WorksheetsFORMATION OF A COMPANY
Total questions: 20
Worksheet time: 13mins
Minimum number of members to form a public company is-------------
5
7
12
21
Application for approval of name of a company is to be made to------------------------------
SEBI
Registrar of Companies
Government of India
Government of the State in which Company is to be registered
It is necessary to get every company incorporated, whether private or public.
True
False
Not sure
The shares of -------- company can be freely transferable.
Private company
Public Company
Partnership
All the above
‘A company will remain even if all its members die.” Which feature of the company does this statement signify:
Perpetual Existence
Professional Management
Limited Liability
Transfer of Interest
Qualification shares are subscribed by:
Directors of the company
Auditors of the company
Bankers of the company
Employees of the company
Joint Stock Company has to follow a certain specified legal procedure for
its formation. Arrange the following steps of formation in a proper order.
I. Capital subscription stages II. Promotion
III. Commencement of business IV. Incorporation
Select from the following options:
III, II, I, IV
II, IV, III, I
IV, II, III, I
II, IV, I, III
Chandramukhi purchased 250 shares of Great Company Limited, the face value of shares being ₹ 100. The company has called ₹ 80 per share till date, and all such amounts as called by company, have been paid by Chandramukhi. What is the liability of Chandramukhi now?
Unlimited Liability
Rs. 5000
Rs. 25,000
Rs. 20,000
‘The documents that serve as constitution of the company’ and ‘the document that serves as doctrine of indoor management’ are as follows:
Prospectus and Articles of Association respectively
Memorandum and Articles of Association respectively
Memorandum and Prospectus respectively
None of the above.
Which of the following are the functions of a promoter?
Appointment of professionals
(b) Feasibility studies
(c) Name approval
(d) All of the above
Which of the following document is to be submitted for getting the company registered?
Memorandum of Association
(b) Articles of Association
(c) Both a & b
(d) None of the above
.________are neither the agents nor the trustees of the company
Registrar
(b) Registree
(c) Promoters
(d) Preliminary Contracts
As per the SEBI guidelines, the minimum subscription has to be 90% of the shares to be issued to be public
True
(b) False
(c) Partially true
(d) Partially false
____defines relationship of the company with the outsiders
Articles of Association
(b) Memorandum of Association
(c) Both (a) & (b)
(d) None of the above
.Contracts signed by promoters with third parties before the incorporation of the company is called---
Preliminary Contracts
(b) Provisional Contracts
(c) Memorandrum of Association
(d) Articles of Association
Promoter is a person who---
Who has been named as such in a prospectus
(b) Who is identified by the company in the annual return referred to in section 92
(c)Who has control over the affairs of the company, directly or indirectly whether as a shareholder, director, or otherwise
(d)All of the above
Different Clauses of Memorandum of Association are:
Name clause
(b) Objects Clause
(c) Liability clause
(d) All of the above
Application for approval of name of a company is to be made to
SEBI
Registrar of Companies
Government of India
Government of the State in which Company is to be registered
Preliminary Contracts are signed
Before the incorporation
After incorporation but before capital subscription
After incorporation but before commencement of business
After commencement of business
Powers, rights, remuneration, qualification, and duties of directors are discussed clearly in
Memorandum of Association
(b) Articles of Association
(c) Prospectus
(d) None of the above
