MCQs on Company Act Part 2

Q.1:- Who may inspect the Register of charges kept by Registrar:

• The auditor of the company
• The person in whose favour the charge has been created
• Any person on payment of the prescribed fees.
• The company whose assets have been charged

Q.2:- For how many years the Registers of deposits shall be preserved:

• For a period of not less than six years from the financial year in which the latest entry is made in the register.
• For a period of not less than eight years from the financial year in which the latest entry is made in the register.
• For a period of not less than two years from the financial year in which the latest entry is made in the register.
• For a period of not less than four years from the financial year in which the latest entry is made in the register.

Q.3:- Whether the company which has once announced the decisions of its Board, recommending a bonus issue can subsequently withdraw the same:

• The company which has once announced the decision of its Board recommending a bonus issue, shall not subsequently withdraw the same.
• The company which has once announced the decision of its Board recommending a bonus issue, can subsequently withdraw the same.
• It can be withdrawn, if permitted by the Central Government.
• It can be withdrawn by passing a special resolution in the General Meeting so the shareholders

Q.4:- Every company shall, on the acceptance or renewal of a deposit, furnish to the depositor or his agent a receipt for the amount received by the company, from the date of receipt of money or realization of cheque or date of renewal.

• Within a period of 41 days
• Within a period of 11 days
• Within a period of 31 days
• Within a period of 21 days.

Q.5:- Memorandum of satisfaction of charge shall be in Form:

• CHG 5
• CHG 3
• CHG 4
• CHG 2

Q.6:- A company may close the register of members/ debenture-holders/ other security holders for any period or periods:

• Not exceeding in the aggregate 60 days in each year, but not exceeding 45 days at any one time
• Not exceeding in the aggregate 75 days in each year, but not exceeding 60 days at any one time
• Not exceeding in the aggregate 45 days in each year, but not exceeding 30 days at any one time
• Not exceeding in the aggregate 30 days in each year, but not exceeding 15 days at any one time

Q.7:- What should be the time gap between one AGM to next AGM:

• Not more than 15 months shall elapse between the date of one AGM and that of the next.
• Not more than 18 months shall elapse between the date of one AGM and that of the next.
• Not more than 12 months shall elapse between the date of one AGM and that of the next.
• Not more than 9 months shall elapse between the date of one AGM and that of the next.

Q.8:- A general meeting of a company may be called by giving either in writing or through electronic mode in such manner as maybe prescribed.

• Not less than clear 31 days’ notice.
• Not less than clear 41 days’ notice.
• Not less than clear 11 days’ notice.
• Not less than clear 21 days’ notice.

Q.9:- Copies of all annual returns prepared under section 92 and copies of all certificates and documents required to be annexed thereto shall be preserved from the date of filing with the Registrar.

• For a period of 6 years
• For a period of 5 years
• For a period of 8 years
• For a period of 7 years

Q.10:- In which Form, every listed public company shall prepare a report on each annual general meeting:

• MGT 15
• MGT 16
• MGT 13
• MGT 14

Q.11:- Who shall be responsible for the and security of electronic records:

• The Director or officer
• The Managing Director, Company Secretary or any other director or officer of the company as the Board may decide.
• The Managing Director
• The Company Secretary

Q.12:- Who shall authenticate the entries in the registers maintained under section 88 and index included therein:

• It shall be authenticated by any other person authorized by the Board for the purpose.
• It shall be authenticated by the company secretary of the company.
• It shall be authenticated by Managing Director of the company.
• Options A and B both are correct.

Q.13:- The company shall file with the Registrar a copy of the report on Annual General Meeting of the conclusion of the annual general meeting:

• Within 45 days.
• Within 60 days
• Within 30 days
• Within 15 days

Q.14:- In the case of an annual general meeting, which of the following transaction shall be deemed as special:

• Issue of Bonus/Right issue.
• The appointment of directors in place of those retiring.
• The consideration of financial statements and the reports of the Board of Directors and auditors.
• The declaration of any dividend

Q.15:- What are the penal provision if a company secretary in practice certifies the annual return otherwise than in conformity with the requirements of section 92 or the rules made there under:

• He shall be punishable with fine which shall not be less than Rs. 40000 but which may extend to Rs. 5 lakh rupees.
• He shall be punishable with fine which shall not be less than Rs.10000 but which may extend to Rs.5 lakh rupees.
• He shall be punishable with fine which shall not be less than Rs.50000 but which may extend to Rs. 5 lakh rupees.
• He shall be punishable with fine which shall not be less than Rs.20000 but which may extend to Rs. 5 lakh rupees.

Q.16:- The Registrar may, for any special reason, extend the time within which any annual general meeting, other than the first annual general meeting, shall be held, by a period

• Not exceeding 4 months
• Not exceeding 1 months.
• Not exceeding 2 months.
• Not exceeding 3 months.

Q.17:- Every company limited by shares shall, from the date of its registration, maintain a register of its members in:

• Form No. MGT. 3
• Form No. MGT. 1
• Form No. MGT. 4
• Form No. MGT. 2

Q.18:- In how many days the minutes of proceedings of each meeting shall be entered in the books maintained for that purpose along with the date of such entry:

• Within 45 days of the conclusion of the meeting
• Within 60 days of the conclusion of the meeting
• Within 15 days of the conclusion of the meeting.
• Within 30 days of the conclusion of the meeting

Q.19:- When the subsequent AGM shall beheld:

• It shall be held within a period of 6 months, from the date of closing of the financial year.
• It shall be held within a period of 3 months, from the date of closing of the financial year.
• It shall be held within a period of 4 months, from the date of closing of the financial year.
• It shall be held within a period of 5 months, from the date of closing of the financial year.

Q.20:- An extract of the annual return in such form as may be prescribed shall form part of the Board’s report. Which this Form is:

• MGT 9
• MGT 7
• MGT 10
• MGT 8

Q.21:- What is the quorum for annual general meeting for a private limited company:

• 5 members personally present
• 7 members personally present
• 2 members personally present
• 3 members personally present

Q.22:- In which Form the extract of the annual return to be attached with the Board’s Report:

• It shall be in Form No. MGT. 8.
• It shall be in Form No. MGT. 10
• It shall be in Form No. MGT. 7
• It shall be in Form No. MGT. 9.

Q.23:- In which Form a copy of every resolution or any agreement required to be filed, together with the explanatory statement under section 102, if any, shall be filed with the Registrar:

• Form No. MGT. 14.
• Form No. MGT. 12.
• Form No. MGT. 15
• Form No. MGT. 13.

Q.24:- who shall sign the Annual Return:

• It shall be signed by a company secretary in practice, where there is no company secretary.
• It shall be signed by a director and the company secretary.
• It shall be signed by two directors, where there is no company secretary.
• Any of the persons mentioned at options A and B are correct.

Q.25:- When first AGM shall be held:

• It shall be held within a period of 9 months from the date of closing of the first financial year of the company.
• It shall be held within a period of 12 months from the date of closing of the first financial year of the company.
• It shall be held within a period of 18 months from the date of closing of the first financial year of the company.
• It shall be held within a period of 6 months from the date of closing of the first financial year of the company.

Q.26:- Thescrutinizershallsubmithisreportassoonaspossibleafterthelastdateofreceiptof postal b allots but:

• not later than 10 days thereof
• not later than 3 days thereof
• not later than 14 days thereof
• not later than 7 days thereof

Q.27:- Who can inspect the register and instrument of charges, kept by the company, during business hours:

• By any other person on payment of such fees
• By any member without any payment of fees
• By creditor without any payment of fees
• All the options are correct.

Q.28:- In which Form the Certificate of registration of charge shall be issued by the Registrar:

• CHG 3
• CHG 1
• CHG 4
• CHG 2

Q.29:- Who shall sign the Annual Return in case of One Person Company:

• The Annual Return shall be signed by the director of the company if there is no company secretary.
• The annual return shall be signed by the company secretary,
• It shall be signed by the company secretary in practice, where there is no company secretary.
• Any of the persons mentioned at options A and B are correct.

Q.30:- The annual return, filed by a listed company or a company having paid-up share capital of ten crore rupees or more or turnover of fifty crore rupees or more, shall be certified by a Company Secretary in practice and the certificate shall be in:

• Form No. MGT .6
• Form No. MGT. 8
• Form No. MGT. 9
• Form No. MGT. 7

Q.31:- A member holding more than ten percent of the total share capital of the Company carrying voting rights may appoint a as proxy and such person shall not act as proxy for any other person or shareholder.

• Three persons
• Two persons
• Four persons
• Single persons

Q.32:- The National Financial Reporting Authority have the same powers as are vested in a civil court under:

• The Criminal Procedure Code, 1973
• The Indian Penal Code, 1860
• The Indian Evidence Act, 1872
• The Code of Civil Procedure, 1908

Q.33:- A copy of the financial statements which are to be laid before a company in its general meeting, shall be sent to every member of the company:

• Not less than 21 days before the date of the meeting.
• Not less than 28 days before the date of the meeting.
• Not less than 7 days before the date of the meeting.
• Not less than 14 days before the date of the meeting.

Q.34:- The financial statements shall be in the form specified in to the Companies Act, 2013 and comply with Accounting Standards or Indian Accounting Standards as applicable:

• Schedule III
• Schedule I
• Schedule IV
• Schedule II

Q.35:- For the purpose of CSR activity, what is the meaning of ‘Net Profit’

• Net profit” means the net profit of a company as per its financial statement prepared in accordance with the applicable provisions of the Act.
• Any profit arising from any overseas branch or branches of the company, whether operated as a separate company or otherwise.
• Any dividend received from other companies in India, which are covered under and complying; with the provisions of section 135 of the Act.
• Only the option A and excluding the options mentioned at B and C.

Q.36:- To provide for matters relating to accounting and auditing standards under the Companies Act, 2013, the Central Government may notify to constitute:

• Accounting Standards Board
• The Institute of Chartered Accountants of India
• The Institute of Cost Accountants of India
• National Financial Reporting Authority

Q.37:- Which company shall constitute a Corporate Social Responsibility Committee of the Board:

• Turnover of Rs. 1000 crore or more
• Net profit of Rs. 5 crore or more during any financial year
• Net worth of Rs. 500 crore or more
• Any of the above criteria

Q.38:- One Person Company shall file a copy of the financial statements duly adopted by its member, along with all the documents which are required to be attached to such financial statements:

• Within 180 days from the closure of the financial year.
• Within 270 days from the closure of the financial year.
• Within 90 days from the closure of the financial year.
• Within 30 days from the closure of the financial year.

Q.39:- In which Form the Report of the Board containing the particulars of contracts or arrangements with related parties referred to in section 188(1) shall contain:

• Form AOC-3
• Form AOC-4
• Form AOC-2
• Form AOC-1

Q.40:- Form AOC-4 CFS is used for:

• Form for filing consolidated financial statements and other documents with the Registrar
• Filing financial statements and other documents with the Registrar
• Statement containing salient features of Balance Sheet and P & L Account.
• Form for filing consolidated financial statements and other documents with the Registrar

Q.41:- A person can act as proxy on behalf of members and holding in the aggregate not more than ten percent of the total share capital of the company carrying voting rights:

• Not exceeding 50
• Not exceeding 100
• Not exceeding 25
• Not exceeding 75

Q.42:- The scrutinizes appointed for the poll, shall submit a report to the Chairman of the meeting in which Form:

• Form No. MGT 14
• Form No. MGT 11
• Form No. MGT 12
• Form No. MGT 13

Q.43:- The register of debenture holders or any other security holders along with the index shall be preserved from the date of redemption of debentures or securities, as the case may be.

• for a period of 6 years
• for a period of 8 years
• For a period of 5 years
• for a period of 7 years

Q.44:- Who shall authenticate the entries in the foreign register:

• It shall be authenticated by the person authorized by the Board by appending his signature to each entry.
• It shall be authenticated by the company secretary-of the company.
• It shall be authenticated by Managing Director of the company.
• Options A and B both are correct.

Q.45:- Who shall be the Chairman of the AGM/EGM:

• The CEO of the company shall be the Chairman of the AGM/EGM.
• The members personally present at the AGM/ EGM shall elect one of themselves to be the Chairman.
• The Chairman of the company shall be the Chairman of the AGM/EGM.
• The Managing Director of the company shall be the Chairman of the AGM/EGM.

Q.46:- Every annual general meeting shall be called on any day that is not a National Holiday. Which are NOT the National Holidays:

• 2 October (Gandhi Jayanti)
• 15 August (Independence day)
• 26 January (Republic day)
• 30th January (Mahatma Gandhi was assassinated)

Q.47:- What is the quorum for an annual general meeting of a public limited company:

• 30 members personally present if the number of members as on the date of the meeting exceeds 5000.
• 30 members personally present if the number of members as on the date of the meeting exceeds 5000
• 15 members personally present if the number of members as on the date of meeting is more than 1000 but up to 5000.
• All the options are correct

Q.48:- For the appointment of proxy which Form shall be used:

• Form No. MGT. 12.
• Form No. MGT. 13.
• Form No. MGT.10.
• Form No. MGT. 11.

Q.49:- Who shall be the appointing authority of Chairman for National Financial Reporting Authority:

• The Central Government
• Comptroller and Auditor General of India
• The Institute of the Chartered Accountants of India
• The SEBI

Q.50:- The Statement containing salient features of financial statements as referred to in first proviso to section 136( 1 )shall be in:

• Form AOC-3.
• Form AOC-4.
• Form AOC-1.
• Form AOC-2.