MCQs on THE COMPANIES ACT, 2013 Part-02

Q.1:- No person shall hold the position of small shareholders' director in more than one company at the same time:

• One
• Two
• Three
• Five

Q.2:- For issuing employees stock option_________ is required to be passed by Company

• Unanimous Resolution
• Special Resolution
• Supermajority
• Ordinary Resolution

Q.3:- Certificate of the share of the Company is signed by:

• Two Directors or by a director and company secretary where the company has appointed a company secretary.
• By a director and company secretary where the company has appointed a company secretary
• Two Directors
• None of the above

Q.4:- CG shall deactivate DIN if director does not intimate his particularsin

• DIR-l-KYC
• DIR-3 – KYC
• DIR-2 – KYC
• DIR-4-KYC

Q.5:- Who has a right to vote in every resolution place before the company?

• Debenture holder
• Equity share holders
• Preference Share holder
• A and B

Q.6:- Every public company having a paid-up share capital of or more shall have whole-time key managerial personnel:

• 100 crore
• 10 crore
• 5 crore
• 1 crore

Q.7:- Where the holders of not less than......of the issue share of a class did not consent to variation or vote in favour of the special resolution for the variation of shareholders rights they may apply to the tribunal to have the variation cancelled:

• 20%
• 15%
• 10%
• 5%

Q.8:- Every preference shareholder shall have a right?

• To vote only on resolutions directly affecting the rights attached to the preference share
• To vote on all the resolutions place before the company if the dividend in respect of class of preference share has not been paid for the period of two year or more
• Both A&B
• None

Q.9:- The Board of directors of a company which consists of more than 1000at any time during a financial year shall constitute a Stakeholders Relationship Committee.

• Shareholders
• Debenture holders
• Deposit holders
• All of the above

Q.10:- The right attached to share of any class may be varied with the consent in writing of the holder of not less than.......of the shares or by means of a......passed by the holders of that class:

• One third. Special resolution
• One half. Ordinary resolution
• Three forth. Special resolution
• Three forth. Ordinary resolution

Q.11:- The securities premium account may be applied for which of the following:

• In writing off the preliminary expenses of the company.
• In writing off the expenses of, or the commission paid or discount allowed on, any issue of shares or debentures of the company.
• Towards the issue of unissued shares of the company to the members of the Company fully paid bonus shares.
• All of the above

Q.12:- When the Company is bringing issue at a price lesser than market price for its existing holders. It is called ___

• Right Issue
• Pre-emptive right
• Right of first Refusal
• All of the above

Q.13:- The special resolution passed for the issuance of Sweat Equity Shares is valid for a period of_________

• 6 months
• 18 months
• 12 months
• 15 months

Q.14:- Company can bring of Preference shares by passing____

• Board Resolution
• Ordinary Resolution
• Special Resolution
• Unanimous Resolution

Q.15:- The company engaged in the setting up of infrastructural projects may issue preference shares for a period not exceeding__________

• 20 Years
• 30 Years
• 5 Years
• 10 Years

Q.16:- No company whether it is unlisted, listed or a public company limited by shares shall issue equity shares with differential rights as to dividend, voting or otherwise, unless it complies with the following conditions:

• The company having consistent track record of distributable profits for the last three years.
• The issue of shares is authorized by an ordinary resolution passed at a general meeting of the shareholders.
• The articles of association of the company authorize the issue of shares with differential rights.
• All of the above

Q.17:- For Buy Back of more than 10% of capital, is required

• Permission of CG
• SR
• Permission of ROC
• OR

Q.18:- A company limited by shares...... issue any preference shares which are Irredeemable

• Cannot
• Can
• Both (a) and (b)
• None of the above

Q.19:- The shares with differential rights shall not exceed ........percent of the total post-issue paid-up equity share capital including equity shares with differential rights issued at any point of time:

• 25
• 26
• 15
• 10

Q.20:- Sweat Equity shares shall not exceed_______ of the paid-up equity capital of the Company at any time.

• 26%
• 25%
• 15%
• 5%

Q.21:- An unlisted company may issue a sweat equity share if which of the following condition is fulfilled?

• The resolution specifies the number of shares, the current market price, consideration any, and the class or classes of directors or employees to whom such equity shares are issued.
• Not less than one year has, at the date of such issue, elapsed since the date on which company had commenced business.
• The issue is authorized by a special resolution passed by the company.
• All of the above

Q.22:- Equity share capital, with reference to any company limited by shares, means all share capital which is not:

• Debenture
• Bond
• Sweat Equity Share
• Preference share capital

Q.23:- Register of Sweat Equity Shares is to be maintained in

• MGT -3
• SH-3
• SH-7
• SH-11

Q.24:- The issue of debentures with an option to convert such debentures into shares, wholly or partly, shall be approved bya........passed at a general meeting:

• special resolution
• Ordinary resolution
• Extra ordinary resolution
• None

Q.25:- The rules provide that a trust deed in Form No……….or as near thereto as possible shall be executed by the company issuing debentures in favor of the debenture trustees within sixty days of allotment of debentures in other cases:

• SH-10
• SH-12
• SH-8
• SH-11

Q.26:- Shall take steps to protect the interests of the debenture holders and redress their grievances in accordance with such rules as may be prescribed:

• Board of directors
• A Nominee director of debenture holder
• Debenture trustee
• Management of the company

Q.27:- A copy of the trust deed shall be forwarded to any member or debenture holder of the company, at his request within days...... of the making thereof, on payment of fee:

• 3 days
• 5 days
• 7 days
• 10 days

Q.28:- In case of Merger or Amalgamation of Companies where the transferor company is a listed company and the transferee company is an unlisted company, the transferee company..................

• shall apply for listing of shares
• shall remain an unlisted company
• (a) or (b)
• None of the above

Q.29:- In case of Merger or Amalgamation of Companies, any legal proceedings pending by or against any transferor company on the date of transfer..................

• cannot be continued against the transferee company
• shall be continued against the transferee company
• shall be continued against the transferor company
• (a) and (c)

Q.30:- A compromise and arrangement between the company and its member or its creditor required approval of?

• High Court
• DROC
• Central Government
• Tribunal

Q.31:- Voting Rights in case Producer Company is formed by combination of Individual Members & Producer Institutions shall be on the basis of:

• Participation in the Business
• 1 member 1 vote
• Shareholding
• None of the Above

Q.32:- Voting Rights in case Producer Company is formed by Individual Member shall be:

• On the basis of Participation in the Business
• 1 member 1 vote
• On the basis of Shareholding
• None of theAbove

Q.33:- Section 232 of the company act 2013 deal with?

• Issue of share at discount
• Buy back of share
• Demerger
• Merger and Amalgamation

Q.34:- Application for the merger of Holding and Wholly Owned Subsidiary Company can be made under Section

• 233
• 237
• 232
• Either (a) or (c)

Q.35:- There should be at least one woman directorfor:

• A public company having turnover of two hundred crore rupees or more
• A public company having paid-up share capital of one hundred crore rupees or more
• Both a & b
• None of the above

Q.36:- The liability of the debenture trustee shall be subject to such exemptions as may be agreed upon by a majority of debenture holders holding not less than..... in value of the total debentures at a meeting held for the purpose:

• Ninety
• Three fourths
• Half
• One Third

Q.37:- Where debentures are issued by a company, the company shall create a.......out of the profits of the company available for payment of dividend and the amount credited to such account shall not be utilized by the company except for the redemption of debentures:

• Debenture reserve account
• Capital redemption reserve account
• General reserve account
• Debenture redemption reserve Account

Q.38:- Which of the following is the effective date of the merger and amalgamation?

• Date to application to tribunal
• Date of receipt of order of tribunal
• Date of order of tribunal filed with
• Date of order of tribunal

Q.39:- Where a meeting is proposed to be called in pursuance of an order of the Tribunal, a notice of such meeting shall be sent to Sectoral regulators and..................

• to all the members or class of members
• all the creditors or class of creditors
• the debenture-holders of the company
• All of the above

Q.40:- Every company in relation to which the order is made shall cause a certified copy of the order to be filed with the Registrar for registration within ….…. days of the receipt of a certified copy of the order.

• 60
• 45
• 30
• 15

Q.41:- The Valuer appointed under section 247(1) Section of Companies Act 2013 shall exercise ………………..while performing the functions as Valuer.

• Due performance
• Due responsibility
• Due Diligence
• Due care

Q.42:- Where a Valuer has been convicted under section 247(3), he shall be also liable to— (i) refund the remuneration received by him to the company; and (ii) pay for damages to the company or to any other person for loss arising out of ……………………… in his report.

• misleading statements
• incorrect or misleading statements
• incorrect statements
• biased statements

Q.43:- A valuer shall............maintain professional knowledge and skill to provide competent professional service based on up-to-date developments in practice, prevailing regulations/guidelines, and techniques.

• Normally
• Continuously
• Periodically
• Regularly

Q.44:- If a Valuer contravenes the provisions of 247 Section of Companies Act 2013 or the rules made thereunder, the Valuer shall be punishable with a fine which shall not be less than …….. rupees but which may extend to …………rupees

• 25000 , 1,00,000
• 10,000 , 40,000
• 5000 , 20,000
• 20000 , 80,000

Q.45:- A valuer shall not offer gifts or hospitality or a financial or any other......... to a public servant or any other person:

• Service
• Present
• Advantage
• Favour

Q.46:- A valuer appointed under this chapter is required to make the valuation in accordance with:

• Registered Valuer & Valuation Rules 2017
• Rules prescribed by RBI
• Rules prescribed by IBBI
• Rules prescribed by ICAI

Q.47:- A valuer should not use or divulge to other clients or any other party any confidential information about the subject company, which has come to his/its knowledge without proper and specific authority or unless there is a:

• Moral and professional right or duty to disclose
• Legal or professional right or duty to disclose
• Moral and legal right or duty to disclose.
• Ethical and professional right and duty to disclose

Q.48:- If a valuer contravenes the provisions of section 247 or the rules made there under, the valuer shall be punishable with fine which shall not be less than ........rupees but which may extend to..... rupees:

• Rs.50000, Rs.200, 000
• Rs.25000, Rs.100, 000
• Rs.20000, Rs.300, 000
• Rs.25000, Rs.500, 000

Q.49:- A valuer under Companies Act, 2013 shall be appointed by?

• The audit committee or in its absence by the board of directors
• The audit committee
• The share holders
• The board of directors

Q.50:- A valuer appointed under this chapter shall not undertake a valuation of any assets in which he has a direct or indirect interest or becomes so interested at any time during a period of....... years prior to his appointment as valuer or........years after the valuation of assets was conducted by him:

• 3,5
• 3,3
• 2,2
• 2,3