Tag: companies act, 2013 - introduction and characteristics

Questions Related to companies act, 2013 - introduction and characteristics

In which of the following independent case Mr. Ram can be appointed as auditor of the XYZ Ltd. as per Companies Act, 2013?
(I) Relative of Mr. Ram hold securities of Rs. 50,000 in XYZ Ltd.
(II) Mr. Y, the partner of Mr. Ram has debt payable to PQR Ltd. (Subsidiary of XYZ Ltd.) of Rs. 3,00,000.
(III) Mr. Z partner of Mr. Ram is working as General Manager in XYZ Ltd.
(IV) Mr. B has taken load of Rs. 2 lakh from XYZ Ltd. and relative of Mr. Ram has given guarantee for this transaction.
The correct answer is -

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

  1. (I) & (II) only

  2. (III) & (IV) only

  3. (I), (II) & (III) only

  4. (I), (II), (III) & (IV)

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Correct Option: A

The section 211 of Companies Act, 2013 describes rules and regulations regarding __________________.

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

  1. Serious Fraud Investigation Office (SFIO)

  2. Several Fraud Investigation Company (SFIC)

  3. Public Financial Institutions (PFIs)

  4. Key Managerial Personnel (KMP)

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Correct Option: A
Explanation:

The Serious Fraud Investigation Office (SFIO)  is a fraud investigating agency in India under the jurisdiction of government of India. It  is a coordinating agency with Income Tax and CBI. 


SFIO is a multi disciplinary organization involve experts from finance sector, accounting sector, capital market, forensic audit, taxation, company law. These experts are taken from their individual department to form SFIO. It is headed by a Director appointed by government of India.

Section 211 of the Companies Act 2013 describes rules and regulations for SFIO. 

Section 143(1) of the Companies Act, 2013 requires an auditor to inquire -

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

  1. Whether loans and advances made by the company on the basis of security have been properly secured and whether the terms on which they have been made are prejudicial to the interest of the company or its members

  2. Where the transactions of the company which are represented merely by book entries are not prejudicial to the interests of the company

  3. Where the company is not an investment or a banking company, whether so much of the company consists of shares, debentures and other securities have been sold at a price less than that at which they were purchased by the company

  4. All of the above

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Correct Option: A

As per Rule 10 of the Companies (Appointment & Remuneration of Managerial Personnel ) Rules, 2014, which of the following are duties of Company Secretary?
(1) To provide guidance to the directors with regards to their duties, responsibilities and powers.
(2) To formulate the business strategies.
(3) To represent before various Regulators, and other authorities in connection with
discharge of various duties.
(4) To call annual general meeting and extraordinary general meeting on his own.
Select the correct answer from options given below-

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

  1. (1) & (3)

  2. (2) & (4)

  3. (1), (2) & (3)

  4. (1), (3) & (4)

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Correct Option: A

The minute of the proceedings of every general meeting should be recorded in the books kept for that purpose within _________________.

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

  1. 30 days of every such meeting

  2. 3 months of any such meeting

  3. The intervening period between that meeting and the next meeting

  4. Such time as approved by the chairman of the company

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Correct Option: A
Explanation:

 The minutes of proceedings of each meeting shall be entered in the books maintained for that purpose along with the date of such entry within thirty days of the conclusion of the meeting.

Which of the following rights are available to auditors of the company as per the provisions of the Companies Act, 2013?
(I) Right to sign the audit report
(II) Right to speak at general meeting
(III) Right to attend general meeting
(IV) Right to advice company on their financial policies
(V) Right to visit branch office
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. (I), (II), (III) & (V) only

  2. (I), (II) & (V) only

  3. (I), (III) & (V) only

  4. (I), (II), (IV) & (V) only

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Correct Option: A

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

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

  1. (I) only

  2. (II) only

  3. Either (I) or (II)

  4. Neither (I) nor (II)

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Correct Option: A

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) & (4)

  2. (2), (3) & (4)

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

  4. (2) & (4)

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Correct Option: B

As per Section 464 of the Companies Act, $2013$, no association or partnership consisting of more than prescribed persons shall be formed for the purpose of carrying on any business, unless it is registered as a company or is formed under any other law for the time being in force. The number of persons which may be prescribed under this section shall not exceed __. Rule 10 of Companies (Miscellaneous) Rules, 2014 prescribes ___ persons in this regard.

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

  1. $100 ; 50$

  2. $50 ; 100$

  3. $60 ; 20$

  4. $20 ; 10$

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Correct Option: A

Which of the following sections permits the registration, under a licence granted by the Central Government, of associations not for profit with limited liability without being required to use the word "Limited" or the words "Private limited" after their names?

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

  1. Section 8

  2. Section 25

  3. Section 18

  4. Section 20

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Correct Option: A