COMPANY SECRETARY Multiple Choice Questions :-

1. On incorporation of a company, the Registrar of Companies in addition to the Certificate of Incorporation, issues a unique identification number called
a. Unique corporate number
b. Corporate identification number
c. Company identification number
dUnique identification number
Ans: b

2. An Indian public company holds 80% of the paid-up share capital of a company incorporated at a place outside India. Is the annual statement of the latter company required to be attached to the annual statement of the former company pursuant to Section 212
a. No, as it is foreign company.
b. No. as the format of the annual accounting statement is not as per Schedule VI of the Companies Act, 1956.
c. Yes
Ans: c

3. A company in which 50.25% of shares are held by one State Government while the rest of the shares are held by private sector companies and by retail shareholders i.e., members of public, is a
a. Government company
b. Public company
c. Corporation
d. Private sector company
Ans: b

4. The Central Government may exempt any class of companies from complying with the provisions of Schedule VI of the Companies Act, 1956, if it is necessary to grant such exemption in the
a. National interest
b. Public interest
c. Social interest
d. Company’ interest
Ans: b

5. Global Ltd. has the paid-up equity capital structure – Central Government:
38%; State Government: 10%; Subsidiary of a Government Company:
17.50%; and retail shareholders remaining shares. Which of the following classes of companies would it belong to
a. Government company
b. Non-government company
c. Deemed public company
d. Deemed private company
Ans: a

6. Contracts made after incorporation of a public company, but before issue of the certificate of commencement of business are –
a. Provisional contracts
b. Post-incorporation contracts
c. Preliminary contracts
d. Contracts in the normal course of business.
Ans: a

7. The applicant for the availability of name of the proposed company can have option to give maximum –
a. 3 Alternative names
b. 4 Alternative names
c. 5 Alternative names
d. 6 Alternative names
Ans: d

8. Which one of the following sections of the Act specifies that the provision of the Companies Act, 1956 override the provisions in the memorandum of association 
a. Section 2
b. Section 4
c. Section 9
d. Section 13
Ans: c

9. The rights attached to the shares of any class may be varied with the consent in writing of the holders of the issued shares of that class having not less than 
a. 1/3 of the shareholding
b. ½ of the shareholding
c. ¾ of the shareholding
d. 2/3 of the shareholding
Ans: c

10. Where title in shares of a company is in dispute, the matter has to be resolved by
a. Court
b. Arbitrator
c. Company Law Board
d. Central Government
Ans: a

11. In case of buyback of shares by a listed company, the letter of offer to the shareholders shall be dispatched not earlier than –
a. 10 days from its submission to the SEBI in draft form
b. 15 days from its submission to the SEBI in draft form
c. 21 days from its submission to the SEBI in draft form
d. 30 days from its submission to the SEBI in draft form
Ans: c

12. The majority required in a shareholders’ meeting to approve a scheme of arrangement is simple majority of shareholders holding at least

a. 3/4th in value of the shares
b. 2/3rd in value of the shares
c. 9/10th in value of the shares
Ans: a

13. The audit committee of a listed company shall meet at least –
a. 3 times in a year
b. 4 times in a year
c. 5 times in a year
d. 6 times in a year
Ans: b

14. Non-executive directors of a public company may get remuneration on quarterly basis if such basis of payment is approved by/under –
a. Articles of association of the company
b. General meeting of the company
c. Central Government
d. Schedule XIII of the Companies Act, 1956
Ans: c

15. As per Companies Act, 1956, the maximum number of directors a private limited company which is subsidiary of a public company, can have without approval of the Central Government is –
a. 10
b. 11
c. 12
d. 13
Ans: c

16. A director appointed by the Board to hold the office until the conclusion of next annual general meeting is known as –
a. Additional director
b. Alternate director
c. Nominee director
d. Director retiring by rotation
Ans: a

17. The minimum number of directors of the audit committee in the case of a listed company with 12 directors shall be –
a. 2 Directors
b. 3 Directors
c. 4 Directors
d. 5 Directors
Ans: b

18. The maximum age limit for directors in case of private companies is
a. 65 years
b. 20 years
c. 75 years
d. None of the above
Ans: d

19. A member of the ICSI in practice shall be deemed to be guilty of professional misconduct if he issues compliance certificates/ signs annual return in aggregate in a calendar year for more than
a. 20 Companies
b. 50 Companies
c. 80 Companies
d. 100 Companies
Ans: c

20. A person who is Company Secretary and director of a company is
a. Employee director
b. Non-executive director
c. Executive director
d. Independent director
Ans: c

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21. Statutory auditor of a company in which the Central Government holds 49% and a government company holds 19% of the paid-up share capital of the company, shall be appointed by the
a. Central Government
bMembers of the company in the AGM by passing ordinary resolution
c. Members of the company in the AGM by passing a special resolution
d. By the Comptroller and Auditor General of India.
Ans: d

22. The appointment of a statutory auditor under section 224A is with reference to 25% of
a. Paid-up capital
b. Issued capital
c. Subscribed capital
dOnly equity capital
Ans: c

23. A casual vacancy arising out of resignation of company’s auditor can be filled by
a. Company in general meeting by ordinary resolution
b. Company in general meeting by special resolution
c. Board of Directors
d. Audit committee
Ans: a

24. A High Court has exclusive jurisdiction in respect of the matters covered by
a. Section 211
b. Section 232
c. Section 292A
d. Section 391
Ans: d

25. The number of scrutineers to be appointed by the Chairman of a general meeting is
a. 3
b. 2
c. 1
d. 4
Ans: b

26. A special notice is required for
a. Removal of a member
b. Removal of the Company Secretary
c. Removal of a nominee director
d. None of the above
Ans: d

27. A notice of disclosure of interest at the Board meeting is the requirement of section
a. 295
b. 269
c. 297
d. 299
Ans: d

28. As per the provisions of the Companies Act, 1956, the form of proxy must be deposited with the company at least
a. 24 Hours before the time of AGM
b. 36 Hours before the time of AGM
c. 48 Hours before the time of AGM
d. 72 Hours before the time of AGM
Ans: c

29. In a listed company with 11 directors, what is the quorum for the Board meeting
a. 2 Directors
b. 3 Directors
c. 4 Directors
d. 5 Directors
Ans: c

30. As per the rules framed under section 205A3. relating to use of past reserves for payment of dividend should retain in the reserves an amount not less than–
a. 25% of the paid-up share capital of the company
b. 20% of the paid-up share capital of the company
c. 15% of the paid-up share capital of the company
d. 10% of the paid-up share capital of the company
Ans: c

31. The aggregate of the contributions to any political party or for any political purpose to any person by a company in any financial year shall not exceed
a. 2% of its average net profits determined in accordance with the provisions of Section 349 and 350 during the five immediately preceding financial years.
b. 5% of its average net profits determined in accordance with the provisions of Section 349 and 350 during the five immediately preceding financial years.
c. 7.4% of its average net profits determined in accordance with the provisions of Section 349 during the five immediately preceding financial years.
d. 10% of its average net profits determined in accordance with the provisions of Section 349 read with Section 350. The average profit is to be calculated by reference to preceding three financial years.
Ans: b

32. Annual return of a company having share capital is to be filed with the Registrar of Companies in e-form
a. 20A
b. 20B
c. 25A
d. 25B
Ans: b

33. In winding-up by the court, the statement of affairs has to be submitted within
a. 15 days from the date of winding-up order
b. 21 days from the date of winding-up order
c. 30 days from the date of winding-up order
d. 90 days from the date of winding-up order
Ans: b

34. When a default occur under Section 421 and/or 422 in respect of receiver regarding filing of periodic accounts and/or making of reference of statements about the appointment of receiver, he company and every officer in default shall be punishable with
a. A monetary fine which may extend to Rs. 5,000
b. A monetary fine which may extend to Rs. 2,000
c. A monetary fine which may extend to Rs. 5,000 and imprisonment upto 6 months
Ans: b

35. On liquidation of company, the preferential payment in respect of salary or wages is restricted to
a. Rs. 10,000
b. Rs. 20,000
c. Rs. 50,000
d. Rs. 75,000
Ans: b

36. On striking off the name of a company considered defunct, the Registrar of Companies is required to
a. Publish notice thereof in official gazette
b. Inform the State Government
c. Inform the Central Government
d. Inform the Ministry of Corporate Affairs
Ans: a

37. While issuance of notice of inspection of books of account of a company by the inspector is not mandatory it is issued at least
a. 7 days before the intended date of inspection
b. 14 days before the intended date of inspection
c. 21 days before the intended date of inspection
d. 28 days before the intended date of inspection
Ans: b

38. The initial disclosure by a director or officer of a listed company under the SEBI Prohibition of Insider Trading. Regulation, 1992 has to be made within
a. 4 days of the concerned person’s joining the company
b. 7 days of the concerned person’s joining the company
c. 15 days of the concerned person’s joining the company
d. 21 days of the concerned person’s joining the company
Ans: a

39. The New York Stock Exchange requires that in case of companies listed with it, the required minimum number of independent directors on the Board shall be –
a. One
b. Two
c. Three
Ans: b

40. Under the UK Companies Act, to qualify as a small company, the concerned company shall have in a financial year
a. A turnover of less than £ 2.5 million with less than 25 employees
b. A turnover of not more than £ 2.8 million with not more than 50 employees
c. A turnover of £ 3 million with less than 100 employees
d. None of the above
Ans: b

COMPANY SECRETARY MCQs ::