Wednesday 5 March 2014

B.com Corporate Regulations and Governance(sem-2)

B.com Corporate Regulations and Governance


2ND SEMESTER B.Com
CORPORATE REGULATIONS AND GOVERNANACE
1. _________ is a voluntary association of persons formed to carry on some business for profit
or to promote art, Science, education or some charitable purpose.
a) Incorporation b) Private company
c) Company d) Public company
Ans. C
2. ___________ is a legal person which capable of perpetual succession and common seal.
a) Company b) Firm
c) Voluntary Association d) Partnership
Ans. A
3. Sec ________ of the companies Act, 1956 states that a company means "a company formed
and registered under this Act, or an existing company"
a) 3(2) (ii) b) 3(1) (ii)
c) 3 (3) (i) d) 3 (1) (i)
Ans. D
4. A company is a _________ of a persons who have come together for a common object which
generally is to earn profit.
a) Artificial person b) Voluntary Association
c) Incorporate Association d) All of these
Ans. D
5. Anything done under an agreement between the company and the third party requires
recognition of the company in the form of ___________
a) Contract b) Agreement
c) Partnership d) Official seal
Ans. D
6. A company is a ______________ person
a) Distinct person b) Group
c) Legal d) Association
Ans. C
7. A company is the creation of ____________
a) Common seal b) Law
c) Share capital d) Members
Ans. B
8. Minimum _________ and maximum _____________ constitute a private limited company.
a) 2 of 10 b) 7 of Unlimited
c) 2 of 15 d) 2 of 50
Ans. D
9. Minimum members in the case of partnership doing banking business is __________
a) 50 b) 20
c) 10 d) 7
Ans. C
10. Minimum _________ persons to constitute a public limited company
a) 7 b) 10
c) 2 d) 5
Ans: A
11. Accounts of a company must be audited by an __________
a) Chartered Accountant b) Auditor
c) Board of Directors d) All of these
Ans. B
12. The winding up of the company can only be done by the process of ___________
a) dissolution of partnership b) General meeting
c) Law d) Management
Ans. C
13. ________ company are those which are incorporated by a Royal Charter.
a) Chartered b) Registered
c) Statutory d) None of these
Ans. A
14. Statutory companies are those incorporated under a special act passed by __________
a) Companies Act b) Parliament
c) Special resolution d) Law
Ans. B
15. __________ Company may be companies limited by shares companies limited by guarantee,
unlimited companies.
a) Number of members b) Liability of members
c) Registered d) Incorporation
Ans. B
16. Companies limited by ________ are not formed for the purpose of profit but for the
promotion of art science, culture, charity, sports, commerce etc.
a) Members b) Shares
c) Liability d) Guarantee
Ans. D
17. Private company means a company which has a minimum paid up capital of ____________
a) Rs. 2,00,000 b) Rs. 5,00,000
c) Rs. 1,00,000 d) Rs. 1,50,000
Ans. C
18. A public company has been defined in Sec._________
a) 3 (1) (iv) b) 3 (1) (i)
c) 3 (1) (iii) d) 3 (1) (ii)
Ans. A
19. Public company means a company which has a minimum paid up capital of Rs. __________
a) 2,00,000 b) 3,00,000
c) 5,00,000 d) 1,00,000
Ans. C
20. Shares can be freely transferable in ________
a) Public Company b) Private Company
c) Registered company d) Government company
Ans. A
21. The common seal of the company is the _____________
a) Official signature of the company
b) Rights of the company
c) General view of the company
d) Name of the above
Ans. A
22. During which of the following circumstances can the veil be lifted by the court?
a) Where the Co acts as an agent
b) Where a fraud is noticed
c) When the company tries to avoid certain legal obligations.
d) All of the above.
Ans. D
23. The memorandum of Association is a __________of the company.
a) Certificate b) Schedule
c) Document d) None of the above
Ans. C
24. If the Articles of a company conflict with the memorandum.
a) The articles shall prevail
b) The memorandum shall prevail
c) The directors will resolve the conflict
d) The court will resolve the conflict
Ans. B
25. The shorter versions of a prospectus is also known as ___________
a) Deemed prospectus b) Incomplete prospectus
c) Abridged prospectus d) Red Herring prospectus
Ans: C
26. On a share of Rs. 200 of a company a shares holder has already paid Rs. 150. His liabilitye is
now limited to:-
a) 200 b) 50
c) 150 d) 0
Ans. B
27. __________ refers to a voluntary association of individuals formed for the purpose of
obtaining a particular social or economical goal.
a) Illegal Association b) Partnership
c) Incorporation d) Company
Ans. D
28. A ___________ is a document but invites the public to subscribe for share and debentures.
a) Memorandum b) Articles
c) Prospectus d) Certificate
Ans. C
29. The _________ issues the certificate of incorporation.
a) Registrar b) Director
c) Court d) All of the above
Ans. A
30. Corporate veil ensures ________ to the company.
a) Protection b) Legal Immunity
c) Both a and b d) None of the above
Ans. B
31. The articles of Association and the memorandum of Association are drafted by __________
a) Auditor b) Director
c) Secretary d) Registrar
Ans. C
32. Doctrine of Ultra vires has reference to __________clause
a) Object b) Subscription
c) Liability d) None of the above
Ans. A
33. Which doctrine protects the out of the outsiders from the company?
a) The Doctrine of Ultra vires
b) The Doctrine of indoor management
c) Both a and b
d) None of the above
Ans. B
34. Which Doctrine seeks to protect the company from the outsiders?
a) The Doctrine of indoor Management
b) The Doctrine of Ultravires
c) The Doctrine of constructive notice
d) None of the above
Ans. C
35. Sec ___________ of the companies Act deals with the meaning and provisions related to the
shelf prospectus.
a) 50 b) 4 (1)
c) 2 (2) d) 60
Ans. D
36. Sec ______________ of the companies Act states that, a public company making an issue of
securities shall circulate information memorandum to the public before filling of a
prospectus.
a) 60 (B) b) 60 (A)
c) 16 (B) d) 16 (A)
Ans. A
37. The person or group of person who being a company into existence are called __________
a) A firm b) Incorporation
c) Promoters d) Promotion
Ans. C
38. The Board of Directors delegate the power to ____
a) Issue debentures
b) Issue of shares
c) Invest the fund
d) Make loans
Ans. D
39. _________ are subordinate to and controlled by the memorandum.
a) Articles of Association
b) Prospectus
c) Statement in law
d) All the above
Ans. A
40. A copy of special resolution has to be filed with the Registrar within ___ days.
a) 90 days b) 30 days
c) 60 days d) 120 days
Ans. B
41. A printed copy of the articles as altered shall be filed by the company with the Registrar
within __________of order of approval from cential.
a) 3 months b) 6 months
c) one month d) 2 months
Ans. C
42. Sec __________ of the companies Act defines foreign company
a) 4 (4) b) 3 (1) (i)
c) 3 (1) (ii) d) 591
Ans. D
43. Sec 25 related to ________ companies
a) Holding b) Licensed
c) Subsidiary d) Existing
Ans. B
44. Holding company is defined in Section ______ of the companies Act.
a) 4(4) b) 2 (2)
c) 3 (4) d) 3(1)
Ans. A
45. _________ is the first stage in the formation of a company.
a) Promotion b) Raising of Capital
c) Incorporation d) Commencement of business
Ans. A
46. The idea of carrying on a business is conceived by a person or by a group of persons called
__________
a) Exploits b) Promoters
c) Directors d) None of these
Ans. B
47. A company is said to be incorporated when it is registered with registrar of the __________
company.
a) Licensing b) Government
c) Existing d) Joint stock
Ans. D
48. When one company controls the management of another company, the former is called a
__________ company.
a) Existing b) Holding
c) Subsidiary d) Licensed
Ans. C
49. _________ is issued by any financial constitution or bank for one or more of issues of
securities or class of securities specified in the prospectus.
a) A bridged Prospectus b) Shelf Prospectus
c) Deemed Prospectus d) Red Herring prospectus
Ans. B
50. The other name of indoor management is called _________
a) Golden rule b) Constructive notice
c) Indoor rule d) Tarquand rule
Ans. D
51. A Company may change its name by passing ______ with the approval of central govt.
a) Special resolution b) Ordinary resolution
c) Both a & b d) None of the above
Ans. A
52. The company shall give notice of alteration to the Registrr within ________of passing the
resolution.
a) 3 months b) 6 months
c) 30 days d) 60 days
Ans. C
53. _________ consists of a series of regulations framed by the legislature for the conduct of the
affair of company.
a) Table B b) Table A
c) Table C d) Table D
Ans. B
54. If a public company limited by shares does not register its own articles ________apply
automatically to a company.
a) Table C b) Table B
c) Table A d) Table D
Ans. C
55. Prospectus must therefore make full and honest declaration of materials facts without
concealing or omitting any relevant fact. This is known as ________
a) Twiquant rule b) Golden rule
c) General rule d) Special rule
Ans. B
56. A public company may issue a prospectus called _________
a) Red herring prospectus b) Shelf prospectus
c) A bridged prospectus d) Deemed prospectus
Ans. A
57. The statement in lieu of prospectus is drafted in accordance with the particulars set in part I of
the ____________the Act.
a) Schedule I b) Schedule IV
c) Schedule III d) Schedule II
Ans. D
58. Golden rule was laid down by________________
a) KINDERSELY VC in New Brun Wick Co. V Maggeride
b) Edington V Fitzmaurice
c) Treeman V Buckhcats
d) Royal British Bank V Turquand
Ans. A
59. ______________ is a shorter version of the prospectus and contains all the salient features of a
prospectus that forms a part of the memorandum.
a) Deemed Prospectus b) Abridged prospectus
c) Reddherring prospectus d) Shelf prospectus
Ans. B
60. __________ Acts as the official signature of the company.
a) Registration b) Special resolution
c) legal entity d) common seal
Ans. D
61. The association that are not registered under Sec. 11 of the companies Act is _____________
a) Incorporated Association b) Illegal Association
c) Non licensed Association d) Unregistered Association
Ans. B
62. ___________ is a person who has singed company's memorandum of association.
a) Individual b) Corporate body
c) Member d) Legal person
Ans. C
63. _____________ is a person who holds the shares for the benefit persons.
a) Trustee b) Member
c) Shareholder d) Company
Ans. A
64. The right given to a particular class of shareholders are called the _____________
a) Special rights b) General rights
c) Class right d) None of the above
Ans. C
65. The power to order rectification of register of members vests in the _________
a) Court b) Tribunal
c) Central Government d) Board of Directors
Ans. B
66. On which of the following dates the Companies Act, 1956 come into force?
a) 31st March 1956 b) 1st April 1956
c) 31st March 1957 d) 1st April 1957
Ans. B
67. The history of the Indian Company Law began in the year of
a) 1850 b) 1908
c) 1913 d) 1956
Ans. A
68. The privilege of limited liability was introduced in the Indian Company Law, in the year of
a) 1850 b) 1857
c) 1927 d) 1956
Ans. B
69. Statutory companies are also known as _______
a) State legislative b) Govt. company
c) Corporation d) None of the above
Ans. C
70. The auditor of government company is appointed by the ___________of India.
a) High Court b) Supreme Court
c) State legislative d) Controller and Auditor General
Ans. D
71. A statutory company is one which incorporated by
a) An Act of Parliament
b) By an Act of State legislature
c) Under the companies Act, 1956
d) By either (a) of (b)
Ans. D
72. In case of a company limited by guarantee, the liability of the members can be enforced
a) only at the time of winding up of the company
b) at any time when the company so decide
c) only by an order of court
d) only by an order of Registrar of Companies.
Ans. A
73. __________ is compulsory for unlimited companies, private companies, companies limited by
guarantee.
a) Memorandum of Association
b) Articles of Association
c) Prospectus
d0 Statement in lieu
Ans. B
74. __________ describes the scope of company activities
a) Memorandum of Association
b) Prospectus
c) Articles of Association
d) Documents
Ans. A
75. The first important document to be filed with the Registrar is ______-
a) Articles of Association b) Prospectus
c) Memorandum of Association d) None of the above
Ans. C
76. If the company's Act go beyond the provisions of the memorandum, its act will be _______
a) Constructive notice b) Circular
c) Ultra vires d) None of the above
Ans. C
77. ___________ is the construction of a company
a) Promotion b) Certificate of incorporation
c) Memorandum d) Documents
Ans. C
78. _______ of schedule 1 of the Companies Act, which gives the specimen of memorandum of a
company limited by shares.
a) Table B b) Table A
c) Table D d) Table E
Ans. A
79. _________ can be passed by the support of three fourth majority a share holders who are
present and entitle to vote at a meeting.
a) Special resolution b) Ordinary resolution
c) Both A and B d) None of the above
Ans. C
80. _________ contain the rules and regulations of the company.
a) Prospectus b) Statement in lieu
c) Articles of Association d) Memorandum of Association
Ans. C
81. __________ signed by the required number of persons which are necessary for the formation
of company.
a) Memorandum of Association b) Prospectus
c) Statement in lieu d) None of the above
Ans. B
82. A public company having a share capital, becomes entitled to commence business only after
obtaining a further certificate known as a _________
a) Company formation b) Certificate of incorporation
c) Provisional contracts d) Certificate of commence business
Ans. D
83. If at the time of registration, a company limited by shares does note file articles of association
with the Registrar, then
a) The company deemed to have adopted Table A
b) The company cannot be registered without this document.
c) The company is deemed to have become a company with unlimited liability
d) None of the above.
Ans. A
84. The annual return should be filed by a company with the Registrar within _______ days from
the date of the annual general meeting of the company.
a) 40 b) 60
c) 30 d) 50
Ans. B
85. Every share holder of a company is also known as _____
a) Member b) Partner
c) Director d) All of the above
Ans. A
86. A foreigner can become a member of a company registered in India but permission of ______
a) SEBI b) High court
c) RBI d) Supreme Court
Ans. C
87. Registered office clause of memorandum of association contain ___
a) The complete postal address
b) The name of Registrar of companies
c) The name of the city/town only and not that of the state
d) The name of the state in which registered office of the company is to situate.
Ans. D
88. The capital with which the company is registered is called the ______
a) Subscribed capital b) Nominal capital
c) Working capital d) None of the above
Ans. B
89. The procedure for change of registered office from one city to another within the same state is
by passing ______
a) Special resolution only
b) Ordinary resolution only
c) Special resolution and approval of central government
d) Ordinary resolution and approval of company law board
Ans. A
90. _______ document contains the rules, regulations and bye-laws for the internal management of
the company.
a) Memorandum of association b) Article of association
c) Prospectus d) Statement in lieu
Ans. B
91. ________ is subordinate to and controlled by the memorandum of association.
a) Prospectus b) Statement in lieu
c) Articles of Association d) None of the above
Ans. C
92. ______ lays down the objects and powers of the company.
a) Memorandum of Association b) Articles of Association
c) Prospectus d) Statement in lieu
Ans. A
93. _______ lays down the modes in which the objects of the company are to be carried out by the
members.
a) Statement in lieu b) Prospectus
c) Memorandum of Association d) Articles of Association
Ans. D
94. Articles of Association adopt the rules and regulations contained in _______ of schedule 1 of
the Companies Act.
a) Table C b) Table D
c) Table A d) Table B
Ans. C
95. The forms of articles of association are given in tables ______ is schedule 1 of the Companies
Act 1956
a) A, C, D & E b) B, C, D & E
c) B, A,C & E d) B, D & E
Ans. A
96. The forms of memorandum of association are given in tables _______ in schedule 1 of the
companies Act 1956.
a) B, A & E b) B, C, D & E
c) A, C, D & E d) D, A E
Ans. B
97. The doctrine of indoor Management has its origin in
a) Saloman V Salona U& Co. Ltd.
b) Ryland V Turquand
c) Royal British Bank V Turquand
d) None of these
Ans. C
98. Offers may be invited from the public by issuing a document known as _____
a) Prospectus b) Notice
c) Circular d) All of the above
Ans. A
99. Articles of Association are not required to be registered in case of ____
a) An Unlimited Company
b) A Company limited by guarantee
c) A public company limited by shares
d) A private company limited by shares.
Ans. C
100. Doctrine of constructive notice means _____
a) Notice of alteration of object clause to the registrar
b) Notice to outside dealing with the registrar as to contents of memorandum and articles.
c) Notice of change of name to members
d) Notice to public as to issue of prospectus.
Ans. B
101. A _______may be defined as a person having control over the affairs, conduct and
management of a company.
a) Shareholders b) Director
c) Body Corporate d) Member
Ans. B
102. ____________ is the Supreme policy framing and decision making organ of a company.
a) Board of directors b) Share holders
c) Auditor d) Body Corporate
Ans. A
103. According to Sec. 225, the Directors should be appointed in the ________-
a) Office of the Registrar b) General Meeting
c) Company d) Share holders
Ans. B
104. The office of a director becomes vacant if he fails to obtain his qualification shares within
_____
a) 30 days b) 1 month
c) 2 months d) 3 month
Ans. C
105. A elected director can be terminated by the
a) Company b) High Court
c) State Government d) Central Government
Ans. D
106. __________ vacancy is caused by resignation, death, insolvency or insanity.
a) Casual b) General
c) Special d) None of the above
Ans. A
107. The maximum remuneration paid to a manager cannot exceed _________ percent of the
annual net profit.
a) 10% b) 5%
c) 15% d) 25%
Ans. B
108. The managing directors hold the _______ shares of the company.
a) Deemed b) Equity
c) Qualification d) Preference
Ans. C
109. Directors are _________ of the Powers conferred on then and they must exercise those powers
bonafide and for the benefit of the company.
a) Trustee b) Management
c) Representative d) None of the above
Ans. A
110. _________ member of directors need to retire every year
a) 2/3 b) 2
c) 1/4 d0 1/3
Ans. D
111. The directors may be held _______ liable on their failure to fulfill the formalities imposed
upon them by the Act.
a) General law b) Criminal
c) Civil d) All of the above
Ans. B
112. A person cannot hold directorship of more than _______ companies at a time.
a) 15 b) 50
c) 25 d) 10
Ans. A
113. __________ is the executive authority of the company.
a) Partners b) Shareholders
c) Board of Directors d) Expert
Ans. C
114. A meeting of Board of directors shall be held at least ____________
a) One month
b) Once in every 3 months and at least 4 such meetings shall be held every year.
c) Two month
d0 4 months and at least 3 such meetings must be held in every year.
Ans. B`
115. The quorum for a meeting of the board of directors shall be ________ of its total strength or 2
directors, whichever is higher.
a) 3 b) 1/2
c) 1/4 d) 1/3
Ans. D
116. Minimum number of directors in public company is ______
a) 3 b) 2
c) 4 d) 1
Ans. A
117. Minimum number of directors in private company is _________
a) 3 b) 2
c) 4 d0 1
Ans. B
118. __________ is a group of people who are acting on behalf of the Company.
a) Managing director b) Partnership
c) Board of directors d) All the above
Ans. C
119. A Managing Director can be appointed for a maximum period of ___________
a) 2 years b) 10 years
c) 3 years d0 5 years
Ans. D
120. __________ can be imposed on directors for non compliance of requirements of companies
Act.
a) Penalty b) Fine
c) Statutory penalty d) Criminal liability
Ans. B
121. When a director voluntarily remains absent from the three consecutive meetings of the Board
of Directors, and
a) he become liable to be punished with fines @ Rs. 500 for every default
b) he is disqualified for becoming a director of any company.
c) his office falls vacant
d) None of the above
Ans. C
122. At one time the appointment of sole selling agent can be made for a period of ______
a) One year b) three year
c) five year d) seven year
Ans. C
123. The term whole time director is defined in Sec.__________ of the Companies Act 1956
a) 2(25) b) 2 (24)
c) 3 (25) d) 3(24)
Ans. B
124. The appointment of every director is to be made by an _______at the general meeting.
a) Ordinary resolution b) Special resolution
c) Single resolution d) None of the above
Ans. A
125. _________ director act during the absence of the original director.
a) First Director b) Additional director
c) Alternate director d0 Representative director
Ans. C
126. _________ is the first general meeting of the shareholders of a public company.
a) Extra ordinary meeting
b) Class meeting
c) General meeting
d) Statutory meeting
Ans. D
127. Statutory meeting must be held with in a period of _____
a) 90 days from the date at which the company is entitled to start its business
b) 6 months from the date of incorporation
c) not less one month & not more than 6 month which the company is entitled to start it
business.
d) 18 months from the date of incorporation.
Ans. C
128. The first annual general meeting of the company must be held within ________
a) 6 months of incorporation
b) 6 months from the date at which the company's entitled to start its business
c) 18 months from the date at which the company is entitled to start its business.
d) 18 months of incorporation.
Ans. D
129. _________called for dealing with some urgent special business which cannot be postponed till
the next annual general meeting.
a) Extra ordinary general meeting
b) Ordinary general meeting
c) Class meeting
d) None of the above
Ans. A
130. ________ is the minimum number of members that should be present at the meeting as per the
Articles of the company before any business can be validly transacted.
a) Minutes b) Quorum
c) Register d) Proxies
Ans. B
131. For the proper conduct of business in a meeting a _________ is necessary
a) Director b) Managing director
c) Chairman d) Shareholder
Ans. C
132. ___________ is the official records of the meeting of the company.
a) Quorum b) Register
c) Report d) Minutes
Ans. D
133. The Chairman of a company has _________ votes
a) 1 b) 3
c) 2 d) None of the above
Ans. C
134. __________ means the list of business or thing to be done at the meeting
a) Quorum b) Register
c) Minutes d) Agenda
Ans. D
135. _________ refers to the instrument by which a person is appointed to act for another at a
meeting of the company.
a) Proxy b) Quorum
c) Motion d) None of the above
Ans. A
136. Decisions of a company are made by _______ of its members passed at meeting of members.
a) Notice b) resolution
c) Quorum d) Circular
Ans. B
137. _______ is the resolution which is passed at validly called general meeting, by simple majority
of the members.
a) Special resolution b) Resolution by postal ballot
c) Ordinary resolution d) Resolution requiring special notice
Ans. C
138. ________ is the resolution which is passed , at valid called general meeting, by special
majority of the meeting.
a) Ordinary resolution b) Special resolution
c) Resolution by postal ballot d) Resolution requiring special notice.
Ans. B
139. Special resolution is passed by majority f _______ of the members voting by show of hands or
on poll either in person or by proxy.
a) 1/3 b) 1/2
c) 3 d) ¾
Ans. D
140. _________ is a proposal put before a meeting.
a) Motion b) Resolution
c) Quorum d) Proxy
Ans. A
141. __________ is a decision on the proposal
a) Quorum b) Proxy
c) Motion d) Resolution
Ans. D
142. Winding up by the order of Tribunal is ____________
a) Voluntary winding up b) Compulsory winding up
c) Winding up d) All the above
Ans. B
143. Winding up by special resolution passed by the company is _______
a) Compulsory winding up b) Winding up
c) Voluntary winding up d) All the above
Ans. C
144. In case of members voluntary winding up, the liquidation for conducting the winding up
proceedings is appointed by ______
a) Central government b) Company in its general meeting
c) Company Law Board d) Register
Ans. B
145. The company is dissolved when the Tribunal passes an order of dissolution and the Tribunal
shall pass such order _________
a) When the affairs of the company have been completely wound up
b) Immediately after the winding up order
c) At the instance of central government
d) At the instance of company Law Board.
Ans. A
146. A past member can also be placed on the list of contributories of he has ceased to be a member
within ____
a) 3 years before the commencement of the winding up
b) 2 years before the commencement of the winding up
c) 18 months before the commencement of the winding up
d) 12 months before the commencement of the winding up
Ans. D
147. The name of a defunct company can be resorted to register on an application made to the
Tribunal by the company, or any member or a creditor within _______
a) 3 years from the dissolution
b) 6 years from the dissolution
c) 20 years from the dissolution
d) 12 years from the dissolution
Ans. C
148. _______ is the first state in which assists realised liabilities are paid off and surplus is
distributed.
a) Dissolution b) Winding up
c) Acquisitions d) All the above
Ans. B
149. The order of dissolution can be issued only by the company.
a) Tribunal b) Company Law Board
c) Both A and B d) None of the above
Ans. A
150. In members voluntary winding up control of winding up in the hands of the ________
a) Creditors b) Members
c) Company d) Directors
Ans. C
151. __________ is a process or set of systems and processes to ensure that a company is managed
to suit the best interests of all those who are interested in the well being of the company.
a) Governance b) SEBI
c) Corporate Governance d) None of the above
Ans. C
152. OECD stands for _______
a) Organization for Economic Control and Development
b) Organization for Economic Corporations and Development
c) Organization for Economic control and Direction
d) Organizations for Export Co-operation and Development
Ans. D
153. The Whistle Blower policy was recommended by _______-
a) Nomination Committee b) Narasimha Report
c) Board Committees d) N.R, Narayana Moorthy
Ans. D
154. Which of the following reports included clauses 49 in the listing agreement
a) Narasimham Committee
b) Kumaramangalam Birla Report
c) L.C. Gupta Report
d) None of the above
Ans. B
155. _________ committee suggests that the non-executive directors can play a crucial role in
corporate Governance.`
a) Cadbury b) Ruttemen
c) N.R. Nanayana Moorthy d) Narasimham Committee
Ans. A
156. An Audit committee may include______
a) Auditors b) Company Secretary
c) Non executive directors d) All of the above
Ans. D
157. Audit committee shall meet at least ______ times in a year.
a) 3 b) 2
c) 4 d) 1/3
Ans. C
158. ________ are the true owners of the company
a) Members b) Investors
c) Directors d) Shareholders
Ans. D
159. Audit committee shall act in accordance with the terms of reference to be specified by
_________
a) Statutory Auditors b) SEBI
c) Board of Directors d) Central Government
Ans. A
160. ___________ auditors of the company are appointed by the share holders in Annual General
Meeting.
a) General b) Statutory
c) Special d) None of the above
Ans. B
161. IPOS stands for _______
a) Inviting Public offer b) Investment public offer
c) Initial public offer d) Individual public offer
Ans. C
162. The Board shall meet at least four time a year, with a maximum times gap of ______ between
any two meetings.
a) 6 months b) 3 months
c) 2 months d) 4 month
Ans: B
163. The audit committee should meet at least _______ in a year
a) 4 b) 2
c) 3 d) 6
Ans. A
164. The code on corporate Governance published in the year ______
a) 2000 b) 2004
c) 2008 d) 2006
Ans. C
165. Which one of the following documents is submitted by the Board of Directors at every AGM
____
a) Balance sheet b) Profit and Loss Account
c) Both a and b b) None of the above`
Ans. C
166. The time gab between two Annual General Meeting should not exceed ________
a) 6 months b) 12 months
c) 8 months d) 15 months
Ans. D
167. Extra ordinary meeting is a meeting of the ________
a) Member b) Share holders
c) Directors d) Both a and b
Ans. B
168. East India Company is an example of __________ company
a) Chartered b) Statutory
c) Registered d0 Foreign
Ans. A
169. Mention one right that the proxy enjoys during a meeting?
a) Right to attend the meeting
b) Right to poll
c) Right to vote
d) None of these
Ans. C
170. The minutes of the company in case of a Board Meeting shall be signed by _______
a) Director b) Chairman
c) Managing Director d0 Both a and b
Ans. B
171. The winding up in which a solvency declaration is not made is known as ______-
a) Creditors voluntary winding up
b) Members voluntary winding up
c) Compulsory winding up
d) None of the above
Ans. A
172. 4 meeting may be adjourned by _______ circumstances
a) Quorum is not present b) Lack of information
c) Balance sheet is not present d) None of the above
Ans. B
173. The listing Agreement was first introduced in India is _______
a) Delhi b) Hyderabad
c) Bangalore d) Bombay
Ans. D
174. Expand CEO
a) Comptroller Executive Officer b) Chief Executive Officer
c) Central Executive Officer d) None of the above
Ans. B
175. Converting the physical shares into electronic shares is called ______
a) Dematerialisation b) Rematerialisation
c) Electronic share d) Computerized method
Ans. A
176. The company agrees that the remuneration of non-executive directors shall be decided by
_______
a) Company b) Shareholders
c) Board of Directors d) Central Government
Ans. C
177. On a winding up order being made, the company's property comes under the custody of
______
a) Central government b) Tribunal
c) Shareholders d) Liquidator
Ans. D
178. A proxy can vote only in case of _______
a) Vote b) Poll
c) Election d) None of these
Ans. B
179. Where a director acts dishonestly to the interest of the company. He will be held liable for
________
a) Negligence b) Malafide acts
c) Ultravires acts d) Breach of fiduciary duty
Ans. D
180. Shelf Prospectus means a prospectus issued by ______
a) Any trading company b) Any industrial company
c) Any financial institution or bank d) None of the above
Ans. C
181. The most important clause in the Memorandum of Association of a company is __________
a) Name clause b) Objects clause
c) Registered Office clause d) Liability clause
Ans. B
182. The alteration of the memorandum has to be certified by the Registrar within
a) 30 days b) 15 days
c) 45 days d) 60 days
Ans. A
183. The charter of a company is its __________
a) Articles of Association b) Prospectus
c) Memorandum of Association d) Certificate of incorporation
Ans. C
184. Notice of the registered office of the company shall be given to the Registrar of companies
with in ______
a) 45 days b) 30 days
c) 15 days d) 60 days
Ans. B
185. An act which is to be ultra vires a company is _______
a) Void b) Valid
b) Both a and b d) None of the above
Ans. A
186. The statement in lieu of prospectus must be filed with the Registrar at least _____ days before
any allotment of shares is made.
a) 15 b) 30
c) 6 d) 3
Ans. D
187. Legal position of a promoter of a company is _______
a) That of an agent b) That of a Trustee
c) In a judiciary capacity d) That of a solicitor
Ans. C
188. The common seal of the company should have
a) The company's Name b) The word Corporate seal
c) The place of the company d) All of the above
Ans. D
189. RBI is an example of _______ company.
a) Chartered b) Statutory
c) Licensed d) Registered
Ans. B
190. Shelf prospects relates under Sec. _________
a) 16A b) 14 A
c) 60 A d) 40 A
Ans. C
191. The doctrine of indoor management provides protection to ______
a) The outsider b) The Board of Directors
c) The shareholders d) The Managing Director
Ans. A
192. The exception to the doctrine of constructive notice is provided in ______
a) Lifting the corporate veil b) Doctrine of indoor management
c) Doctrine of Ultra vires d0 None of the above
Ans. B
193. The procedure to write facts about resolution and its decision is called ______
a) Quorum b) Notice
c) Minutes of narration d) None of the above
Ans. C
194. For declaration of dividend no ______ resolution is required
a) Ordinary b) Special
c) Simple d) None of the above
Ans. B
185 Minutes of company meeting should be prepared with in _______ of the meeting.
a) 21 days b) 30 days
c) 40 days d) 45 days
Ans. B
196. Voting in a company meeting can be through
a) Ballot b) Raising hands
c) Raising votes d) All of these
Ans. D
197. An official liquidator is appointed by the _____
a) Central government b) By court
c) State government d) Company
Ans. A
198. In the event of company being wound up the Tribunal shall prepare list of contributories into
_____
a) List A b) List B
c) List A and List B d) List A or List B
Ans. C
199. Official liquidators are appointed from the panel of _______
a) Professional firm of Chartered Accountant
b) Advocate
c) Company Secretaries
d0 All of the above
Ans. D
200. As per Sec. 439 who can file a petition to the Tribunal for winding up ? _____
a) The Registrar b) Company
c) Contributory d0 Any one of these
Ans. D

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