Session 12 Company Act 2

1. As per Companies Act, how many minimum members

should be there in a private and a public company?
A) 7, 2
B)2, 7
C) 5, 10
D) 5,20

2. As per Companies Act, how many maximum members

could be there in private and public company?
A)50, no ceiling
B) 20, 50
C) 20, no ceiling
D) 20, 25

3. What is true about Public Limited Companies?

A) Minimum Paid up Capital is Rs.1 Lakh
B) Transfer of shares are restricted
C) No obligation for statutory meetings
D)
Shares are quoted and traded in stock
markets

4. What is not the work of Board of directors?

A) Frame the general policy of the company
B)Maintenance of daily expenditures
C) Appoint the company officers and ensure that they
carry out their duties
D) Recommend to the share holders regarding
distribution of dividend

5. From the following who is not a part time director?

A) Promoter directors

B) Nominee directors
C) Government directors
D)
Finance Director

6. Members have a say in the management of the company

by ___________in General Body Meetings.
A)Exercising their voting rights
B) Attending
C) Participating in the discussion
D) Attracting others attention

7. A motion is proposed by the Chairman of the meeting/any

other member and the process is:
A)Discussion, motion to put to vote, acceptance,
resolutions
B) Motion put to vote, discussion, acceptance,
resolutions
C) Discussion, resolutions, motion put to vote,
acceptance
D) Motion put to vote, resolutions, acceptance,
discussion
8. Questions which generally come up for consideration at
the general body meeting of a company are presented in
the form of proposals called:
A) Resolutions
B)Motions
C) Questionnaire
D) Plans

9. What is the agenda that could be taken up in Special

Resolution?
A) Appointment of auditors and fixation of their
remuneration
B) Increase/decrease in the number of directors

C)Applying to Central Government for an

inspector to investigate in company affairs
D) Removal of a director before the expiry of his term

10.
What is the agenda that could be taken up in
Ordinary Resolution?
A) Appointment of a director in place of one who is
removed
B) Authorizing a Liquidator to accept shares as
consideration for transfer of its assets
C) Alteration of Articles
D)
Appointment and fixing of remuneration of
liquidators

11.
What is the agenda that could be taken up in
Resolution requiring special notice?
A)Passing of Resolutions by Postal Ballot
B) Applying in court to wind up
C) Changing the place of registered office from one
State to another
D) Winding up of a company voluntarily in certain event

12.
What is the check list to be followed by a bank while
extending loans to a company?
A) Bank has to verify from MoA and AA that the
borrowing is for the objective of the company and
that the Board of Directors has powers to borrow
B)To verify the credentials of the Finance Director
C) Loan documents must bear the common seal of the
company and witnessed as prescribed by AA and
Board Resolution
D) A search about charge, if any, on the assets being
offered as security must be carried out before
granting of credit facilities

13.
of

Priority of charges would be determined by the date

A) Advance
B) Submission of loan applications
C)Execution of documents
D) Registration

14.

What is not applicable to creation of charges?

A) Any interested party (borrower or bank) may create
the charge
B) Charge on the assets must be created with RoC
within 30 days of creation of the charge Form 8
C)Banks to issue Certificate of Registration of
charge
D) Company to maintain copies of instruments creating
charge and a register of charges recording all
charges created

15.

Name the loan that need not require registration.

A) Term Loan
B)Bank guarantee
C) Cash credit against hypothecation of stocks, book
debts
D) Bill discounting

16.
What is not the reason attributed for winding up of a
company?
A) Failure to hold statutory meeting
B) Failure of the company to commence business
C)Non registration of loans where assets are
pledged to the bank
D) Reduction in number of members below minimum

17.

Who Can File Winding Up Petition?

A) Member of the Company

B)Central Government
C) Police
D) Employee

18.
In the event of winding up who cannot be
accommodated as Official Liquidator?
A) Company secretaries
B)Bank Official
C) Body corporate approved by Central Government
D) Whole-time or part-time officer appointed by the
Central Government

19.

What is not the duty of official liquidator?

A) Submit preliminary report
B)Participate in General Body Meeting
C) Convene meetings of creditors and contributories
D) Keep proper books

20.
What is the power that could be exercised by the
Official Liquidator without the sanction of the court?
A) Carry on business for the beneficial winding up
B) Sell movable and immovable property by public
auction or private contract (treaty)
C)Draw, accept, make and endorse bilsl of
exchange
D) Raise money on the security of any asset of the
company