Session 11 Companies Act

1. What is not true about companies?

A) Legal Entity
B) Perpetual Existence
C)Bye Laws
D) Can be sued

2. Charge has to be filed with the Registrar of Companies

within _____ days from the date of creation.
A) 25 days
B)30 days
C) 15 days
D) 7 days

3. For public limited companies, borrowings against

mortgage of property of the company requires
authorization by
A)General body of the shareholders
B) Board of Directors
C) CEO of the Company
D) Managing Director of the Company

4. For Public Limited Companies, If the borrowing exceeds

the aggregate of the paid-up capital and reserves, the
borrowings should be authorized by
A)General body of the shareholders
B)Board of Directors
C)CEO of the Company
D)
Managing Director of the Company

5. A person cannot be a director of more than _____

companies concurrently.

A) 10
B) 12
C) 6
D)

15

6. If a charge is not registered within 60 days, the company

or any 'interested' party can approach the CLB for
registration showing satisfactory reasons for the omission.
CLB means
A)Company Law Board
B) Cluster of Local Banks
C) Contract Law Board
D) Company Local Board

7. Promoters of the company should verify the availability of

the proposed name from the RoC. RoC means
A) Regional Office Coordinator
B) Regional Office Controller
C)Register of Companies
D) Registrar of Contractors

8. Doctrine of Indoor Management is known as

A) Memorandum of Association
B)Article of Association
C) Board Resolution
D) Bye Laws

9. Charter of a company is called as

A)Memorandum of Association
B) Article of Association
C) Board Resolution
D) Bye Laws

10.

What is true about Article of Association?

A) Contains the rights and powers of the

directors, rules for conducting meetings, use of
companys common seal, use of borrowing
powers, nature of business etc.
B) Governs the relationship between the company and
the outside world
C) Contains the fundamental rules regarding the
constitution of the company
D) Lays down how the company is going to be
constituted and what work it shall undertake

11.

What is true about Memorandum of Association?

A) They define the duties, rights, powers and authority
of the shareholders and the directors in their
respective capacities
B)Defines as well as confines the power of the
company
C) Regulations which govern the management of its
internal affairs and the conduct of its business
D) They are framed with the object of carrying out the
aims and objects of the Company

12.
To amalgamate with any other company or body of
persons, companies should document that in
A)Memorandum of Association
B)Article of Association
C)Board Resolution
D)
Bye Laws

13.
Appointment of Directors, Auditors, MDs & Company
Secretaries & their remuneration, etc are enshrined in
A) Memorandum of Association
B)Article of Association
C) Board Resolution
D) Bye Laws

14.
What is the Ministry that is primarily concerned with
administration of the Companies Act?
A) Ministry of Commerce and Industry
B)Ministry of Corporate Affairs
C) Ministry of Finance
D) Ministry of Urban Development

15.
Certificate of Commencement of Business is
mandatory for
A) Partnership Concerns
B)Public Limited Companies
C) Private Companies
D) Clubs

16.
Both the PAN and the TAN must be indicated on all
the returns, documents and correspondence filed with the
Revenue Department. TAN means:
A) Trade Account Number
B)Tax Deduction Account Number
C) Temporary Account Number
D) Transaction Authentication Number

17.

Doctrine of the ultra-vires tantamounts to

A) Violation of Board Resolution
B) Violation of Bye Laws
C)Violation of Memorandum of Association
D) Violation of Article of Association

18.

Act which can override memorandum, articles, etc is:

A)Companies Act
B) Intellectual Property Act
C) Contract Act
D) Partnership Act

19.
On forming a company, Registrar shall allot to the
company a corporate identity number, which shall be a
distinct identity for the company and which shall also be
included in the
A)Certificate of Incorporation
B) Articles of Association
C) Memorandum of Association
D) Bye law

20.
Formation of companies with charitable objects
should get the approval from:
A) Reserve Bank of India
B) Central Government
C) President of India
D) Finance Minister