Company Law Unit II

What is the definition of 'share' as per Section 2(84) of the Companies Act, 2013?

• A share in the share capital of a company
  
  

  
  

• b. A unit of a company's capital
  

• c. A percentage of a company's profits
  

• d. A division of a company's assets

What is a 'share certificate'?

• a. A document providing evidence that the person holding it is the shareholder of the company
  

• b. A document detailing the financial status of a company 
  

• c. A document outlining the dividend payments from a company to its shareholders
  

• d. An official tax document from a company to its shareholders

Which type(s) of shares can be issued by a company?

• a. Equity Shares only 
  

• b. Preference Shares only 
  

• c. Sweat Equity Shares only 
  

• d. All of the above 

In preference shares, what are two preferential rights? 

• a.Right to vote and right to transfer shares.
  

  
  

• b.Preferential right as to payment of dividend and repayment of capital.
  
  

• c.Right to attend general meetings and vote.
  

• d.Right to inspect books and receive notice.

What are cumulative preference shares? 

• a.Shares that accumulate dividends even if there are no profits in a particular year.
  
  

• b.Shares that do not accumulate dividends if there are no profits in a particular year.
  

• c.Shares that can be converted into equity shares.
  

• d.Shares that cannot be converted into equity shares.