MCQs on THE COMPANIES ACT, 2013 Part-03

Q.1:- The valuer appointed under section 247(1) the Companies Act 2013 shall make an …………….., true and fair valuation of any assets which may be required to be valued;

• Unbiased
• Correct
• Impartial
• Complete

Q.2:- If a transferor company or a transferee company contravenes the provisions of compromises, arrangements, and amalgamations, the transferor company or the transferee company, as the case may be, shall be punishable with fine which shall not be less than …….…. lakh rupees but which may extend to ……... lakh rupees

• 2 ; 10
• 3 ; 30
• 5 ; 50
• 1; 25

Q.3:- If the valuer has contravened the provisions of section 247 and rules made there under with the intention to defraud the company or its members, he shall be punishable with imprisonment for a term which may extend to one year and with a fine which shall not be less than....... rupees but which may extend to....... rupees:

• Rs.100000, Rs.500000
• Rs.25000, Rs.500 000
• Rs.25000, Rs.100,000
• Rs.100000, Rs.300, 000

Q.4:- The majority shareholder when acquiring share of minority shareholder, shall deposit an amount equal to the value of share to be acquired by them in a separate bank account to be operated by the transferor company for at least one year for payment to the minority shareholder and such amount shall be disbursed to the entitled shareholder within:

• 60 days
• 15 days
• 10 days
• 30 days

Q.5:- The Tribunal dispense with calling of a meeting of credit or class of creditors where such creditors or class of creditors, having at least ninety percent value, agree and confirm, by way of affidavit, to the scheme of compromise or arrangement.

• may not
• shall not
• may
• shall

Q.6:- Any sum received by the transferor company for the amount payable to the dissenting shareholders shall be paid into

• a separate bank account of transferor
• Normal bank account of transferor
• (a)or(b)
• None of the above

Q.7:- The order of the Tribunal shall be filed with the Registrar by the company within a period of..............days of the receipt of the order

• 90
• 15
• 30
• 45

Q.8:- Where at a majority of persons representing.....in value of the creditors, or class of creditors or members or class of members, as the case may be, agree to any compromise or arrangement and it sanctions by the tribunal, same shall be binding on all:

• 3/4th
• ½
• 1/3rd
• None

Q.9:- 99. The shares already held at the date of the offer by Transferee Company, or by a nominee of the transferee company or its subsidiary companies shall count for this purpose

• Not be
• also be
• may be may not be
• None of the above

Q.10:- Out the following what information shall also be required to be circulated at the meeting ordered by the Tribunal?

• The report of the expert with regard to valuation, if any;
• Confirmation that a copy of the draft scheme has been filed with theRegistrar
• The draft of the proposed terms of the scheme drawn up and adopted by the directors of the mergingcompany.
• All of the above

Q.11:- The company or any other person, by whom an application is made, shall not disclose to the Tribunal by affidavit

• all material facts relating to the company, such as the latest financial position of the company, the latest auditor's report on the accounts of the company and the pendency of any investigation or proceedings against the company
• any scheme of corporate debt restructuring consented to by not less than seventy-five per cent
• reduction of share capital of the company, if any, included reduction of share capital of the company, if any, included
• None of the above

Q.12:- Any sum received by the transferor company under the company for the amount payable to the dissenting shareholders shall be disbursed to the entitled shareholders within………days.

• 30
• 60
• 90
• 45

Q.13:- Notice of meeting conducted on orders of Tribunal of a listed company, the required documents..................

• shall be sent to the Securities and Exchange Board and Stock exchange
• shall be published in newspaper
• Both (a) & (b)
• None of the above

Q.14:- 85. If shareholders of the transferor company decide to opt-out of the transferee company, the provision shall be made for payment of the value of shares held by them and other benefits in accordance with..................

• a pre-determined price formula
• a price after a valuation is made
• (a) and (b)
• (a) or (b)

Q.15:- The scheme or contract involving the transfer of shares or any class of shares in a company (the transferor company) to another company (the transferee company) has been approved by the holders of not less than 9/10th in value of the shares whose transfer is involved.

• 6/10th
• 8/10th
• 9/10th
• 7/ 10th

Q.16:- Separate bank account operated specifically for amounts received by transferee company in relation to an amount payable to minority shareholders shall be operated for at least………year/s for payment to the minority shareholders

• 1
• 2
• 3
• 4

Q.17:- Tribunal has no power to enforce the order of in relation to compromise or arrangement. The statement is.................

• Incorrect
• May be may not be
• Correct
• None of the above

Q.18:- Where the scheme of merger or amalgamation involving the transfer of shares in a company to another company has been approved by the holder of not less than....in value of the shares whose transfer is involved, the transferee company may give notice to dissenting shareholder that it desires to acquire his shares:

• Three fourth
• Majority
• 90%
• Two third

Q.19:- Compromise or arrangement in respect of any buy-back of securities shall not be sanctioned by the Tribunal if it is not in accordance with the provisions of section 68 of the Companies Act, 2013. The statement is................002E

• Correct
• Incorrect
• May be may not be
• None of the above

Q.20:- A ............... also needs to be circulated at the meeting ordered by the Tribunal if the last annual accounts of any of the merging company relate to a financial year ending more than six months before the first meeting of the company summoned for the purposes of approving the scheme

• Financial statements
• supplementary accounting statement
• Cash flow statements
• None of the above

Q.21:- Where a valuer has been convicted under section 243 (3), he shall be liable to:

• Refund the remuneration received by him to the company
• Pay for damages to the company or to any other person for loss due to valuation report
• Both (a) and (b)
• None of the above

Q.22:- Who shall be the valuer to do the valuation under section 247?

• Person registered with IBBI as valuer
• Chartered Accountants
• Company Secretaries
• All of the above

Q.23:- A valuer appointed under this chapter is required to exercise____ while performing the functions as valuer:

• Professionalism
• Reasonable care
• Due Diligence
• Due care

Q.24:- A Valuer appointed under this chapter is required to make........valuation of any assets:

• Fair
• True
• Impartial, true and fair
• Impartial

Q.25:- A valuer shall maintain the integrity by being ……………., straightforward, and forthright in all professional relationships.

• Trustee
• Honest
• Faithfull
• Fair

Q.26:- A valuer while.......the confidentiality of information acquired during the course of performing professional services, shall maintain proper working papers for a period of three years:

• Respecting
• Honoring
• Providing
• Maintaining

Q.27:- A valuer shall refrain from being involved in any action that would bring disrepute to the…………

• Valuation
• Profession.
• Business
• Business and profession

Q.28:- A valuer shall endeavor to ensure that he/it provides true and adequate information and shall not misrepresent any …………

• Facts or position
• Facts or valuation
• Facts or situations.
• Facts or figures

Q.29:- A valuer shall, in the conduct of his/its business, follow high standards of integrity and …………. in all his/its dealings with his/its clients and other valuers.

• objectivity
• fairness
• duties
• judgment

Q.30:- A company shall make an application for registration as a registered valuer ..................

• Form C
• Form A.
• Form D
• Form B

Q.31:- The Valuer appointed under section 247(1) Section of Companies Act 2013 shall exercise ………………..while performing the functions as Valuer

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

Q.32:- The valuer appointed under section 247(1) Section of Companies Act 2013 shall exercise ………………..while performing the functions as Valuer.

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

Q.33:- Valuer while respecting the confidentiality of.......acquired during the course of performing professional services, shall maintain proper working papers for a period of three years:

• Documents
• Records
• Information
• Files

Q.34:- As an independent valuer, the valuer……..not charge a success fee

• Will
• Shall
• Would
• Should

Q.35:- Which of the following is the correct Structure of Valuation Rules?

• 6 Chapters, 21 Rules, 2 Annexure
• 6 Chapters, 21 Rules, 4 Annexure
• 4 Chapters, 21 Rules,6 Annexure
• 6 Chapters, 22 Rules, 4Anncxures

Q.36:- Professional independence is a subset of which one of the following pairs of fundamental principles?

• Integrity and Due diligence
• Integrity and Professional competence
• Objectivity and Professional behavior
• Integrity and objectivity

Q.37:- Which one is not basic eligibility conditions of registered valuer

• Has been convicted for an offence punishable with imprisonment for a term exceeding six months
• For an offence involving moral turpitude and a period of five years has not elapsed from the date of expiry of the sentence.
• Is not un-discharged bankrupt or is not a non Resident in India
• Is not a minor or Is not of unsound mind;

Q.38:- Which of the following rule deal with the eligibility of registered valuer?

• 5
• 4
• 3
• None of above

Q.39:- Valuation standards" means the standards on valuation referred to in rule

• 14
• 15
• 18
• 19

Q.40:- Certificate of recognition" means the certificate of recognition granted to a registered valuers organization under Rule:

• 13(7)
• 13 (5)
• 6(6)
• 6(13)

Q.41:- Asset class" means a........group of assets, such as land and building, machinery and equipment, displaying similar characteristics, that can be classified and requires a separate set of Valuers for valuation:

• Different
• Same
• Distinct
• Separate

Q.42:- Who is eligible to become a registered valuer?

• Possesses the qualifications and experience as specified in rule 4
• Is a person resident in India
• Has passed the valuation examination within three years preceding the date of making an application registration
• All of the above

Q.43:- Who is eligible to become registered valuer?

• Is recommended by the RVO
• Is not a minor
• Is a value member of RVO
• All of the above

Q.44:- Words and expressions used but not defined in these rules, shall have the same meanings as assigned to them in:

• The Act
• The Companies (Specification of Definitions Details) Rules, 2014
• Both a and b
• None of the above.

Q.45:- A valuer shall carry out professional services in accordance with the relevant ………….. standards that may be specified from time to time

• technical
• legal and professional
• technical and professional
• C. professional

Q.46:- Who cannot be eligible to become registered valuer?

• An undercharged bankrupt, or has applied to be adjudicated as a bankrupt
• Has been levied a penalty under section 271J of Income-tax Act, 1961
• Has been declared to be of unsound mind
• All of the above

Q.47:- "Valuer" means a person registered with

• The IBBI
• The SEBI
• The RVO
• The authority

Q.48:- ………means an authority specified by the Central Government under section 458 of the Companies Act, 2013 to perform the functions under these rules:

• Central Government
• Authority
• MCA
• IBBI

Q.49:- Valuer shall maintain records of each assignment undertaken by him for at least ………. from the ……… of such assignment;

• 8 years, completion
• 8 years, commencement
• 5 years, completion
• 3 years, completion

Q.50:- Which of the following entity is not eligible for to be registered as valuer?

• Company
• LLP
• HUF
• Partnership Firm