Regulatory Framework For Companies Set 3 MCQs

Q1 | The remuneration payable to a whole time director of the company shouldnot exceed.

5% of the net profits.

6 % of the net profits.

7 % of the net profits.

10% of the net profits.

Q2 | The first directors of a public company are appointed by the.

public.

shareholders.

promoters.

government.

Q3 | According to the companies Act, 1956 a Private limited company musthave at least ………… directors.

seven.

three.

two.

one.

Q4 | Maximum managerial remuneration permissible under the Companies Act,1956 for public limited companies is.

10% of the net profits.

5% of net profit.

11% of net profit.

8% of net profit.

Q5 | Under the companies Act, which one of the following powers can beexercised by the Board of Directors?

power to sell the company’s undertakings.

power to make call.

power to borrow money in excess of the paid up capital.

power to reappoint an auditor.

Q6 | Who may be appointed as a director of a company?

an individual.

a body corporate.

a firm.

an association.

Q7 | The nominal value of the qualification shares of a director must not exceed.

rs. 1000

rs.2000.

rs.4000.

rs. 5000 or the nominal value of one share where it exceeds rs.5000.

Q8 | According to section 255 of the companies Act, the Directors must beappointed by the.

central government.

company law tribunal.

company in general meeting.

board of directors.

Q9 | The Board of Directors can exercise the power to appoint directors in the case of.

additional directors.

filling up the casual vacancy.

alternate directors.

all the above.

Q10 | Where a director acts dishonestly to the interest of the company, he will beheld liable for.

ultra vires acts.

negligence.

breach of fiduciary duty.

mala fide acts.

Q11 | Except with the approval of the central Government, remuneration of awhole time director or a managing director shall not exceed …………… of the net profits for one such director.

3%.

5%.

10%.

11%.

Q12 | Under section 269, every public company and a private company which isa subsidiary of a public company must have a managing director or a whole time director if its paid-up share capital is.

rs.1 crore or more.

rs.2 crore or more.

rs.5 crore or more.

rs.10 crore or more.

Q13 | Sec.291 of the Company Act 1956, has clarified that.

the directors are subordinate to the overall majority of the shareholders.

the board of directors shall exercise all such powers and do all such acts as the company is authorized to exercise or to do subject to the restrictions contained in the act, memorandum and articles.

the shareholders cannot interfere with the conduct of management in any way.

all the above.

Q14 | When the Directors have acted mala fide and are themselves the wrongdoers, the only option left with the shareholders is.

to go to the court.

approach the company law tribunal.

to interfere in management by a majority in the general meeting.

to approach the central government.

Q15 | When there is a deadlock between the directors.

the central government can intervene and ask the directors to co-operate with each other.

the company law tribunal has necessarily to intervene.

shareholders may intervene to take necessary steps to ensure the working of the company.

directors must forget about personnel issues and work for greater good.

Q16 | What is the amount of contribution that a company can make for politicalpurposes?

10% of net profits of the preceding financial year on which the tax has been paid.

5% of gross profit of the current assessment year.

amount not exceeding 5% of the net profits of three immediately preceding financial years.

none of these.

Q17 | Any information or knowledge generated by the company.

is the property of the company and known as intellectual property.

cannot be used by any director for personal gains.

if used for personal gains by any director must be accounted for to the company.

all the above.

Q18 | According to section 283 (1) (g) if a director absents himself from 3consecutive board meetings or from all meetings consecutively for a period of 3 months without obtaining leave of absence.

he shall be fined with rs.500.

he shall be held accountable to the registrar.

his office shall become vacant.

all the above.

Q19 | The maxim “delegates nonpotest delegare” states the.

duty to delegate to a director.

duty not to delegate their duties.

duty of a subordinate not to protest when duty has been delegated to him.

none of above.

Q20 | A company can be wound up.

voluntarily by members.

by the order of the tribunal.

by voluntary winding up by creditors.

by all the above methods.

Q21 | Compulsory winding up means winding up.

by the tribunal.

by the members.

by the creditors.

all of them.

Q22 | A company may be wound up by the Tribunal if.

the company passes an ordinary resolution to this effect.

the company does not commence its business within 6 months of its incorporation.

number of members reduced below 7 in the case of a private company.

company is unable to pay its debts.

Q23 | As per Sec 439, who can file a petition to the tribunal for winding up?

the registrar.

company.

contributory.

any one of these.

Q24 | As per Sec.444 when the Tribunal makes an order for the winding up itshould be communicated within two weeks to.

official liquidator.

company.

central government.

national company law board.

Q25 | Official liquidators are appointed from a panel of.

professional firms of chartered accountants.

advocates.

company secretaries.

all.