Previous Year Solved Question Papers

Previous Year Solved Question Papers

MCQs on Companies Act -9

1) Where a director acts dishonestly to the interest of the company, he will be held liable for.

(A) Ultra vires acts. 
(B) Negligence.
(C) Breach of fiduciary duty. 
(D) Mala fide acts.


2) Except with the approval of the central Government, remuneration of a whole time director or a managing director shall not exceed …………… of the net profits for one such director.

(A) 3%. 
(B) 5%. 
(C) 10%. 
(D) 11%.



3) Under section 269, every public company and a private company which is a subsidiary of a public company must have a managing director or a whole time director if its paid-up share capital is.

(A) Rs.1 crore or more. 
(B) Rs.2 crore or more.
(C) Rs.5 crore or more. 
(D) Rs.10 crore or more.



4) Sec.291 of the Company Act 1956, has clarified that.

(A) The directors are subordinate to the overall majority of the shareholders.
(B) The Board of directors shall exercise all such powers and do all such acts as the company is authorized to exercise or to do subject to the restrictions contained in the Act, memorandum and articles.
(C) The shareholders cannot interfere with the conduct of management in any way.
(D) All the Above.



5) When the Directors have acted mala fide and are themselves the wrong doers, the only option left with the shareholders is.

(A) To go to the court.
(B) Approach the Company Law Tribunal.
(C) To interfere in management by a majority in the general meeting.
(D) To approach the Central Government.



6) When there is a deadlock between the directors.

(A) The Central Government can intervene and ask the directors to co-operate with each other.
(B) The company Law Tribunal has necessarily to intervene.
(C) Shareholders may intervene to take necessary steps to ensure the working of the company.
(D) Directors must forget about personnel issues and work for greater good.



7) What is the amount of contribution that a company can make for political purposes?

(A) 10% of net profits of the preceding financial year on which the tax has been paid.
(B) 5% of gross profit of the current assessment year.
(C) Amount not exceeding 5% of the net profits of three immediately preceding financial years.
(D) None of these.



8) Any information or knowledge generated by the company.

(A) Is the property of the company and known as intellectual property.
(B) Cannot be used by any director for personal gains.
(C) If used for personal gains by any director must be accounted for to the
company.
(D) All the above.



9) According to section 283 (1) (g) if a director absents himself from 3 consecutive board meetings or from all meetings consecutively for a period of 3 months without obtaining leave of absence.

(A) He shall be fined with Rs.500.
(B) He shall be held accountable to the registrar.
(C) His office shall become vacant.
(D) All the above.



10) The maxim “delegates nonpotest delegare” states the.

(A) Duty to delegate to a director.
(B) Duty not to delegate their duties.
(C) Duty of a subordinate not to protest when duty has been delegated to him.
(D) None of above.




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