Tag: public sector enterprises

Questions Related to public sector enterprises

The Registrar of Companies is appointed by the Central Government.

commercial applications public sector enterprises role of government and development policies government companies government and taxes

  1. True

  2. False

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Correct Option: A
Explanation:
Sub-section 75 of Section 2 of the Companies Act 2013 defines "Registrar" as : "Registrar" means a Registrar, or an Additional, a Joint, a Deputy or an Assistant Registrar, having the duty of registering companies under this Act (i.e. the companies act 2013). 
With the power vested under section 396 of the companies act 2013 (earlier section 609 of the companies act 1956), the Central Govt. appoints Registrars, and Additional, Joint, Deputy and Assistant Registrars for various States and Union Territories in India. 
Apart from the primary duty of registering companies incorporated in the respective states and the Union Territories, ROC’s are also responsible for ensuring that the Companies comply with statutory requirements under the said Act.

NCLT was established in year ______________.

commercial applications public sector enterprises role of government and development policies government companies government and taxes

  1. 2010

  2. 2011

  3. 2012

  4. 2016

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Correct Option: D
Explanation:

The National Company Law Tribunal (NCLT) is a quasi-judical body in India that adjudicates issues relating to Indian companies.The NCLT was established under the Companies act 2013 and was constituted on 1 June 2016 by the government of India and is based on the recommendation of the justice eradi committee on law relating to insolvency and winding up of companies.


The court having jurisdiction to deal with the matters advising under the Act is the High Court.

commercial applications public sector enterprises role of government and development policies government companies government and taxes

  1. True

  2. False

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Correct Option: A
Explanation:

Supreme Court to hear matters directly without the matter having been heard previously by any lower court. Advisory Jurisdiction is when a lower court or any constitutional body seeks the advise of the Supreme Court in a matter of law.

For the administration of the Companies Act, the main body set up by the central government is the Company Law Board.

commercial applications public sector enterprises role of government and development policies government companies government and taxes

  1. True

  2. False

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Correct Option: A
Explanation:

An Act to consolidate and amend the law relating to companies. The Companies Act 2013 is an Act of the Parliament of India on Indian company law which regulates incorporation of a company, responsibilities of a company, directors, dissolution of a company.

NCLAT was constituted on _______.

commercial applications public sector enterprises role of government and development policies government companies government and taxes

  1. 1 June 2016

  2. 1 July 2015

  3. 1August 2016

  4. 15 March 2016

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Correct Option: A
Explanation:

The National Company Law Tribunal has been constituted w.e.f. 1st June,2016 and by virtue of Section 408 of Companies Act,2013.

The full time officer appointed by the Central Government for the administration of the company law in each state is the Registrar of companies.

commercial applications public sector enterprises role of government and development policies government companies government and taxes

  1. True

  2. False

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Correct Option: A
Explanation:

It is true that Registrar of companies is a full time officer appointed by the Central Government for the administration of the company law in each state. There are 22 registrar of companies operating from offices in all major states of India. 

Official Liquidator is appointed by the Central Government under section 448 of the Companies Act, 1956.

commercial applications public sector enterprises role of government and development policies government companies government and taxes

  1. True

  2. False

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Correct Option: A
Explanation:

For the purposes of this Act, so far as it relates to the winding up of companies by the Tribunal, the Central Government may appoint as many Official Liquidators, Joint, Deputy or Assistant Official Liquidators as it may consider necessary to discharge the functions of the Official Liquidator. The liquidators so appointed under this section shall be whole-time officers of the Central Government. The salary and other allowances of the Official Liquidator, Joint Official Liquidator, Deputy Official Liquidator and Assistant Official Liquidator shall be paid by the Central Government.

Registrar of companies is a full time officer appointed by the Central Government for the administration of the company law in each state.

commercial applications public sector enterprises role of government and development policies government companies government and taxes

  1. True

  2. False

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Correct Option: A
Explanation:

It is true that Registrar of companies is a full time officer appointed by the Central Government for the administration of the company law in each state. There are 22 registrar of companies operating from offices in all major states of India. 

The Company Law Board deals only with the legal matters of companies.

commercial applications public sector enterprises role of government and development policies government companies government and taxes

  1. True

  2. False

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Correct Option: A
Explanation:

This statements is False because of the following reasons :

(i) According to the Companies (Amendment ) Act,1988 the Company Law Board is to exercise and discharge such power and function as may be given to it by or under the Companies Act or any other law.
(ii) Almost all the powers and function of the Central Government  under the provision of the Companies Act, have been delegated to the Board.
(iii) The Company Law Board is the executive arm of the department of  company affairs.
(iv) Most of the powers, which were so long exercised by the court or the Central Government  are now transferred to the Company Law Board.
(v) These powers are mainly judicial in nature.
(vi) The board also has power of civil court (Section 4C).
(vii) It also has the power of punishment for contempt of any order passed by it.
(viii) The Company Law Board shall be guided by the principles of nature justice and shall act independently in its discretion.
(ix) Hence, the Company Law Board only deals with the legal matters of companies , but also other matters.         

The Companies Act, 1956 is of no use to companies registered under it in India.

commercial applications public sector enterprises role of government and development policies government companies government and taxes

  1. True

  2. False

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Correct Option: B
Explanation:

This statements is False because of the following reasons:

(i) The Companies Act,1956 which constitutes the company law in India, came into force with effect from 1st April,1956.

(ii) It contains 658 sections, XIV schedules, a number of rules and regulations and a number of forms.

(iii) This law is based largely on the report of the Company Law Committee, 1952 and it also follows closely the new changes introduced in the British Company Law by the British Companies Act, 1948.

(iv) The main objective of  the Companies Act, 1956 is to protect the interests of a large number  of shareholders and creditors of the company.

(v) It is also aimed to develop the corporate sector on a healthy line.

(vi) The economic and social policies of the government were to be fulfilled and achieved through this Act.

(vii)All companies intending to do business in India, have to be registered under the Companies Act, 1956.

(viii)They have to strictly follow the provisions laid down in the Act.

(ix)Hence, it cannot be said that the Companies Act, 1956 is of no use to companies registered  under it in India.