Tag: company

Questions Related to company

A company cannot be registered with the name -
(1) Which is undesirable
(2) Which is identical to name of an existing company
(3) Which is identical to or too nearly resembles the name of an existing company
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. 1

  2. 2

  3. 3

  4. All of the above are correct

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Correct Option: D
Explanation:
A legal entity must have a name, which forms the identity of the enterprise. The name clause, the first of the MOA, protects the entity against future registrations of the same or closely identical name. Likewise, the name of the entity shouldn’t be similar or closely identical to any other operating entity.  The Central Government may find a name to be undesirable and misleading, in which case it may prohibit it. A company should end with the word ‘limited’ in case of a public limited enterprise, and ‘private limited’ in the case of a private limited enterprise.

As per Section 275 of the Companies Act, 2013, Company Secretaries have been recognized to be appointed as ______from a panel to be maintained by the Central Government.

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

  1. Financial Liquidator or Company Liquidator.

  2. Provisional Liquidator or Company Liquidator.

  3. Provisional Liquidator or Financial Liquidator.

  4. Both (A) and (B)

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Correct Option: B
Explanation:

Section 275 of the Companies Act 2013 talks about the appointment of the Company liquidators in case of winding up. As per clause (2) of the section, the provisional liquidator or the Company Liquidator, shall be appointed from a panel maintained by the Central Government consisting of the names of chartered accountants, advocates, company secretaries, cost accountants or firms or bodies corporate having such chartered accountants, advocates, company secretaries, cost accountants and such other professionals as may be notified by the Central Government or from a firm or a body corporate of persons having a combination of such professionals as may be prescribed and having at least ten years’ experience in company matters.

Secretarial Audit is also known as - 

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

  1. Complementary Audit

  2. Corporate Governance audit

  3. Compliance Audit

  4. Total Audit

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Correct Option: C

As per the Rule 8 of Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, every listed company and every other public company having a paid-up share capital of ______or more shall have whole-time key managerial personnel.

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

  1. Rs. 5 Crore

  2. Rs. 8 Crore

  3. Rs. 2 Crore

  4. Rs. 10 Crore

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Correct Option: D

As per Rule 9 of Companies (Incorporation ) Rules, 2014, for reservation of name, application shall be made in ________

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

  1. From No. INC-1A

  2. From No. INC-5

  3. From No. INC-1

  4. From No. INC- 1B

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Correct Option: C
Explanation:

As per rule 9 of the Companies (Incorporation ) Rules, 2014, an application for the reservation of a name shall be made in Form No. INC.1 along with the fee as provided in the Companies (Registration offices and fees) Rules, 2014. 


Appointment of Company Secretary is mandatory in -
(a) Every listed company
(b) Every unlisted private company having paid-up share capital of Rs.10 Crore or more
(c) Every public company having paid-up capital of Rs.5 Crore or more
(d) Every public company having turnover of Rs. 5 Crore or more
Select the correct answer from the option given below :-

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

  1. (a) & (b)

  2. (a) & (c)

  3. (a) & (d)

  4. (a), (c) & (d)

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Correct Option: B
Explanation:

  • As per Section 2 (24) of Companies Act, 2013, Company Secretary or Secretary means a Company Secretary as defined in clause (c) of sub-section (1) of section 2 of the Company Secretaries Act, 1980 who is appointed by a company to perform the functions of a Company Secretary under this Act. As per Company Secretaries Act, 1980 “Company Secretary” means a person who is a member of the Institute of Company Secretaries of India.
  • Following Companies need to appoint whole time company secretary :
1. All Listed Companies 
2. Every Public Company having paid-up share capital of Rs. 10 Cr. or More 
3. Every other Company having paid-up share capital of Rs. 5 Cr. or More. 

A public company must have atleast _______ and a private company must have at least _______.

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

  1. 5 Directors; 3 Directors

  2. 2 Directors; 3 Directors

  3. 3 Directors, 2 Directors

  4. 10 Directors; 4 Directors

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Correct Option: C

For ascertaining as to whether the proposed name is available for adoption, the promoters are required to make an application to the Registrar of Companies in From No. INC 1 along with fee as provided in ____

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

  1. Companies (Registration Office and Fees Rules, 2014)

  2. Companies (Incorporation and Fees) Rules, 2014

  3. Companies (Fees and Penalties) Rules, 2013

  4. Companies (Fees and Penalties) Rules, 2014

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Correct Option: A
Explanation:

As per rule 9 of the Companies (Incorporation ) Rules, 2014, an application for the reservation of a name shall be made in Form No. INC.1 along with the fee as provided in the Companies (Registration offices and fees) Rules, 2014. 


Small company as defined in Section 2(85) of the Companies Act, 2013 means which of the following company?

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

  1. Public Company of which turnover does not exceed Rs. 2 Crores

  2. A Company registered under section 8

  3. Public company of which paid-up share capital does not exceed Rs. 50 Lakhs

  4. Private company of which paid-up share capital does not exceed Rs. 50 Lakhs

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Correct Option: D

Which of the following person is NOT eligible to incorporate One Person Company (OPC) as per Companies Act, 2013?
(1) Indian citizen and resident in India
(2) Person who has already incorporated one OPC in India
(3) Artificial person
(4) Indian citizen and non-resident in India
Select the correct the answer from the options given below

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

  1. (1), (3) and (4)

  2. (2), (3) and (4)

  3. (1), (2) and (4)

  4. (2) and (4)

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Correct Option: B
Explanation:

As per Section 2(62) of the Company’s Act 2013, a company can be formed with just 1 Director and 1 member which is known as One Person Company. It is a form of a company where the compliance requirements are lesser than that of a private company. Only a natural person who is an Indian citizen and resident in India shall be eligible to incorporate and act as a member and nominee of an OPC. For the above purpose, the term "resident in India" means a person who has stayed in India for a period of not less than one hundred and eighty two days during the immediately preceding one financial year.