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Free Download as PDF of Company Law Questions with Answers as per exam pattern, to help you in day to day learning. We provide all important questions and answers for all Exam.
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]
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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