MCQs on Company Act Part 3

Q.1:- The statement containing the salient feature of the financial statement of a company’s subsidiary or subsidiaries, associate company or companies and joint venture or ventures under the first proviso to section 129(3) shall be in:

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

Q.2:- The Corporate Social Responsibility Committee of the Board shall consist of:

• Three or more directors, with condition of not a single director should be independent director.
• Three or more directors, with condition of at least two independent directors.
• Three or more directors, out of which at least one director shall be an independent director.
• Three or more directors and all should be independent directors.

Q.3:- The Central Government may appoint part time or full time members for the National Financial Reporting Authority not exceeding:

• 15
• 25
• 10
• 20

Q.4:- In how many days, the order of the Tribunal, shall be filed with the Registrar:

• It shall be filed by the company within a period of 45 days of the receipt of the order.
• It shall be filed by the company within a period of 15 days of the receipt of the order.
• It shall be filed by the company within a period of 60 days of the receipt of the order.
• It shall be filed by the company within a period of 30 days of the receipt of the order.

Q.5:- A certificate of recognition as a registered valuers organisation shall be issued in: A. Form B B. Form C C. Form D D. Form E Ans.(D)

• Form E
• Form B
• Form C
• Form D

Q.6:- In the case of listed companies, takeover offer shall be as per the regulations framed by:

• The Registrar of Companies
• The Institute of Corporate Affairs
• The Ministry of Corporate Affairs
• The Securities and Exchange Board of India.

Q.7:- How can a company may suo moto file an application to the Registrar for removing its name from the register of companies on all or any of the grounds specified in section 248(1):

• By obtaining consent of seventy-five per cent members in terms of paid-up share capital.
• Any of the options mentioned at A and B
• By passing a special resolution after extinguishing all its liabilities.
• None of the above.

Q.8:- The application in Form STK 2 shall be signed by:

• Two directors duly authorised by the Board in their behalf.
• Managing Director
• A director duly authorised by the Board in their behalf.
• Company Secretary

Q.9:- A certificate of registration to the applicant to carry on the activities of a registered valuer for the relevant asset class or classes shall be issued in:

• Form- B
• Form- A
• Form- D
• Form-C

Q.10:- ‘Arrangement ’ includes:

• A reorganisation of the company’s share capital by the division of shares into shares of different classes,
• A reorganisation of the company’s share capital by the consolidation of shares of different classes.
• Both the options A and B are correct.
• None of the above.

Q.11:- What fee is payable by an individual for registration as a registered valuer:

• A non-refundable application fee of Rs. 5000 in favour of the authority.
• A non-refundable application fee of Rs. 7000 in favour of the authority.
• non-refundable application fee of Rs. 3000 in favour of the authority.
• A non-refundable application fee of Rs. 9000 in favour of the authority.

Q.12:- Any person aggrieved by an order of the Registrar, notifying a company as dissolved under section 248, may file an appeal to the Tribunal:

• Within a period of 1 year from the date of the order of the Registrar.
• Within a period of 4 years from the date of the order of the Registrar.
• Within a period of 2 years from the date of the order of the Registrar.
• Within a period of 3 years from the date of the order of the Registrar.

Q.13:- Who shall certify the Form STK 2:

• Cost Accountant in whole time practice,
• Chartered Accountant in whole time practice
• Company Secretary in whole time Practice
• Any of the persons mentioned above may certify

Q.14:- What is the maximum time available to file an application before the Tribunal by a company, or any member or creditor or workman, if feels aggrieved by the company having its name struck off from the register of companies:

• Before the expiry of ten years from the publication in the Official Gazette of the notice under section 248 (5).
• Before the expiry of twenty years from the publication in the Official Gazette of the notice under section 248(5).
• Before the expiry of three years from the publication in the Official Gazette of the notice under section 248(5).
• Before the expiry of fifteen years from the publication in the Official Gazette of the notice under section 248 (5).

Q.15:- How much fee is to be paid while making an application for removal of name of the company under section 248(2):

• Rs. 10000
• Rs. 15000
• Rs. 20000
• Rs. 5000

Q.16:- Who can present a petition for winding up of a company to the Tribunal:

• The contributory of contributories
• The Registrar or any person authorized by the Central Government.
• The company
• All the options are correct (i.e. any of the above may present petition before the Tribunal)

Q.17:- What is penal provision, if a company contravenes the provisions of section 344(1), the company, and every officer of the company, the Company Liquidator and any receiver or manager, who wilfully authorises or permits the non-compliance:

• He shall be punishable with fine which shall not be less than Rs. 50000 rupees but which may extend to Rs. 3 lakh rupees.
• He shall be punishable with fine which shall not be less than Rs. 70000 rupees but which may extend to Rs. 3 lakh rupees.
• He shall be punishable with fine which shall not be less than Rs. 10000 rupees but which may extend to Rs. 3 lakh rupees
• He shall be punishable with fine which shall not be less than Rs. 30000 rupees but which may extend to Rs 3 lakh rupees.

Q.18:- What is the time available with a creditor aggrieved by the decision of the Official Liquidator under section 363 to file an appeal before the Central Government:

• Within 60 days of such decision
• Within 30 days of such decision
• Within 75 days of such decision
• Within 45 days of such decision

Q.19:- Where the Tribunal has made a winding up order or appointed a Company Liquidator, within how much days, such liquidator shall, submit to the Tribunal, a report:

• Within 90 days from the order
• Within 30 days from the order
• Within 120 days from the order
• Within 60 days from the order

Q.20:- What is periodicity of submission of report by the Company Liquidator to the Tribunal:

• Quarterly Report
• Half Yearly Report
• Bi-Monthly Report
• Monthly Report

Q.21:- The winding up committee shall comprise of the following persons:

• A professional nominated by the Tribunal
• Official Liquidator attached to the Tribunal
• Nominee of secured creditors
• All of the above

Q.22:- An application for removal of name of the company under section 248(2)shall be made in which form:

• STK 4
• STK 1
• STK 2
• STK 3

Q.23:- The order for the winding up of a company shall operate in favour of:

• All contributories of the company
• All the creditors
• Central/State Government
• Only A and B are correct

Q.24:- The Company Liquidator, in a winding up of a company by the Tribunal, shall NOT have the following power:

• To raise loan from the financial institutions/banks for further expansion of the business for the benefit of the company and its stake holder.
• To carry on the business of the company so far as may be necessary for the beneficial winding up of the company
• To raise any money required on the security of the assets of the company.
• To sell the whole of the undertaking of the company as a going concern.

Q.25:- When the winding up of a company by the Tribunal under the Companies Act, 2013 shall be deemed to commence:

• At the time of the presentation of the petition for the winding up.
• At the time of the passing of the order of the winding up petition.
• At the time of the acceptance of the petition for the winding up.
• None of the above.

Q.26:- Appointment of Official Liquidator is made by:

• The Creditors
• The Central Government
• The Tribunal
• The Company

Q.27:- The Official Liquidator shall serve a notice of his appointment calling upon the debtors of the company or the contributories, as the case may be, to deposit with him the amount payable to the company.

• within 60 days/within 60days
• within 75 days/within 75 days
• within 45 days/within 45 days
• within 30 days/within 30 days

Q.28:- On what grounds the Tribunal shall NOT remove the provisional liquidator or the Company Liquidator, as liquidator of the company:

• Independent working having no conflict of interest.
• Professional incompetence or failure to exercise due care and diligence in performance of the powers and functions
• Misconduct
• Fraud or misfeasance

Q.29:- The Official Liquidator shall expeditiously dispose of all the assets whether movable or immovable:

• Within 75 days of his appointment.
• Within 60 days of his appointment.
• Within 30 days of his appointment.
• Within 45 days of his appointment.

Q.30:- Who shall constitute the National Company Law Tribunal:

• The Supreme Court
• The Central Government
• The Registrar of Companies
• The Insolvency and Bankruptcy Board of India

Q.31:- In the case of an order against a person (other than a company) made by the Tribunal or the Appellate Tribunal, in which court, the execution of its orders shall be made:

• Where the person concerned carries on business
• Where the person concerned personally works for gain.
• Where the person concerned voluntarily resides
• All the options are correct

Q.32:- In which Form a Register shall be maintained in regard to Special Leave Petitions or Appeals against the orders of the Appellate Tribunal to the Supreme Court:

• Form NCLAT-9
• Form NCLAT-10
• Form NCLAT-8
• Form NCLAT-7

Q.33:- What shall be timing of the filing counter of the Registry at NCLAT:

• 10:00 AM to 04:30 P.M
• 11:00 AM to 05:30 P.M.
• 10:30 AM to 05:00 P.M.
• 09:30 AM to 04:00 P.M.

Q.34:- In which Form the Lodging of caveat shall be filed in the Tribunal:

• NCLT3C
• NCLT3D
• NCLT3B
• NCLT3A

Q.35:- When the office of the Tribunal shall remain open:

• 15 August/26th January
• Every Saturdays
• On the day of main Indian festivals like Holi, Diwali, Eid, Christmas etc.
• 2 October

Q.36:- Who may be appointed as the provisional liquidator or the Company Liquidator, by the Tribunal:

• The insolvency professionals registered under the Insolvency and Bankruptcy Code, 2016.
• The Chartered Accountant
• The Advocate
• The company secretary

Q.37:- For which company the Central Government may order for winding up by summary procedure:

• Where the company has assets of book value not exceeding Rs. Ten crore rupees.
• Where the company has assets of book value not exceeding Rs. One lakh.
• Where the company has assets of book value not exceeding Rs. Ten Lakh.
• Where the company has assets of book value not exceeding Rs. One crore rupees.

Q.38:- What is the qualification for being a President of the National Company Law Tribunal:

• He /She shall be a person who is or has been a Judge of a High Court for five years.
• He/ She shall be a person who is or has been a Judge of a High Court for three years.
• He/ She shall be a person who is or has been a Judge of a High Court for six years.
• He/ She shall be a person who is or has been a Judge of a High Court for four years.

Q.39:- Any person aggrieved by an order of the Tribunal may prefer an appeal to the:

• The Supreme Court
• No appeal is allowed
• The Appellate Tribunal
• The High Court

Q.40:- In how many days a person aggrieved by any order of the Appellate Tribunal may file an appeal to the Supreme Court:

• Within 60 days from the date of receipt of the order of the Appellate Tribunal to him on any question of law arising out of such order.
• Within 90 days from the date of receipt of the order of the Appellate Tribunal to him on any question of law arising out of such order.
• Within 45 days from the date of receipt of the order of the Appellate Tribunal to him on any question of law arising out of such order.
• Within 30 days from the date of receipt of the order of the Appellate Tribunal to him on any question of law arising out of such order.

Q.41:- The general heading in all proceedings before the Tribunal, in all advertisements and notices shall be in:

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

Q.42:- The record of the petitions or applications dealt with by the Tribunal including the orders and directions passed by the Tribunal, shall be maintained by the Registry of the Tribunal:

• For a period of 15 years after the passing of the final order.
• For a period of 20 years after the passing of the final order.
• For a period of 5 years after the passing of the final order.
• For a period of 10 years after the passing of the final order.

Q.43:- In which form an appeal shall be presented before the NCLAT:

• Form NCLAT-2
• Form NCLAT-3
• Form NCLAT-4
• Form NCLAT-1

Q.44:- Witness discharged by the Appellate Tribunal may be granted a certificate in:

• Form NCLAT-9 by the Registrar.
• Form NCLAT-8 by the Registrar.
• Form NCLAT-7 by the Registrar.
• Form NCLAT-6 by the Registrar.

Q.45:- All urgent matters filed before 12 noon shall be listed before the Appellate Tribunal:

• At the discretion of the Registrar of the NCLAT.
• At the discretion of the Chairperson of the NCLAT.
• On the same day.
• On the following working day.

Q.46:- At which place the Appellate Tribunal shall hold its sitting:

• Chennai
• New Delhi
• Kolkata
• Mumbai

Q.47:- What are the working hours of the office of the Tribunal:

• It shall remain open on all working days from 10.00 A.M. to 6.00 P.M
• It shall remain open on all working days from 08.30 A.M. to 6.00 P.M.
• It shall remain open on all working days from 09.00 A.M. to 6.00 P.M
• It shall remain open on all working days from 09:30 A.M. to 6.00 P.M

Q.48:- The President of the Tribunal shall hold office as such until he attains:

• The age of 67 year
• The age of 58 years
• The age of 61 years
• The age of 64 years

Q.49:- What is the qualification for appointment as a Judicial Member:

• He/ She has, for at least ten years been an advocate of a court.
• He/ She is, or has been, a judge of a High Court.
• He/ She is, or has been, a District Judge for at least five years.
• All the options are correct.(i.e. any of the qualifications mentioned as A, B or C is eligible for appointment as a Judicial Member)

Q.50:- The Tribunal may, at any time, with a view to rectifying any mistake apparent from the record, amend any order passed by it, and shall make such amendment, if the mistake is brought to its notice by the parties:

• Within 3 years from the date of the order.
• Within 4 years from the date of the order.
• Within 1 years from the date of the order.
• Within 2 years from the date of the order.