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Company Law - Questions and Answers for Competitive Exams | GkSeries

Questions
25. On a share of Rs. 100 of a company, a shareholder has already paid Rs. 30.His Liability is now limited to ___________
  • [A] Rs. 100.
  • [B] Rs. 30
  • [C] Rs. 70.
  • [D] Rs.10

Answer: Option [C]

26. The Reserve Bank of India is an example of a _____________.
  • [A] registered company.
  • [B] statutory company.
  • [C] chartered company.
  • [D] unlimited company.

Answer: Option [B]

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27. The liability of a shareholder in a company limited by shares is ____________.
  • [A] unlimited
  • [B] limited by guarantee.
  • [C] limited to the unpaid value of shares subscribed by him.
  • [D] none of the above

Answer: Option [C]

28. An act is said to be ultra vires a company when it is beyond the powers ___________.
  • [A] of the company
  • [B] of the directors .
  • [C] of the directors but not the company
  • [D] conferred on the company by the Articles.

Answer: Option [A]

29. Which of the following companies need not have their own articles of Association?
  • [A] unlimited companies.
  • [B] companies limited by guarantee
  • [C] private companies limited by shares.
  • [D] public companies limited by shares.

Answer: Option [D]

30. The Articles of a company conflict with the Memorandum _______________.
  • [A] the Articles shall prevail.
  • [B] the Memorandum shall prevail
  • [C] the directors will resolve the conflict.
  • [D] the court will resolve the conflict.

Answer: Option [A]

31. A shareholder purchased in the open market shares of a company whose prospectus contained some misstatements. He ____________.
  • [A] can rescind the contract only but cannot claim damages
  • [B] can claim damages only but cannot rescind the contract
  • [C] has no remedy against the company.
  • [D] has remedy against the directors responsible for the issue of the prospectus

Answer: Option [C]

32. Underwriting means ___________.
  • [A] selling shares at a discount .
  • [B] purchasing property at less than market price.
  • [C] agreeing to purchase shortfall of shares in a company in case of under subscription
  • [D] offering new shares to outsiders

Answer: Option [C]

33. Share capital of a company means ______________.
  • [A] equity share capital .
  • [B] preference share capital
  • [C] equity and preference share capital .
  • [D] equity and preference share capital and debentures

Answer: Option [C]

34. The dividend on preference capital is paid _____________
  • [A] whenever there are profits
  • [B] only if there are profits.
  • [C] even if there are no profits.
  • [D] only when the directors recommend it

Answer: Option [D]

35. Shares can be issued ____________.
  • [A] at par.
  • [B] at discount.
  • [C] at premium.
  • [D] all of the above.

Answer: Option [D]

36. The debenture holders of a company are companys__________.
  • [A] owners
  • [B] creditors
  • [C] customers
  • [D] all of these.

Answer: Option [B]

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