Company Law Questions and Answers Part-5

1. Deposits should issued with in__________ weeks from the date of receipt of money.
a) 2
b) 4
c) 6
d) 8

Answer: d

2. If minimum subscription is not received application money should be refunded with in _____ days
a) 10
b) 25
c) 30
d) 20

Answer: a

3. Information memorandum + shelf prospectus together constitutes_____
a) Memorandum
b) Articles
c) Prospectus
d) None of the above

Answer: c

4. In the event of appointing a proxy joint holders shall sign the proxy form
a) Singularly
b) Jointly
c) None of the above
d) both (a) & (b)

Answer: b

5. Minimum number of members in case of private company is
a) 1
b) 2
c) 3
d) 4

Answer: b

6. Maximum no .of members in case of public company is
a) unlimited
b) 0
c) 50
d) 100

Answer: a

7. Which one of the following has a right to claim compensation for any loss due to mis-statement in prospectus
a) Purchasing shares in Primary Market
b) Secondary Market
c) Subscribers to memo
d) All the above

Answer: a

8. The liability of members if company is limited by guarantee.
a) Unpaid value of shares
b) Guarantee amount
c) Unlimited liability
d) None of the above

Answer: b

9. ______ years of imprisonment will be imposed in case of issue of prospectus with untrue statements
a) 1
b) 2
c) 3
d) 4

Answer: b

10. The liability of members if company is limited by shares
a) Unpaid value of shares
b) Guarantee amount
c) Unlimited liability
d) None of the above

Answer: a