Tag: introduction to companies

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

Study the following information and answer the question that follows:
Principle: A 'fixture' is something attached to land or a building in such a way that it is regarded as an irremovable part of the property you are considering buying. Some typical 'fixture' in a home included the hot water service, range top, wall oven, fixed floor coverings, light fittings and a bulitrin (under bench) dishwasher. Garden plants, including bushes and trees are also 'fixtures'.
Rule A. When land is sold, all 'fixtures' on the land are also deemed to have been sold.
Rule B. If a movable thing is attached to the land or any building on the land, than it becomes a 'fixture'.
Factual Situation Khaleeda wants to sell a plot of land she owns in Beghmara (Meghalaya) and the sale value decided for the plot includes the fully-furnished palatial six-bedroom house that she has built on it five years ago. She sells it to Gurpreet for $Rs. 60$ lakh. After completing the sale, she removes the expensive Iranian carpet which used to cover entire wooden floor of one of the bedrooms. The room had very little light and Khaleeda used this light-coloured radiant carpet to negate some of the darkness in the room. Gurpreet, after moving in, realises this and files a case to recover the carpet from Khaleeda.
Assume that in the above fact scenario, Khaleeda no longer wants the carpet. She removes the elaborately carved door to the house after the sale has been concluded and claims that Gurpreet has no claim to the door. The door is question was part of Khaleeda's ancestral home in Nagercoil (Tamil Nadu) for more than $150$ years before she had it fitted as the entrance to her Beghmara house.
Rule C. If a moveable thing is placed on land with the intention that it should become an integral part of the land or any structure on the land, it becomes a fixture. Applying Rules A and C, to the fact situations in questions $44$ and $45$, as a judge you would decide in favour of

  1. Khaleeda in both situations

  2. Gurpreet only in $44$

  3. Khaleeda only in $45$

  4. Gurpreet in both situations
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

(d) is correct. Looking into the case, the facts state that Khaleeda did not disclose her intention of removing the carpet or the carved door while entering into the contract thus in both cases the judgement until going in favour of Gurpreet.

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

A company can be created in several ways. Which ONE of the following is NOT a valid method of creating a company?

  1. The division of the High Court can create a company.

  2. A company can be created by registering certain documents with Registrar

  3. A company can be created by an act of parliament

  4. None of the above
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

A company is a legal entity created through registration under the Companies Act or by a special Act of Parliament. The judiciary (High Court) does not have the power to create a company.

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

In how much time companies are required to switch over to the new format of Register of members?

  1. 8 months

  2. 3 months

  3. 6 months

  4. 4 months
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Companies were given a transition period to switch to the new format of the Register of Members as prescribed under the Companies Act, 2013. This period was set at 6 months from the commencement of the relevant rules.

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

Register of members is to be prepared as per ____________.

  1. section 66 of Companies Act, 2013

  2. section 30 of Companies Act, 2013

  3. section 88 of Companies Act, 2013

  4. none of the above
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Section 88 of the Companies Act, 2013 specifically mandates that every company must keep and maintain a register of members, debenture-holders, and other security holders.

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

A company was incorporated on 1st January, 2014. Its financial year will be _________.

  1. 31st March, 2014

  2. 31st March,2015

  3. 31st March,2016

  4. 31st March,2017
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation
Option B is Right.
Usually, the financial year of a company consists of 12 months. However, in some cases, it may not be so. In the case of a newly incorporated company, financial statements have to be prepared from the date of incorporation of the company till the year-end date of the financial year which may not be of 12 months.
Multiple choice business organisation and correspondence companies act, 2013 - introduction and characteristics introduction to companies companies act, 2013 company

Profit making companies are required to spend  _____% their average net profit for activities related to corporate social responsibility.

  1. 2

  2. 1.5

  3. 1

  4. 2.5
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Under Section 135 of the Companies Act, 2013, certain profit-making companies are required to spend at least 2% of their average net profits made during the three immediately preceding financial years on Corporate Social Responsibility (CSR) activities.

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

A partnership firm cannot become member of the company registered under Section 8 of the Companies Act, 2013.

  1. True

  2. False

  3. Partly true

  4. Partly false
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

A partnership firm is a person in the eyes of the law and can become a member of a company, including a Section 8 company, provided it is registered as a partnership firm.

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

An association not for profit registered under the Companies Act, 2013 popularly known as__.

  1. Section 8 company

  2. Section 25 company

  3. Section 18 company

  4. Section 20 company
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Section 8 of the Companies Act, 2013 deals with companies formed for charitable purposes, which are commonly referred to as Section 8 companies. This replaces the old Section 25 from the 1956 Act.

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

Licence under Section 8 of the Companies Act, 2013, may be granted by Central Government if ____________.
(i) It is intended 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 the answer from the options given below-

  1. (i), (ii) & (iii) of the above

  2. (ii) of the above

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

  4. (i) & (iii) of the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

A Section 8 company must apply its profits to the promotion of its objects and is strictly prohibited from paying dividends to its members. Therefore, statement (ii) is incorrect, making (i) and (iii) the correct conditions.