Tag: memorandum of understanding and articles of association

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Multiple choice memorandum of understanding and articles of association company business studies

Company .............. to send any intimation of appointment of first auditor to the Registrar of companies (ROC).

  1. is required

  2. is not required

  3. shall

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

Companies are required to file a notice of appointment of an auditor with the Registrar of Companies (ROC) in the prescribed form.

Multiple choice memorandum of understanding and articles of association company business studies

Section 139(1) of the Companies Act 2013 provides that____________must appoint an auditor.

  1. Only public company

  2. Only private company

  3. Every one man company

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

Section 139(1) of the Companies Act, 2013, mandates that every company, whether public or private, must appoint an auditor at its first annual general meeting.

Multiple choice memorandum of understanding and articles of association company business studies

Section 139(1) of the Companies Act, 2013 provides that every company must appoint ............... as an auditor.
(I) An Individual
(II) A firm
(III) A firm having at least three partners
(IV) Body corporate
The correct answer is -

  1. (I) & (III) only

  2. (II) & (IV) only

  3. (I) & (II) only

  4. (I), (III) & (IV) only
Reveal answer Fill a bubble to check yourself
A Correct answer
Multiple choice memorandum of understanding and articles of association company business studies

Where the corporate veil has been used for commission of fraud or improper conduct, Courts have lifted the veil and looked at the realities of die situation. In relation to this, which of the following case law can be quoted?

  1. Connors Bros. vs. Connors

  2. Daimler Co. Ltd. vs. Continental Tyre & Rubber Co.

  3. The Workmen Employed in Associated Rubber Industries Limited, Bhavnagar vs. The Associated Rubber Industries Ltd., Bhavnagar and another

  4. Gilford Motor Co. vs. Horne
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The case of Gilford Motor Co. vs. Horne is a landmark precedent where the court lifted the corporate veil because the company was formed specifically to evade a restrictive covenant (fraudulent/improper conduct).

Multiple choice memorandum of understanding and articles of association company business studies

Section 139(1) of the Companies Act, 2013 provides that every company must appoint an individual or a firm as an auditor who shall hold office from the conclusion of that meeting till the conclusion of its _______ and thereafter till the conclusion of every _______ and the manner and procedure of selection of auditors by the members of the company at such meeting shall be such as may be prescribed however the company shall place the matter relating to such appointment for ratification by _______ at every ________

  1. sixth annual general meeting; fifth meeting; members; fifth annual general meeting

  2. sixth annual general meeting; sixth meeting; board of directors; board meeting

  3. fifth annual general meeting; fifth meeting; members; extraordinary general meeting

  4. sixth annual meeting; sixth meeting; members; annual general meeting
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Section 139(1) of the Companies Act, 2013 mandates that an auditor holds office from the conclusion of the meeting until the conclusion of the sixth annual general meeting. Thereafter, they hold office until the conclusion of every sixth annual general meeting, subject to ratification by members at every annual general meeting.

Multiple choice memorandum of understanding and articles of association company business studies

As per section 141(4) of the Companies Act, 2013 where person appointed as an auditor of a company incurs any of the disqualifications mentioned in section 141(3) after his appointment, he_________his office has such auditor and such vacation shall be deemed to be a _________in the office.

  1. may vacate; casual vacancy

  2. may vacate;ordinary vacancy

  3. shall vacate;casual vacancy

  4. shall vacate;special vacancy
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Under Section 141(4) of the Companies Act, 2013, if an auditor incurs a disqualification after appointment, they are legally required to vacate their office. This resulting vacancy is legally defined as a casual vacancy.

Multiple choice memorandum of understanding and articles of association company business studies

An auditor may function as___________
      (I) An employee
      (II) an independent professional
The correct answer is-

  1. (I) only

  2. (II) only

  3. (I) or (II)

  4. Neither (I) nor (II)
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

An auditor can be an employee of a company (internal auditor) or an independent professional (statutory auditor). Both roles are recognized in different capacities within business structures.