company act brh

7/31/2019 Company Act Brh

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VIJAYA BANKSTAFF TRAINING COLLEGE, BANGALORE.

COMPANY ACT 1956

1. In the case of Govt. company, the Central / State Govt. hold minimum ___%age of the paid share capital.

a) 50b) 60c) 70d) 51e) None of the above.

2. The maximum number of share holders in case of a Pvt. Ltd. Company canbe

a) 20b) 50c) 100d) Unlimitede) None of the above.

3. A Public Limited Company becomes an illegal association , if its No. ofshare holders comes belowa) 2b) 7c) 20

d) 50e) None of the above.

4. A maximum number of share holders a public limited company can have isa) 50b) 100c) 1000d) Unlimitede) None of the above.

5. The minimum number of directors a private and public limited companyshould have is

a) 3 and 2b) 2 and 7c) 2 and 3d) 2 and 5e) None of the above.

6. A person cannot hold the Office of Directorship at a time for more than___ Companies.a) Oneb) Ten

c) 20d) No limit


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e) None of the above

7. A Private or Public Limited Company need not add Ltd. to its name, if it isa) Licensed under Sec. 25 of Company's Act.b) Registered by State Co-op. Act as a nonprofit making Company.

c) It is formed for promotion of art, literature, religion.d) a + b+ c

8. The minimum paid up capital of a Public Limited Company should beRs._____

a) 1 lakhb) 5 lakhc) 1 Crored) 50 lakhe) No such limit.

9. The share of a Private Limited Company area) Feely transferable.b) Can be listed in the Stock Exchange.c) Not transferable.d) Restrictively transferable.e) None of the above.

10. Every person dealing with a Company is deemed to have known thecontents of the following documents as they are public documents.

a) Memorandum of Association

b) Article of Association.c) Resolution recorded in minutes book.

d) a+ b+ce) a+b

11 The purpose for which a Company is formed, its main objects, andancillary objects are mentioned in -

a) Memorandum of Association.b) Articles of Association.c) Certificate of Commencement of Business.d) a or be) None of the above.

12. An amendment to Memorandum of Association of a Company can be madeby

a) Board of Directorsb) Share Holders in General Body Meeting.c) Promotersd) None of the above.

13. The Articles of Association contains provision on the following;a) Borrowing powersb) Use of Common seal.c) Director's powers.d) Voting power of share holders.e) All of the above.


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14. The Articles of Associations of a Company can be amended bya) Board of Directorsb) Special Resolution in General Body of Share Holdersc) Registrar of Companies.

d) Company Law Boarde) None of the above.

15. A Private Limited Company need not prepare / obtain the following documents:a) Articles of Association.b) Certificate of Commencement of Business.c) Memorandum of Association.d) a+b+ce) a+b

16. When a Company borrows money for a purpose which is beyond the scopeof the Memorandum

a) the Company is liable on debt.b) the Company becomes liable only when it is ratified by the

Shareholder in the General Body meeting.c) The contract is absolutely void as it is ultra vire the Memorandum

and even all share holders cannot ratify the same.d) The Company is liable only after Company Law Board ratifies it.

17. "Doctrine of Constructive Notice" meansa) The creditor must have knowledge of the resolutions taken by

Company.

b) Each share holder should have taken notice of all notices given inpublic dailies.

c) Every outsider dealing with the Company is deemed to have noticeof contents of Memorandum and Articles.

d) Each notice sent to a Whole Time Director is a sufficient notice tothe Company.

e) None of the above.18. For opening a Current Account in the name of a Company, the following

type of resolution is necessary.a) Specific resolution by Board of Directors in a meeting.b) Omnibus resolution by Board in a meeting.c) Circular Resolution by Board.d) a or b or ce) a or b.

19. The Board Resolution submitted for opening a Current A/c should becertified by

a) Chairman of the Company.b) Chairman of the Meeting.c) Secretary of the Company.d) Chairman of the Meeting and countersigned by the Secretary.

20. The maximum amount upto which a Company can raise capital is called


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as________Capital.

a) Authorizedb) Issuedc) Subscribed

d) None of the above.

21. The instrument through which a Company invites offers from public forshare capital is called

a) Offer Letterb) Memorandum of offerc) Prospectusd) Invitation to public.e) None of the above.

22 The person who can sign on behalf of the Company isa) Directorb) Managing Directorc) Any Officer of the rank of General Manager and above.d) Any person authorized by Board resolution.e) None of the above.

23. The borrowing power of a Company is given in the following document:a) Memorandumb) Articlesc) Resolution of the Board

d) a+be) None of the above.

24. The borrowing power of the following type of Company must be expresslygiven in the Memorandum as it has no implied power to borrow:

a) Govt. Companyb) Private Limited Companyc) Unlimited Companyd) Non Profit Making Companye) All of the above.

25. The borrowing power of a Company is exercised bya) Managing Directorb) Any Directorc) Board of Directorsd) Board of Directors by passing resolution in the meeting.e) a or b.

26. The following may restrict the borrowing powers of the Board of Directors.a) Memorandumb) Articlesc) Section 293 (1) of the Company's Act

d) a+b+ce) None of the above.


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27. The following cannot propose winding up of a Company.a) Creditorsb) Share Holdersc) Court

d) Directorse) Registrar of Companies.

28. On a winding up order issued by the Court in respect of a Companya) the Court appoints a liquidator who is normally an advocateb) the official liquidator attached to High Court become liquidator.c) Any officer above the Rank of Class I Officer can be appointed as

liquidator.d) None of the above.

29. A liquidator can open a Bank Account on production ofa) Probateb) Letter of Administrationc) Certified Copy of Resolution by Share Holders.d) Court Order for winding up.e) c or d

30. After getting the Court Order for winding up the liquidator of ABC Limitedwants to open a Current Account with you. The account should be openedin the following style.

a) Liquidator ABC Ltd.

b) Mr. MNP, Liquidator, ABC Ltd.c) M/s. ABC Ltd. (in liquidation)d) Any one of the above.

company act brh

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