Company Law Quiz

What is the primary objective of the Company Law course?

• To learn about personal finance

• To explore marketing strategies

• To understand key legal principles and business organizations

• To study international law

According to the Companies Act of Bhutan 2016, what defines a company?

• A group of individuals working together

• A company incorporated under specific legislative provisions

• A non-profit organization

• A partnership between two or more people

Which of the following is NOT a characteristic of a company?

• Direct ownership by shareholders

• Limited liability

• Perpetual existence

• Artificial legal person

What is a private company prohibited from doing?

• Transferring shares freely

• Offering shares to the public

• Having more than two directors

• Being incorporated under the law

What is the minimum number of directors required for a public company?

• One

• Two

• Three

• Four

What does 'limited liability' mean for shareholders?

• They are only liable for the amount they invested

• They are responsible for all company debts

• Their personal assets are at risk

• They can lose their shares without compensation

What is the purpose of lifting the corporate veil?

• To protect shareholders from liability

• To simplify company registration

• To reveal the true nature of a company's operations

• To increase company profits

In which case was the principle of corporate personality confirmed?

• Saloman v A. Saloman & Co Ltd

• DHI v Bhutan Power Corporation

• Druk Holding & Investment Ltd v Dungsam Polymers Ltd

• Prest v Petrodel Resources Ltd

What is a government company defined as?

• A company with at least 51% of share capital held by the government

• A non-profit organization

• A company that cannot issue shares

• A company owned entirely by private individuals

What does 'perpetual succession' mean?

• The company can change its name at any time

• The company continues to exist despite changes in ownership

• The company can only operate for a limited time

• The company must dissolve after a certain period