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Company Law

Practice Test 1

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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

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Liability of directors of a public company is towards

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In what way the doctrine of ultra vires is applied to the companies?

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

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The Companies Act, 2013 has provided that in listed companies, appointment of independent directors is mandatory and the independent directors will be appointed

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What is the appellate authority for the order against National Company Law Appellate Tribunal?

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A Director appointed to fill up casual vacancy will hold office

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The statutory formulation of directors’ duties under Companies Act, 2013 have been spelt out in

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Which among the following authorities is vested with the power to investigate on matters of professional misconduct committed by a Chartered Accountant or a Chartered Accountant’s Firm under Section 132 of the Companies Act, 2013?

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The Central Government has been empowered to conduct investigation into the affairs of the company under section 210 of the Companies Act 2013
(1) On the report of Registrar of Companies
(2) In public interest
(3) On passing of the special resolution
(4) On order of the court or tribunal
Select the correct answer:

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How is the net worth of a foreign Company calculated for the purpose of Corporate Social Responsibility

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No person can hold the office of the director in more than . . . . . .

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A company shall be deemed to be unable to pay its debts:

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A Prospectus which does not include complete particulars of the quantum or price of the securities included therein in known as:

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

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Contracts made after incorporation of a public company, but before issuing the certificate of commencement of business are . . . .

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Article of Association is a concept in

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Memorandum of a company under the Company Law is like a

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Read Assertion (A) and Reason (R) and answer by using given below:
Assertion (A): Under the Company Law, though any outsider is presumed to be aware of the documents which are publicly accessable, but not the internal proceedings of which he can not reasonably aware of, because those are not accessible to the public.
Reason (R): The Doctrine of indoor management evolved as a partial exception to the Doctrine of Constructive Notice and the rule was laid down in Royal British Bank v. Turquand.

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A foreign company intends to merge with an Indian Company. As per the relevant provision in the Companies (Compromises, Arrangements and Amalgamation) Rules, 2016, it needs to obtain prior approval of

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A company having paid-up share capital of rupees ten lakhs or more is required to submit a certificate to the Registrar of Companies. This certificate is called Compliance Certificate. By whom this certificate is issued?

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What is the maximum number of partners in Banking business

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According to section 2(45) of the Companies Act (as amended in 1974), a Company Secretary must possess the qualifications prescribed from time to time by the

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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

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Minimum number of members required to apply for incorporation Certificate in a Public Ltd. Company is:

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According to the new Companies Act, 2013, what is the minimum number of person/s required to form a Private Limited Company?

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Which of the following activities cannot be considered as relating to social responsibility under Section 135 of the Companies Act, 2013?

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Which of the following is most essential for a company?

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Under which provision of the Companies Act, 2013, will members be liable for a reduction of the statutory minimum number of members, in the Company?

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Which section of the Companies Act, 2013 deals with corporate social responsibility?

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It deals with the Internal Management and Affairs of company:

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Which one of the following is incorrect? Any mis-statement made in the Prospectus would attract the liability of the following persons under the Companies Act:

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Find answer by using given below:
Director may be removed by
(a) Other Directors
(b) Creditors
(c) Central Government
(d) Shareholders in a general meeting

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“Directors are agents of the company”. In which of the following cases above principle was laid down. Answer using given below:
(1) Ferguson v. Wilson
(2) Elkington and Co. v. Harter
(3) Hampshire Land Co., Re
(4) Allen v. Hyatt

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Articles of a company can be altered by

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Which of the following actions can be taken by a Registrar under section 4(5) of the Companies Act, 2013

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The proper authority for convening a General Meeting of a company is the

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

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The provision of Companies Act, 2013 relating to application to Tribunal for prevention of oppression and mismanagement is contained in

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What do you mean by pursuit?

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

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In case of Private Company, as per section 2(68) of the Companies Act, 2013, what is the minimum paid up capital?

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Which of the following statements is not correct?

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Starax Ltd. has the paid-up equity capital structure in the following proportion – Central Government: 38%; State Government: 10%; Subsidiary of a Government Company: 17.50%; and remaining shares by retail shareholders. Which of the following classes of companies would it belong to?

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Which of the following services cannot be provided to the Company by an auditor appointed under the provisions of the Companies Act, 2013

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An application for prevention of oppression and mismanagement in a company should be made to the

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Ashbary Railway Carriage & Iron Co. v. Riche is the case which is related with which topic of the Company Law?

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Under the Companies Act, 2013, a private company can borrow funds for its financial needs from

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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:

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“Company is a separate legal entity.” It was laid down in

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Articles of Association are not to be registered in case of

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

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Which two types of business structures are created via a process of incorporation?

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A shareholder of a company can enter into a contract with a company because it is a separate legal entity from its shareholders’ was held in

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Which of the following is true about an incorporated company?

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Which one of the following is primary source of equity?

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Directors of a company are

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Which of the following statement is correct? Answer using given below:
(1) Doctrine of indoor management apply in case of knowledge of irregularity in company.
(2) Doctrine of indoor management does not apply in case of suspicion of irregularity.
(3) Doctrine of indoor management apply in case of forgery.
(4) Doctrine of indoor management does not apply if the act of an officer of a company is one which would ordinarily be beyond the powers of such an officer.

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Which of the following actions can be taken when an issue is made under the provisions of Section 42 of the Companies Act, 2013?

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

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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

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In which of the following cases, the doctrine of Indoor Management was laid down?

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In which of the following cases, the Court cannot order rectification of instrument-

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The Minimum number of persons required to incorporate a Public Company is

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

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The capital with which a company is registered is called

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A public company can borrow money

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Which among the following remedies is available for a person who acted upon a false prospectus?

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The minimum number of the members for a private company and for a public company are respectively

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The first Annual General Meeting of a Company must be held

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Producer company is based on the principles of . .

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Which of the following Companies will have to constitute Corporate Social Responsibility Committee under the Companies Act, 2013

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With which topic the case of Earlanger v. New Sombero Phosphate Co., is related to the Company Law?

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

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For dissolution of a company, the Tribunal shall pass order

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A Private company can commence business as soon as it receives

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2 thoughts on “Practice Test 1”

  1. I was impressed with this questioning session..i would like to participate in this test and i suggest to create like this tests in different scope of laws.

    Wish you a luck.

  2. I was impressed with this questioning session..i liked to participate in this test and i suggest to create more tests in different scope of laws.

    Wish you a luck.

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