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Questions Related to company

As per Section 139(6) of the Companies Act, 2013 provides that the first auditor or auditors are to be appointed by the Board of directors within ____________ of the date of the registration of the company.

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

  1. 30 days

  2. 45 days

  3. 60 days

  4. 90 days

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Correct Option: A
Explanation:

The appointment of Auditors in a Company is Governed under Section 139 of the Companies Act. 

Section 139(6) of the Act,2013 says that, the first auditor of a company must be appointed by the BOD within 30 Days from the date of registration of the Company. In case of failure of the Board to appoint such auditor, the board shall inform the members of the company, who shall within ninety days at an Extra Ordinary General Meeting appoint the auditor

Which of the following shall be eligible for appointment as an auditor of an company as per section 141(3) of the Companies Act, 2013?

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

  1. An officer or employee of the company

  2. A person who, or his relative or partner is indebted to the company, or its subsidiary, or its holding or associate company or a subsidiary of such holding company, in excess of Rs. 5 lakhs

  3. A person whose relative hold security or interest in the company of face value not exceeding Rs.one lakh

  4. None of the above

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Correct Option: C

Which of the following section of the Companies Act, 2013 contains provisions regarding the appointment of the auditor?

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

  1. Section 224

  2. Section 238

  3. Section 138

  4. Section 139

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Correct Option: A

In which of the following independent case Mr. Ram can be appointed as auditor of the XYZ Ltd. as per Companies Act, 2013?
(I) Relative of Mr. Ram hold securities of Rs. 50,000 in XYZ Ltd.
(II) Mr. Y, the partner of Mr. Ram has debt payable to PQR Ltd. (Subsidiary of XYZ Ltd.) of Rs. 3,00,000.
(III) Mr. Z partner of Mr. Ram is working as General Manager in XYZ Ltd.
(IV) Mr. B has taken load of Rs. 2 lakh from XYZ Ltd. and relative of Mr. Ram has given guarantee for this transaction.
The correct answer is -

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

  1. (I) & (II) only

  2. (III) & (IV) only

  3. (I), (II) & (III) only

  4. (I), (II), (III) & (IV)

Show answer
Correct Option: A

The section 211 of Companies Act, 2013 describes rules and regulations regarding __________________.

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

  1. Serious Fraud Investigation Office (SFIO)

  2. Several Fraud Investigation Company (SFIC)

  3. Public Financial Institutions (PFIs)

  4. Key Managerial Personnel (KMP)

Show answer
Correct Option: A
Explanation:

The Serious Fraud Investigation Office (SFIO)  is a fraud investigating agency in India under the jurisdiction of government of India. It  is a coordinating agency with Income Tax and CBI. 


SFIO is a multi disciplinary organization involve experts from finance sector, accounting sector, capital market, forensic audit, taxation, company law. These experts are taken from their individual department to form SFIO. It is headed by a Director appointed by government of India.

Section 211 of the Companies Act 2013 describes rules and regulations for SFIO. 

Section 143(1) of the Companies Act, 2013 requires an auditor to inquire -

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

  1. Whether loans and advances made by the company on the basis of security have been properly secured and whether the terms on which they have been made are prejudicial to the interest of the company or its members

  2. Where the transactions of the company which are represented merely by book entries are not prejudicial to the interests of the company

  3. Where the company is not an investment or a banking company, whether so much of the company consists of shares, debentures and other securities have been sold at a price less than that at which they were purchased by the company

  4. All of the above

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Correct Option: A

As per Rule 10 of the Companies (Appointment & Remuneration of Managerial Personnel ) Rules, 2014, which of the following are duties of Company Secretary?
(1) To provide guidance to the directors with regards to their duties, responsibilities and powers.
(2) To formulate the business strategies.
(3) To represent before various Regulators, and other authorities in connection with
discharge of various duties.
(4) To call annual general meeting and extraordinary general meeting on his own.
Select the correct answer from options given below-

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

  1. (1) & (3)

  2. (2) & (4)

  3. (1), (2) & (3)

  4. (1), (3) & (4)

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Correct Option: A

The minute of the proceedings of every general meeting should be recorded in the books kept for that purpose within _________________.

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

  1. 30 days of every such meeting

  2. 3 months of any such meeting

  3. The intervening period between that meeting and the next meeting

  4. Such time as approved by the chairman of the company

Show answer
Correct Option: A
Explanation:

 The minutes of proceedings of each meeting shall be entered in the books maintained for that purpose along with the date of such entry within thirty days of the conclusion of the meeting.

Which of the following rights are available to auditors of the company as per the provisions of the Companies Act, 2013?
(I) Right to sign the audit report
(II) Right to speak at general meeting
(III) Right to attend general meeting
(IV) Right to advice company on their financial policies
(V) Right to visit branch office
Select the correct answer from the options given below -

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

  1. (I), (II), (III) & (V) only

  2. (I), (II) & (V) only

  3. (I), (III) & (V) only

  4. (I), (II), (IV) & (V) only

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Correct Option: A

An auditor may function as -
(I) An employee
(II) An independent professional
The correct answer is -

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

  1. (I) only

  2. (II) only

  3. Either (I) or (II)

  4. Neither (I) nor (II)

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Correct Option: A