MCQs on Company Act Part 6

Q.1:- The registers and indices maintained to section 88 and copies of returns prepared pursuant to section 92, shall be open for inspection during business hours, at such reasonable time on every working day as the board may decide. What shall be considered by the company as reasonable time:

• The reasonable time of two hours on every working day shall be considered by the company
• The reasonable time of not less than two hours on every working day shall be considered by the company.
• The reasonable time of not more than two hours on every working day shall be considered by the company.
• None of the above.

Q.2:- Whether a member of a company which is registered under section 8 can appoint any other person as his proxy:

• A member of a company registered under section 8 shall not be entitled to appoint any other person as his proxy unless such other person is also a member of such company.
• Yes, he can appoint a person as his proxy.
• No, he can’t appoint a person as his proxy.
• None of the above.

Q.3:- Every company which has listed its equity shares on a recognized stock exchange and every company Shall provide to its members facility to exercise their right to vote on resolutions proposed to be considered at a general meeting by electronic means:

• Having not less than one thousand members
• Having one thousand members
• Having more than one thousand members
• None of the above

Q.4:- A special notice required to be given to the company shall be signed, either individualy or collectively by such number of members holding not less than one percent of total voting power or holding shares on which an aggregate sum of has been paid upon the date of the notice:

• Not less than7 lakh rupees
• Not less than 10 lakh rupees
• Not less than3 lakh rupees
• Not less than 5 lakh rupees'

Q.5:- What is punishment for the company and its officers, if any default is made in compliance with any of the provisions of Companies (Management and Administration) Rules, 2014:

• Punishable with fine which may extend to Rs. 4000 and where the contravention is a continuing one, with a further fine which may extend to Rs.500 for every day after the first during which such contravention continues.
• Punishable with fine which may extend to Rs.5000 and where the contravention is a continuing one, with a further fine which may extend to Rs.500 for every day after the first during which such contravention continues.
• Punishable with fine which may extend to Rs. 2000 and where the contravention is a continuing one, with a further fine which may extend to Rs. 500 for every day after the first during which such contravention continues.
• Punishable with fine which may extend to Rs. 3000 and where the contravention is a continuing one, with a further fine which may extend to Rs. 500 for every day after the first during which such contravention continues

Q.6:- Every listed company and every other public company having a calculated at the end of the preceding financial year shall include, in the report by its Board of directors, a statement indicating the manner in which formal annual evaluation has been made by the Board of its own performance and that of its committees and individual directors.

• Paid up share capital of Rs. 25 crore rupees or more
• Paid up share capital of Rs. 35 crore rupees or more
• Paid up share capital of Rs. 5 crore rupees or more
• Paid up share capital of Rs. 15 crore rupees or more

Q.7:- Every private limited company is required to appoint Internal Auditor in the following cases:

• Outstanding loans or borrowings from banks or public financial institutions exceeding Rs. 100 crore rupees or more at any point of lime during the preceding financial year
• Turnover of Rs. 200 crore rupees or more during the preceding financial year.
• Private company is not required to appoint Internal Auditor.
• Options mentioned at A and B are correct (i.e. if any of the condition is fulfilled, the concerned company is required to appoint Internal Auditor.

Q.8:- Every unlisted company is required to appoint Internal Auditor in the following cases:

• Outstanding deposits of Rs. 25 five crore rupees or more at any point of time during the preceding financial year
• Paid up share capital of Rs. 50 crore rupees or more during the preceding financial year or Turnover of Rs. 200 crore rupees or more during the preceding financial year.
• Outstanding loans or borrowings from banks or public financial institutions exceeding Rs. 100 crore rupees or more at any point of time during the preceding financial year.
• All the options are correct (i.e. if any of the condition is fulfilled, the concerned company is required to appoint Internal Auditor).

Q.9:- In case of all listed companies and such public companies which have a net worth of more than Rs. 1 crore rupees and turnover of more than Rs. 10 crore rupees, the financial statements may be sent:

• Where Shareholding is held otherwise than by dematerialised format, to such members who have positively consented in writing for receiving by electronic mode.
• By despatch of physical copies through any recognised mode of delivery as specified under section 20 of the Act, in all other cases.
• By electronic mode to such members whose shareholding is in dematerialised format and whose email Ids are registered with Depository for communication purposes
• All the options are correct.

Q.10:- Who can be an Internal Auditor to conduct internal audit of the functions and activities of the company:

• A Cost accountant,
• A chartered accountant or a cost accountant, or such other professional as may be decided by the Board to conduct internal audit of the functions and activities of the company.
• A Chartered accountant
• A Company Secretary

Q.11:- Where the financial statements are not adopted at annual general meeting or adjourned annual general meeting, such un adopted financial statements along with the required documents shall be filed with the Registrar:

• Within 15 days of the date of annual general meeting and the Registrar shall take them in his records as final.
• Within 30 days of the date of annual general meeting and the Registrar shall take them in his records as final.
• Within 15 days of the date of annual general meeting and the Registrar shall take them in his records as provisional till the financial statements are filed with him after their adoption in the adjourned annual general meeting for that purpose.
• Within 30 days of the date of annual general meeting and the Registrar shall take them in his records as provisional till the financial statements are filed with him after their adoption in the adjourned annual general meeting for that purpose.

Q.12:- In the case of a listed company, a copy of the financial statements which are to be led before a company in its general meeting shall be deemed to be complied with, if the copies of the documents are made available for inspection at its registered office during working hours for a period of twenty-one days before the date of the meeting and a statement containing the salient features of such documents in the prescribed form or copies of the documents, as the company may deem fit, is sent to every member of the company and to every trustee for the holders of any debentures issued by the company not less than twenty-one days before the date of the meeting unless the shareholders ask for full financial statements. Which Form is to be used in this regard:

• Form No. AOC 3
• Form No. AOC 3
• Form No. AOC 4
• Form No. AOC 2

Q.13:- What is the time period within which a copy of the financial statements, including consolidated financial statement, if any, along with all the documents which are required to be or attached to such financial statements under the Companies Act, 2013, duly adopted at the annual general meeting of the company, shall be filed with the Registrar:

• Within 45 days of the date of annual general meeting.
• Within 60 days of the date of annual general meeting.
• Within 30 days of the date of annual general meeting.
• Within 15 days of the date of annual general meeting.

Q.14:- In what circumstances, the Tribunal may dispense with calling of a meeting of creditor or class of creditors:

• Where such creditors or class of having at least 60% value, agree and confirm, by way of affidavit, to the scheme of compromise or arrangement.
• Where such creditors or class of having at least 80% value, agree and confirm, by way of affidavit, to the scheme of compromise or arrangement.
• Where such creditors or class of creditors, having at least 90% value, agree and confirm, by way of affidavit, to the scheme of compromise or arrangement.
• Where such creditors or class of having at least 70% value, agree and confirm, by way of affidavit, to the scheme of compromise or arrangement.

Q.15:- No compromise or arrangement shall be sanctioned by the Tribunal unless has been filed with the Tribunal to the effect that the accounting treatment, if any, proposed in the scheme of compromise or arrangement is in conformity with the accounting standards prescribed under section 133:

• A certificate by the company’s Company Secretary.
• A certificate by the company’s Advocate.
• A certificate by the company’s auditor.
• A certificate by the company’s Internal Auditor

Q.16:- Where, at a meeting held in pursuance of section 230(1), majority of persons representing of the creditors, or class of creditors or members or class of members, as the case may be, voting in person or by proxy or by postal ballot, agree to any compromise or arrangement and if such compromise or arrangement is sanctioned by the Tribunal by an order, the same shall be binding on the company, all the creditors, or class of creditors or members or class of members, as the case may be, or, in case of a company being wound up, on the liquidator appointed under this Act or under the Insolvency and Bankruptcy Code, 2016, as the case may be, and the contributories of the company.

• One-half in value
• Three-fourths in value
• One-fourth in value
• None of the above

Q.17:- Who can raise any objection to the compromise or arrangement:

• It can be raised by the persons having outstanding debt amounting to not less than 5% of the total outstanding debt as per the latest audited financial statement.
• It can be made by persons holding not less than 10% of the shareholding.
• None of the above.
• Both the options A and B are correct.

Q.18:- A partnership entity or company eligible for registration as a registered valuer may make an application to the authority in:

• Form-B
• Form-D
• Form-A
• Form-C

Q.19:- The Registrar of Companies may remove the name of a company from the register of companies in terms of section 248(1)of the Companies Act, 2013. However, the following categories of companies shall not be removed from the register of companies:

• Companies where inspection or investigation is ordered and being carried out or actions on such order are yet to be taken up or were completed but prosecutions arising out of such inspection or investigation are pending in the Court.
• Listed companies
• Companies that have been delisted due to non-compliance of listing regulations or listing agreement or any other statutory laws.
• All the options are correct.

Q.20:- Within three weeks from the date of passing of winding up order, the Company Liquidator shall make an application to the Tribunal for constitution of a to assist and monitor the progress of liquidation proceedings by the Company Liquidator in carrying out the function.

• Nomination committee
• Audit Committee
• Winding up committee
• CSR committee

Q.21:- The promoters, directors, officers and employees, who are or have been in employment of the company or acting or associated with the company shall extend full cooperation to the Company Liquidator in discharge of his functions and duties and if any such person without reasonable cause, fails to discharge his obligations he shall be punishable with:

• Imprisonment which may extend to 2 months or with fine which may extend to Rs. 50000, or with both.
• Imprisonment which may extend to 8 months or with fine which may extend to Rs. 50000, or with both.
• Imprisonment which may extend to 4 months or with fine which may extend to Rs. 50000, or with both.
• Imprisonment which may extend to 6 months or with fine which may extend to Rs. 50000, or with both.

Q.22:- Any transfer of property, movable or immovable, or any delivery of goods, made by a company, not being a transfer or delivery made in the ordinary course of its business or in favour of a purchaser or encumbrancer in good faith and for valuable consideration, if made within a period of one year before the presentation of a petition for winding up by the Tribunal under this Act shall be:

• Void against the Company Liquidator
• Voidable at the option of the Company Liquidator.
• Valid
• None of the above.

Q.23:- Where any company is being wound up by the Tribunal, any attachment, distress or execution put in force82, without leave of the Tribunal against the estate or effects of the company, after the commencement of the winding up shall be:

• Valid
• Voidable
• Void
• None of the above

Q.24:- Where a company is being wound up, whether by the Tribunal or voluntarily, every invoice, order for goods or business letter issued by or on behalf of the company or a Company Liquidator of the company, or a receiver or manager of the property of the company, being a document on or in which the name of the company appears, shall contain a statement that:

• The company shall be wound up.
• The company may be wound up.
• The company will be wound up.
• The company is being wound up.

Q.25:- In the case of a winding up by the Tribunal, any disposition of the property including actionable claims, of the company and any transfer of shares in the company or alteration in the status of its members, made after the commencement of the winding up shall be:

• Voidable
• Valid
• Void
• None of the above

Q.26:- If a default is made in complying with the provisions of section 40, which deals with the listing of securities, what penalty is imposed on the officer of the company:

• Every officer of the company who is in default shall be punishable with imprisonment for a term which may extend to two year or with fine which shall not be less than fifty thousand rupees but which may extend to three lakh rupees, or with both.
• Every officer of the company who is in default shall be punishable with imprisonment for a term which may extend to five year or with fine which shall not be less than fifty thousand rupees but which may extend to three lakh rupees, or with both.
• Every officer of the company who is in default shall be punishable with imprisonment for a term which may extend to one year or with fine which shall not be less than fifty thousand rupees but which may extend to three lakh rupees, or with both.
• Every officer of the company who is in default shall be punishable with imprisonment for a term which may extend to three year or with fine which shall not be less than fifty thousand rupees but which may extend to three lakh rupees, or with both.

Q.27:- What shall be the composition of the advisory committee appointed by the Tribunal:

• It shall consist of not more than 10 members, being creditors and contributories of the company or such other persons in such proportion as the Tribunal may, keeping in view the circumstances of the company under liquidation, direct.
• It shall consist of not more than 12 members, being creditors and contributories of the company or such other persons in such proportion as the Tribunal may, keeping in view the circumstances of the company under liquidation, direct.
• It shall consist of not more than 6 members, being creditors and contributories of the company or such other persons in such proportion as the Tribunal may, keeping in view the circumstances of the company under liquidation, direct.
• It shall consist of not more than 8 members, being creditors and contributories of the company or such other persons in such proportion as the Tribunal may, keeping in view the circumstances of the company under liquidation, direct.

Q.28:- Where a company is being wound up, if it is shown that proper books of account were not kept by the company throughout the period of two years immediately preceding the commencement of the winding up, every officer of the company who is in default shall:

• be punishable with imprisonment for a term which shall not be less than one year but which may extend to three years and with fine which shall not be less than Rs. 1 lakh rupees but which may extend to Rs. 5 lakh rupees.
• be punishable with imprisonment for a term which shall not be less than one year but which may extend to five years and with fine which shall not be less than Rs. 1 lakh rupees but which may extend to Rs. 3 lakh rupees.
• be punishable with imprisonment for a term which shall not be less than one year but which may extend to three years and with fine which shall not be less than Rs. 1 lakh rupees but which may extend to Rs. 3 lakh rupees.
• be punishable with imprisonment for a term which shall not be less than six month year but which may extend to three years and with fine which shall not be less than Rs. 1 lakh rupees but which may extend to Rs. 3 lakh rupees

Q.29:- The other member, of the Appellate Tribunal shall Hold office as such until he attains:

• The age of 63 years
• The age of 61 years
• The age of 67 years
• The age of 65years

Q.30:- How the President, the Chairperson or any Member may, resign from his office:

• By notice in writing under his hand addressed to the Central Government, resign from his office.
• By notice in writing under his hand addressed to the President of India, resign from his office.
• By notice in writing under his hand addressed to the Chairperson of the IBBI, resign from his office.
• By notice in writing under his hand addressed to the Chief Justice of Supreme Court, resign from his office.

Q.31:- Under what circumstances, the Central Government may, after consultation with the Chief Justice of India, remove from office the President, Chairperson or any Member:

• Has acquired such financial or other interest as is likely to affect prejudicially his functions as such President, the Chairperson or Member.
• Has been adjudged an insolvent or has been convicted of an offence which, in the opinion of the Central Government, involves moral turpitude.
• Has become physically or mentally incapable of acting as such President, the Chairperson, or Member or has so abused his position as to render his continuance in office prejudicial to the public interest.
• All the options are correct.(i.e. if any of the dis-qualifications mentioned as A, B or C he may be removed from his office)

Q.32:- What is the eligible criteria of age of a Member of the Tribunal:

• Who has not completed 55 years of age shall not be eligible for appointment as Member.
• Who has not completed 45 years of age shall not be eligible for appointment as Member.
• "Who has not completed 40 years of age shall not be eligible for appointment as Member.
• Who has not completed 50 years of age shall not be eligible for appointment as Member.

Q.33:- The Chairperson or a Member of the Appellate Tribunal shall hold office as such from the date on which he enters upon his office, but shall be eligible for re-appointment

• For a term of 5 years/for another term of 5 years
• For a term of 3 years/for another term of 3 years
• For a term of 2 years/for another term of 2 years
• For a term of 4 years/for another term of 4 years

Q.34:- Chairperson of Appellate Tribunal shall hold Office as such until he attains:

• The age of 67 years
• The age of 70 years
• The age of 61 years
• The age of 64 years

Q.35:- Where the Principal Bench of the Tribunal shall be situated:

• At Mumbai
• At Kolkata
• At Chennai
• At New Delhi.

Q.36:- In how many days a person aggrieved by an order of the Tribunal may prefer an appeal to the Appellate Tribunal:

• Within a period of 30 days from the date on which a copy of the order of the Tribunal is made available to the person aggrieved.
• Within a period of 60 days from the date on which a copy of the order of the Tribunal is made available to the person aggrieved.
• Within a period of 45 days from the date on which a copy of the order of the Tribunal is made available to the person aggrieved.
• Within a period of 75 days from the date on which a copy of the order of the Tribunal is made available to the person aggrieved.

Q.37:- Every application or petition presented before the Tribunal and every appeal filed before the Appellate Tribunal shall be dealt with and disposed of by it as expeditiously as possible and every endeavour shall be made by the Tribunal or the Appellate Tribunal, as the case may be, for the disposal of such application or petition or appeal from the date of its presentation before the Tribunal or the filing of the appeal before the Appellate Tribunal.

• within nine months.
• within six months.
• within three months.
• within twelve months.

Q.38:- Where any application or petition or appeal is not disposed of within the period specified in sub-section(l), the Tribunal or, as the case may be, the Appellate Tribunal, shall record the reasons for not disposing of the application or petition or the appeal, as the case may be, within the period so specified; and the President or the Chairperson, as the case may be, may, after taking into account the reasons so recorded, extend the period referred to in sub­ section (1 )by such period as he may consider necessary.

• not exceeding 90 days.
• not exceeding 45 days.
• not exceeding 105 days.
• not exceeding 120 days.

Q.39:- In the case of an order against a company made by the Tribunal or the Appellate Tribunal, in which court, the execution of its orders shall be made:

• Where the Corporate Office of the company is situated.
• Where the Promotes of the company resides.
• Where the Head Office of the company is situated.
• Where the Registered Office of the company is situated.

Q.40:- 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 personally works for gain.
• Where the person concerned carries on business
• Where the person concerned voluntarily resides
• All the options are correct.

Q.41:- A party to any proceeding or appeal before the Tribunal or the Appellate Tribunal, as the case may be, may either appear in person or authorize one or more person to present his case before the Tribunal or the Appellate Tribunal, as the case may be.

• Chartered Accountants
• Cost Accountants/Legal practitioners
• Company Secretaries
• All the options are correct.

Q.42:- Where a period is prescribed by the Companies Act and these rules or under any other law or is fixed by the Tribunal for doing any act, in computing the time, the day from which the said period is to be reckoned shall be, and if the last day expires on a day when the office of the Tribunal is closed, that day and any succeeding days on which the Tribunal remains closed shall also be

• Excluded/included
• Included/included
• Included/excluded
• Excluded/excluded

Q.43:- Every rule, direction, order, summons, warrant or other mandatoty process shall be issued in the name of the President and shall be signed by the , with the day, month and year of signing and shall be sealed with the seal of the Tribunal.

• Registrar
• President
• Any other officer specifically authorised in that behalf by the President
• Options A and C are correct.

Q.44:- Who is to decide the calendar of days of working of Tribunal in a year:

• It shall be as decided by the Chairperson of the Appellate Tribunal.
• It shall be as decided by the Chief Justice of the Supreme Court
• It shall be decided by the Central Government.
• It shall be as decided by the President of the Tribunal.

Q.45:- When an urgent matter filed before 12 noon shall be listed before the Tribunal:

• on the following working day
• on the next to next working day
• on the same working day
• As per the discretion of the Tribunal.