Company Law - Questions and Answers for Competitive Exams | GkSeries

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]