Test

Paper 4
May 2021 Group-1

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Subject: Corporate Laws and Other Laws

Marks: 35 Marks Duration: 1Hr.

Multiple Choice Questions: (10 × 1 Mark = 10 Marks)
Question 1.
1. Which of the following is special features of company?
(a) artificial person
(b) separate legal entity
(c) limited liability
(d) all of the above

2. Which of the following statement(s) is/are correct?
(a) partnership is a legal person
(b) partnership firm does not have perpetual succession
(c) registration of firm is optional
(d) both (b) and (c)

3. In which of the following event, lifting of corporate veil may be allowed by court?
(a) when company is formed to protect revenue
(b) when company is formed for improper conduct or fraud
(c) both of the above
(d) none of the above

4. Which of the following statement(s) is/are correct?
(a) as per section 19 of companies act, 2013, subsidiary company cannot hold any shares into its holding
company either by itself or through its nomine
(b) Holding company can allot or transfer any of its shares to its subsidiary. If transfer is made, it is valid
(c) both of the above
(d) none of the above

5. A section 8 company can call its general meeting by giving a clear at least _______ notice.
(a) 7 days
(b) 14 days
(c) 21 days
(d) 27 days

6. Section 8 company cannot ___________
(a) alter its AOA or MOA without consent of central government
(b) pay dividend or distribute its profit among members
(c) both of the above
(d) none of the above

7. High Aim Pvt. Ltd. wants to change its object clause of the Memorandum of Association of the Company.
The needs:
(a) Shareholders’ approval by way of Ordinary Resolution
(b) Shareholders’ approval is not required for change of object clause of the company
(c) Shareholders’ approval by way of Special Resolution
(d) The approval from Tribunal for changing object clause of the company.

8. Which one of the following is not the content of the Memorandum of Association?
(a) Name clause
(b) Registered office clause
(c) Objects clause
(d) Board of Directors clause

9. The Memorandum of Association must be __________
(a) printed and divided into paragraphs
(b) paragraph numbered consecutively
(c) signed by each subscriber in the presence of at least one witness who shall attest the signature
(d) all of the above

10. As per companies Act,2013, 'officer' includes any ____________
(a) director
(b) manager
(c) key managerial personnel
(d) all of the above

Question 2.

(A) MNP Private Ltd. is a company registered under the Companies Act, 2013 with a, Paid up Share Capital of
Rs. 45 lakh and turnover of Rs. 3 crores. Explain the meaning of the "Small Company" and examine the
following in accordance with the provisions of the Companies Act, 2013:

(i) Whether the MNP Private Ltd. can avail the status of small company?
(ii) What will be your answer if the turnover of the company is Rs. 1.50 crore?
(5 Marks)

(B) Teresa Ltd. is a company registered in New York (U.S.A.). The company has no place of business
established in India, but it is doing online business through data interchange in India. Explain with
reference to relevant provisions of the Companies Act, 2013 whether Teresa Ltd. will be treated as
Foreign Company.
(5 Marks)

Question 3.

(A) The Directors of a company registered and incorporated in the name “Mars Textile India Ltd.” desire to
change the name of the company entitled “National Textiles and Industries Ltd.” Advice as to what
procedure is required to be followed under the Companies Act, 2013?

(5 Marks)

(B) The Board of Directors of Sindhu Limited wants to make some changes and to alter some Clauses of the
Articles of Association which are to be urgently carried out, which include the increase in Authorized
Capital of the company, issue of shares, increase in borrowing limits and increase in the number of
directors.
Discuss about the provisions of the Companies Act, 2013 to be followed for alteration of Articles of
Association.
(5 Marks)

Question 4.
XYZ a One-Person Company (OPC) was incorporated during the year 2014-15 with an authorized capital of
Rs. 45.00 lakhs (4.5 lakh shares of Rs. 10 each), the capital was fully subscribed and paid up. Turnover of the
company during 2014-15 and 2015-16 was Rs. 2.00 crores and Rs. 2.5 crores respectively. Promoter of the
company seeks your advice in following circumstances, whether XYZ (OPC) can convert into any other kind
of company during 2016-17. Please, advise with reference to relevant provisions of the Companies Act, 2013
in the below mentioned circumstances:

(i) If promoter increases the paid up capital of the company by Rs. 10.00 lakhs during 2016-17.
(ii) If turnover of the company during 2016-17 was Rs. 3.00 crores.

(5 Marks)