MCQs on THE COMPANIES ACT, 2013 Part-01

Q.1:- As per Section 2(84) Share means share in the share capital of a Company and includes__________

• Debentures
• Preference Shares
• Stocks
• Bonds

Q.2:- Small Shareholders means a shareholder holding shares of nominal value of not more than..................or such other sum as may be prescribed:

• 10,000
• 15,000
• 5,000
• 20,000

Q.3:- KMP may be a director of any company with permission.

• CG
• ROC
• Board
• Shareholders

Q.4:- A company which has a paid-up share capital of 5 crores or more shall have a whole-time..................:

• CFO
• Managing Director
• Manager
• Company Secretary

Q.5:- Section 43 provides for__________

• Issue of shares at Premium
• Kinds of Shares
• Buy Back of Shares
• Reduction in Share Capital

Q.6:- A company limited by shares may, if so authorized by its articles, issue preference shares which are liable to be redeemed within a period not exceeding.....from the date of their issue:

• 10 year
• 12 year
• 20 year
• 3 year

Q.7:- Notice of right offer shall be dispatched to all the shareholders at least___days before opening of the offer.

• 2 days
• 5 days
• 10 days
• 3 days

Q.8:- A Company may issue equity shares with differential rights upon expiry of _________ years from the end of the financial year in which such default was made good

• 7
• 2
• 5
• 3

Q.9:- The section 71 of the Companies Act, 2013 prohibits issue of debentures carrying:

• Differential voting rights
• Voting rights
• Both (a) and (b)
• None of the above

Q.10:- The minimum capital of the company for which the whole time company secretary is required to be appointed as per Companies Act is ________.

• Rs. 2 crore
• Rs. 5 crore
• Rs. 10 crore
• None of above

Q.11:- Sweat Equity share means equity shares issued by a company to its directors or employee:

• At a discount
• For consideration, other than cash, for providing their know-how.
• For making available rights in the nature of intellectual property rights or value addition.
• All of the above

Q.12:- Securities Premium cannot be utilized towards:-

• Reduction in Share Capital
• Buy Back of Shares
• Issuing fully paid up Bonus Shares
• Writing off the expenses or commission paid.

Q.13:- In a private Ltd. co. at the time of incorporation there were 48 members. After than 1 employee joined having 15 debentures and having 2 shares. Did the company Crossed the maximum limit.

• No
• Yes
• Nothing written in law about it
• None of above

Q.14:- Form SH-9 provides for ___________

• Declaration of Solvency
• Return of Buy Back
• Letter of Buy Back
• Registered of Buy Back

Q.15:- The..... undertakes the guarantee of buying the whole of shares or debenture place before public in the event of non-subscription.

• Share transfer agent
• Del Cruder Agent
• Underwriter
• Analyzer

Q.16:- The detail with respect to issue to DVR shares shall be provided by company in its________

• Board Report
• Annual Return
• Internal Audit Report
• Annual Report

Q.17:- 3. In case of Redemption of Preference shares, the Company is required to submit SH-7 to ROC in__________

• 7 days
• 14 days
• 30 days
• 60 days

Q.18:- The securities premium account may not be applied for which of the following:

• Towards the issue of unissued shares of the company to the members of the company partly paid bonus shares.
• Towards the issue of unissued shares of the company to the members of the company fully paid bonus shares.
• In providing for the premium payable on the redemption of any redeemable preference shares or of any debentures of the company.
• For the purchase of its own shares or other securities under section 68.

Q.19:- Preferential Allotment of shares can be made by Company if authorized by ________ of members

• Unanimous Resolution
• Super majority
• Ordinary Resolution
• Special Resolution

Q.20:- Where a Company is not in a position to redeem its Preference shares, it may redeem unredeemed preference shares by issue of further preference shares with consent of holder’s of_________ in value of such preference shares.

• 75%
• 10%
• 100%
• 51%

Q.21:- A company prefer to raise more debt capital rather than equity:

• To maximize liquidity
• To maximize its profit
• To minimize its tax expenses
• To minimize interest expenses

Q.22:- The equity capital with differential voting rights shall not exceed_______ of the total post issue paid u equity share Capital

• 10 %
• 24%
• 26%
• 51%

Q.23:- Individual who has been allotted a DIN as on 31st March 2018 shall submission or before.............. .

• DIR- 4 - KYC; 5th October 2018
• DIR 1 - KYC; 30th April 2018
• DIR 2 - KYC; 30th April 2018
• DIR-3 - KYC; 5th October 2018

Q.24:- The shares or debentures or other interest of any member in a company shall be?

• Non-transferable immovable property
• Transferable movable property
• Transferable immovable property
• Non-transferable movable property

Q.25:- Which of the following section of company act 2013 define the definition of "share "?

• Section 2(85)
• Section 2(84)
• Section 2(19)
• Section 2(17)

Q.26:- Which of the following statement about Securities Premium is False?

• Cannot be treated as free reserves
• Can be treated a profits
• To be maintained with same sanctity as share capital
• To be kept in Securities Premium A/c

Q.27:- Appropriation account is also called:

• Statement of change in owner's equity
• Statement of change in shareholder 'fund
• Statement of change in cash flow
• Statement of change in outsider's fund

Q.28:- Preference shares are entitled to vote on every resolution placed before the company at any meeting if the dividend due on such shares are in arrears for a period of ________ or more

• 4 Years
• 3 Years
• 2 Years
• 1 Years

Q.29:- The meeting of all the debenture holders shall be convened by the debenture trustee on:

• Requisition in writing signed by debenture holders holding at least one-tenth in debentures for the time being outstanding.
• Requisition in writing signed by debenture holders holding at least ones-fifth in value debentures for the time being outstanding.
• The happening of any event, which constitutes a breach, default or which in the opinion of the debenture trustees, affects the interest of the debenture holders.
• A and C

Q.30:- Shareholders Section 162 is not applicable to

• Listed Company
• Specified IFSC Public company
• Private company
• Both B & C

Q.31:- It has been provided in the Rules that the provisions relating to debenture trustees, shall not be applicable to the:

• Public offer of debentures
• Board of directors
• Company
• Debenture holder

Q.32:- Voting Rights for 1st year of registration, in case Producer Company is formed by Producer Institutions shallbe:

• On the basis of Shareholding
• 1 Institution 1 vote
• On the basis of Participation in the Business
• None of the Above

Q.33:- Section 71 of the Act enables that a company may issue debentures with an option to convert such debentures into shares,.......... at the time of redemption:

• Wholly
• Partly
• Either wholly or partly
• None

Q.34:- Where __________ resolution is passed, the offer for buy back may remain open for a period less than 15 days

• Ordinary Resolution
• Unanimous Resolution
• Special Resolution
• Supermajority

Q.35:- Letter of Buy Back offer shall be as per the format prescribed in _________

• SH-8
• MHT-4
• PAS-8
• PAS-4

Q.36:- Which of the following shares can be issued at discount?

• Sweat Equity share
• Preference share
• Equity share
• All of the above

Q.37:- Where a company issue shares at a premium, a sum to the equal aggregate amount of the premium received shall be transferred to a:

• General reserve account
• Capital reserve account
• Security premium account
• Capital redemption reserve account

Q.38:- Which of the following is not true: the company repurchase its own shares

• To return surplus cash to shareholder
• To reduce cost of capital
• To manipulate share market prices
• Shares are under value

Q.39:- Which of the following are kinds of share capital?

• Preference share capital and Equity Share Capital
• Equity share capital and Bonds
• Equity share capital and debenture
• Preference share capital and debenture

Q.40:- Share means a share in the share capital of a company and includes:

• Preference share
• Stock:
• Debenture
• All of the above

Q.41:- Which of the following capital is issued at par?

• Paid Up Capital.
• Issued Capital
• Authorized Capital
• Called up Capital

Q.42:- Preference shares are entitled to vote on every resolution placed before the company at any meeting if the dividend due on such shares are in arrears for a period of ________ or more

• 4 Years
• 3 Years
• 2 Years
• 1 Years

Q.43:- A company may issue Bonus shares, out of________

• Capital redemption reserve A/c
• Securities Premium A/c
• Free reserves
• All of the above

Q.44:- A company may issue Bonus shares, out of________

• Capital redemption reserve A/c
• Securities Premium A/c
• Free reserves
• All of the above

Q.45:- The.......measure the amount of the company's net income i.e. theoretically available for paymentto the holder of its common stock.

• DPS Ratio
• TNW/TOL Ratio
• EPS Ratio
• PE Ratio

Q.46:- The.......measure the amount of the company's net income i.e. theoretically available for payment to the holder of its common stock.

• TNW/TOL Ratio
• DPS Ratio
• EPS Ratio
• PE Ratio

Q.47:- Any director of a company or any of its key managerial personnel shall be allowed to buy in the company, or in its holding, subsidiary or associate company:

• A right to call for delivery or a right to make delivery at a specified price and within a specified time, of a specified number of relevant shares or a specified amount of relevant debentures.
• A right, as he may elect, to call for delivery or to make delivery at a specified price and within a specified time, of a specified number of relevant shares or a specified amount of relevant debentures.
• Both A & B
• None of the above

Q.48:- Every share certificate shall be in:

• Form no SH 4
• Form no SH 3
• Form no SH 2
• Form no SH 1

Q.49:- Form SH-9 provides for ___________

• Return of Buy Back
• Declaration of Solvency
• Letter of Buy Back
• Registered of Buy Back

Q.50:- A small shareholder's director shall not be liable to retire by rotation:

• True
• False
• May be or may not be
• None of the above