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WorksheetsClass Assignment 1
Total questions: 53
Worksheet time: 58mins
In case of a company is limited by _____________, the liability of its members is limited to the unpaid amount of shares they hold.
Shares
Guarantee
Directors
Shareholders
In the case of a company is limited by guarantee, the liability of its members is limited to ____________________.
the amount of each members' contribution towards the assets of the company.
the unpaid amount of shares they hold
the entire liability of the company
All of the above
Which of the following details is not included in the Memorandum of a company?
Registered office address
Objects of the company
Liability of various members of the company
Shares of the shareholders
According to the Indian Companies Act, 2013, there should be at least a minimum of 1 female director on the company's board.
The statement is true
The statement is false
The statement is not mandatory
Cannot determine
3.A certificate of incorporation is issued when the proper documents for company formation have been filed.
True
False
What is a 'proxy?'
A person appointed, on behalf of a member, to attend, speak and/or vote at a general meeting on the member's behalf
A member who appoints another person to attend, speak and vote at a general meeting on his behalf.
A member who has agreed not to use the votes attached to his shares.
A director of a company who owns shares in that company.
What are the limits of number of members in a Private Company?
(a) Fifty
b) Seven
(c) Twenty
(d) Two hundred
One person company can be ……. .
A: Public Company
B: Private company
C: Non Profit organization
D: All of the above
_________ are the
company created by special act of the legislature
A Registered company
B:Public Ltd Company
C:. Private ltd company
D. Statutory company
A Government Company means any company in which not less than 51% of the paid-up share
capital is held by …. .
A Central Government
B. State government
C. Both a & b
D. Neither a nor b
One person
company has to compulsory write what at the end of its name ?
A: Ltd
B: Pvt Ltd
C: OPC
D: none of the above.
Company can
excise the following rights ?
A: owning property
B:borrowing money
C:employing people
D: All of the above.
A Company has been formed to undertake the business of making designer shoes. This objective of the company would be found in which of the following documents ?
Certificate of incorporation
MOA
Directors certificate of commencement of business
AOA
The ____defines a companys relations with the outside world.
prospectus
memorandum of association
articles of association
statement in lieu of prospectus
East India Company was an example of
Foreign company
Chartered company
Public company
The public company shall invite the public to deposit money with the company for fixed periods or payable at call.
True
False
WHICH OF THE FOLLOWING ARE NOT THE CHARACTERISTIC OF A COMPANY?
IT EXIST ONLY IN CONTEMPLATION OF LAW
THE MEMBERS CANNOT BE SUED FOR THE DEBTS OF A COMPANY
IT COMES TO AN END ON THE DEATH OF ALL ITS MEMBERS
NCLT stands for
National Corporate Law Tribunal
National Company Legislative Tribunal
National Company Law Tribunal
None of these
The process of forming a company including where it becomes a legal entity is known as ______.
Incorporation
A franchise
Liquidity
Goodwill
DIN stands for
Director identification number
Directive identification Nil
Decisive information number
Director information numerical
Maximum share capital in case of OPC cannot exceed
5 lakh rupees
5 crores rupees
2 crores rupees
50 laks rupees
What are the various features of Company?
Unlimited Liability
Artificial Person
Separate Legal Entity
Perpetual Succession
What is the primary purpose of an annual report?
To promote the company's products and services.
To provide an overview of the company's financial performance and activities.
To entertain shareholders with colorful graphics and charts.
To disclose the personal details of the company's executives.
What is the purpose of the Management Discussion and Analysis (MD&A) section in an annual report?
To provide an overview of the company's financial statements.
To present the company's future projections and forecasts.
To disclose potential risks and uncertainties facing the company.
To describe the company's organizational structure and key personnel.
How can annual reports be valuable for investors?
They provide a summary of
the company's daily operations.
They offer insights into the company's financial health and performance.
They include detailed profiles of the company's competitors.
They disclose the personal investment portfolios of company executives.
So what do we need to make the stakeholders trust us?
consistency
transparency
sustainability
Annual CSR Report means the report is created every…
day
month
year
4.Transparency in Board's processes and independence in the functioning of Boards
True
False
1. What is the best definition of Corporate Governance?
1. The internal structure designed to allow the organisation to comply with laws and regulations
2. A commitment to economic development by working with stakeholders to improve their lives
3. A set of tools to help management run the day to day activities of the business
4. The same as Corporate social responsibility
5. A system by which the organisation is directed and controlled on behalf of its stakeholders
2.Who should have overall responsibility for Corporate Governance?
1. Risk Management
2. The Board
3. Internal Audit
4. The Strategy Department
5. The Compliance function
3. What is ESG?
1. Energy safety guidelines
2. Equipment safety guidance
3. Environmental, Social & Governance
4. Effective standards of Government
5. What is CSR?
1. Corporate social responsibility
2. Customer satisfaction research
3. Customer service responsibility
4. Corporate skills research
Directors’ responsibilities are unlikely to include
a duty of care
a duty to keep proper accounting records
a fiduciary duty
a duty to propose high dividends for shareholders
What does SDG stand for?
social
sustainable
governance
goals
development
How many indicators are there in SDG?
15
12
17
30
A board member is independent when he/she:
Represent the shareholders and not the other parties
Is the family member of the CEO
Has no relationship of any kind with the company, its group or the management that will influence his/her judgement
Is the top management of the company supervised
The Board of Directors can exercise the power to appoint directors in the case of.
Additional Directors
Alternate Directors
Filling up of casual vacancy
All of the above
An additional director appointed by the Board of Directors shall continue to hold the office up to the due
date of the next ------------------
Board Meeting
Annual General Meeting
Shareholder meeting
None of the above
Corporate governance is same as corporate social responsibility
True
False
Articles of Association is the foundation upon which the whole structure of the company is built up
True
False
To alter the Memorandum , we need approval from
Municipality
Board of Directors
Central Government
State Government
1. The term ‘ultra vires’ means------------------
with the power
Beyond the power
Directors power
Shareholders power
-----Document contains the rules and regulations regarding the internal management
Memorandum
Articles
Certificate of incorporation
Minutes
Articles of Association is subordinate to --------
Company Law
Central Government
Memorandum
Prospectus
Doctrine of constructive notice do not affect the company but only the third party
True
False
What are the exception to the doctrine of indoor management ?
Knowledge or irregularity
Negligence
Perpetual succession
Limited liability
List down the clauses in a memorandum of association.
What is an article of association? Does every company require an article of association?
Explain the purpose of memorandum of association
Write down the full form of DIN
List down the characteristics that a company acquires on incorporation.
Point out one advantage of a limited liability partnership.
