AIBE Company Law Test

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AIBE Company Law Test - 1

The primary legislation governing companies in India is the:

1 point

Companies Act, 1956

Companies Act, 2013

Indian Contract Act, 1872

Partnership Act, 1932

Clear selection

A company is considered a legal person because:

1 point

It can make contracts

It can sue and be sued in its own name

It can be a member of society

It can be appointed as a director

Clear selection

Which document outlines the company’s relationship with the outside world?

1 point

Memorandum of Association

Articles of Association

Prospectus

Balance Sheet

Clear selection

The minimum number of directors required for a public company is:

1 point

Clear selection

The liability of shareholders in a company limited by shares is:

1 point

Unlimited

Limited to the unpaid value of shares held

Equal to the assets of the company

Limited to their personal assets

Clear selection

Which of the following is a statutory requirement for the incorporation of a company?

1 point

Certificate of incorporation

Shareholders’ agreement

Appointment of the auditor

Declaration of solvency

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In case of a company limited by guarantee, the liability of the members is:

1 point

Limited to the amount unpaid on shares

Limited to the amount they have undertaken to contribute

Unlimited

None of the above

Clear selection

Which of the following is true about a one-person company (OPC)?

1 point

It can have more than one director

It can only be incorporated as a private company

It cannot convert into a private company

It cannot issue debentures

Clear selection

What is the maximum number of shareholders in a private limited company under the Companies Act, 2013?

1 point

100

200

Unlimited

Clear selection

Which section of the Companies Act, 2013 deals with the duties of directors?

1 point

Section 134

Section 166

Section 215

Section 246

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Which of the following is NOT a characteristic of a public company?

1 point

No minimum capital requirement

Transfer of shares is restricted

Minimum of 7 members

It can invite the public to subscribe for shares

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The first step in the winding-up of a company is:

1 point

Appointment of a liquidator

Passing of a special resolution

Approval by the National Company Law Tribunal (NCLT)

Appointment of an official receiver

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Who is responsible for maintaining the minutes of meetings in a company?

1 point

Director

Secretary

Auditor

Chairman

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Which of the following is NOT a ground for the compulsory winding-up of a company by the NCLT?

1 point

The company has made a default in delivering statutory reports

The company is unable to pay its debts

The shareholders want to voluntarily close the company

The company has not commenced business within one year of incorporation

Clear selection

Under the Companies Act, 2013, the concept of 'Corporate Social Responsibility' (CSR) is mandatory for companies with:

1 point

Any profit

A net worth of ₹500 crore or more

More than 50 shareholders

At least one director who is a woman

Clear selection

Which section of the Companies Act, 2013 deals with the appointment of women directors?

1 point

Section 139

Section 149

Section 166

Section 178

Clear selection

A company’s articles of association can be amended by:

1 point

A simple majority vote of the directors

A special resolution of the shareholders

A unanimous decision of the directors

Approval from the Registrar of Companies

Clear selection

In the case of a listed company, the minimum percentage of shares to be offered to the public is:

1 point

10%

25%

50%

75%

Clear selection

The quorum for a general meeting of a public company with more than 1000 members is:

1 point

2 members

5 members

30 members

50 members

Clear selection

Which of the following cannot be appointed as a director in a company?

1 point

A minor

A non-resident

A shareholder

A government employee

Clear selection

Disclaimer for MCQ Quiz

The questions in this MCQ quiz are intended solely for educational purposes. While we strive to ensure the accuracy of the content, the information provided may not always be up-to-date or complete. The quiz creators are not liable for any misunderstandings, errors, or any consequences arising from the use of this quiz. Participants should verify any information independently before relying on it for any critical decision-making.

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