Company Law - Questions and Answers for Competitive Exams | GkSeries

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

• [A] Memorandum of Association
• [B] Bye laws
• [C] Articles of Association
• [D] Prospectus

Answer: Option [A]

2. Minimum paid up capital for a public company

• [A] 500000
• [B] 400000
• [C] 300000
• [D] 200000

Answer: Option [A]

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

• [A] an ordinary resolution
• [B] a special resolution
• [C] the approval of the union government
• [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.

• [A] prospectus
• [B] memorandum of association
• [C] articles of association .
• [D] statement in lieu of prospectus .

Answer: Option [B]

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

• [A] prospectus
• [B] annual report.
• [C] memorandum of association
• [D] articles of association

Answer: Option [C]

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

• [A] that may not be in the companys interest .
• [B] that is contrary to the provisions of the companies act.
• [C] that increases a members liability without his written consent .
• [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.

• [A] statutory declaration
• [B] memorandum of association .
• [C] articles of association .
• [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 __________.

• [A] an ordinary resolution
• [B] a special resolution
• [C] a resolution of the board of directors
• [D] obtaining permission from the company law board

Answer: Option [B]

9. The ___________ on equity shares is not cumulative.

• [A] dividend
• [B] profit
• [C] loss
• [D] reserve

Answer: Option [A]

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

• [A] general manager .
• [B] shareholders.
• [C] board of directors.
• [D] advisory panel.

Answer: Option [C]

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

• [A] single
• [B] two-thirds
• [C] three-fourths.
• [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.

• [A] one
• [B] three
• [C] eleven
• [D] ten

Answer: Option [C]