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This set of Corporate Regulations Multiple Choice Questions & Answers (MCQs) focuses on Memorandum and Articles of Association
Q1 | Which of the following need not have MOA
- Public company
- Private company
- Government company
- Statutory Corporation.
Q2 | A company can change its name by passing
- Ordinary resolution
- Special resolution
- Either by special resolution or by ordinary resolution
- None of the above
Q3 | Ultra vires means
- Beyond the power
- Within the power
- Both
- None of the above
Q4 | Ultra vires loans granted by the company are
- Void
- Voidable
- Valid
- None of the above
Q5 | What is known as a charter of a Company?
- Memorandum
- Articles
- Bye laws
- Prospectus
Q6 | The granting of the certificate of incorporation renders the illegal objects include in thememorandum:
- Legal
- Void
- Voidable
- None of the above
Q7 | Change in objects clauses can be effected
- For any reason
- For special reason only
- to comply with C.G order
- None of the above
Q8 | The capital clause of a company can be changed with the permission of _____________
- Company law board
- Registrar
- Court
- None of the above
Q9 | ______ conceives the idea of the business
- Promoters
- Directors
- Auditors
- None of the above
Q10 | _______stands in the fiduciary position of the company
- Directors
- Promoters
- Auditors
- None of the above
Q11 | ______ are the contracts entered into by promoters on behalf of a prospectus company.
- Provisional contracts
- Pre Incorporation contracts
- Preliminary contracts
- Both a) & b)
Q12 | Contracts made after incorporation but before the grant of Certificate of commencementof Business _____
- Provisional contracts
- Pre incorporation contracts
- Preliminary contracts
- Both (b) & (c)
Q13 | Pre incorporation contract is also known as _________
- Provisional
- Preliminary
- illegal
- legal
Q14 | A public company can borrow money ___________
- before incorporation
- Soon after incorporation
- after issuing a proposal
- after obtaining certificate to commerce business.
Q15 | A private company can borrow funds
- after incorporation
- after obtaining certificate to commerce business
- after holding first annual general meeting
- None of the above
Q16 | A promoter is a person who
- is a director.
- is a relative of the company.
- is a wellwisher of the company.
- takes part in the companys incorporation.
Q17 | When there is a untrue statement in a prospectus who can sue
- Subscribed in primary market
- Subscribed in secondary market
- Rights issue
- None of the above
Q18 | Definition of prospectus was given under which sec.
- 2 (30)
- 2 (32)
- 2 (34)
- 2 (36)
Q19 | Which of the following are not required to issue prospectus?
- Private company
- In case of right issue
- Sweat equity issue
- All the above
Q20 | _______are the prospectus issued instead of full prospectus
- Abridged
- Statement in lieu
- Shelf
- Red herring
Q21 | Which one of the following has a right to claim compensation for any loss due tomisstatement in prospectus
- Purchasing shares in Primary Market
- Secondary Market
- Subscribers to memo.
- All the above
Q22 | _______ years of imprisonment will be imposed in case of issue of prospectus with untruestatements
- 1
- 2
- 3
- 4
Q23 | What is the liability not delivering that can be imposed for statement in lieu ofprospectus_________
- Fine – 10,000
- Imprisonment – 2 years
- Both (a) & (b)
- None of the above
Q24 | _______ are the prospectus issued by the issuing house
- Deemed prospectus
- Shelf prospectus issued by the issuing house
- Red herring
- None of the above
Q25 | _________ prospectus were issued in case securities were issued in stages
- Deemed
- Shelf
- Red herring
- None of the above