UNIT 1

Though a company is an artificial legal person, it can act only through _______ agency

• Legal
• Artificial
• Human & Animal
• Human

Since a company is an artificial legal person, existence of its members _______ effect the existence of the company

• will
• will not
• None
• Depends

Which among the below is not a feature of a company?

• Common seal
• Limited liability
• Artificial legal person
• None of the above

Corporate veil theory protects _______ from _______

• Company, Members
• Members, Outsiders
• Members, Company
• Comapny, Outsiders

Who can lift the corporate veil?

• anyone
• BOD
• members
• Law

A company is formed to act as an agent of another company. But such formed company is not a subsidiary. Now, the corporate veil ______ be lifted.

• will
• never
• may
• can

In case of a company incorporated to breach contracts and do fraud with its fraudulent creditor, the corporate veil _____ be lifted.

• can not
• can
• can never
• will not

In a company limited by guarantee, the guarantee has to be paid by the members upon _____

• When liability arises
• Upon Incorporation
• Upon winding up
• None

As per government rules a person can work as a labour for maximum 6 hours a day in a company. MNC company where workers worked for 10 hours, opened a subsidiary company and showed that employees worked only for 5 hours in one company. Can the law pierce the corporate veil?

• Yes
• No
• Depends
• None

Public company is any company which is not

• Private
• OPC
• Small
• All of the above