Quiz on Companies Act, 2013

Aditya is starting a new business and wants to know which of the following defines a private company under the Companies Act, 2013?

• A company that has a minimum paid-up capital as prescribed

• A company that restricts the right to transfer its shares

• A company that prohibits any invitation to the public to subscribe for any securities

• All of the above

According to the Companies Act, 2013, a public company is one that:

• Has a minimum paid-up capital of 10 lakh

• Restricts the right to transfer its shares

• Has no restrictions on the maximum number of members

• All of the above

Aditya and Aditi are planning to start a new business and want to form a public company. According to the Companies Act, 2013, what is the minimum number of members required to form a public company?

• 2

• 3

• 7

• 10

Nikita and Riya are discussing the characteristics of different types of companies. Riya mentions that an unlimited company is defined under the Companies Act, 2013 as a company:

• With no limit on the liability of its members

• That does not issue shares

• With limited liability of its members

• None of the above

Nikita and Riya are considering starting a non-profit organization. They want to understand the structure of a company limited by guarantee. They learn that in such a company:

• Members' liability is limited to the unpaid amount on shares they hold

• Members' liability is limited to the amount they agree to contribute in case of winding up

• Members have unlimited liability

• None of the above

Riya and Aditi are discussing different types of companies. Aditi mentions that she wants to start a business but is unsure about the types of companies available. Riya explains that there are several types defined in the Companies Act, 2013. However, she is confused about one type that is not included in that act. Which of the following companies is not defined in the Companies Act, 2013?

• One Person Company

• Limited Liability Partnership

• Private Company

• Public Company

Nikita and Aryan are discussing the definition of a subsidiary company under the Companies Act, 2013. They wonder if a subsidiary company is defined as:

• A company in which the holding company controls the composition of the Board of Directors

• A company in which the holding company holds more than 50% of the total share capital

• Both a and b

• Neither a nor b

Aditya is studying the Companies Act, 2013 and learns about holding companies. He discovers that a holding company is:

• A company that has at least one subsidiary company

• A company that holds more than 50% shares in another company

• Both a and b

• None of the above

Nikita is curious about the status of a company she heard about that hasn't conducted any business activities for a while. According to the Companies Act, 2013, a dormant company is:

• A company that is not carrying on any significant accounting transactions

• A company that has been inactive for a period of two years

• Both a and b

• Neither a nor b

ARYAN is considering starting a business and is curious about the structure of a One Person Company (OPC) under the Companies Act, 2013. Which of the following is true about an OPC?

• It can have more than one member

• It is required to hold annual general meetings

• It is formed by only one person as a member

• It cannot convert into a public company