Tag: companies act, 2013 - introduction and characteristics

Questions Related to companies act, 2013 - introduction and characteristics

Section 2(45) of the Companies Act, 2013 defines a "Government company" as any company in which not less than ___________ 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 or partly by one or more State Governments.

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

  1. 31%

  2. 41%

  3. 51%

  4. 61%

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Correct Option: C

Characteristic of a company ..........
(I) Transferability of profits
(II) Property of company is joint property of shareholders
(III) Compulsory Common Seal
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) and (II)

  2. (II) and (III)

  3. (III) and (I)

  4. None of the above

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Correct Option: D

Which of the following case clearly established the principle that company is a legal person distinct from its members?

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

  1. Salman Vs Salman & Co. Ltd.

  2. Salomon Vs Salomon & Co. Ltd.

  3. Salsman Vs Salsman & Co. Ltd.

  4. Smith Vs Anderson

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Correct Option: B

"A company, in broad sense, may mean an association of individuals formed for some purpose" was observed in?

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

  1. Anderson v. Smith

  2. Smith v. Anderson

  3. Anderson v. Shaw

  4. None of the above

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Correct Option: A

In the case of a company limited by guarantee, the members are liable only to the extent of the amount guaranteed by them. 

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: A

Preference shares are those which carry the preferential rights as to____.

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

  1. The payment of dividend at a fixed rate

  2. The return of capital on winding up of the company

  3. Both (A) & (B)

  4. Either (A) or (B)

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Correct Option: C

Statement A: A company dies with the death of its shareholders.
Statement B: In the case of a private company, every member owing fully paid up shares can freely transfer shares held by him.
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. Statement A is correct but Statement B is incorrect

  2. Statement B is correct but Statement A is incorrect

  3. Statement A is correct and Statement B is correct explanation of Statement A

  4. Statement A and Statement B both are incorrect

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Correct Option: D

PRINCIPLE: An incorporated company under the Companies Act has a separate entity and corporate liability.
FACTS: Certain persons transferred a tea estate to an incorporated company and claimed exemptions from 'ad valorem' duty on the ground that they themselves were shareholders in the company.

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

  1. The shareholders are liable to pay as the company is a separate legal person

  2. The shareholders are not liable to pay as it is a transfer from them in one name to themselves under another name

  3. The shareholders are liable because everybody has a duty to pay on a transfer or conveyance

  4. The shareholders will not pay, the company would pay on their behalf

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Correct Option: A

_____ is an artificial person created by law, having separate entity, with perpetual succession and a common seal.

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

  1. Partnership firm

  2. HUF

  3. Company

  4. All of the above

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Correct Option: C

License under Section 8 of Companies Act, 2013 may be granted by Central Government if _______
(i) It is limited to form a company for promoting commerce, art, science, religion charity or any other useful object
(ii) The company allows the payment of dividend to its members
(iii) Apply its profits or other income in promotion of its objects
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) of the above

  2. (ii) of the above

  3. (ii) and (iii) of the above

  4. (i) and (iii) of the above

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Correct Option: D