Chapter 26: Companies Act 2013 — Online MCQ Test
COMMERCE · CLASS 12th · Tamil Nadu State Board
Practice Chapter 26: Companies Act 2013 with a free chapter-wise online MCQ test.
This chapter covers: This chapter covers Indian company law corporate incorporation procedures promoter roles and share capital. Students learn about share types bonus shares rights shares share warran....
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Chapter 26: Companies Act 2013 — Important Questions & Answers
Under the Companies Act, 2013, what is the minimum number of persons required to form a private company?
- A. 1
- B. 2
- C. 3
- D. 7
Answer: B. 2
A private company must have at least 2 members. This is a basic requirement under company law.
A private company must have at least 2 members. This is a basic requirement under company law.
Who is called the person who conceives an idea of a company and takes steps to form it?
- A. Auditor
- B. Promoter
- C. Liquidator
- D. Debenture holder
Answer: B. Promoter
A promoter is the person who plans, organises and takes necessary steps to incorporate a company.
A promoter is the person who plans, organises and takes necessary steps to incorporate a company.
A company issues additional shares to existing shareholders in proportion to their existing holding. These are called:
- A. Right shares
- B. Bonus shares
- C. Sweat equity shares
- D. Deferred shares
Answer: A. Right shares
Right shares are first offered to existing shareholders based on their shareholding, usually at a predetermined price.
Right shares are first offered to existing shareholders based on their shareholding, usually at a predetermined price.
Which of the following is the correct order of company incorporation steps?
- A. Certificate of incorporation → Name approval → MOA filing
- B. Name approval → Filing of documents → Certificate of incorporation
- C. MOA filing → Name approval → Commencement of business
- D. Commencement of business → Certificate of incorporation → Name approval
Answer: B. Name approval → Filing of documents → Certificate of incorporation
A company first gets name approval, then files the required documents, and finally receives the certificate of incorporation.
A company first gets name approval, then files the required documents, and finally receives the certificate of incorporation.
Which of the following is the most appropriate explanation for share warrants?
- A. They are documents issued to a company’s creditors
- B. They are instruments that entitle the holder to the shares specified therein
- C. They are issued only for preference shares
- D. They are used to pay dividend to shareholders
Answer: B. They are instruments that entitle the holder to the shares specified therein
A share warrant is a negotiable instrument that entitles the bearer to the shares mentioned in it. It is different from an ordinary share certificate.
A share warrant is a negotiable instrument that entitles the bearer to the shares mentioned in it. It is different from an ordinary share certificate.