Tag: company

Quizzes (10) Questions (165)

Questions Related to company

Multiple choice business organisation and correspondence companies act, 2013 - introduction and characteristics introduction to companies companies act, 2013 company

On incorporation, a company acquires legal entity with perpetual succession and a __________.

  1. Seal which is optional

  2. Common seal which is compulsory

  3. Rubber stamp which is compulsory

  4. common seal which is optional
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Under the Companies Act, 2013, the use of a common seal is now optional for a company.

Multiple choice business organisation and correspondence companies act, 2013 - introduction and characteristics introduction to companies companies act, 2013 company

A whole time KMP which includes Company Secretary shall not hold office in______________.

  1. More than one company except in its subsidiary company at the same time.

  2. More than two companies and its subsidiary company at the same time.

  3. More than one company except in its associate company at the same time.

  4. More than one company except in related company at the same time.
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Key Managerial Personnel (KMP) are the employees of a company who hold key positions in the company and greater responsibility of overall functioning of the company including the responsibility to protect the interest of the stakeholders. 

According to Section 203(3), a whole time KMP shall not hold office in more than one company except in its subsidiary company at the same time. 

Multiple choice business organisation and correspondence companies act, 2013 - introduction and characteristics introduction to companies companies act, 2013 company

The expression "Secretarial Standards" means -

  1. Secretarial standards issued by the ICSI

  2. Secretarial standards approved by the Central Government.

  3. Both (A) and (B)

  4. Secretarial standards issued by the ICSI whether approved by the Central Government or not.
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Secretarial Standards are the standards issued by the Institute of Company Secretaries of India constituted under the section 3 of the Company Secretaries Act 1980. Secretarial Standards provide clear view of the laws when the laws are not clear. These are approved by the Central Government. Secretarial Standards provide clarity to the laws which does not imply that these are alternatives to the original law. 

Multiple choice business organisation and correspondence companies act, 2013 - introduction and characteristics introduction to companies companies act, 2013 company

The first step towards incorporation of a company is -

  1. To print MOA and AOA

  2. To have certificate of incorporation

  3. To adopt a suitable name

  4. To appoint director
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The first and foremost task in the direction of formation of company is the selection of a name to be given to the proposed company. Having decided to launch a company, the promoter has to select a name for it and submit an application to the registrar of companies of the state in which the registered office of the company is to be situated, for its approval. The proposed name may be approved if it is not considered undesirable. It may happen that another company exists with the same name or a very similar name or the preferred name is misleading, say, to suggest that the company is in a particular business when it is not accepted but some alternate name may be approved. Therefore, three names, in order of their priority are given in the application to the Registrar of Companies before formation of company.

Multiple choice business organisation and correspondence companies act, 2013 - introduction and characteristics introduction to companies companies act, 2013 company

Which of the following statement is CORRECT in relation to Non-Profit making companies registered under Section 8 of the Companies Act, 2013?
(I) Non-profit making companies registered can pay 10% of their surplus as dividend on approval of central government.
(II) A firm may be a member of the non-profit making companies.
(III) Non-profit making companies registered cannot convert itself into company of any other kind.
(IV) Non-profit making companies has in its objects the promotion of commerce, art, science, sports, education, research, social welfare, religion, charity, protection of environment or any such other object.
Select the correct answer from the options given below -

  1. (II) and (IV) of the aove

  2. (I, (II) and (IV) of the above

  3. (I), (II) and (III) of the above

  4. (I), (II), (III) and (IV) of the above
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Section 8 companies cannot pay dividends to members (making I incorrect) and can convert into other types of companies (making III incorrect). Statements (II) and (IV) are correct.

Multiple choice business organisation and correspondence companies act, 2013 - introduction and characteristics introduction to companies companies act, 2013 company

Which of the following Section of the Companies Act, 2013 specify the functions of Company Secretary?

  1. Section 203

  2. Section 205

  3. Section 208

  4. Section 210
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Section 205 of the Companies Act 2013 specifies the functions to be performed by the Company Secretary. These functions are:

  • To report to the Board about compliance with the provision of the Act, the rules and the laws under the Act.
  • To ensure that the company complies with the Secretarial Standards.
  • To discharge such other duties as may be prescribed.

Multiple choice business organisation and correspondence companies act, 2013 - introduction and characteristics introduction to companies companies act, 2013 company

In case of OPC and small company, the annual return shall be signed by the_________.

  1. Company Secretary

  2. Director of the company

  3. Company Secretary and director of the company.

  4. Company Secretary, or where there is no Company Secretary, by the director of the company.
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

OPC is one person company which has only one person as member and there is no prescribed capital. According to Section 92, every company has to prepare an annual return in the prescribed form containing the particulars as they appear in the financial statements. The annual return is to be signed by a director and company secretary, in case of normal company.

In case of OPC and small company, the annual return shall be signed by the company secretary or where there is no company secretary, by the director of the company.

Multiple choice business organisation and correspondence companies act, 2013 - introduction and characteristics introduction to companies companies act, 2013 company

As regards ratification of promoters contracts, the view taken in _______ was that the company could not ratify contract made by a promoter before its incorporation.

  1. Ashbury RAilway Carriage and Iron Co. Ltd. vs. Riche

  2. Shyamlal Roy vs. Madhusudan Roy

  3. Kelner vs. Baxter

  4. Smith vs. Anderson
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The case of Kelner vs. Baxter established that a company cannot ratify a contract entered into by promoters before the company's incorporation, as the company did not exist at the time of the contract.

Multiple choice business organisation and correspondence companies act, 2013 - introduction and characteristics introduction to companies companies act, 2013 company

Which of the following section of the Companies Act, 2013 contains provisions as regards to qualifications of auditors?

  1. Section 131

  2. Section 124

  3. Section 224

  4. section 141
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Section 141 of the Companies Act, 2013 specifically deals with the eligibility, qualifications, and disqualifications of auditors. The other sections listed pertain to different aspects of company law.

Multiple choice business organisation and correspondence companies act, 2013 - introduction and characteristics introduction to companies companies act, 2013 company

Which of the following is function of Company Secretary?

  1. To provide to the directors of the company, collectively and individually, such guidance as they may require with regards to their duties, responsibilities and powers

  2. To facilitate the convening of meetings and attend Board, committee and general meetings and maintain the minutes of these meetings

  3. To assist the Board in the conduct of the affairs of the company

  4. To ensure that the company complies with the applicable secretarial standards
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

As per the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, one of the primary duties of a Company Secretary is to ensure that the company complies with applicable secretarial standards. While the other options describe general responsibilities, this is the specific statutory duty defined in the rules.