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This set of Regulatory Framework for Companies Multiple Choice Questions & Answers (MCQs) focuses on Regulatory Framework For Companies Set 1
Q1 | A company is called an artificial person because
- it does not have the shape of a normal man.
- it cannot be sued in the court of law.
- it is invisible and intangible.
- it exists only in contemplation of law.
Q2 | The ‘common seal’ of the company should have
- the company’s name.
- the words ‘corporate seal’.
- the place of the company.
- all the above.
Q3 | Power to use official seal of the company outside India is to be authorized by.
- article of association.
- memorandum of association
- both memorandum and article of association.
- central government.
Q4 | A company comes into legal existence as a person on.
- approval by company law tribunal to commence business.
- approval by central government as being a bonafide company.
- acceptance of legal documents by the registrar for its incorporation.
- issue of certificate of incorporation by the registrar of companies.
Q5 | The word ‘Limited’ can be dropped from a company’s name only when.
- the company is formed for promotion of commerce, art, science, religion, charity or any other useful object.
- the company prohibits the payment of dividends.
- both (a) and (b).
- the central government deems it fit.
Q6 | A public company can be called as a body corporate after it.
- receives certificate of commencement of business.
- issues prospectus.
- receives certificate of incorporation.
- receives approval from the registrar for the proposed name of the
Q7 | A registered company is the company which is incorporated.
- under the companies act, 1956.
- by a special notification of the central government.
- under the indian registration act.
- by a special act of parliament or state.
Q8 | The minimum number of members required to form a ‘public Company’ is.
- 2.
- 7
- 10
- 50
Q9 | The minimum and maximum number of members in a private company are.
- 7 and 50.
- 2 and 50.
- 3 and 100.
- 2 and unlimited.
Q10 | Converting a public company into a private company requires a specialresolution.
- passed by the members and with sanction of the central government.
- passed by the members and approved by the registrar of companies.
- passed by the members and approved by the company law tribunal.
- passed by the members and approved by the auditors.
Q11 | In which of the following conditions, a company will be reckoned a foreigncompany?
- if the company is established outside india and has a place- of business in india.
- a company incorporated outside india having shareholders who are all indian citizens and having its business outside india.
- a company incorporated in india but having all foreign shareholders.
- both (a) and (b).
Q12 | Legal position of a promoter of a company is.
- that of an agent.
- that of a trustee.
- that of a solicitor.
- in a fiduciary capacity.
Q13 | A company is said to have been registered when?
- it files memorandum of association and articles of association.
- it gets incorporation certificate with the registrar of companies.
- it gets certificate for commencement of business.
- it actually starts its business.
Q14 | A private Limited company commences business.
- at any time.
- after obtaining the certificate of incorporation.
- after obtaining the certificate to commence business.
- none of the above.
Q15 | Certificate of commencement of business is not required by.
- a public company.
- a private company.
- both public and private companies.
- private company subsidiary to a public company.
Q16 | The companies (Amendment) Act , 2000 provides new section 292 A forconstitution of audit committees by every public company having a paid- up capital of.
- rs.10 lakh or more.
- rs. 50 lakh or more.
- rs.1 crore or more.
- rs.50 million or more.
Q17 | An Audit Committee may include.
- auditors.
- company secretary.
- non- executive directors.
- all.
Q18 | Which of the following reports included clause 49 in the listing agreement.
- sabhanayagam report.
- kumaramangalam birla report.
- narasimham report.
- l.c. gupta report.
Q19 | Audit committee shall act in accordance with the terms of reference to bespecified by.
- statutory auditors.
- sebi.
- board of directors.
- central government.
Q20 | The Statutory Auditors of the company are appointed by.
- share holders in annual general meeting.
- board of directors.
- company law boa
Q21 | Remuneration Committee is made up of.
- independent directors.
- executive directors.
- auditors.
- investors.
Q22 | Executive Directors are those directors who.
- are men from outside the board.
- occupy management position.
- are independent directors.
- elect the board committee.
Q23 | The company agrees that the remuneration of non- executive directorsshall be decided by.
- board of directors.
- company.
- share holders.
- central government.
Q24 | An Article constitutes a contract between.
- the company and its members.
- the members and outsiders.
- the company and the outsider.
- all the above.
Q25 | Name of a company can be changed by.
- an ordinary resolution.
- a special resolution.
- an approval of the central government.
- a special resolution and with approval of the central government.