Company Law - Questions and Answers for Competitive Exams | GkSeries

1. What is known as a charter of a Company?

1. [A] Memorandum of Association
2. [B] Bye laws
3. [C] Articles of Association
4. [D] Prospectus

Answer: Option [A]

2. Minimum paid up capital for a public company

1. [A] 500000
2. [B] 400000
3. [C] 300000
4. [D] 200000

Answer: Option [A]

3. The name of a company can be changed by__________.

1. [A] an ordinary resolution
2. [B] a special resolution
3. [C] the approval of the union government
4. [D] a special resolution and with the approval of the central government

Answer: Option [D]

4. The __________defines a companys relations with the outside world.

1. [A] prospectus
2. [B] memorandum of association
3. [C] articles of association .
4. [D] statement in lieu of prospectus .

Answer: Option [B]

5. The most important document of a company is its__________.

1. [A] prospectus
2. [B] annual report.
3. [C] memorandum of association
4. [D] articles of association

Answer: Option [C]

6. Mark out the type of alteration that is permitted in the articles of association____.

1. [A] that may not be in the companys interest .
2. [B] that is contrary to the provisions of the companies act.
3. [C] that increases a members liability without his written consent .
4. [D] that is consistent with the memorandum of association .

Answer: Option [D]

7. Mark out the document that need not be prepared and registered with the registrar of companies in public limited companies.

1. [A] statutory declaration
2. [B] memorandum of association .
3. [C] articles of association .
4. [D] directors undertakings to take up and pay for qualification shares

Answer: Option [C]

8. The share capital of a company may be reduced by __________.

1. [A] an ordinary resolution
2. [B] a special resolution
3. [C] a resolution of the board of directors
4. [D] obtaining permission from the company law board

Answer: Option [B]

9. The ___________ on equity shares is not cumulative.

1. [A] dividend
2. [B] profit
3. [C] loss
4. [D] reserve

Answer: Option [A]

10. The ___________ constitute the top administrative organ of the company. .

1. [A] general manager .
2. [B] shareholders.
3. [C] board of directors.
4. [D] advisory panel.

Answer: Option [C]

11. A directors election takes place in a general meeting through a separated Resolution passed by a _______ majority

1. [A] single
2. [B] two-thirds
3. [C] three-fourths.
4. [D] five-sixths .

Answer: Option [A]

12. The total managerial remuneration to the directors and the manager in respect of any financial year must not exceed _________ percent of the net profit.

1. [A] one
2. [B] three
3. [C] eleven
4. [D] ten

Answer: Option [C]