Basic Company Law

What is the meaning of "share capital" in a company?

• Share capital refers to the total assets owned by a company.
• Share capital is the profit a company makes from its operations.
• Share capital is the amount of money a company spends on marketing.
• Share capital is the total amount of money that a company raises by issuing shares to shareholders.

What is the maximum amount of share capital company can raise?

• Authorized capital
• Issued capital
• Paid-up capital
• Nominal capital

What is the minimum paid-up capital requirement for a private limited company under the Companies Act, 2013?

• No Minimum capital Requirement

• Rs. 5 lakh
• Rs. 10 lakh
• Rs. 1 lakh

What is meant by “preference shares”?

• Preference shares are a type of bond that guarantees a fixed interest rate.
• Preference shares are a type of debt that must be repaid before any dividends are paid to common shareholders.
• Preference shares are a type of equity that provides fixed dividends and priority over common shares in liquidation.
• Preference shares are equity shares.

What is the minimum number of directors required in a private limited company?

• No director required

• 7

• 3
• 2

Who are the shareholders in a company?

• Individuals who work for the company
• Customers who purchase products
• Government agencies that regulate the company
• Individuals or entities that own shares of a company.

What is the maximum number of shareholders a private company can have?

• 200

• 7

• No limit

• 25

What is the term used for the portion of share capital that has been issued but not fully paid up by shareholders?

• Subscribed Share capital

• Paid-up share Capital

• Uncalled Share Capital

• Dividends in arrears

What are equity shares?

• loans given to a company with fixed interest rates.

• shares that guarantees returns.

• Shares that carry voting rights

• Shares without dividend

Can shares be transferred in a private company?

• Yes, shares can be transferred in a private company, subject to certain restrictions.
• Only the company's founders can transfer shares in a private company.
• Yes, shares can be transferred freely without any restrictions.
• No, shares cannot be transferred in a private company at all.