Test CS 2507 Welcome to your International Navodaya Chamber of Commerce (INCOC) Platform ! Subject: Company Law Total Number of Question: 40 Time: 41 Minutes Please check your email after completion of test for result. All the best... Name Phone No Email State 1. A company is said to be an artificial legal person because: It has physical existence It is created by law and has separate legal identity It has the same rights as an individual It does not require registration None 2. The maximum number of directors in a public company, without special resolution, is: 10 12 15 20 None 3. A company must appoint an independent director if it is: A private company A listed company A foreign company A partnership firm None 4. Which document defines the scope and powers of a company? Articles of Association Memorandum of Association Share Certificate Director’s Report None 5. The Corporate Social Responsibility (CSR) provisions apply to a company if: Its net worth is ₹500 crore or more Its turnover is ₹500 crore or more Its net profit is ₹2 crore or more Its authorized capital is ₹100 crore or None 6. The tenure of an independent director in a listed company is a maximum of: 3 years 6 years 10 years 15 years None 7. A company secretary must be appointed if the company has a paid-up capital of at least: ₹5 crore ₹25 crore ₹10 crore ₹15 crore None 8. The minimum number of members required to form a public company is: 2 3 5 7 None 9. The minimum number of directors required for a private company is: 1 2 3 5 None 10. A company's financial statements must be approved by: The auditor The shareholders The government The Board of Directors None 11. A person cannot be appointed as an auditor if he: Holds a government position Holds shares in the company Is a qualified CA but not in practice Is an independent director of the company None 12. The main purpose of an Extraordinary General Meeting (EGM) is to: Approve financial statements Discuss urgent matters requiring shareholder approval Appoint new employees Review stock market performance None 13. A company limited by shares can increase its authorized share capital by: A board resolution A special resolution An ordinary resolution Approval from SEBI None 14. The minimum subscription amount must be collected within: 30 days of issue 60 days of issue 90 days of issue 120 days of issue None 15. The quorum for a Board Meeting in a company with 8 directors is: 2 directors 3 directors 4 directors 5 directors None 16. If a company fails to hold an Annual General Meeting (AGM), it is liable for: A fine up to ₹1 lakh A fine up to ₹10 lakh A fine up to ₹5 lakh and imprisonment No penalty None 17. Which of the following can be used to remove a director before the end of their tenure? Board resolution Ordinary resolution Special resolution Approval from SEBI None 18. The liability of a shareholder in a company limited by guarantee is: Unlimited Limited to the unpaid amount of shares Limited to the amount guaranteed Equal to the company’s net worth None 19. The penalty for a company failing to file its annual return is: ₹10,000 per day ₹1 lakh ₹5 lakh ₹10 lakh None 20. A person is disqualified from being appointed as a director if he: Is a shareholder of the company Is below 21 years of age Is convicted of an offense involving fraud Is a partner in another company None 21. The appointment of an auditor in a company is made by: Board of Directors Shareholders at the AGM SEBI Company Secretary None 22. A company can issue sweat equity shares to: Promoters only Employees only Both promoters and Employees Government officials None 23. The maximum period for which a company can issue debentures is: 5 years 10 years 20 years 30 years None 24. The first Board Meeting of a newly incorporated company must be held within: 30 days 60 days 90 days 120 days None 25. Which document is sent to invite the public to subscribe to shares? Memorandum of Association Articles of Association Prospectus Directors' Report None 26. Which body governs listed companies in India? Ministry of Corporate Affairs SEBI RBI NCLT None 27. A company may be wound up voluntarily if: Shareholders pass a special resolution The government orders it The directors resign The company fails to hold a Board Meeting None 28. A statutory meeting must be held by: Private companies only Public companies only Listed companies only Government companies only None 29. A company is compulsorily wound up if: It fails to pay debts exceeding ₹1 crore It changes its business model It declares higher dividends It fails to pay employee salaries None 30. A debenture is a: Share Loan instrument Reserve fund Profit distribution None 31. The maximum number of shareholders in a private company is: 50 100 200 Unlimited None 32. A person appointed to oversee the liquidation process of a company is called a: Company Secretary Auditor Liquidator Promoter None 33. The National Company Law Tribunal (NCLT) has jurisdiction over: Only listed companies Only government companies Company law matters, insolvency, and oppression cases Tax-related matters None 34. The share capital of a company can be reduced by: Passing an ordinary resolution Passing a special resolution and getting NCLT approval Approval from SEBI only Approval from the Central Government None 35. Which of the following is NOT a mode of winding up a company? Voluntary Winding Up Compulsory Winding Up Statutory Winding Up Tribunal Ordered Winding Up None 36. In the case of oppression and mismanagement, an application can be made to: SEBI NCLT RBI Ministry of Corporate Affairs None 37. The issue of shares at a price lower than their nominal value is called: Share Discount Underpricing Issuance at Premium Issuance at a Discount None 38. A company's director can be disqualified under Section 164 if: The company has failed to file financial statements for 3 consecutive years The director is a shareholder of another company The director has served for more than 5 years The director is a promoter of the company None 39. The statutory audit of a company is conducted by: Internal auditors The Board of Directors An independent external auditor The Registrar of Companies None 40. The minimum paid-up capital required to start a private company under the Companies Act, 2013 is: ₹1 lakh ₹5 lakh ₹10 lakh No minimum requirement None 1 out of 4 Great job on taking the INCOC Test! We appreciate your interest in test. Look out for results and future opportunities. Stay Connected !! Your quiz time is about to finish. Few seconds left. 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