Tag: government and taxes

Questions Related to government and taxes

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.

The Advisory Committee is set up to advise the Central Government and Company Law Board on the administration of the Companies Act.

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 statement is True because of the following reasons:

(i) Section (411-415) of the Companies Act states "For the purpose of advising the Central and the Company Law Board on such matters arising cut of the administration of this companies Act as may be referred to it by that the Government  or Board.
(ii) The Central Government  may constitute an Advisory  Committee consisting not more than five person with suitable qualifications.
(iii) The committee is mainly set up to guide and advise the Central Government and Company Law Board on matter arising out of the administration of the Companies Act.
(iv) The advisory committee has power only to give advice.
(v) It has no power to investigate the matter or to make an inquiry.
(vi) Thus, the Advisory Committee is set up to advise the Central Government and Company Law Board on the administration of the Companies Act.

The Registrar of Companies is recognised as a statutory authority under the Indian 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:

This statements is True because of the following reasons:

(i) The Registrar  of Companies is a full time government officer working at the lower level in  regard to regulation and control of joint stock companies operating   within his jurisdiction. 
(ii)  The act has given wide powers to the Registrar.
(iii) He is an important constituent of the monitoring mechanism created for effective supervision  and control on joint stock companies.
(iv) The Registrar is responsible for the administration of the Companies Act in the state in which he is appointed.
(v) He has to see that registered companies operate within the legal limits of the Act.
(vi) He is even authorised to initiate disciplinary action against a company for non- compliance of the legal provisions.
(vii) The Registrar of companies is the most important constituent of the monitoring mechanism for joint stock companies in India.
(viii) For the above reasons the Registrar of companies is recognised as a statutory authority under the Companies Act,1956.