Tag: companies act, 2013 - introduction and characteristics

Questions Related to companies act, 2013 - introduction and characteristics

In a private company there must not be less than -

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

  1. Two Persons

  2. Seven Persons

  3. Six Persons

  4. Ten Persons

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Correct Option: A

A company is legally required to have its accounts audited annually by a _______.

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

  1. Accountant in Practice

  2. Chartered accountant

  3. Chartered Financial Analyst

  4. Chartered Secretary in Practice

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Correct Option: B

A society registered under the Societies Registration Act come within the term 'Body Corporate'

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

  1. True

  2. False

  3. Partly True

  4. Partly false

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Correct Option: B

A company consists of _______ members, whereas a Hindu Undivided Family business consists of _______ members since it consists of members of the joint family itself.

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

  1. Homogeneous, homogeneous

  2. Heterogeneous, homogeneous

  3. Homogeneous, Heterogeneous

  4. None of the above

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Correct Option: B

"Company Secretary" or "Secretary" means a company secretary as defined in ____of the Company Secretaries Act, 1980 who is appointed by a company to perform the functions of a Company Secretary under the Act.  

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

  1. Section 2 (1) (c)

  2. Section 2 (1) (a)

  3. Section 2 (1) (d)

  4. Section 2 (1) (e)

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Correct Option: A

A company may be _______________.

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

  1. Limited by shares

  2. Liimited by guarantee

  3. (A) or (B)

  4. (A) but not (B)

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Correct Option: C

A Company Secretary in practice is eligible to become a _____ of National Company Law Tribunal.

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

  1. Technical Member

  2. Judicial Member

  3. Ordinary Member

  4. Special Member

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Correct Option: A
Explanation:

Section 409 of the Companies Act. 2013 talks about the appointment of the members of the National Company Law Tribunal. As per clause (3) of the section the qualifications of being the technical member of the tribunal includes a person  who—

  • has, for at least fifteen years been a member of the Indian Corporate Law Service or Indian Legal Service out of which at least three years shall be in the pay scale of Joint Secretary to the Government of India or equivalent or above in that service; or
  • is, or has been, in practice as a chartered accountant for at least fifteen years; or
  • is, or has been, in practice as a cost accountant for at least fifteen years; or 
  • is, or has been, in practice as a company secretary for at least fifteen years; or
  • is a person of proven ability, integrity and standing having special knowledge and experience, of not less than fifteen years, in law, industrial finance, industrial management or administration, industrial reconstruction, investment, accountancy, labour matters, or such other disciplines related to
  • management, conduct of affairs, revival, rehabilitation and winding up of companies; or
  • is, or has been, for at least five years, a presiding officer of a Labour Court, Tribunal or National Tribunal constituted under the Industrial Disputes Act, 1947.

A company cannot be registered with the name -
(1) Which is undesirable
(2) Which is identical to name of an existing company
(3) Which is identical to or too nearly resembles the name of an existing company
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. 1

  2. 2

  3. 3

  4. All of the above are correct

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Correct Option: D
Explanation:
A legal entity must have a name, which forms the identity of the enterprise. The name clause, the first of the MOA, protects the entity against future registrations of the same or closely identical name. Likewise, the name of the entity shouldn’t be similar or closely identical to any other operating entity.  The Central Government may find a name to be undesirable and misleading, in which case it may prohibit it. A company should end with the word ‘limited’ in case of a public limited enterprise, and ‘private limited’ in the case of a private limited enterprise.

As per Section 275 of the Companies Act, 2013, Company Secretaries have been recognized to be appointed as ______from a panel to be maintained by the Central Government.

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

  1. Financial Liquidator or Company Liquidator.

  2. Provisional Liquidator or Company Liquidator.

  3. Provisional Liquidator or Financial Liquidator.

  4. Both (A) and (B)

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Correct Option: B
Explanation:

Section 275 of the Companies Act 2013 talks about the appointment of the Company liquidators in case of winding up. As per clause (2) of the section, the provisional liquidator or the Company Liquidator, shall be appointed from a panel maintained by the Central Government consisting of the names of chartered accountants, advocates, company secretaries, cost accountants or firms or bodies corporate having such chartered accountants, advocates, company secretaries, cost accountants and such other professionals as may be notified by the Central Government or from a firm or a body corporate of persons having a combination of such professionals as may be prescribed and having at least ten years’ experience in company matters.

Secretarial Audit is also known as - 

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

  1. Complementary Audit

  2. Corporate Governance audit

  3. Compliance Audit

  4. Total Audit

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Correct Option: C