Tag: joint stock company 3 - promotion and formation of a company

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Questions Related to joint stock company 3 - promotion and formation of a company

Multiple choice business organisation and correspondence joint stock company 3 - promotion and formation of a company formation and promotion of a company promoter promotion and formation of a company

State the following statement is True or False:
The certificate issued by the registrar of a companies for registration of a company is the certificate of incorporation.

  1. True

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

True

A certificate of incorporation is a legal document relating to the formation of a company or corporation. This is issued by the registrar of companies after registering the company. When the registrars fully satisfied with the documents of the company, the registrars of company and issues a certificate of incorporation signifying the birth of the company.

Multiple choice business organisation and correspondence joint stock company 3 - promotion and formation of a company formation and promotion of a company promoter promotion and formation of a company
Share Certificate must be issued within ______ months from the date of allotment of shares.

  1. two

  2. six

  3. nine

  4. ten
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

According to the Companies Act, a company is required to issue share certificates to allottees within two months from the date of allotment.

Multiple choice business organisation and correspondence joint stock company 3 - promotion and formation of a company formation and promotion of a company promoter promotion and formation of a company
State the following statement is True or False:
The Articles of Association is an alterable document. 

  1. True

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

The Articles of Association or are the legal document that along with the Memorandum of Association serves as the constitution of the company. It is comprised of rules and regulations that govern the company’s internal affairs. The Articles of Association are concerned with the internal management of the company and aims at carrying out the objectives as mentioned in the Memorandum. These define the company’s purpose and lay out the guidelines of how the task is to be carried out within the organization. The Articles of Association cover the information related to the board of directors, general meetings, voting rights, board proceedings, etc. Article of association can be altered by directors by passing special resolution.

Multiple choice business organisation and correspondence joint stock company 3 - promotion and formation of a company formation and promotion of a company promoter promotion and formation of a company

State the following statement is True or False:
The last stage in the formation of company is commencement of business.

  1. True

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

True

The last stage in the formation of company is commencement of business.
After getting the Certificate of Incorporation, a private company can start its business. A public company can start its business only after getting a’ Certificate of Commencement of Business’.

Multiple choice business organisation and correspondence joint stock company 3 - promotion and formation of a company formation and promotion of a company promoter promotion and formation of a company

Write a word or a term or a phrase which can substitute the following statement.
The person who initiates scheme of formation of company.

  1. Investor

  2. Promoter

  3. Shareholder

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

A  promoter is a  person who does the preliminary work incidental to the formation of a company, including its promotion, incorporation, and flotation, and solicits people to invest money in the company, usually when it is being formed.

Multiple choice business organisation and correspondence joint stock company 3 - promotion and formation of a company formation and promotion of a company promoter promotion and formation of a company
Company can be registered without Memorandum of Association. 

  1. True

  2. False
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation
(i) The Memorandum of Association is a basic or fundamental or primary document of a company. 

(ii) The Memorandum of Association lays down the ranges of its activities. 

(iii) It is a public document and can be inspected by those who deal with the company. 

(iv) It states the nature of the business activities to be conducted by the company. 

(v) It defines the relationship between the company and the outsiders.

(v) All companies have to prepare their own Memorandum of Association. 

(vii) It is a charter on the Constitution of company. 

(viii) It defines the limitation and powers of the company. 

(ix) No company can be formed without Memorandum of Association. 

(x) Memorandum of Association is submitted to the Registrar of Companies for registration i.e. for getting Certificate of Incorporation. 
So, a company cannot be registered without Memorandum of Association.
Multiple choice business organisation and correspondence joint stock company 3 - promotion and formation of a company formation and promotion of a company promoter promotion and formation of a company

Write a word, term or a phrase which can substitute the following statement:
An authority that issues a Certificate of Incorporation.

  1. Official Liquidator

  2. Registrar of Company

  3. Central government

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

According to Rule 36(13) of the Companies Incorporation Rules, 2014, the Certificate of Incorporation shall be issued by the Registrar in Form No. INC-11

Multiple choice business organisation and correspondence joint stock company 3 - promotion and formation of a company formation and promotion of a company promoter promotion and formation of a company

The _____ is the representative of the Company Law Board.

  1. Registrar of Companies

  2. Official Liquidator

  3. Advisory Committee

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

The Registrar of Companies is an office under the Indian Ministry of Corporate Affairs that deals with administration of the Companies Act 1956 and Companies Act, 2013. There are currently 22 Registrars of Companies operating from offices in all major states of India

Multiple choice business organisation and correspondence joint stock company 3 - promotion and formation of a company formation and promotion of a company promoter promotion and formation of a company

Select the correct option given below :

The first auditors of the company are appointed by the _________.

  1. Secretary

  2. Promoters

  3. Manager

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

The first directors of the company are usually appointed by the promoters in the manner laid down by the company's articles. The first directors can hold office only till the first annual general meeting of the company when they will be replaced by directors appointed by the company at this meeting.

Multiple choice business organisation and correspondence joint stock company 3 - promotion and formation of a company formation and promotion of a company promoter promotion and formation of a company
The appointment of bankers of a company is made by the _________.

  1. Board of directors

  2. Promoters

  3. Shareholders

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

The Board of Directors is responsible for the appointment of key personnel, including bankers, to manage the company's financial operations. Shareholders generally vote on major corporate actions, but day-to-day operational appointments are handled by the Board.