CA Inter Corporate & Other laws MCQs Set I

Roma along with her six friends has incorporated Roma Trading Ltd. in May 2019. The paid-up share capital of the company is ` 30 lacs. Further, in April 2020, she noticed that in the last financial year, the turnover of the company was well below ` 2 crores. Advise whether the company can be treated as a ‘small company’.

Abhilasha and Amrita have incorporated a ‘not for profit’ private limited company which is registered under Section 8 of the Companies Act, 2013. One of their friends has informed them that their company can be categorized as a ‘small company’ because as per the last profit and loss account for the year ending 31st March, 2019, its turnover was less than 2.00 crores and its paid up share capital was less than ` fifty lacs. Advise.

Namita Ceramic Goods Limited having 152 members was incorporated with the main objects to manufacture ceramic goods, glazed, unglazed floor and wall tiles, etc. and to carry on trading in such products. After three years of successful operation, it wants to diversify its business by entering into the field of manufacturing electronic goods for which it is required to alter its objects clause. Advise the company in relation to alteration of Memorandum.

Swara Musical Instruments Private Limited was incorporated on 10th October, 2018 by converting existing partnership firm into company. Sohini and Mohini became the promoters of the company. Sohini’s premises which was rented out to the partnership firm was to be used as the registered office. Mention the documents which need to be filed with the Registrar of Companies (ROC) for verification of registered office.

Anupam got incorporated ‘One Person Company’ with his sister Alpana as the nominee and about three years have passed satisfactorily. From time to time Anupam does a number of charitable works and is associated with three NGOs. In the meantime his business under his OPC has also flourished. Now he is contemplating to convert the OPC either as a Section 8 company (i.e. formation of companies with charitable objects). Choose the correct option.

A issue house (share broker) has issued an advertisement in two leading newspapers for selling a big number of shares allotted to it by a company under a private placement. In which of the following conditions the advertisement will not be deemed as prospectus:

Which of the following statements is not true?

Which of the following statement is contrary to the provisions of the Companies Act, 2013?

A shelf prospectus filed with the ROC shall remain valid for a period of:

Shripad Religious Publishers Limited has received application money of 20,00,000 (2,00,000 equity shares of ` 10 each) on 10th October, 2019 from the applicants who applied for allotment of shares in response to a private placement offer of securities made by the company to them. Select the latest date by which the company must allot the shares against the application money so received.

Being in need of further capital, Rimsi Cotton-Silk Products Limited opted to offer 50 lacs equity shares of ` 1 each to 50 identified persons on ‘private placement’ basis and accordingly a letter of offer accompanied by application form was sent to them after fulfillment of due formalities including passing of special resolution. One of the applicants Rajan made a written complaint to the company highlighting the fact that the offer letter was incomplete as well as illegal, as it did not contain ‘renunciation clause’ as he wanted to exercise his ‘right of renunciation’ in favour of one of his son Uday. By choosing the correct option, advise the company in this matter.

Innovative Tech Sol Limited intends to invite subscription to ` 1.10 crores equity shares of ` 10 each on private placement basis. The persons identified as potential subscribers are within the statutory limit and also include the two other categories to which such statutory limit is not applicable. One such category is employees of the company who are offered equity shares under Employees’ Stock Option Scheme. By choosing the correct option, name the other excluded category.

Neptune Metal Tools Limited was incorporated on 2nd December, 2018 with twenty-five subscribers and authorised capital of ` 50,00,000 (5,00,000 equity shares of ` 10 each). As the directors of the company are in a dilemma whether to issue physical share certificates to the subscribers or keep the shares in dematerialized form, they need to be advised correctly in this respect.

How much Security Deposit an unlisted public company is required to maintain, at all times, with the respective depository when it dematerializes its securities.

On which offer of securities, commission is permitted to be paid to any underwriter by the company:

In case of ‘offer of sale of shares by certain members of the company’, which of the following options is applicable:

When a copy of the contract for the payment of underwriting commission is required to be delivered to the Registrar:

Such shares which are issued by a company to its directors or employees at a discount or for a consideration other than cash for working extraordinary hard and achieving desired output is honoured with

The Articles of Association of a private limited company state that the company may issue preference shares which will have preference of dividend only but no preference as to the repayment of capital, in the case of winding up. Is it possible for the company to issue such preference shares?

A general meeting of the company is to be held on 30th August, 2020. The company has not paid dividend for the financial year 2018-2019. It has also not yet paid any dividend for the year 2019-2020. In such case preference shareholders:

In a company if any change of right of one class also affects the right of other class, then:

Rajesh Infrastructure Limited wants to issue preference shares for a period exceeding 20 years for financing its proposed infrastructure project. On the basis of which statement, company can do so?

If a company has Authorised Share Capital of ` 6,00,000; Paid-up Share Capital of ` 5,00,000; a loan of ` 2,00,000 obtained from the State Government. The State Government ask the company to convert its loan into shares, then such order shall have the effect of increasing:

A company bought back 10% of its equity shares in August 2020. Due to certain miscalculations during the first buy-back, it again buy back another 10% equity shares in September 2020. Whether the company can resort to second buy-back?

Swagat Hospitality Limited defaulted in the repayment of last two instalments of term loan availed from National Commercial Bank. On 30th September, 2019, they cleared all the dues by repaying it. When can it issue equity shares with differential voting rights?

Ruchi was handed over an instrument of transfer dated 21st August, 2020, duly stamped and signed by Radha who had transferred 2000 equity shares of ` 100 each allotted to her by Murti Mechanical Toys Private Limited. Advise Ruchi regarding the date by which the instrument of transfer along with share certificates must be delivered to the company, to register the transfer in its register of members.

Shreem Lakshmi Jewellery Store Private Limited was incorporated on 27th August, 2020 with 30 persons as subscribers to the Memorandum of Association and with Authorised share capital of ` 1.00 crore divided into equal number of shares of ` 1 each. Each subscriber subscribed for 1.00 lac shares. Advise the company about the company by what date it needs to deliver the share certificates to the subscribers.

Keshika is the original owner of 1000 equity shares of ` 50 each being allotted by Modern Biscuits Private Limited. As she wanted these shares to be transferred to her younger sister Vanshika as a gift, she completed the transfer deed in all respects and delivered the same to the company along with share certificates on 17th July, 2020. However, the company did not register the transfer even after the expiry of more than one month nor did it send any notice of refusal. The lone reminder to the company remained unanswered. An appeal needs to be filed against the company with the National Company Law Tribunal (NCLT). Advise by choosing the correct option as to who has the right to file the appeal.

It has been decided by Vanita Watches Limited to issue sweat equity shares to five of its employees for the ‘value additions’ made by them in term of economic benefits which proved beneficial to the company. For how many year(s), the employees who have been allotted sweat equity shares cannot transfer them:

Prithvi Cements Limited is desirous of issuing debentures carrying voting rights. Which of the following options is best suited in such a situation:

While making an application to the Tribunal for seeking its confirmation in respect of extinguishing the liability of ` 3 per equity share, Medhavi Publishers Limited has to file a certificate along with the application, that the accounting treatment proposed by it for such reduction of share capital is in conformity with the accounting standards specified in the prescribed Section. Advise the company as to who can issue such certificate?

A reserve account that shall not be used by the company for any purpose other than repayment of deposits is called:

Normally no deposits are repayable earlier than ______ from the date of such deposits or renewal thereof.

Bhumi Real Estate Developers Limited has accepted deposits from its members which are being paid on the maturity without any default. As a statutory obligation, the company is required to deposit in a specified account opened with its bankers, a particular amount on or before 30th April of each year till the deposits are fully repaid. Advise the company regarding the quantum of amount which must be so deposited.

A Limited Company is accepting deposits of various tenures from its members from time to time. The current Register of Deposits, maintained at its registered office is complete. State the minimum period for which it should mandatorily be preserved in good order.

Dream World Entertainment Limited, has accepted deposits worth `50.00 lacs from public on 1st April 2019 for a period of 24 months i.e. repayment of deposit would be made on 31st March 2021. The rate of interest payable on such deposits is 9% p.a. One of the depositors Mr. Aman requested the company on 1st June 2020 for premature repayment of his deposit of ` 6.00 lacs along with interest. Advise the company in the said matter.

Suneet Spices Limited decides to raise deposits of ` 20.00 lacs from its members. However, it is of the opinion to secure such deposits partially by offering security worth ` 15.00 lacs. Which of the following options best describe such deposits:

What is the maximum tenure for which a company can accept or renew deposits from its members as well as public?

Ruchita wants to renew her deposit of ` 5.00 lakh maintained with Kewal Constructions Limited before the expiry of original period with a view to avail higher rate of interest. For how much extended period, Ruchita is required to renew her deposit, so that the company shall pay her higher rate on deposits?

Any person acquiring property (on which charge is registered under section 77) shall be deemed to have notice of the charge from:

An interest or lien created on the property or assets of a company or any of its undertakings or both as security is known as:

A charge was created by Cygnus Softwares Limited on its office premises to secure a term loan of ` 1.00 crore availed from Next Gen Commercial Bank Limited through an instrument of charge executed by both the parties on 16th February, 2019. Inadvertently, the company could not get the charge registered with the concerned Registrar of Companies (ROC) within the first statutory period permitted by law and the default was made known to it by the lending banker with a stern warning to take immediate steps for rectification. Advise the company regarding the latest date within which it must register the charge with the ROC so that it is not required to pay a specific type of fees for charge registration.

Which one of the following required ordinary resolution?

A resolution shall be a special resolution when the votes cast in favour of the resolution by members are not less than the number of votes, if any, cast against the resolution.

Every listed company shall file with the Registrar a copy of the report on each annual general meeting within of the conclusion of the
annual general meeting.

The AGM needs to be called by giving 21 days clear notice. However, it can be called on shorter notice if members entitled to vote in that meeting give their consent in writing or by electronic mode. In such cases how many members have to give their consent?

Dividend once declared, should be paid within days from the date of declaration

Which of the following amount is not credited to IEPF Account?

Amount to be transferred to reserves out of profits before any declaration of dividend is ___________

The authorised and paid-up share capital of Avantika Ayurvedic Products Limited is ` 50.00 lacs divided into 5,00,000 equity shares of ` 10 each. At its Annual General Meeting (AGM) held on 24th September, 2019, the company declared a dividend of ` 2 per share by passing an ordinary resolution. Mention the latest date by which the amount of dividend must be deposited in a separate account maintained with a scheduled bank