Tag: joint stock company

Quizzes (11) Questions (39)

Questions Related to joint stock company

Multiple choice business organisation and correspondence joint stock company 6 - meetings, proposal and winding up of a company meetings and other aspects of a company joint stock companies joint stock company

The term company Limited by shares is defined in section _________ of Companies Act, $2013$.

  1. $2(10)$
  2. $3(5)$
  3. $2(22)$
  4. $2(1)$
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

As per section 2(22) of the Companies Act 2013, "A company limited by shares is a company whose shareholders have a liability limited to the extent of the amount unpaid, if any on the shares held by the shareholders." 

Multiple choice business organisation and correspondence joint stock company 6 - meetings, proposal and winding up of a company meetings and other aspects of a company joint stock companies joint stock company

Declaration of dividend is an important agenda of _________.

  1. Statutory Meeting

  2. Annual General Meeting

  3. Extraordinary General Meeting

  4. Joint Meeting of the shareholders and debenture-holders
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Dividends are distribution of profits earned by the company. In companies act, 2013 a procedure for declaration and payment of dividend is described. An AGM may have various agenda to discuss but distribution of dividend is stated as one of the important agenda. 

Dividends only distributed after declaration in AGM at the rate decided by the board.

Multiple choice business organisation and correspondence joint stock company 6 - meetings, proposal and winding up of a company meetings and other aspects of a company joint stock companies joint stock company

Which of the following are the rights available to agents?

  1. Right to remuneration

  2. Right to retainer

  3. Right to lien

  4. All of the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

An agent is any person who has been legally empowered to act on behalf of another person. Agents are employed to represent their client in negotiations or dealings with third parties. 

As per the terms of agency contract, agent has rights to claim remuneration. 
Agent has right to deduct the amount which is due to him by principal, from amount payable to principal. 
Agent can exercise right of lien but contract act has not specified whether it is general lien or particular lien. Therefore the nature of agent’s lien depends upon mutual understanding.

Multiple choice business organisation and correspondence joint stock company 6 - meetings, proposal and winding up of a company meetings and other aspects of a company joint stock companies joint stock company

One person can never be a quorum for company meetings.

  1. True

  2. False
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Under standard corporate law, a quorum requires a minimum number of members to be present to validate the proceedings of a meeting. A single person generally cannot constitute a quorum unless specific articles of association provide otherwise for a single-member company.

Multiple choice business organisation and correspondence joint stock company 6 - meetings, proposal and winding up of a company meetings and other aspects of a company joint stock companies joint stock company

Select the correct option given below:

An extraordinary general meeting is held ______.

  1. once in a year

  2. once in the life time

  3. under special circumstances

  4. None of these
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

An extraordinary general meeting is the meeting of the members of the organisation, shareholders of the company that occurs at an irregular time. It happens when an issue arises which requires the input of the entire membership and is too serious or urgent to wait until the next annual general meeting. Hence an extraordinary general meeting is held under special circumstances.

Multiple choice business organisation and correspondence joint stock company 6 - meetings, proposal and winding up of a company meetings and other aspects of a company joint stock companies joint stock company
Select the correct option given below:
The Annual General Meeting is held ________ in a year.

  1. once

  2. twice

  3. thrice

  4. none of the above
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The Annual General Meeting is a meeting which is held annually i.e once in a year. It is an yearly meeting of shareholders of a company especially for holding elections  and reporting of yearly events.

Multiple choice business organisation and correspondence joint stock company 6 - meetings, proposal and winding up of a company meetings and other aspects of a company joint stock companies joint stock company
At least _______ board meetings must be held during the year.

  1. one

  2. two

  3. three

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

Board meetings are meetings held at intervals to discuss problems and the policies of the company . It should be held at least four times a year. 

Multiple choice business organisation and correspondence joint stock company 6 - meetings, proposal and winding up of a company meetings and other aspects of a company joint stock companies joint stock company

Select the correct option given below:

The gap between two annual general meetings should not be more than ________.

  1. 10 months

  2. 15 months

  3. 18 months

  4. 21 months
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The provisions of the sub section (1) of section 96 of the Companies Act, 2013 clearly states that the period between two Annual General Meetings shall not be more than 15 months.

Multiple choice business organisation and correspondence joint stock company 6 - meetings, proposal and winding up of a company meetings and other aspects of a company joint stock companies joint stock company
The meeting of shareholders which is held under special circumstances is the ________ . 

  1. Annual General meeting

  2. Statutory meeting

  3. Extra Ordinary General meeting

  4. None of these
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Extraordinary General Meeting is a meeting of the members or the shareholders of the company which is held at a short notice especially in order to consider a particular matter. Hence the meeting of shareholders which is held under special circumstances is the Extraordinary General Meeting.  

Multiple choice business organisation and correspondence joint stock company 6 - meetings, proposal and winding up of a company meetings and other aspects of a company joint stock companies joint stock company
The business transacted in extra ordinary general meeting is _______ .

  1. Ordinary Business

  2. Routine Business

  3. Special Business

  4. None of these
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

An Extraordinary General Meeting (EGM) is convened to handle urgent matters that cannot wait until the next Annual General Meeting. These matters are classified as Special Business.