Company Law - Questions and Answers for Competitive Exams | GkSeries

13. Where a company has three directors, the maximum remuneration payable to all of them is ________% of the annual net profit

• [A] 5.
• [B] 10.
• [C] 20.
• [D] 25.

Answer: Option [B]

14. A person cannot act as managing director of more than _______company /companies at a time

• [A] one
• [B] two
• [C] four
• [D] five

Answer: Option [B]

15. The partnership entity may be regarded as ____________.

• [A] a legal entity .
• [B] an accountable entity .
• [C] both a legal and accountable entity .
• [D] neither a legal nor an accountable entity

Answer: Option [D]

16. The amount of minimum subscription may be learnt from the ______________.

• [A] prospectus
• [B] memorandum of association
• [C] articles of association .
• [D] records of general meetings

Answer: Option [A]

17. When can a private company commence business ?

• [A] at any time
• [B] after applying for registration.
• [C] after obtaining the certificate of incorporation.
• [D] after obtaining the certificate of commencement of business .

Answer: Option [C]

18. An exception to the doctrine of constructive notice is____________.

• [A] the doctrine of ultra vires .
• [B] the doctrine of indoor management .
• [C] lifting the corporate veil
• [D] the doctrine of ultra vires in Articles of Association.

Answer: Option [B]

19. A prospectus is to be issued within _______days of registration.

• [A] 30
• [B] 60
• [C] 90
• [D] 180

Answer: Option [C]

20. All monies received with the application of shares are to be deposited_______.

• [A] with the controller of capital issues .
• [B] in the companys bank account
• [C] in a special account opened in a scheduled bank for the purpose
• [D] with the registrar of companies

Answer: Option [C]

21. The minimum subscription is to be received within ______days of the offer.

• [A] 30
• [B] 60
• [C] 120
• [D] 150

Answer: Option [C]

22. The charter of a company refers to its ________________.

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

Answer: Option [B]

23. An association of 30 persons not registered under the companies Act but carrying on a business is a/an ___________.

• [A] illegal association
• [B] partnership
• [C] private company
• [D] public company.

Answer: Option [A]

24. A company is a juristic person with a perpetual succession _____________

• [A] as such it dies.
• [B] its life depends on the life of its members.
• [C] it is created by a process of law and can be put to an end only by a process of law
• [D] none

Answer: Option [C]