Indian Companies Act MCQ question and answer

51

In which of the following cases corporate veil of the company has not been lifted by the court:

A) Gilford Motor Co. Ltd. v. Horne B) Daimler Co. Ltd. v. Continental Tyre & Rubber Co. Ltd. C) Dinshaw Maneckjee Petit, Re D) People Pleasure Park Co. v. Rohleder

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Answer & Solution

Answer: Option D

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52

Match List-I with List-II and select the correct answer using the given below the Lists:

List-I (Decided Cases)	List-II (Principle Stated)
a. Royal British Bank v. Turquand	1. Corporate personality
b. Salomon v. Salomon & Co. Ltd.	2. Rule of majority
c. Foss v. Harbottle	3. Doctrine of ultra vires
d. Ashbury Railway Carriage and Iron Co. Ltd. v. Riche	4. Indoor management

A) a-4, b-1, c-2, d-3 B) a-4, b-3, c-2, d-1 C) a-3, b-2, c-1, d-4 D) a-1, b-2, c-3, d-4

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Answer & Solution

Answer: Option A

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53

Which of the following statements is not correct?

A) A company cannot have more than one Manager at the same time B) A company can have more than one Manager at the same time C) A firm cannot be appointed as Manager of a company D) A Manager can be appointed for a period of 5 years at a time

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Answer: Option B

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54

Who is authorized to issue license to Section 8 company under Companies Act, 2013?

A) NCLT B) Any one of the above C) Registrar of Companies D) Regional Director E) None of the above

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Answer & Solution

Answer: Option C

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55

Which of the following case is about doctrine of ultra vires?

A) Royal British Bank v. Turquand B) Premier Industrial Bank Ltd. v. Carlton Mfg. Co. Ltd. C) Rajendra Nath Dutta v. Shibendra Mukherjee D) Attorney General v. Great Eastern Railway Co.

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Answer: Option D

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56

The Companies Act, 2013 has done a tremendous job by providing Company's Social Responsibility (CSR) as a mandatory activity. A company has to comply with mandatory CSR norms where

A) The net worth of the company is INR (Indian National Rupee) 1,000 crores or more B) The turnover of the company is INR 1,000 crores or more C) Its net profit during any financial year is INR 50 crores or more D) Its paid-up share capital is INR 200 crores or more

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Answer & Solution

Answer: Option B

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57

Producer company is based on the principles of . .

A) Patronage B) Mutual Assistance C) Limited Return D) All of these

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Answer & Solution

Answer: Option B

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58

To safeguard the interest of the shareholders through class action suits, an application may be made to the Tribunal. Which one of the following is wrong?
An application

A) To restrain the company from committing an act which is ultra vires the Articles or Memorandum B) To restrain the company from committing breach of any provision of the Company's Memorandum and Articles C) To restrain the Company from taking action to any resolution passed by members D) To restrain the Company and its Directors from acting on a resolution obtained by mis-statement to the members or depositors

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Answer & Solution

Answer: Option C

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59

How much amount of the profits of a company can be distributed as dividend amongst its shareholders?

A) 10% of the profit B) 15% of the profit C) 5% of the profit D) No fixed

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Answer & Solution

Answer: Option D

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60

A public company can be converted into a private company only after the approval of the

A) State Government B) High Court C) Regional Director D) National Company Law Tribunal

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Answer & Solution

Answer: Option C

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Indian Companies Act MCQ question and answer | Law MCQ question