FORMATION OF A COMPANY

Minimum number of members to form a public company is-------------

• 5

• 7

• 12

• 21

Application for approval of name of a company is to be made to------------------------------

• SEBI

• Registrar of Companies

• Government of India

• Government of the State in which Company is to be registered

It is necessary to get every company incorporated, whether private or public.

• True

• False

• Not sure

The shares of -------- company can be freely transferable.

• Private company

• Public Company

• Partnership

• All the above

‘A company will remain even if all its members die.” Which feature of the company does this statement signify:

• Perpetual Existence

• Professional Management

• Limited Liability

• Transfer of Interest

Qualification shares are subscribed by:

• Directors of the company

• Auditors of the company

• Bankers of the company

• Employees of the company

Joint Stock Company has to follow a certain specified legal procedure for

its formation. Arrange the following steps of formation in a proper order.

I. Capital subscription stages II. Promotion

III. Commencement of business IV. Incorporation

Select from the following options:

• III, II, I, IV

• II, IV, III, I

• IV, II, III, I

• II, IV, I, III

Chandramukhi purchased 250 shares of Great Company Limited, the face value of shares being ₹ 100. The company has called ₹ 80 per share till date, and all such amounts as called by company, have been paid by Chandramukhi. What is the liability of Chandramukhi now?

• Unlimited Liability

• Rs. 5000

• Rs. 25,000

• Rs. 20,000

‘The documents that serve as constitution of the company’ and ‘the document that serves as doctrine of indoor management’ are as follows:

• Prospectus and Articles of Association respectively

• Memorandum and Articles of Association respectively

• Memorandum and Prospectus respectively

• None of the above.

Which of the following are the functions of a promoter?

• Appointment of professionals

• (b) Feasibility studies

• (c) Name approval

• (d) All of the above