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WorksheetsCompany Law
Total questions: 10
Worksheet time: 5mins
1. The doctrine which advocates the fact that company cannot act beyond the scope of its memorandum of association is:
Doctrine of constructive notice
Doctrine of indoor management
Doctrine of ultra vires
Doctrine of intra vires
2. The most important document of a company is
Annual Report
Balance Sheet
Prospectus
Memorandum of Association
3. Under the Companies Act, 2013, “Significant influence” constitutes how much % of total share capital or of business decisions under an agreement?
At least 2%
At least 5%
At least 10%
At least 20%
4. Which one of the following is not the content of the Memorandum of Association?
Name clause
Registered office clause
Objects clause
Board of Directors clause
5. Sum stated in the memorandum as the capital of the company with which it is to be registered being the maximum amount which it is authorised to raise by issuing shares
Called Up
Paid up
Nominal
Subscribed
6. Nimi Ltd. was a confectionaries manufacturing company which has 7 members and all of them died in an aircraft. Despite this, the company still exists unlike partnership form of business. Which feature of a company is involved in this case?
Common Seal
Artificial Legal (Judicial) Person
Separate Legal Entity
Perpetual Succession
7. Which theory is involved in the famous case law of Salomon Vs. Salomon and Co Ltd.?
Lifting of Corporate Veil
Formation of subsidiaries to act as agents
Company formed for fraud / improper conduct or to defeat law
Corporate Veil
8. Ziva Limited purchased shares of Zanjeer Limited by investing a sum of Rs. 6,50,000. The dividend in respect of these shares was shown in the profit and loss account of the company, year after year and was also accounted for the purpose of calculating the bonus payable to workmen of the company. Ziva Ltd. transferred the shares of Zanjeer Limited, to ZZ Limited a subsidiary, wholly owned by it. Thus,the dividend income did not find place in the Profit & Loss Account of A Ltd., with the result that the surplus available for the purpose for payment of bonus to the workmen got reduced. Here a company created a subsidiary and transferred to it, its investment holdings in a bid to reduce its liability to pay bonus to its workers.
To avoid a legal obligation
To determine the character of the company i.e. to find out whether co-enemy or friend
To protect revenue/tax
Company formed for fraud/improper conduct or to defeat law
9. _____________ has been introduced to encourage entrepreneurship and corporatization of business.
Private company
One person company
Not for profit company
Small company
10. Small company means a company, other than a public company, having paid-up share capital of which
Does not exceed fifty lakh rupees
Does not exceed hundred lakh rupees
Exceeds fifty lakh rupees
Does not exceed ten lakh rupees
