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SHRIMATI INDIRA GANDHI COLLEGE, TRICHY
DEPARTMENT OF BUSINESS ADMINISTRATION
QUESTION BANK
PRODUCTION MANAGEMENT
Subject Code: 8CCBB6
UNIT – I
PART – A
1. Define production
2. Define productivity
3. Define production management
4. What are the objectives of production management?
5. What is plant location?
6. Define the concept and importance of plant location?
7. What are various the types of locational decisions?
8. What are the aspects of plant Location?
9. What are the dynamic nature of plant Location?
10. What do you mean by plant layout?
11. What are the objectives of plant layout?
12. What are the types of plant layout?
13. What do you mean by process charts?
14. Define plant layout?
15. What do you mean by static layout?
UNIT – II
1. Define work study
2. What are the importance of work study?
3. Write any two objectives of work study.
4. What are the uses of work study?
5. What is micromotion study?
6. What is motion study?
7. What is memo motion study?
8. What is man – machine chart?
9. Write any too methods study.
10. What are therbligs?
11. What is analytical approach of method study?
12. What is SIMO chart?
13. What is string diagram?
14. Define work measurement
15. What are the techniques ofwork measurement?
16. What is PMTS?
17. What is Time study?
18. What is synthetic data?
19. What is performance rating?
20. What are the methods of rating?
21. What do you mean by maintenance of management?
22. What are the various of types of maintenance?
UNIT – III
1. Define production planning
2. Define production control
3. Define production planning and control.
4. What is meant by scheduling?
5. What is Route sheet?
6. Define scheduling
7. What is meant by load schedule.
8. What is Routing?
9. What are the Routing Procedure?
10. List out any two problems of scheduling.
UNIT – IV
1. Define of Quality.
2. Definition of Quality control.
3. What are the principles of quality control?
4. Definition of statistical quality control?
5. Define control chart.
6. What is control chart?
7. What is quality circles?
8. What is meant by Inspection.
9. State any two objectives of inspection.
10. What is PPC?
UNIT – V
1. What is material management?
2. What are the classification of materials?
3. What are the objectives of materials management?
4. What is purchasing?
5. What are the basic elements of purchase transaction?
6. What do you mean by “ABC” analysis?
7. What do you meant by Hand – To – Mouth purchase?
8. What do you mean by Blanket orders?
9. What is JIT purchasing?
10. Define purchase management.
11. What are the objectives of scientific purchasing?
PART – B
1. Explain the components of production function.
2. Explain the scope of production management.
3. Explain the functions of production manager.
4. Discuss the objectives of plant location.
5. Briefly explain the importance of plant location.
6. Write short notes on Break Even Dimensional Analysis.
7. Discuss the characteristics of an efficient layout?
8. Explain the objectives of Plant Layout?
9. How the Government Policy affects the selection of Location?
10. Write short notes on Multi – Plant Location problems.
11. What is the procedure involved in work study?
12. Explain the procedure involved in time study.
13. Explain the uses of method study.
14. Explain the objectives of work stdy.
15. What are the difficulties in implementing work study?
16. What are the principles of Motion Economy?
17. Define production planning and state its characteristics.
18. Explain the procedure to draw a schedule.
19. What are the objectives of production planning?
20. Explain the importance of production planning.
21. Explain the factors which affect routing procedure.
22. What are the objectives of break down maintenance?
23. Explain the benefits of SQC.
24. Explain the purposes and types of control charts.
25. What are the features of ISI?
26. State the significance of quality control.
27. What are the objectives of material management?
28. Explain the functions of purchasing department.
PART - C
1. Explain the functions and responsibilities of production manager?
2. Explain the principles of a good layout.
3. Explain the different tools and techniques of plant layout.
4. What are the types of plant layout? What are the advantages and
disadvantages of each type of layout?
5. Explain the factors influencing industry of buying and selling.?
6. Briefly describe the various recording aids used in method study.
7. State the steps involved in implementing method study.
8. Explain the main functions of production planning control.
9. Explain the factors influencing scheduling.
10. What are the ways to reducing the scheduling problems?
11. Define quality circle. What are the characteristics of Quality Circle.
12. Explain in detail about the functional areas of materials
management?
13. Explain the advantages of the combined materials and purchase
department.
14. Describe the techniques of material management.
15. What are the different methods of buying? Explain.
16. What are the responsibilities of the purchase department?
17. What are the modern techniques of inventory management and
control?
18. Explain the principles of efficient material handling?
19. Enumerate the steps of Time study.
20. Describe the various types of inspection.
21. Develop a purchase organization chart and describe the various
functions in detail.
22. Bring out the important of capacity investment decision in
production planning and layout.
23. Explain the need for capacity planning. Detail the decision involved
in that.
24. What are the modern techniques of inventory management and control?
25. Explain the objectives of material management.
PRODUCTION MANAGEMENT -8CCBB6
UNIT – I
Production Management - Scope and significance – Production System –
Functions and types – Factors influencing plant location – Plant layout and its
kinds.
UNIT – II
Work study, Time study and Motion Study – Work measurement –
Maintenance of plant – types.
UNIT – III
Production planning and control- Meaning definition – objectives and
importance – Elements of production planning – Routing and Scheduling.
UNIT – IV
Quality control and Inspection – Meaning – objectives and significance –
SQC – AGMARK, ISI AND ISO – Certification Marks.
UNIT – V
Material management – Meaning – objectives and significance – purchasing
procedure – store keeping – objectives – functions.
SHRIMATI INDIRA GANDHI COLLGE, TRICHY-2
DEPARTMENT OF BUSINESS ADMINISTRATION
SLOW LEARNERS MATERIAL
PRODUCTION MANAGEMENT
SUBJECT CODE : 8CCBB6
UNIT - I PART – A
1. Define production
„Production is not the application of tools to materials but is the application
of logic to work‟ – Peter Drucker on the practice of management.
2. Define productivity
Productivity is an index or measure of the effective use of resources. It is
usually expressed as a ratio of output to input.
Output
P = (minimize the input maximize the output (Or) minimize
In put the cost maximize the profit)
3. Define production management ?
According to H.A Harding. “Production management its concerned with
those processes which convert the inputs into outputs. The inputs are various
resources like raw – materials, nun, methods etc and output are goods and
services.
4. What are the objectives of production management?
The main aim of production management is to produce the goods but also
ensure that commodities produced by it possess the required so that the
customers derive maximum satisfaction at minimum possible cost.
5. What is plant location
Plat location of an industry is as important as the choice for the location of
and office or a shop in a city or locality.
6. Define the concept and importance of plant location?
The plant location is of paramount importance, both far a new enterprise as
well as for the existing ones. The fundamental objective of an organization is to
maximize its profits.
7. What is the types of locational decisions?
1. Location of production units or plants for the conversion of inputs into
finished products.
2. Location of service units which provide assistance to production units.
3. Location of distribution and retails units for dispersion of the production to the
materials.
8. What is the aspects of plant locations?
There are three different aspects to a plant location;
1. Selection of region (regional factors)
2. Selection of Locality (Community factors)
3. Selection of Site (Site factors)
9. What re the dynamic nature of plant location?
No location can be considered to be unique and can remain competitive
indefinitely. Location study requires constant monitoring and location which is
found to be optimum or most appropriate today may not remain so tomorrow.
10. What do you mean by plant layout?
Plant Layout “Identically involves the allocation of space and the
arrangement of equipment in such a manner that overall operating costs are
minimized”
11. What are the objectives of plant layout?
The principle objective of a proper plant layout is to maximize the
production at the minimum cost. This objective should be kept in mind which
designing layout for a new plant.
12. What are the types of plant layout?
They are three basic types of plant layout:
1. Product (or) Line layout
2. Functional (or) process layout and
3. Stationary layout
4. Combined (or) Mixed layout
13. What do you mean by process charts?
This system is based on the functions performed by a department. This
system of layout, machines or equipment of the same functions are grouped
together in a separate department.
14. Define plant layout?
James Lundy. Identically involves the allocation of space and arrangement
of equipment in such a manner that overall operating costs are minimized.
15. What do you mean by static layout?
Static layout, means materials remain at a fixed place and the complete job
is done at a fixed station.
UNIT - II
1. Define work study
British standards institution defines work study as “ a generic term for those
techniques particularly method study and work measurement which are sued in
the examination of human work in all its contexts, and which lead systematically
to the investigation of all the factors which affect the efficiency and economy of
the situation being reviewed in order to effect improvements.”
2. What are the importance of work study?
1. Results in improved safety 2. Reduction is training time
3. It is a tool which can be applied everywhere that is importance of work -
study
3. Write and two objectives of work study.
1. Investigation and analysis of existing situation
2. Examination of weaknesses, if any is the production process.
4. What are the uses of work study?
Uses 1. Increased productivity and operational efficiency
2. Reduced manufacturing costs 3. Improved work place layout
5. What is Micro Motion study?
Micro motion study is gives accurate analysis. But, being costly, it is used
when products are likely to continue for a long time .
6. What is Motion study?
Motion study is a more detailed investigation of an individual operator, the
layout of his bench of machines, his tools, jigs and fixtures the movements of his
body as he performs his work. The study of his environment, body posture, the
temperature.
7. What is memo motion study?
Memo motion study is photograph is a form of time – lapse photograph
which records activity by the use of cine camera adapted to take pictures at
longer intervals than normal ( time interval normally lies between ½ second to 4
seconds).
8. What is Man – machine chart?
Man machine chart is prepared for describing graphically the activity of a
man and machine. When in a work shop many workers on a number of machines
are at work.
9. Write any two methods of study?
Two methods of study :
1. Micro motion study & 2. Memo motion study
10. What are therbligs‟?
Therbligs means symbols. For example :
- search – Locate an article
- Assemble – Putting parts together
- Inspect – Examine or test
11. What is analytical approach of method study?
Analytical approach of method study was steps in select, Record, Examine,
Develop, Define, Install, maintain.
12. What is SIMO chart?
A SIMO chart is a chart, based on the film analysis, used to record
simultaneously on a common time scale the therbligs or a group of therbligs
performed by different parts of the body of one or more operators.
13. What is string diagram?
A string diagram also uses a scale drawing of the work place, but here the
routes taken by operators, materials or equipment are traced on the diagram by
the use of a continuous thread fixed with pins.
14. Define work measurement
Work measurement is the application of techniques to establish the time for
a qualified worker to carry out a specified work at a defined level of
performance.
15. What are the techniques of work measurement?
The work measurement, work can be regarded as repetitive work and Non –
repetitive work
16. What is PMTS
PMTS – Pre – determined Motion Time systems.
17. What is time study?
A work measurement technique for recording the time and rate of working
for the elements of a specified job carried out under specified conditions and for
analyzing the data so as to determine the time necessary for carrying out the job
at the defined level of performance.
18. What is synthetic data?
A work measurement technique for building up the time for a job or parts of
the job at a defined level of performance by totaling element time obtained
previously from time studies on other jobs containing the elements concerned or
from synthetic data.
19. What is performance rating?
Performance rating is the process of adjusting the actual pace of working of
an operator by comparing it with his mental picture of pace of an operator
working at normal speed.
20. What are the methods of rating?
Methods of Ration : 1. Speed Rating 2. Westing house system of Rating
3. Synthetic Rating 4. Objective Rating
5. Physiological Evaluation of performance Rating.
21. What are the maintenance of management ?
Maintenance management is concerned with planning and controlling,
routine, planned and preventive maintenance activities of an organization.
22. What is types of maintenance.
1. Operator Maintenance 2. Predictive Maintenance
3. Breakdown Maintenance 4. Planned Maintenance
5. Preventive Maintenance
UNIT - III
1. Define production planning.
Samuel Elision “Production Planning may be summarily defined as the
direction and co-ordination of the firm‟s material and physical facilities towards
the attainment of pre-specified production goals in the most efficient available
way”.
2. Define „production control‟
The British standards Institute defines the term production control.
i. The production plan or planning
ii. Scheduling
iii. Machine or labour utilization or dispatching
iv. Stock control
v. Manufacturing control or routing and
vi. Progress
3. Define production planning and control.
Garden B.Carson, “Production planning and control consists of the
organization and the planning of the manufacturing processes routing,
scheduling, dispatching, and inspection, coordination and the control of
materials, methods, machines, tooling and operating time. The ultimate objective
is the organization of the supply and movement of materials and labour, machine
utilization and related activities in order to bring about the desired manufacturing
results in the terms of quality, time and price”.
4. What is meant by scheduling?
Production scheduling is the detailed planning of material, labour and
machines time so that materials and parts will be at the right place, at the right
time so that a job can be completed within the time planned and in accordance
with the requirements.
5. What is Route sheet?
A route sheet contains a complete description of the item to be
manufactured, the details of each operation required in manufacturing process,
the set up time and standard operation time etc.
6. Define scheduling.
Kimball and Kimball define scheduling as “the determination of the time
that should be required to perform each operation and also the time necessary to
perform the entire series as routed, making allowance for all factors concerned”.
7. What is meant by load schedule.
Load schedule or load chart indicates the work to be carried out in each
sector or department of the company during the specific period.
8. What is Routing?
Routing determines what work will be done on a product or part as well as
where and how it will be done.
9. What are the Routing procedure?
The finished products are analyzed from the manufacturing standpoint is
order to decide how many components can be made in the plant and how many
can be purchased from outside sources through vendors, sub contracting, etc.
10. What are the scheduling problems any two.
Flow of production 1.Scheduling for fluctuating demand,
2. Have a fluctuating production programme
3. Multi – product scheduling in batch production
UNIT - IV
1. Definition of Quality.
According to professor wasting Fine and Zero, “Quality is an expression of
the measured properties, conditions or characteristic of a product or process,
usually stated in terms of grades, classes or specification and determined by the
application that is involved”.
2. Definition of Quality control.
Afford and Bealty “Quality control may be defined as the industrial
management techniques or group of techniques by means of which products of
uniform acceptable quality are manufactured”.
3. What are the principles of Quality control?
The quality of manufactured goods is a variable with an upward trend under
conditions of competitive manufacture to Control of quality increases out of
saleable goods, decreases cost of production and distribution and makes
economic mass production possible.
4. Definition of statistical quality control?
Statistical quality control is the application of statistical technique to determine
how far the product conforms to the standards of quality and precision and to
what extent its quality deviates from the standard quality.
5. Define control chart?
Control chart is a day to day graphical representation of the collected
information the information pertains to the measured for otherwise judged quality
characteristics of the items or samples.
6. What is control chart
A control chart is primarily to a diagnostic technique and is dynamic in
nature. Control chart is a day – to – day graphical representation of the collected
information.
7. What is Quality circles?
The quality control circle or more popularly known as quality circle
concepts were formed is Japan in 1960 and in United States in 1977 Gradually it
caught the attention world over and most of the developed and developing
countries are using this concept to their benefits.
8. What is meant by inspection
Inspection is the process of examining and object for identification or
checking it for verification of quality and quantity in any of its characteristics it is
an important tool for ascertaining and controlling the quality of the product.
9. State any two objectives of Inspection.
1. Inspection separates defective components from non- defective ones and thus
ensures the adequate quality of the product.
2. Inspection identifies defects is raw materials and flows in processes which
otherwise cause problems at the final stage.
10. What is PPC ? Production planning & control.
Production planning and control may be define as the direction and co-
ordination of the firm‟s material and physical facilities towards the attainment of
pre – specific production goals in the most efficient available way.
UNIT - V
1. What is Material management?
Materials management as the management of flow of materials into an
organization to the point where these materials are converted into the firm‟s end
product.
2. What are the classification of Materials?
The materials manager is responsible for classifying the materials before
they are sent inspection, entered into the stock ledger, and bined. Therefore,
broad classification of materials according to their nature, use and service
becomes essential before the job of identification is undertaken
3. What are the objectives of materials management ?
1. To ensure an un interrupted production or operation, by maintaining a steady
flow of materials
2. To effect economics in the cost of materials by purchasing materials of the
right quality, in the right quantity, at the right time, from the right source and
at the right price.
4. What is purchasing?
Purchasing department procures materials asper requirements to meet
quantity and time specifications.
5. What are the basic elements of purchases transaction?
1. Selecting acceptable vendors and negotiating with them on purchase terms,
price, quality and other related factors.
2. Interacting with vendors to develop materials specifications, to control
quality and to solve problems involved in receipt and usage of materials.
6. What do you mean by “ABC” analysis?
Segregation of item like ABC it is a selective approach to control inventory.
It controls Best, Better and lastly good
A - High value items
B - Medium value
C - Low value (Always Better control)
7. What do you meant by Hand – to – mouth purchases?
Hand – to – mouth purchase is also called purchase according to the
requirements refers to the frequent purchases of an item in small quantities.
8. What do you mean by Blanket orders?
Blanket orders refers to the purchase of variety of items from a single
source, usually, a middlemen.
9. What is JIT purchasing?
The Just – in- time inventory system, while conceptually very appealing, is
difficult to implement because it involves a significant change in the total
production and management system.
10. Define purchase management?
Alford and Beary “Purchasing is the processing of materials, supplies,
machine tools and service required for the equipment, maintenance and operation
of a manufacturing plant”.
11. What are the objectives of scientific purchasing?
1. To procure the needed materials at a competitive price of the right quality, in
the right quantity and at the right time.
2. To maintain continuity of supply to ensure production schedule at minimum
inventory investment.
SHRIMATI INDIRA GANDHI COLLEGE, TRICHY
DEPARTMENT OF BUSINESS ADMINISTRATION
QUESTION BANK
COMPANY LAW AND SECRETARIAL PRACTICS
Subject Code: 8CCBB9
PART – A
1. Define of company.
2. Define Statutory companies.
3. What is a public company?
4. When is a private company loses its privileges?
5. Who is promoter?
6. Differentiate stock from share.
7. What is forfeiture of share.
8. Who is a company secretary?
9. What are the disqualifications of company secretary?
10. Definition secretary.
11. State any three limitations of a company.
12. What do you mean by certificate of in corporation?
13. Who can be a promoter?
14. Define shares.
15. What is deferred shares?
16. Who is a company secretary?
17. What are the disqualification of company secretary?
18. When is a private company loses its privileges?
19. What is a notice?
20. What is mean by quorum?
21. What are the essentials of a company meeting?
22. What is memorandum association.
23. What is statutory report?
24. What is proxy?
25. What is a government company?
26. Define Articles of Association.
27. What is meant by doctrine of constructive notice?
28. Define prospectus.
29. What do you mean by „misstatement‟.
30. Define member.
31. Define share capital.
32. What is meant by Rights Issue?
33. What is a stock?
34. What are the types of shares?
35. Define share warrant.
36. What are the classification of shares?
37. What is the statutory meeting?
38. What are the objectives of the meeting?
39. What is mean by Annuals general meeting?
40. What is quorum?
41. What is agenda?
42. Define motion.
43. What is Resolutions?
44. What are the qualifications of a company secretary?
45. What are the duties of the company secretary?
46. State how a company secretary is appointed.
47. State the liabilities of a company secretary.
48. What is the different kinds of preference shares?
49. What is return of allotment?
50. Define calls on shares.
51. Define share certificate.
52. What is the conditions for issue of Bonus shares?
53. What is the contents of statutory Report?
54. What is the importance of meetings?
PART - B
1. Explain the objectives of a company?
2. What are the features of an unlimited company? Explain.
3. Distinguish between Private Ltd Company and Public Company.
4. What are the special privileges of a private company?
5. State the different types of companies.
6. Distinguish between Memorandum of Association and Articles of
Association.
7. Who are the liable for misstatements in a prospectus?
8. What is the purpose of Articles of association?
9. Explain the status of a company during the commencement stage.
10. Explain the features of a company.
11. Distinguish between private Ltd company and Public Company.
12. State the different types of companies.
13. Distinguish between company and partnership.
14. Briefly explain the role of prospectus.
15. What do you mean by listing of shares?
16. Bring out the issue of a shares of discount.
17. What are the difference between share and debenture? Explain.
18. Write a short note on “Forfeiture of shares.
19. What are the rules regarding issue of shares at premium?
20. State the characteristic features of a debenture.
21. State the qualifications and procedure of appointment of company
secretary?
22. Explain the legal position of company secretary.
23. Briefly explain the legal rights of a company secretary.
24. Briefly explain the legal responsibilities of a company secretary.
25. State the qualification of a company secretary.
26. What are the essentials of Notice of meetings?
27. What do you mean by resolution? State its types.
28. When the statutory meeting is being conducted? Explain.
29. How a notice is being prepared? Explain.
30. State the requisites of a valid meeting of the members.
31. State the provisions of law with regard to Notice.
PART - C
1. Describe the different kinds of company.
2. Explain the merits and demerits of Public Ltd Company.
3. Discuss the scope of the doctrine of indoor management. To what
extent has the doctrine been incorporated in the Companies Act,
1956.
4. State in brief the various kinds of companies which can be registered
under the companies Act. 1956.
5. Define a company state the characteristic features of a company.
6. Discuss the role of memorandum of association.
7. Explain the steps involved in formation of companies.
8. Describe the contents of Articles of Association. How it can be
altered?
9. Discuss the various stages in the formation of a company.
10. What is meant by doctrine of ultra vires? Explain with an
illustration. State the effect of doctrine of ultra vires transaction on
the company.
11. Describe the kinds of debentures. Explain.
12. Briefly explain various types of shares.
13. What is meant by forfeiture of shares? State the procedure for
forfeiture of shares?
14. What are Bonus shares? State the procedure with regard to issue of
bonus shares to the shareholders.
15. Explain the types of shares.
16. List down and explain the steps involved in the appointment of
secretary.
17. Discuss the statutory and contractual liabilities of a company
secretary.
18. Explain the duties and liabilities of a company secretary.
19. Explain the qualifications of a company secretary.
20. State the requisite qualifications needed for appointment of a
company secretary.
21. Bring down and explain the contents of and agenda and Notice.
22. Discuss the powers and duties of chairman.
23. Elucidate the different types of meetings.
24. What are the types of resolutions? When such resolutions are
required?
25. Discuss briefly the proceedings of a board meeting?
COMPANY LAW AND SECRETARIAL PRACTICES
SUBJECT CODE: 8CCBB9
UNIT – I
Company definition – features – kinds – private Limited company vs Public
Limited.
UNIT – II
Formation of companies – promotion stage – commencement stage –
memorandum of association – clauses – Articles of association – contents –
prospectus – contents.
UNIT – III
Shares – kinds – equity shares – preference shares – premimum and discount
– allotment – minimum subscription for feature of shares, debentures – Types.
UNIT – IV
Secretary – definition – types – company secretary – Legal position –
qualification – Appointment – Rights, duties and Liablities – Termination.
UNIT – V
Meetings – types – statutory. Annual General meeting – Notice – Agenda –
Quorum, Resolution – Types – duties.
SHRIMATI INDIRA GANDHI COLLEGE, TRICHY-02
DEPARTMENT OF BUSINEES ADMINISTRATION
QUESTION & ANSWER
COMPANY LAW AND SECRETARIAL PRACTICES
1) Define of company.
“A company formed and registered under this act or an existing company.
An existing company means a company formed and registered under any of the
former companies Act.‟‟
2) Define statutory companies.
“A statutory company is brought into existence under the act passed by the
legislature of the country or state. Powers, responsibilities, liabilities, objects,
scope etc. of such a company are clearly defined under the provisions of the Act
which bring it into existence.
3) What is a public company?
“public company” means is not a private company; has a minimum paid up
capital of Rs.5 lakh or such higher paid capital, as may be prescribed; is a private
company which is a subsidiary of a company which is not a private company, i.e.
which is a subsidiary of a public company.
4) Who is promoter?
The idea of carrying on a business which can be profitably undertaken is
conceived either by a person or by a group of persons who are called
promoter.
5) Who is company secretary?
Secretary means any individual possessing the prescribed qualifications
appointed do perform the duties which may be performed by a secretary under this
Act and other ministerial or administrative duties.
6) Differentiate stock from share.
The points of distinction between share and stock are listed in the following:
Basis of difference share stock
Nominal values share has nominal value. It has no nominal value.
Transferability it is transferable as a whole. It can be transferred in
Sums of any amount.
7) What is forfeiture of share?
If any member of the company fails to make the payment of calls money
even after the call reminder which is server by the directors to the defaulters to pay
the call money, then board of directors pass resolution and shares may be forfeited.
The effect of forfeiture is that the name of the defaulting shareholders is removed
from the register of members and ceases his claim on the paid up amount on
shares.
8) What is a role of company secretary?
The secretary is an indispensable hand in a joint stock company. The law
recognizes him as the key-man in the administrative set-up of a company. The
secretary of a business company fulfills the functions of a full-time officer who
looks after the routine business matters as well as ensures strict compliance with
the legal provisions.
9) What is a foreign company?
A foreign company means a company incorporated outside India but having
a place of business in India (sec.591 (1)). Within 30 days of the establishment of
business in India, a foreign company has to furnish to the registrar, the following
documents as per section 592; A certified copy of the charter, stature,
memorandum and Articles of the company, containing the constitution of the
company.
10) Define shares.
Section 2(46) of the act define a share as “A share in the share capital of a
company and includes stock, except where a distinction between stock and share is
expressed or implied.”
11) What is a deferred share?
In the case of deferred shares the right to participate in the distributable
amount of net profits of a company is deferred or postponed till after that of other
classes of shares preference and equity.
12) Define prospectus.
A document containing detailed information about the company and an
invitation to the public for subscribing to the share capital and debentures issued is
called prospectus.
13) What are the features of a company secretary?
The special features of a secretary are as follows:
The secretary is a person. Any firm or body corporate cannot be
appointed as a secretary.
The secretary should be able to perform the work of
confidential nature.
The secretary works for another person or an organization.
14) What is memorandum of association?
Memorandum of Association of a company is one of the most important
documents required to be filed with the registrar of companies at the time of
formation of a company.
15) What is a notice?
A proper notice should be given to every shareholder, auditors, director of
the company and to every such person who is entitled to attend meeting.
16) What is the significance of meeting?
Company meetings are of considerable importance. Meetings may be of
shareholders and directors. The business policies of a company are discussed and
decided at different meetings held according to the rules laid down in the Articles
of the company.
17) What are the essentials of a company meeting?
“An assembly of people for a lawful purpose” or “the coming together of at
least two persons for any lawful purpose.”
18) Define memorandum of Association.
According to sec. 2(28) of the companies Act, “memorandum means the
memorandum of association of a company as originally framed or as altered from
time to time in pursuance of any previous companies law or of this act.”
19) What is statutory report?
The directors are required to prepare and send a report called the statutory to
every number of the company at least 21 days before the date of the meeting.
20) What is proxy?
A proxy is an authorized agent of the member for the purpose of voting. The
term of proxy is also applied to the instrument by which the appointment to act on
his behalf is made by the member.
21) What is a government company?
According to sec. 617 of the companies Act, 1956, Government Company
means, “any company in which not less than 51% of the paid-up share capital is
held by the central government or by any state government and includes a
company which is a subsidiary of a government company.”
22) Define Articles of Association.
According to sec.2(2) of the companies Act, “Articles means the article of
association of a company as originally framed, or as altered from time to time in
pursuance of the previous companies law or of this Act.”
23) What is meant by doctrine of constructive notice?
Every person who deals with the company, whether shareholder or an
outsider is presumed to have the memorandum and articles of association of the
company and is deemed to know the contents of these documents. Therefore the
knowledge of these document and their contents is known as the constructive
notice of memorandum and articles of association.
24) What do you mean by ‘misstatement’?
A prospectus containing false, misleading, ambiguous or fraudulent
statements of material facts, or suppressing material fact, is termed as “misleading
prospectus”.
25) Define member.
According to section 2(27), member in relation to a company, does not
include a bearer of share warrant of the company issued in pursuance of section
114.
26) Define share capital.
Indian companies Act, it has been used in different senses in various parts of
the act, but in general it means the money subscribed pursuant to memorandum of
association of the company. Capital, in fact, represents the assets with which the
undertaking is carried on.
27) What is meant by Right issue?
Section 81 of the company Act laid down the procedure for further issue of
share capital after the first issue. When the shares are issued further by the
directors, such further shares are offered to the existing equity shareholders of the
company.
28) What is a stock?
When shares are fully paid-up, they may be converted into stock. Stock is
simply a set of shares put together in a bundle. It is the aggregate of fully paid-up
shares legally consolidated. The aggregate can be split up into fractions of any
amount without regard to the original nominal amount of shares. The issue of
partly paid-up stock is invalid.
29) What are the types of shares?
Preference shares:
Equity shares:
Deferred shares.
30) Define share warrant.
A share warrant is a document issued under the common seal of the
company stating that the bearer is entitled to the shares specified therein. A share
warrant is a bearer document and it is transferable by mere delivery.
31) What are the classifications of preference shares?
1) Cumulative preference share & non-cumulative preference share:2)
Participating & non- participating preference share: 3) Convertible & non-
convertible preference share: 4) Redeemable & irredeemable preference share.
32) What is the statutory meeting?
Every public company having share capital must convene. This is the first meeting
of the shareholders of the company and it is held once in the whole life of the
company.
33) What are the objectives of the meeting?
The statutory meeting is held to inform the shareholders about matters relating to
incorporation, allotment of shares, the details of the contracts concluded by
company.
34) What is means by Annuals general meeting?
It is a meeting of shareholders which is held once in a year. The object of
holding this meeting is to review the progress and prospects of the company and
elect its office bearer for the coming year.
35) What is quorum?
Quorum means the minimum number of the members who must be
presented in a meeting to proceed with the work of meeting as required by the
rules.
36) What is agenda?
The term „agenda‟ literally means „things to be done‟. In connection with
meeting, the words Agenda denote the programmed or list of the items of the
business to be transacted at the meeting. A copy of agenda must be sent to all
members of the company along with the notice of the meeting.
37) Define motion.
The term „motion‟ refers to a proposal put before a meeting for
consideration and adoption. In other words, motion is a proposed resolution or a
question before the meeting. All important matters for decision at the general
meeting of a company are presented in the form of proposals called „motion‟.
38) What is resolution?
Business transacted at all the meeting of the company is recorded in the form
of resolutions. Every item included in the Agenda is put before the meeting in the
form of written approval, motion for discussion and decision. When the motion is
approved by the required majority of member present, it becomes a resolution.
39) What are the qualifications of a company secretary?
Sound general education, Specialized Knowledge, proficiency in Language,
Knowledge of company law, knowledge of accounting & taxation.
40) What are the duties of the company secretary?
The duties of a company secretary can be classified into the following heads:
1)Statutory duties ;2) duties to the directors ;3) duties to the shareholder ;4)
duties to the employees ;5) duties to the public ;6) duties relating to the office
organization ;7) other duties.
41) State how a company is appointed.
Appointment of secretary by promoters.
Appointment of secretary under Articles of Association.
Appointment of secretary by directors.
42) State the liabilities of a company secretary.
1) Liability for negligence;
2) Liability for misfeasance;
3) Liability for ultra-vires Acts;
4) Liability for breach of trust;
5)Other liabilities under company Act.
43) What are the Rights of the company secretary?
1) Right to get remuneration;
2) Right to sign important document;
3) Right to issue certificates;
4) Right to have control on the office;
5)Right to represent the company.
44) What is return of allotment?
Whenever a company with share capital makes allotment of shares, if must
file a statement known as return as to allotment with the registrar within 30 days of
allotment of shares.
45) Define calls on shares.
The call may be define as a “demand by a company on its shareholders in
pursuance of board resolution and the terms of Articles to pay whole or part of the
balance remaining unpaid on each share after the allotment of shares, at any time
during its lifetime”.
46) Define share certificate.
According to section 84, “A share certificate is a certificate issued by the
company under its common seal specifying the shares held by any member. It is an
evidence of the title of the allotted or transferee of shares”.
47) What is the condition for issue of bonus shares?
The issue of bonus shares must be authorized by the Articles of the
company.
It must be recommended by a board resolution and then approved by
the shareholders in general meeting.
It must be in accordance with the guidelines issued by SEBI dated 11-
6-1992.
48) What is the content of statutory Report?
Shares allotted; cash received; Abstract; Directors; Contracts; underwriting
contract.
49) What is the importance of meeting?
Two or more persons must be present at the meeting:
The assemble of persons must be for discussion and transaction some
lawful business:
A previous notice would be given for convening a meeting.
50) What is the preference share?
Preference share enjoy certain preferential rights to receive dividend (first in
order),when compared with equity shares who would be paid next only .