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FINAL LAW
MCQs &
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 Key pointers to solve MCQs
Sr.no. Topic Detailed Points
1. Section 218 PROTECTION OF Appeal: If the company, other body corporate or
EMPLOYEES DURING person concerned is dissatisfied with the objection
INVESTIGATION raised by the Tribunal, it may, within a period of
thirty days of the receipt of the notice of the
objection, prefer an appeal to the Appellate Tribunal.
The Registrar may, by issuing a written notice, call the
ex-directors for seeking the requisite information.

2. Section 206 POWER TO CALL FOR
INFORMATION, INSPECT BOOKS
AND CONDUCT INQUIRIES
Failure to furnish information: If a company fails to
furnish any information or explanation or produce any
document required under this section, the company
and every officer of the company, who is in default
shall be punishable with a fine which may extend to 1
lakh rupees and in the case of a continuing failure,
with an additional fine which may extend to 500
rupees for every day after the first during which the
failure continues [Section 206 (7)].

3. Section 212 Investigation into affairs SFIO will proceed with its investigation while
of Company by Serious Fraud Income-tax authorities shall keep on hold its
Investigation Office investigation.

4. Schedule V Part II Remuneration

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 5. "Person carrying on designated ➢ real estate agent, as may be notified by
business or profession" means, — the Central Government; "Real Estate
under PMLA (limit notified by Agents", as a person engaged in providing
CG) services in relation to sale or purchase of
real estate and having annual turnover
of ₹ 20 Lakhs or above
➢ dealer in precious metals, precious
stones and other high value goods, as
may be notified by the Central
Government; The Central Government
hereby notifies the dealers in precious
metals, precious stones as persons
carrying on designated businesses or
professions - if they engage in any cash
transactions with a customer equal to or
above ₹ 10 Lakhs, carried out in a single
operation or in several operations that
appear to be linked.
6. IBC 2016 An Adjudicating Authority order the liquidation
of a corporate debtor even after approving the
resolution plan:
Yes, if the resolution plan is contravened.

7. Section 288 Submission of The periodicity of submission of report by

periodical reports to Tribunal company liquidator with respect to the progress
Winding up of winding up of the company to the Tribunal-
Quarterly.

8. FEMA (Limit on bringing Indian INR 25,000

currency notes at the time of return
to India.)
9. IBC 2016 Section 13(9) Joint In the case of financing of a financial asset by
financing more than one secured creditor, there secured
creditor shall be entitled to exercise any of the
rights conferred on him is agreed upon by the
secured creditors representing Not less than 60%
in value of the amount outstanding as on a
record date in order to make such an action
binding on all the secured creditors.

10. Section 272 Petition for winding Eligibility to file petition for winding up - holding
up shares for 6 months or more prior to presenting
such petition for winding up

11. Section 285 Settlement of list of
contributories and application of
assets
In the case of a company limited by shares , no
contribution shall be required from any person,
who is or has been a member exceeding the
amount, if any, unpaid on the shares in respect
of which he is liable as such member;

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 A person who has been a member shall not be
liable to contribute in respect of any debt or
liability of the company contracted after he
ceased to be a member;
12. Section 332 Effect of floating Where a company is being wound up, a floating
charge charge on the undertaking or property of the
company created within the twelve months
immediately preceding the commencement of
the winding up, shall, unless it is proved that the
company immediately after the creation of the
charge was solvent, be invalid, except for the
amount of any cash paid to the company at the
time of, or subsequent to the creation of, and
in consideration for, the charge, together with
interest on that amount at the rate of five per
cent. per annum or such other rate as may be
notified by the Central Government in this
behalf.

13. FCRA key points Rule 23- Authority to whom an application or

intimation to be sent. - Any information or
intimation about political or speculative activities
of a person as mentioned in rule 3 or rule 4, shall
be furnished to the Secretary to the
Government of India in the Ministry of Home
Affairs, New Delhi. Such information or
intimation shall be sent by registered post [or in
electronic form]

14. Section 420 of Companies The Tribunal may amend / rectify its own order,
Act,2013 -Orders of Tribunal which is apparent from the record within a period
of two years from the date of the order.

15. Section 230 Power to compromise Notice to creditors, members,debentureholders

or make arrangements with
creditors and members
shall provide that the persons to whom the notice
is sent may vote in the meeting either themselves
or through proxies or by postal ballot to the
adoption of the compromise or arrangement
within one month from the date of receipt of
such notice.

Provided that any objection to the compromise or

arrangement shall be made only by persons
holding not less than ten per cent. of the
shareholding or having outstanding debt
amounting to not less than five per cent. of the
total outstanding debt as per the latest audited
financial statement .

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 16. Section 14 FEMA Enforcement of State the time limit before which the person at
orders of AA fault should pay the penalty, assuming he does
not prefer an appeal to the Appellate Authority:
Within 90 days from the date of the Order
imposing the penalty

17. Rule 4 Nidhi Company Maximum amount of rental income that could
have been earned by Nidhi Company- Not
exceeding 20 % of gross income

18. Section 15 IBC Public announcement – IRP should do

announcement immediately.(here immediately
means not later than three days from the date
of his appointment)

19. ECB guidelines under FEMA A Startup is permitted to raise ECB under the
automatic route with the minimum average
maturity period of 3 years.

20. IBC -Alteration of Claim by OC Shivdeep submitted his claim as an operational

after submission creditor to the liquidator of Chiranjeevi Food
Products Limited, a company under liquidation. If
Shivdeep wants to alter his claim, state the time
period within which he can do so after its
submission. - 14 days

21. Appointment of valuer A valuer in a company will be appointed by the

Audit committee or in its absence, by the BOD
of that company.
22. PMLA general ques. Money laundering transactions done via credit
card and online payments comes under the
Prevention of Money Act.

23. Section 12A IBC 2016 Withdrawal is possible by approval of 90% of

voting shares of the CoC.
24. Regulation 27(2) LODR The listed entity shall submit a quarterly
compliance report on corporate governance in the
format as specified by the Board from time to
time to the recognized stock exchange(s) within
fifteen days from the end of each close of the
quarter.
25. Regulation 24 LODR A listed entity shall not dispose of shares in its
material subsidiary resulting in reduction of its
shareholding (either on its own or together with
other subsidiaries) to less than or equal to fifty
percent or cease the exercise of control over
the subsidiary without passing a special
resolution in its General Meeting except in
cases where such divestment is made under a
scheme of arrangement duly approved by a

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 Court/Tribunal or under a resolution plan duly
approved under section 31 of the Insolvency
Code and such an event is disclosed to the
recognized stock exchanges within one day of the
resolution plan being approved.

26. Section 239 Preservation of books Not be disposed of without prior permission of
and papers of amalgamated the Central Government
companies

27. Section 454A Penalty for repeated Where a company or an officer of a company or
default any other person having already been subjected to
penalty for default under any provisions of this
Act, again commits such default within a
period of three years from the date of order
imposing such penalty passed by the
adjudicating officer or the Regional Director, as
the case may be, it or he shall be liable for the
second or subsequent defaults for an amount
equal to twice the amount of penalty provided
for such default under the relevant provisions of
this Act.
28. ECB Guidelines Minimum Average Maturity Period prescribed for
ECB raised for working capital purposes or
general corporate purposes under the ECB
framework is: 10 years.

29. Section 16 FCRA Every person who has been granted a certificate
under section 12 shall have such certificate
renewed within six months before the expiry of
the period of the certificate.

The Central Government shall renew the

certificate, ordinarily within ninety days from
the date of receipt of application for renewal of
certificate subject to such terms and conditions
as it may deem fit and grant a certificate of
renewal for a period of five years.
30. Section 29A Arbitration Act Under which circumstances the arbitration
process comes to an end as per the Arbitration
and Conciliation Act, 1996- When arbitrator
fails to pass the award within 12 months

31. Quorum of meeting of Committee A meeting of committee of creditors shall quorate

of creditors if members of the CoC representing at least
thirty three percent of the voting rights are
present either in person or by video/audio means.
32. Section 9 Banking Regulation Act No banking company shall hold any immovable
property howsoever acquired except for its own
use, for period exceeding seven years from the

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 acquisition thereof.

33. Insurance Company Policy of life insurance shall be called in question

on any ground –within three years from the date
of issuance of the policy or the date of
commencement of risk or the date of revival of
the policy or the date of the rider to the policy,
whichever is later.

34. Section 7 Prohibition to accept No person who -

foreign contribution (a) is registered and granted a certificate or
FCRA has obtained prior permission under this Act; and
(b) receives any foreign contribution,
shall transfer such foreign contribution to any
other person.

Earlier, foreign contribution accepted with the

permission of the Central Government could be
transferred to any other person who is registered
under FCRA, 2010 or has obtained prior
permission. It can be seen that the legislature has
placed a blanket prohibition on transfer of foreign
contribution received by any person to any other
person. The intention is to prevent recipients of
foreign contribution acting as mere conduits or
facilitating agents for obtaining foreign
contribution.

Important Note : Rule 24 is removed now.

35. Section 8 - Restriction to utilize
foreign contribution for
administrative purpose.
FCRA
36. Rule 16 of the Foreign
Contribution (Regulation)
Rules, 2011.(IMPORTANT)
Maximum Twenty per cent of such contribution,
received in a financial year, to meet administrative
expenses. Administrative expenses exceeding twenty
per cent of such contribution may be defrayed with
prior approval of the Central Government.
Reporting by banks of receipt of foreign
contribution. *The bank shall report to the Central
Government within forty-eight hours any
transaction in respect of receipt or utilization of
any foreign contribution by any person whether
or not such person is registered or granted prior
permission under the Act.

37. Applicability of IBC ,2016 on The Central Government in consultation with the
NBFC Reserve Bank of India notifies that the insolvency
resolution and liquidation proceedings of the non-
banking finance companies (which include
housing finance companies) with asset size of
Rs.500 crore or more, as per last audited balance
sheet.

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 38. Section 277 Intimation to Company liquidator or provisional liquidator
Company Liquidator, provisional shall within three weeks from date of winding up
liquidator and Registrar order apply to tribunal for formation of winding
up committee.

39. FEMA R plan to visits USA. He can carry foreign

currency in cash for travel abroad: -USD 3000
per visit can be carried in cash (as foreign
currency notes/coins) for travel abroad.
40. Section 247 Registered Valuer As per sec 247 of Companies Act, 2013
registered valuer shall not undertake valuation of
any assets in which he has direct or indirect
interest or becomes so interested at any time
during a period of 3 years prior to his
appointment or 3 years after valuation of asset
was conducted by him.

41. Section 244 As per sec 244 of Companies Act, 2013 members
eligible for applying to Tribunal for relief in cases
of oppression, etc. are: Company having share
capital, LOWEST of following: -
I) 100 members OR II) 1/10th of total
number of members OR
III) One or more members holding not less than
1/10th of issued share capital

42. Section 455 A company can make application to ROC to

obtain status of dormant company if it is an
inactive company. Inactive company means a
company which has not filed financial
statements and annual returns during last 2
FYs.

43. Section 209 Search and seizure Where registrar or inspector has reasonable
grounds to believe that books and papers of
company are likely to be destroyed, mutilated,
altered or falsified he may enter and search place
where books are kept & can seize only after
obtaining an order from special court for a
period of 180 days only.

44. FEMA On return from a foreign trip, travelers are

45. Section 73 of Companies Act. It is
technically not a part of CA Final
Syllabus
required to surrender unspent foreign exchange in
form of currency notes within 90 days and
travelers’ cheque within 180 days of return.
However, they are free to retain foreign exchange
up to USD 2000 in form of foreign currency.
Prohibition on acceptance of deposits from
public-
Maximum deposits companies can normally

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 accept from its members is 35 % of aggregate of
paid-up share capital, free reserves and
securities premium
46. Trade-Marks Act, 1999 It is technically not a part of CA Final Syllabus.
For your knowledge, as per Trade-Marks Act,
1999, time limit for making application to CG
against anomaly is 3 years from registration of
company.
47. Section 88 Register of members, Where company maintains register at a place
etc. outside India, it shall file form MGT-3 with ROC
in 30 days from date of opening any foreign
register as per sec 88 of Co Act, 2013
48. Notice requiring special meeting. As per sec 115 of Companies Act, 2013 Where,
by any provision contained in this Act or in the
articles of a company , special notice is required
of any resolution, notice of the intention to move
such resolution shall be given to the company by
such number of member holding not less than
one per cent of total voting power or holding
shares on which such aggregate sum not
exceeding five lakh rupees, as may be prescribed,
has been paid-up and the company shall give its
members notice of the resolution in such manner
as may be prescribed.

As per sec 101 of Co Act if co has to convene its

Notice of Meeting AGM by shorter notice it must have consent from
not less than 95% of members entitled to vote at
such meeting.
49. Section 328 As per sec 328, a transaction is deemed to be
fraudulent preference if it relates to transfer of
property. It took place within 6 months
preceding date of winding up. It was a
voluntary act. In such case tribunal may make
such order as it thinks fit and declare such
transaction as invalid and restore
position. Official liquidator thus can recover sale
of assets as per sec 328.
50. ODI (FEMA) Real Estate sector & Banking are prohibited
sectors for overseas investment. {Real estate
business means buying and selling of real estate or
trading in transferable development rights but does not
include development of township, construction or
residential/commercial premises, roads & bridges.

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 51.
Important
Penalties

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 Section 204-Secretarial audit for bigger companies
If a company or any officer of the company or the company secretary in practice,
contravenes the provisions of this section ,Fine of ₹ 2,00,000
Section 232 - Merger and amalgamation of companies
If a company fails to comply with this section , the company and every officer of the
company who is in default shall be liable to a penalty of ₹20,000, further continuing
penalty of ₹ 1,000 per day, Subject to maximum of ₹ 3,00,000.
Important Section 242-Powers of Tribunal, Section 243- Consequence of
Penalties
termination or modification of certain agreements

Important Section 247- Registered Valuer

Penalties

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 Section 392 Punishment for contravention
Without prejudice to the provisions of section 391, if a foreign company
contravenes the provisions of this Chapter, the foreign company shall be
punishable-
Minimum Fine - ₹ 1,00,000 Maximum Fine - ₹ 3,00,000 AND In case of continuing
offence – Additional fine of up to ₹ 50,000 per day

Every officer of the foreign company who is in default shall be punishable

Minimum Fine - ₹ 25,000 Maximum Fine - ₹ 5,00,000

Section 446B Lesser Penalty for certain companies (substituted)

Section 450 Punishment where no specific penalty or punishment is

provided

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 Important
Penalties

52. The Arbitral award against Mr. X was rendered on 1st January 2021. Mr. X, the
party wants to challenge the award. It can be challenged latest by 31st March
,2021 i..e within a period of 3 months from the date award is received by the
party) (Refer Timeline-General Principles of Arbitration)

53. The Mediation and Conciliation Panel shall dispose of the matter
Section 442
Mediation
referred to it within a period of three months from the date of such
and reference.
Conciliation
Panel

54.Regulation Board of directors of Listed enitity shall have an optimum combination of

17 LODR
executive and non-executive directors with at least one woman director
and not less than fifty percent. of the board of directors shall comprise of
non-executive directors;

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55.
Difference
between
PPIRP
and CIRP

***ALL THE BEST FOR EXAMINATION***

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