In this article we are providing MCQs On Companies Act,2013. MCQ on Companies Act, MCQS on Company Law, Company act, company law mcq
MCQs On Companies Act,2013
1. Abridged prospectus means__________
(a) The standards of accounting or any addendum thereto for companies or class of companies referred to in section 133
(b) The articles of association of a company as originally framed or as altered from time to time or applied in pursuance of any previous company law or of this Act
(c) A memorandum containing such salient features of a prospectus as may be specified by the Securities and Exchange Board by making regulations in this behalf
(d) The standards of auditing or any addendum thereto for companies or class of companies referred to in sub-section (10) of section 143
Answer: A memorandum containing such salient features of a prospectus as may be specified by the Securities and Exchange Board by making regulations in this behalf
2. ________________means a company having the liability of its members limited by the memorandum to the amount, if any, unpaid on the shares respectively held by them.
(a) Company limited by guarantee
(b) Company limited by shares
(c) Both (a) and (b)
(d) None of these
Answer: Company limited by shares
3. Company Liquidator, in so far as it relates to the winding up of a company, means a person appointed by—
(a) The Tribunal in case of winding up by the Tribunal;
(b) The company or creditors in case of voluntary winding up,
(c) Both (a) and (b)
(d) None of these
Answer: Both (a) and (b)
4. The minimum number of members that required while you are registering a public company is___
(a) 2
(b) 6
(c) 7
(d) 5
Answer: 7
5. The minimum number of members that required while you are registering a private company is___
(a) 5
(b) 7
(c) 4
(d) 2
Answer:2
MCQs On Companies Act 2013
6. where the company to be formed is to be One Person Company that is to say, a _
(a) Public Company
(b) Private company
(c) Both (a) and (b)
(d) None of the above
Answer: Private company
7. The memorandum of a company is dealt under ?
(a) section 12
(b) section 15
(c) section 6
(d) section 4
Answer: section 4
8. A company may adopt all or any of the regulations contained in the model articles applicable to such a company.
(a) True
(b) False
(c)Partly True
(d) Partly False
Answer: True
9. All monies payable by any member to the company under the memorandum or articles shall be a debt due from him to_______
(a) Member
(b)The company
(c)Both (a) and (b)
(d) None of the above
Answer: The Company
10. The company shall furnish to the Registrar verification of its registered office within a period of ________ of its incorporation in such manner as may be prescribed.
(a)60 days
(b)45 days
(c) 30 days
(d)15 days
Answer: 30 days
MCQs On Companies Act 2013
- Section 203 of the Companies Act 2013 deals with___?
a) Managing director,
b) Company secretary
c) Chief Financial Officer
d) All of the above
Answer- d) All of the above
- Section 123 of the Companies Act 2013 deals with___?
a) Unpaid Dividend Account
b) Declaration of dividend
c) Remuneration of auditors
d) Auditors to attend general meeting
Answer- b) Declaration of dividend
13.What is the punishment for the company If any of the provisions of sections 139 to 146 is contravened?
a. Fine of Rs. 25000 up to 3 lakh rupees.
b.Fine of Rs. 20000 up to 2 lakh rupees.
c.Fine of Rs. 25000 up to 5 lakh rupees.
d.Fine of Rs. 10000 up to 5 lakh rupees.
Answer- c.Fine of Rs. 25000 up to 5 lakh rupees.
14.What is the punishment for an individual or director of a company If any of the provisions of sections 139 to 146 is contravened?
a. Imprisonment for a term which may extend to six months and Fine up to Rs. 50000 rupees.
b. Imprisonment for a term which may extend to one year and Fine up to Rs. 50000 rupees.
c.Imprisonment for a term which may extend to two months and Fine up to Rs. 50000 rupees.
d.Imprisonment for a term which may extend to six months and Fine up to Rs. one lakh rupees.
Answer- a.Imprisonment for a term which may extend to six months and Fine up to Rs. 50000 rupees.
15. Section 270 of the Companies Act 2013 deals with___?
a) Rehabilitation and insolvency fund
b) Declaration of dividend
c) Remuneration of auditors
d) Modes of winding up
Answer- d) Modes of winding up
In this article, we are providing you MCQs on The Companies act 2013 which will help you to understand The Companies act 2013MCQ pdf with Answers multiple choice questions
MCQs on The Companies act 2013
16) When did The Companies act 2013, come into force?
A) 01 April 2013
B) 01 March 2014
C) 01 May 2013
D) 30th August 2013
Answer –D) 30th August 2013
17) Which section of The Companies act 2013 deals with the Effect of registration?
A. Section 12 of The Companies act 2013
B. Section 9 of The Companies act 2013
C. Section 14 of The Companies act 2013
D. Section 20 of The Companies act 2013
Answer B. Section 9 of The Companies act 2013
18) Which section of The Companies act 2013 deals with Rectification of the name of the company_ ?
A. Section 16 of The Companies act 2013
B. Section 14 of The Companies act 2013
C. Section 13 of The Companies act 2013
D. Section 18 of The Companies act 2013
Answer – A. Section 16 of The Companies act 2013
19) Section 25 of The Companies act 2013 deals with_______?
A. Alteration of memorandum
B. Document containing offer of securities for sale to be deemed prospectus.
C..Advertisement of prospectus
D.Service of documents
Ans- B. Document containing offer of securities for sale to be deemed prospectus.
20) Authentication of documents, proceedings and contracts, is provided in section____ of The Companies act 2013
A. Section 24 of The Companies act 2013
B. Section 22 of The Companies act 2013
C. Section 21 of The Companies act 2013
D. Section 23 of The Companies act 2013
Ans- C. Section 21 of The Companies act 2013
21) Section 29 of The Companies act 2013 provides _?
A.Public offer of securities to be in dematerialized form
B.Alteration of articles
C.Registered office of the company
D.Red herring prospectus
Ans A.Public offer of securities to be in dematerialized form
MCQ on The Companies act 2013 with answers pdf
22) Which section of The Companies act 2013 deals with Company to accept unpaid share capital, although not called up?
A. Section 47 of The Companies act 2013
B. Section 44 of The Companies act 2013
C. Section 50 of The Companies act 2013
D. Section 49 of The Companies act 2013
Answer – C. Section 50 of The Companies act 2013
23) Section 12 of The Companies act 2013 deals with_______?
A.Registered office of the company
B.Formation of company
C.Service of documents
D. Articles
Ans- A.Registered office of the company
24) Which section of The Companies act 2013 deals with the Prohibition on acceptance of deposits from public?
A. Section 73 of The Companies act 2013
B. Section 79 of The Companies act 2013
C. Section 74 of The Companies act 2013
D. Section 75 of The Companies act 2013
Answer A. Section 73 of The Companies act 2013
25) Section 10 of The Companies act 2013 deals with_______?
A. Incorporation of company
B. Execution of bills of exchange
C. Effect of memorandum and articles
D. . Shelf prospectus
Answer- C. Effect of memorandum and articles
26) Which of the following section in the Companies Act, 2013 mentions about Red herring prospectus
A. 18 of the Companies Act, 2013
B. 25 of the Companies Act, 2013
C. 21 of the Companies Act, 2013
D. 32 of the Companies Act, 2013
Answer -D. 32 of the Companies Act, 2013
27) Which of the following section in the Companies Act, 2013 mentions about Option to adopt principle of proportional representation for appointment of directors
A. 118 of the Companies Act, 2013
B. 125 of the Companies Act, 2013
C. 121 of the Companies Act, 2013
D. 163 of the Companies Act, 2013
Answer -D. 163 of the Companies Act, 2013
28) Which of the following section in the Companies Act, 2013 mentions about Contract of employment with managing or whole-time directors
A. 118 of the Companies Act, 2013
B. 190 of the Companies Act, 2013
C. 121 of the Companies Act, 2013
D. 132 of the Companies Act, 2013
Answer – B. 190 of the Companies Act, 2013
29) Which of the following section in the Companies Act, 2013 mentions about Appointment of key managerial personnel
A. 128 of the Companies Act, 2013
B. 125 of the Companies Act, 2013
C. 221 of the Companies Act, 2013
D. 203 of the Companies Act, 2013
Answer -D. 203 of the Companies Act, 2013
30) Which of the following section in the Companies Act, 2013 mentions about Penalty for furnishing false statement, mutilation, destruction of documents ?
A. 229 of the Companies Act, 2013
B. 251 of the Companies Act, 2013
C. 216 of the Companies Act, 2013
D. 232 of the Companies Act, 2013
Answer -A. 229 of the Companies Act, 2013
The Companies Act of 2013
The Companies Act of 2013 is a comprehensive legal framework governing the functioning and regulation of companies in India. Enacted to replace the Companies Act of 1956, this legislation was formulated to align with contemporary business practices and international standards, aiming to enhance corporate governance, transparency, and investor protection.
The Companies Act of 2013 introduced several significant changes to corporate regulation in India. It mandated the creation of new regulatory bodies like the National Company Law Tribunal (NCLT) and the National Company Law Appellate Tribunal (NCLAT), streamlining dispute resolution and reducing the burden on traditional courts. The act also introduced concepts such as One Person Company (OPC) and class action suits, providing more options for business structures and empowering shareholders to collectively seek remedies.
This act emphasizes responsible corporate behavior by mandating corporate social responsibility (CSR) initiatives for certain companies. It enhances the roles and responsibilities of directors and auditors, promoting transparency and accountability. Additionally, the act places greater emphasis on electronic governance, simplifying procedures through e-filing and digital documentation.
In conclusion, the Companies Act of 2013 plays a pivotal role in shaping India’s corporate landscape by focusing on modernization, transparency, and accountability. Its provisions seek to create a business environment that balances growth with ethical practices, investor protection, and regulatory efficiency.
Frequently Asked Questions (FAQs) about Companies Act 2013
- What is the Companies Act 2013?
Answer – The Companies Act 2013 is a comprehensive legislation that governs the incorporation, functioning, management, and regulation of companies in India. It replaced the Companies Act 1956 and brought significant changes to the corporate regulatory framework. - What are the types of companies under the Companies Act 2013?
Answer -The Act recognizes various types of companies, including private companies, public companies, one-person companies (OPCs), and certain specialized types like non-profit companies, government companies, etc. - What are the major changes introduced by the Companies Act 2013?
Answer – The Act introduced several changes such as stricter corporate governance norms, increased responsibilities for directors, mandatory CSR (Corporate Social Responsibility) provisions for certain companies, new definitions for key terms, and an emphasis on transparency and accountability. - What is Corporate Social Responsibility (CSR) under the Act?
Answer – CSR under the Act mandates that certain companies must spend a portion of their profits on activities that contribute to social and environmental well-being. This is intended to encourage companies to engage in socially responsible activities. - How is the Act related to corporate governance?
Answer – The Act lays down various provisions related to corporate governance, including the composition and functioning of the board of directors, appointment of independent directors, audit committees, and mechanisms to prevent insider trading and related party transactions. - What are the requirements for the incorporation of a company under the Act?
Answer – The Act outlines the process and requirements for incorporating a company, including the minimum number of members (shareholders) and directors, capital structure, registration documents, and related procedures. - How does the Act address issues of shareholder protection?
Answer – The Act contains provisions to safeguard the rights and interests of shareholders, including provisions for class action suits, minority shareholder protections, and provisions for shareholders’ meetings and voting. - What is the role of the National Company Law Tribunal (NCLT) under the Act?
Answer – The NCLT is a quasi-judicial body established under the Act. It handles matters related to the corporate sector, including company disputes, mergers and acquisitions, insolvency proceedings, and more. - What are the penalties for non-compliance with the Act’s provisions?
Answer – Non-compliance with various provisions of the Act can result in penalties for both the company and its officers. The Act includes provisions for fines, imprisonment, disqualification of directors, and other punitive measures. - How has the Act impacted corporate disclosures and financial reporting?
Answer – The Act introduced enhanced requirements for financial reporting, disclosure of financial statements, auditor qualifications, and audit practices to ensure transparency and accuracy in reporting.
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