The Indian Companies Act Law is a comprehensive legislation that governs the formation, regulation, and dissolution of companies in India.

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Indian Companies Act Law Best 78 GK MCQ SET:-1

Q1. Equality means

(A) Literal equality
(B) Proportional equality
(C) Both (A) and (B)
(D) Neither (A) nor (B)

Answer: Proportional equality

Q2. 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.

(A) Both (A) and (R) are correct and (R) is the correct explanation of (A)
(B) Both (A) and (R) are correct but (R) is not the correct explanation of (A)
(C) (A) is true but (R) is false
(D) (A) is false but (R) is true

Answer: Both (A) and (R) are correct and (R) is the correct explanation of (A)

Q3. A Prospectus which does not include complete particulars of the quantum or price of the securities included therein in known as:

(A) Shelf Prospectus
(B) Memorandum
(C) Red Herring Prospectus
(D) Issuing house

Answer: Red Herring Prospectus

Q4. The minimum number of the members for a private company and for a public company are respectively

(A) 10 and 50
(B) 10 and 100
(C) 7 and 2
(D) 2 and 7

Answer: 2 and 7

Q5. Ashbary Railway Carriage & Iron Co. v. Riche is the case which is related with which topic of the Company Law ?

(A) Doctrine of indoor management
(B) Doctrine of ultra vires
(C) Prospectus of company
(D) Promoters of company

Answer: Doctrine of ultra vires

Q6. The Minimum number of persons required to incorporate a Public Company is

(A) 5
(B) 10
(C) 7
(D) 2

Answer: 7

Q7. 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

(A) Cabinet Committee on Economic Affairs
(B) Securities and Exchange Board of India
(C) Reserve Bank of India
(D) Department of Economic Affairs

Answer: Reserve Bank of India

Q8. Which of the following actions can be taken when an issue is made under the provisions of Section 42 of the Companies Act, 2013 ?

(A) An advertisement can be issued in a local newspaper having city coverage
(B) The money payable towards subscription can be received in cash
(C) The share can be allotted within sixty days of the date of offer
(D) The offer can be made to a maximum of fifty people

Answer: The offer can be made to a maximum of fifty people

Q9. “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

(A) Only (1)
(B) Only (1) and (2)
(C) Only (1), (2) and (3)
(D) (1), (2), (3) and (4)

Answer: (1), (2), (3) and (4)

Q10. In case of Private Company, as per section 2(68) of the Companies Act, 2013, what is the minimum paid up capital ?

(A) No minimum amount prescribed
(B) 1 lakh rupees
(C) 5 lakh rupees
(D) 10 lakh rupees

Answer: 1 lakh rupees