5 Important Questions from Companies Act

Published on Thursday, November 22, 2018
5 Important Questions from Companies Act - SEBI Grade A

Question 1. 

Under which of the following sections of the Companies Act 2013 is the term company defined?
a) Section 2(4)
b) Section 4(2)
c) Section 2(20)
d) Section 1(2)

Explanation: Section 2(20) of the 2013 Act defines the term “company” to mean “a company
incorporated under the Companies Act 2013 or any previous company law.” Accordingly, a company, which is incorporated under the relevant legislation of a foreign country, will not qualify as a “company” under the 2013 Act. The proviso to section 2(71) states that “a company which is a subsidiary of a company, not being a private company, shall be deemed to be public company for the purposes of this Act.”

Question 2.

As per the section 39 of Company Act 2013, in how many days application money should be refunded if the minimum subscription is not received?
a)
10 days
b) 20 days
c) 30 days
d) 25 days

Explanation: As per section 39 of company act 2013, if the minimum subscription is not received then application money should be refunded in 10 days

Question 3.

 A unified license to operate in the commodity derivative and equity market is granted to _______and ____________by SEBI
(i) Broker
(ii) Clearing member
(iii) Non-banking financial companies
(iv) Private and Public banks

a) Only (i) and (iii)
b) Only (ii) and (iii)
c) Both (i) and (ii)
d) Both (i) and (iii)

Explanation: SEBI granted a unified license to operate in commodity derivative and equity market to broker and clearing member

Question 4.

As per the sections, 196(3) of Company Act 2013, the age limit of the director in case of public company should not be less than ________years and not more than_________ years.
a) 21-65
b) 18-75
c) 21-62
d) 21-70

Explanation: As per section 196(3) of company act 2013, is the age limit of the director in case of public company is not less than 21 and not more than 70 years

Question 5.

Any person who is required to furnish information, document, records, etc under the Depository Act and fails to furnish the same, then he shall be liable to pay the penalty of
a) 1 lakh for each day or 1 crore, whichever is less
b) 2 lakh for each day or 4 crore, whichever is less
c) 3 lakh for each day or 6 crore, whichever is less
d) 2 lakh for each day or 2 crore, whichever is less

Explanation: Any person who is required to furnish information, document, records, etc under depository act and fails to furnish the same, then he shall be liable to pay penalty of 1 lakh for each day or 1 crore , whichever is less.

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