Indian Companies Act MCQ question and answer

1

Which among the following is regarded as the most important document of a company?

A) Annual Report B) Prospectus C) Articles of Association D) Memorandum of Association

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Answer & Solution

Answer: Option D

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2

When there is no profit in one year or the profit of a company is not enough to pay the fixed dividend on preference shares, the arrears of dividend are to be carried forward and paid before a dividend is paid on the ordinary shares. This is called:

A) Participating preference shares B) Cumulative preference shares C) Non-cumulative preference shares D) Non-Participating preference shares

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Answer & Solution

Answer: Option B

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3

Under the Companies Act every person subscribing to the Memorandum of a company must take at least

A) 100 shares B) 20 shares C) 10 shares D) 1 share

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Answer & Solution

Answer: Option D

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4

What do you mean by pursuit?

A) Authorising the destruction of corporations for the purpose of engaging in any lawful enterprise, business, pursuit, or occupation, is not restricted in meaning to a scheme for making money, but includes any object consistent with the interest of society B) Authorising the dissolution of corporations for the purpose of engaging in any lawful enterprise, business, pursuit, or occupation, is not restricted in meaning to a scheme for making money, but includes any object consistent with the interest of society C) Authorising the formation of corporations for the purpose of engaging in any lawful enterprise, business, pursuit, or occupation, is not restricted in meaning to a scheme for making money, but includes any object consistent with the interest of society D) Authorising the reconstruction of corporations for the purpose of engaging in any lawful enterprise, business, pursuit, or occupation, is not restricted in meaning to a scheme for making money, but includes any object consistent with the interest of society

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Answer & Solution

Answer: Option C

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5

A public company can borrow money

A) After one year of incorporation B) After obtaining certificate of commencement of business C) Before incorporation D) Soon after incorporation

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Answer & Solution

Answer: Option B

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6

A Director appointed to fill up casual vacancy will hold office

A) For a term of 5 years B) For a term of 3 years C) Up to next meeting of the Board D) Up to date of expiry of term of office of outgoing Director

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Answer & Solution

Answer: Option D

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7

On incorporation of a company, the Registrar of Companies, in addition to the Certificate of Incorporation, issues a unique identification number, namely . . . . . . . .

A) Unique corporate number B) Corporate identification number C) Company identification number D) Unique identification number

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Answer & Solution

Answer: Option B

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8

A Private company can commence business as soon as it receives

A) Certification of incorporation B) Letter of intent C) Occupation certificate D) None of the above

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Answer & Solution

Answer: Option A

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9

Articles of Association are not to be registered in case of

A) A public company limited by share B) A company limited by guarantees C) An unlimited company D) A private company limited by share

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Answer & Solution

Answer: Option A

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10

Memorandum of a company under the Company Law is like a

A) Directory B) Constitution C) Schedule D) None of the above

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Answer & Solution

Answer: Option B

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Indian Companies Act MCQ question and answer | Law MCQ question