Company Law

AIBE-XVIII-(2)

[Link] which of the following situations a one person company (OPC) will mandatorily
get converted into either private or public company?
(A) In case the paid-up share capital of an OPC exceeds twenty-five lakh rupees.
(B) In case the paid-up share capital of an OPC exceeds fifty lakh rupees.
(C) In case the paid-up share capital of an OPC exceeds seventy-five lakh rupees.
(D) In case the paid-up share capital of an OPC exceeds one crore rupees.
2. What is the minimum number of directors required for a public company as per the
Companies Act, 2013?
(A) 2 (B) 3 (C) 5 (D) 7

AIBE-XVII-(2)
[Link] Private Limited Company choose to convert itself into a Public Company. It
can do so by altering its Memorandum of Association and Articles of Association and
by passing
(A) Ordinary Resolution
(B) Special Resolution
(C) Board Resolution
(D) None of these
2. "Doctrine of lifting of or piercing the corporate veil" is associated with
(A) Labour Law
(C) Banking Law
(B) Company Law
(D) Service Law
AIBE-XVI-(3)
1. Section 8 of the companies act, 2013 contains provision relating to
a) incorporation of company
b) formation of companies with charitable objects, etc
c) effect of registration
d) Effect of memorandum and articles.
2. The verification of the registered office shall be furnished to the registrar within a
period of incorporation
a) 30 days
b) 60 days
c) 90 days
d) 120 days
3. A company which is not a domestic company will pay income tax at the rate of:-
a) 25 % b) 30% c) 40% d) 20%

AIBE-XV-(2)

1. An associate company, in relation to another company, means

a) a company in which that other company has a significant influence, but which is a
subsidiary company of the company having such influence and includes a joint
venture company
b) a company in which that other company has a significant influence, but which is
not a subsidiary company of the company having such influence and includes a joint
venture company
c) a company in which that other company has a significant influence, but which is
not a subsidiary company of the company having such influence and does not
include a joint venture company
d) a company in which that other company has full shares, and is a subsidiary
company of the company having such influence and includes a joint venture
company
2. Minimum number of Directors in a Public company
a) 3
b) 10
c) 12
d) 5

AIBE-XIV-(1)

1. It deals with the Internal Management and Affairs of company:

A. Prospectus
B. Article of Association
C. Memorandum of Association.
D. Debenture

AIBE-XIII-(2)

1. 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
 2. A Prospectus which does not include complete particulars of the quantum or
price of the securities included therein in known as:
a) Shelf Prospectus
b) Memorandum
c) Red Herring Prospectus
d) issuing house

AIBE-XII-(3)

1. 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
2. Permanent Account Number (PAN) is defined under
a) Wealth Tax
b) GST
c) Income Tax Act 1961
d) Finance Act 1992
3. Articles of a company can be altered by
a) The directors of the company
b) The official of the company
c) Share holders by passing an ordinary resolution
d) Share holders by passing a special resolution

AIBE-XI-(2)

1. The Minimum number of persons required to incorporate a Public Company is

a) 5
b) 10
c) 7
d) 2
2. 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

AIBE-X-(2)

1. 'A' does not fall under the clause of Memorandum of Association. 'A' here is:
a) Subscription
b) Director
c) Capital
d) Situation
2. Minimum number of members required to apply for Incorporation Certificate in a
Public Ltd. Company is:
a) 7
b) 3
c) 2
d) 50
AIBE-IX-(5)

1. Which of the following services cannot be provided to the Company by an auditor

appointed under the provisions of the Companies Act, 2013
a) Internal Audit
b) Actuarial services
c) Managerial Services
d) All of these
2. Who among the following is authorized to issue regulations regarding shelf
prospectus
a) SEBI
b) Central Government
c) Company Law Board
d) National Company Law Tribunal
3. 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 cores in a financial year, a net worth of 300
crores and a turnover of rupees 800
b) A Company having a net profit of 3 cores, 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 cores or more, a net worth of 500 crores and a
turnover of rupees 1000 crore or more 8
d) A Company having a net profit of 5 cores or more, a net worth of 500 crores and a
turnover of rupees 5000 crore or more
4. Which of the following actions can be taken by a Registrar under section 4 (5) of
the Companies Act, 2013
a) He can direct the Company to change Its name within a period of 6 months after
passing an ordinary resolution
b) Take action for striking off the name of the Company from the registrar of
Companies
c) Order winding up of the Company on his own accord
d) All of these
5. How is the net worth of a foreign Company calculated for the purpose of
Corporate Social Responsibility?
a) The networth will be calculated as per section 198 of Companies Act, 2013
b) It shall be calculated as per section 197 of the Companies Act, 2013
c) It shall be calculated as per section 197 and section 381 of the Companies Act,
2013
d) It shall be calculated as per section 198 and section 381 of Companies Act, 2013

AIBE-VIII-(6)

1. Sec 253 of the Companies Act, 2013 deals with

a) Determination of Sickness
b) Liability of Directors
c) Promoters
d) Memorandum

2. of the Companies Act, 2013 requires disclosure in the prospectus of names and
addresses of CFO about sources of promoters' contribution among other things.
a) Section 36
b) Section 37
c) Section 26
d) Section 38
3. The Companies Act of 1956 accords recognition only to accounting standards
whereas under Section 2(7) of the Companies Act of 2013 the recognition is
accorded to both accounting and standards.
a) Financing
b) Auditing
c) Business
d) Responsibility
4. Companies Act, 2013 allows the formation of
a) Two persons company only
b) Seven persons company only
c) Two or more persons company only
d) One person company also.
5. Provisions regarding Corporate Social
Responsibility are incorporated in the Companies Act, 2013 under GOD
a) Section 101 b) Section - 111 c) Section 135
d) Section - 235
6. The Supreme Court in held that irrespective of where the 'central management
and control is exercised' by a company, companies incorporated in India, cannot
choose foreign law as the governing law of their arbitration.
a) TDM Infrastructure (P) Ltd. v. UE Development India (P) Ltd.
b) Comed Chemicals Ltd. v. C.N. Ramchand
c) Shreejee Traco (I) Pvt. Ltd. v. Paperline International Inc
d) Bhatia International v. Bulk Trading
AIBE-VII-(5)

1. Which provision of the Companies Act,2013 discusses about the issue of bonus
shares out of its free reserves or the securities premium account or the capital
redemption reserve account, subject to the compliance with certain conditions such
as authorization by the articles, approval in the general meeting
(A) S.36(B) S.43(C) S.63(D) S.33
2. The 2013 Companies Act has increased the limit of the number of members in
Private Company from 50 to
(A) 100
(B) 200
(C) 300
(D) 150
3. The Standards on Auditing have been accorded legal sanctity in the 2013 Act and
would be subject to notification by the
(A) NFRA
(B) NRFA
(C) NARF
(D) SEBI
4. Under the Companies Act, 2013, any company having a net worth of rupees 500
crore or more or a turnover of rupees 1,000 crore or more or a net profit of rupees 5
crore or more should mandatorily spend of their net profits per fiscal on Corporate
Social Responsibility activities
(A) 3%
(B) 5%
(C) 10%
(D) 2%
5. The Guidelines constitute one of the most comprehensive CSR tools available to
companies.
(A) OECD
(B) OACF
(C) OECG
(D) ASEAN
AIBE-VI-(4)

1. Which of following is a ground recognized under the Companies Act for automatic
adjournment of the General Meeting.
A) Absence of Chairman of the meeting
B) Quorum of the meeting is not present
C) Meeting is held at a place different from what was prescribed in the notice
D) Death of any of the directors prior to the meeting
2. Which of the following meetings can be called by members
A) Extra-ordinary General Meeting B) Annual General Meeting C) Statutory meeting
D) Special meeting
3. Which of the following powers can be exercised by the Board of Directors without
holding a meeting
A) Power to issue debentures
B) Power to invest funds of the company
C) Power to make loans
D) Power to appoint of additional director
4. Which of following is not a ground for compulsory winding up of a company
A) Oppression of minority
B) Loss of substratum
C) Non-holding of annual general meeting
D) Losses to the company
AIBE-V-(4)

1. Trading activities of a company werestopped temporarily in view of the trade

depression with an intention to continue the same when the conditions improve. A
petition was preferred into the tribunal for winding up of the company. The petition
A) is liable to be dismissed.
B) will succeed.
C) will be kept pending till the conditions improve.
D) will not be admitted.
2. Amalgamation of Companies in National Interest is dealt under
A) Section 388 of the Companies Act
B) Section 378 of the Companies Act
C) Section 396 of the Companies Act
D) Section 390 of the Companies Act
3. Under Section 171 of the Companies Act, a general meeting of a company may be
called by giving a notice in writing for not less than
A) 21 days
B) 30 days
C) 40 days
D) 14 days
4. A private limited company limits the number of members to
A) 30
B) 50
C) 40
D) 150
AIBE-IV-(4)
1. Upon failure to hold Statutory Meeting, the penalty for the defaulting Company
shall be A. Rs. 500 per day of default;
B. Wound up;
C. Rs. 1000 per day of default;
D. None of these.
2. Free transferability of shares is mandatory in a
A. Listed Company;
B. Company Ltd by shares;
C. Public Ltd. Company;
D. Foreign Company.

3. The Memorandum of Association of a listed company shall be as per

A. Table A:
B. Table B;
C. Table C;
D. Table D.

4. Which of the following clause from Memorandum of Association cannot be

amended?
A. Objects Clause;
B. Liability Clause;
C. Association Clause;
D. Registered office Clause.
Total:47