Tag: companies act, 2013 - introduction and characteristics

Questions Related to companies act, 2013 - introduction and characteristics

As per the Rule 8 of Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, every listed company and every other public company having a paid-up share capital of ______or more shall have whole-time key managerial personnel.

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

  1. Rs. 5 Crore

  2. Rs. 8 Crore

  3. Rs. 2 Crore

  4. Rs. 10 Crore

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Correct Option: D

As per Rule 9 of Companies (Incorporation ) Rules, 2014, for reservation of name, application shall be made in ________

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

  1. From No. INC-1A

  2. From No. INC-5

  3. From No. INC-1

  4. From No. INC- 1B

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Correct Option: C
Explanation:

As per rule 9 of the Companies (Incorporation ) Rules, 2014, an application for the reservation of a name shall be made in Form No. INC.1 along with the fee as provided in the Companies (Registration offices and fees) Rules, 2014. 


Appointment of Company Secretary is mandatory in -
(a) Every listed company
(b) Every unlisted private company having paid-up share capital of Rs.10 Crore or more
(c) Every public company having paid-up capital of Rs.5 Crore or more
(d) Every public company having turnover of Rs. 5 Crore or more
Select the correct answer from the option given below :-

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

  1. (a) & (b)

  2. (a) & (c)

  3. (a) & (d)

  4. (a), (c) & (d)

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Correct Option: B
Explanation:

  • As per Section 2 (24) of Companies Act, 2013, Company Secretary or Secretary means a Company Secretary as defined in clause (c) of sub-section (1) of section 2 of the Company Secretaries Act, 1980 who is appointed by a company to perform the functions of a Company Secretary under this Act. As per Company Secretaries Act, 1980 “Company Secretary” means a person who is a member of the Institute of Company Secretaries of India.
  • Following Companies need to appoint whole time company secretary :
1. All Listed Companies 
2. Every Public Company having paid-up share capital of Rs. 10 Cr. or More 
3. Every other Company having paid-up share capital of Rs. 5 Cr. or More. 

A public company must have atleast _______ and a private company must have at least _______.

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

  1. 5 Directors; 3 Directors

  2. 2 Directors; 3 Directors

  3. 3 Directors, 2 Directors

  4. 10 Directors; 4 Directors

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Correct Option: C

For ascertaining as to whether the proposed name is available for adoption, the promoters are required to make an application to the Registrar of Companies in From No. INC 1 along with fee as provided in ____

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

  1. Companies (Registration Office and Fees Rules, 2014)

  2. Companies (Incorporation and Fees) Rules, 2014

  3. Companies (Fees and Penalties) Rules, 2013

  4. Companies (Fees and Penalties) Rules, 2014

Show answer
Correct Option: A
Explanation:

As per rule 9 of the Companies (Incorporation ) Rules, 2014, an application for the reservation of a name shall be made in Form No. INC.1 along with the fee as provided in the Companies (Registration offices and fees) Rules, 2014. 


Small company as defined in Section 2(85) of the Companies Act, 2013 means which of the following company?

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

  1. Public Company of which turnover does not exceed Rs. 2 Crores

  2. A Company registered under section 8

  3. Public company of which paid-up share capital does not exceed Rs. 50 Lakhs

  4. Private company of which paid-up share capital does not exceed Rs. 50 Lakhs

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Correct Option: D

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) and (4)

  2. (2), (3) and (4)

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

  4. (2) and (4)

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Correct Option: B
Explanation:

As per Section 2(62) of the Company’s Act 2013, a company can be formed with just 1 Director and 1 member which is known as One Person Company. It is a form of a company where the compliance requirements are lesser than that of a private company. Only a natural person who is an Indian citizen and resident in India shall be eligible to incorporate and act as a member and nominee of an OPC. For the above purpose, the term "resident in India" means a person who has stayed in India for a period of not less than one hundred and eighty two days during the immediately preceding one financial year.

In relation to OPC, "resident in india" means a person who has stayed in India for a period of not less than _______ days during the immediately preceding one calendar year

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

  1. 152

  2. 160

  3. 182

  4. 200

Show answer
Correct Option: C
Explanation:

Only a natural person who is an Indian citizen and resident in India shall be eligible to act as a member and nominee of an OPC. For the above purpose, the term "resident in India" means a person who has stayed in India for a period of not less than one hundred and eighty two days during the immediately preceding one financial year.

If the Registrar is satisfied that all requirements, have been complied with, he will register the company and issue the ______.

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

  1. Certificate of commencement of business

  2. Certificate of incorporation

  3. Compliance certificate

  4. Certificate to act as director

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Correct Option: B
Explanation:

 A Certificate of Incorporation ( is a legal document that is issued by Ministry of Corporate Affairs once a company is successfully registered with them. The Certificate  Of Incorporation is a proof that the company is now registered with the Registrar of Companies. 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.

Which of the following section of the Companies Act, 2013 defines "Government Company"?

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

  1. Section 2(54)

  2. Section 2(35)

  3. Section 2(53)

  4. Section 2(45)

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Correct Option: D
Explanation:
Section 2(54) defines "Managing Director"
Section 2(35) defines "Dividend"
Section 2(53) defines "Manager"
Section 2(45) defines "Government company" as a company in which not less than fifty-one per cent. of the paid-up share capital is held by the Central Government, or by any State Government or Governments, or partly by the Central Government and partly by one or more State Governments, and includes a company which is a subsidiary company of such a Government company.