of the company has not been lifted by the Court:

[A] GilfordMotor 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

Q.33) Liability of directors of a public company is towards :

[A] Shareholder of the Company

[B] Public

[C] Government

[D] Company Law Board

Q.34) 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

Q.35) Which of the following is most essential for a company?

[A] Memorandum of Association

[B] Share Capital

[C] Certificate of Incorporation

[D] Prospectus

Q.36) 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

Q.37) 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

Q.38) Section 135 of the Companies Act deals with:

[A] Class Action

[B] Corporate Social Responsibility

[C] Duties of Directors

[D] Auditor

Q.39) 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

Q.40) 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

Q.41) 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

Q.42) 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

Q.43) Match the following:

 A. Prospectus

1. Rules for internal regulation of Company

B. Memorandum of Association

2. Invitation for Investment

 C. Debenture Certificate

3. Disclosures of object of Company

D. Articles of Association

:4. Bonds issued by the Company

[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

Q.44) 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 an correct explanation for (A)

[C] (A) is true but (R) is false

[D] (A) is false but (R) is true

Q.45) 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

Q.46) 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

Q.47) 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

Q.48) 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

Q.49) 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

Q.50) Directors of the Company can be removed by:

[A] Shareholders

[B] Tribunal

[C] Both

[D] None of the above

Q.51) 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

Q.52) 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

Q.53) Match the Following: 

A. Piercing the Corporate Veil

1. State Trading Corporation of India

B. Doctrine of Ultra Vires

2. Foss v. Harbottle. Citizenship of a Company

C. Corporation as Citizen

3. Gilford Motor Company v. Home

D. Sanctity of majority rule

4.  Ashbury Railway Carriage v. Riche

[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

Q.54) 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

Q.55) Section 12 of the Companies Act 2013, deals with:

[A] Registered office

[B] Share capital

[C] Number of Directors

[D] Shareholders

Q.56) The articles of association need to be signed by:

[A] All proposed directors

[B] Registrar

[C] Subscribers of memorandum

[D] None of the above

Q.57) 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

Q.58) 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

Q.59) Number of clauses in the Memorandum of Association is:

[A] Six

[B] Seven

[C] Five

[D] Eight

Q.60) Which of the following clauses of the Memorandum of Association cannot be altered?

[A] Name

[B] Object

[C] Situation

[D] Liability

Q.61) 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

Q.62) Private company prohibits any invitation or acceptance of deposits from persons other than its:

[A] Members

[B] Directors

[C] Partners

[D] Banks

Q.63) 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

Q.64) 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

Q.65) According to Section 43 of the Companies Act,2013, How many types of share capital exist?

[A] 2

[B] 3

[C] 4

[D] 5

Q.66) 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.

Q.67) 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

Q.68) 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

Q.69) 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.

Q.70) "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

Q.71) 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

Q.72) 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

Q.73) 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

Q.74) 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

Q.75) 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

Q.76) 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.

Q.77) 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

Q.78) 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

Q.79) 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

Q.80) 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

Q.81) 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.

Q.82)  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

Q.83) 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

 Q.84) Match the following:

A. Right of a member of the company to get an injunction against ultra vires transaction

1. Jehangir R. Modi v. Shamji Ladha B.Personal Liability of Directors

B.Personal Liability of Directors

2. Attorney General v. Great Eastern Railway Company

C. Breach of Warranty of authority to induce a third party to enter into ultra vires transaction with the company

3. Coltman v.Coltman 

D. Ultra Vires Acquired property

:4. Weeks v. Property

[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

Q.85) 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

Q.86) 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

Q.87) 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

Q.88) 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.

Q.89) 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

Q.90) 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] Section10 of Companies Act, 2013

Q.91) 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

Q.92) 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)

Q.93) 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

Q.94) 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

Q.95) 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

Q.96) 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

Q.97) 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

Q.98) 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

Q.99) 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

Q.100) 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

Answers

Q.1) B

Q.2) C

Q.3) A

Q.4) D

Q.5) B

Q.6) C

Q.7) C

Q.8) A

Q.9) D

Q.10) B

Q.11) A

Q.12) C

Q.13) D

Q.14) B

Q.15) A

Q.16) A

Q.17) B

Q.18) C

Q.19) A

Q.20) C

Q.21) A

Q.22) A

Q.23) C

Q.24) C

Q.25) C

Q.26) C

Q.27) D

Q.28) C

Q.29) C

Q.30) C

Q.31) C

Q.32) D

Q.33) A

Q.34) A

Q.35) C

Q.36) A

Q.37) C

Q.38) B

Q.39) C

Q.40) B

Q.41) D

Q.42) C

Q.43) B

Q.44) A

Q.45) C

Q.46) D

Q.47) A

Q.48) D

Q.49) C

Q.50) C

Q.51) C

Q.52) B

Q.53) B

Q.54) D

Q.55) A

Q.56) C

Q.57) D

Q.58) C

Q.59) A

Q.60) D

Q.61) B

Q.62) A

Q.63) B

Q.64) A

Q.65) A

Q.66) C

Q.67) D

Q.68) B

Q.69) D

Q.70) C

Q.71) B

Q.72) D

Q.73) B

Q.74) A

Q.75) D

Q.76) C

Q.77) D

Q.78) A

Q.79) A

Q.80) B

Q.81) D

Q.82) B

Q.83) B

Q.84) A

Q.85) C

Q.86) D

Q.87) A

Q.88) B

Q.89) A

Q.90) B

Q.91) C

Q.92) D

Q.93) B

Q.94) A

Q.95) D

Q.96) C

Q.97) C

Q.98) C

Q.99) A

Q.100) A

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