Tag: company

Questions Related to company

In a company who conceives the idea of the business?

memorandum of understanding and articles of association company business studies

  1. Promoters

  2. Auditors

  3. Directors

  4. Shareholders

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Correct Option: A

Preferential shareholders can call meeting in which situation?

memorandum of understanding and articles of association company business studies

  1. Curfew

  2. Emergency

  3. Bomb blast

  4. None of the above

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Correct Option: D
Explanation:
As per section 48 of Companies Act, 2013 class meetings are held by preferential shareholders. Class meeting are basically held for taking consent of a particular class of shareholders. Through this meeting, the rights and privileges of the shareholders can be altered, or conversion of one class to another can be done.

As per section 2(41) of the Companies Act, 2013 financial year of the Company is ________.

memorandum of understanding and articles of association company business studies

  1. from April to March

  2. from January to December

  3. to be decided on individual basis

  4. based on the incorporation date of Company

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Correct Option: A

The corporate veil can be lifted___.

memorandum of understanding and articles of association company business studies

  1. For determining the true status of the company

  2. In order to determine whether it was an enemy company

  3. Where the company fails to pay taxes and duties

  4. All of the above

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Correct Option: D

If company does not follow the principle of separate legal entity, _______ can be done.

memorandum of understanding and articles of association company business studies

  1. Principle of natural justice

  2. Principle of equity

  3. Lifting of corporate veil

  4. Principle of unjust enrichment

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Correct Option: C

The corporate veil can be lifted__.

memorandum of understanding and articles of association company business studies

  1. Where the corporate veil has been used for proper & legal purpose

  2. Where the corporation is really an agency or trust for someone else and the corporate facade is used to cover up that agency or trust

  3. Where the company is incurring continuous losses

  4. When company restricts the right to transfer its shares

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Correct Option: B

The net worth of a company is rupees five hundred crore in the year 2012-13. In the financial year 2014-15 its net worth is less than five hundred crore. As per Companies Act, 2013 it will need to constitute CSR Committee and comply with provisions of 135(2) to (5) in the year ________.

memorandum of understanding and articles of association company business studies

  1. 2014-15

  2. 2015-16

  3. 2013-14

  4. 2016-17

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Correct Option: A

A company may be-.

memorandum of understanding and articles of association company business studies

  1. An incorporated company

  2. A corporation

  3. An unincorporated company

  4. All of the above

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Correct Option: D

The corporate veil can be lifted____.

memorandum of understanding and articles of association company business studies

  1. Where it was found that the sole purpose for which the company was formed was to evade taxes

  2. Where the purpose of company formation was to evade labour welfare & other legislation

  3. To punish for contempt of court

  4. All of the above

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Correct Option: D

A corporate veil may be lifted when_____.

memorandum of understanding and articles of association company business studies

  1. the corporate veil has been used for commission of fraud or improper conduct

  2. where the doctrine conflicts with public policy

  3. where the veil has been used for evasion of taxes and duties

  4. all of the above

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Correct Option: A