Share Capital and Debenture- All Sections

Part of the capital for which application have been received from the public and shares allotted to them:

• Nominal capital

• Issued capital

• Subscribed capital

• Called up capital

Article of association of a private company states that; it will issue preference shares which will have preference of dividend only but no preference of repayment of capital. Can it issue such preference shares?

• No; as per section 43 preference shares should have both preference

• No; this will become equity share as per section 43

• Yes, because as per section 43 preference shares should have any one preference

• Yes; because AOA allows issue of such preference share and it is a private company.

If a company have authorised share capital of INR 6,00,000; paid up share capital of INR 5,00,000 and a loan from government of 2,00,000. Government ordered the Company to convert its loan into shares. In this case, such order has the effect of increasing

• the subscribed share capital of the company

• the paid-up share capital of the company

• the authorised share capital of the company

• all of the above

When an unlisted public company issues shares at a premium, amount of the premium received on those shares is transferred to a "securities premium account". For which purpose amount lying in securities premium account shall be used?

• In writing off preliminary expenses of the company;

• In writing off pre-incorporation expenses of the company;

• For purchase of immovable assets;

• For paying managerial remuneration.

A company may issue equity shares with differential rights as to dividend, voting or otherwise, only if it is authorized by ________.

• The Central Government

• The Court

• The Tribunal

• Its Articles

On a poll, the voting right of every equity shareholder shall be _______

• Based on the principle of 1 vote for every member

• Based on the principle of 1 vote for every member, if so, provided by the Articles

• In proportion to his share in the paid-up equity share capital of the company

• In proportion to his share in the paid-up preference share capital of the company

A special resolution passed for by a company authorizing it to issue sweat equity shares shall be valid for making the allotment within a period of not more than _______ from the date of passing SR

• 6 months

• 12 months

• 2 years

• 3 years

The transfer deed (after stamping, dating and signing) shall be submitted to the company within ________ of execution.

• 30 days

• 45 days

• 60 days

• 90 days

Where the buyback is authorized by a special resolution, it shall not exceed ______ of ______

• 25%; Aggregate of paid-up capital and free reserves

• 25%; total paid up equity capital

• 25%; aggregate of paid-up equity capital and free reserves

• 10%; aggregate of paid-up equity capital and free reserves

The ratio of debt (secured as well as unsecured debt) owed by the company must not be more than _______ the aggregate of paid up capital and free reserves _______ the buy- back

• Twice; before

• Twice; after

• Thrice; before

• Thrice; after