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

Q21. 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

Answer: A company can have more than one Manager at the same time

Q22. 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

Answer: Registrar of Companies

Q23. 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.

Answer: Attorney General v. Great Eastern Railway Co.

Q24. 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

Answer: The turnover of the company is INR 1,000 crores or more

Q25. Producer company is based on the principles of . .

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

Answer: Mutual Assistance

Q26. 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

Answer: To restrain the Company from taking action to any resolution passed by members

Q27. 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

Answer: No fixed

Q28. 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

Answer: Regional Director

Q29. The statutory formulation of directors’ duties under Companies Act, 2013 have been spelt out in

(A) Section 166
(B) Section 151
(C) Section 171
(D) Section 289

Answer: Section 166

Q30. 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 ?

(A) Government company
(B) Non-government company
(C) Deemed public company
(D) Deemed private company

Answer: Government company