1. Under the Companies Act, 2013, which Section defines a “Company”?

A. Section 2(68)
B. Section 2(20)
C. Section 2(41)
D. Section 2(42)

Answer: B
Explanation: Section 2(20) defines a company as a company incorporated under the Act or under any previous company law. Section 2(68) defines a private company.

2. Which type of company must have a minimum paid-up share capital of ₹1 lakh as per earlier provisions, which was later removed through an amendment?

A. Public Company
B. Private Company
C. OPC
D. Section 8 Company

Answer: B
Explanation: Earlier, private companies required ₹1 lakh paid-up capital, but the Companies (Amendment) Act, 2015 removed this limit.

3. Which of the following is NOT a characteristic of a Public Company?

A. Minimum 3 directors
B. Minimum 7 members
C. Restriction on share transfer
D. Can invite public to subscribe to securities

Answer: C
Explanation: Restriction on share transfer applies to private companies.

4. One Person Company (OPC) concept was introduced under —

A. Companies Act, 1956
B. Companies Act, 2013
C. Companies (Amendment) Act, 2015
D. Companies (Amendment) Act, 2020

Answer: B
Explanation: OPC is a major innovation of the Companies Act, 2013.

5. As per the 2021 amendment, which requirement for OPC has been removed?

A. Requirement of nominee
B. Paid-up capital limit
C. Conversion restrictions
D. All of the above

Answer: D
Explanation: 2021 amendment liberalised OPC rules by removing capital limits, turnover limits, and easing conversion, with nominee still required.

6. In which landmark case was the concept of corporate veil lifting discussed extensively?

A. Salomon v. Salomon
B. Foss v. Harbottle
C. Gilford Motor Co. v. Horne
D. Tata Engineering v. State of Bihar

Answer: C
Explanation: Gilford Motor Co. established that corporate veil can be lifted where the company is a sham.

7. Which Section defines a “Small Company”?

A. Section 2(85)
B. Section 2(68)
C. Section 2(71)
D. Section 2(87)

Answer: A
Explanation: Small companies’ thresholds were revised up to ₹4 crore paid-up capital and ₹40 crore turnover (2022 Amendment).

8. Which company is exempted from holding AGM?

A. Public Company
B. OPC
C. Section 8 Company
D. Producer Company

Answer: B
Explanation: OPC does not need to hold an AGM.

9. Minimum number of Board Meetings required for a Small Company as per the Companies (Amendment) Act, 2021?

A. Four
B. Two
C. One
D. None

Answer: B
Explanation: Small companies and OPCs require at least 2 Board Meetings annually.

10. Which Section deals with maintenance of financial statements?

A. Section 128
B. Section 129
C. Section 134
D. Section 139

Answer: B
Explanation: Section 129 mandates true and fair financial statements.

11. Tenure of an Independent Director is —

A. 5 years per term
B. 3 years
C. 4 years
D. 6 years

Answer: A
Explanation: One term = 5 years; maximum two consecutive terms.

12. Landmark judgment on independent director liability: “Independent directors are not vicariously liable unless there is specific evidence of involvement” — which case?

A. Sunil Bharti Mittal v. CBI
B. Pooja Ravinder Devidasani v. State of Maharashtra
C. Gilford Motor case
D. Vodafone case

Answer: B
Explanation: Supreme Court clarified limited liability of independent directors.

13. Which Section provides for CSR obligations?

A. Section 124
B. Section 135
C. Section 138
D. Section 186

Answer: B
Explanation: Section 135 governs Corporate Social Responsibility.

14. CSR spending threshold includes companies having net profit of —

A. ₹5 crore
B. ₹10 crore
C. ₹50 crore
D. ₹500 crore

Answer: A
Explanation: CSR applies if net profit is ₹5 crore or more.

15. Unspent CSR funds relating to an ongoing project must be transferred to “Unspent CSR Account” within —

A. 15 days
B. 30 days
C. 60 days
D. 90 days

Answer: B
Explanation: Must be transferred within 30 days.

16. Section 73 relates to —

A. Deposits
B. Loans
C. Debentures
D. Share Capital

Answer: A
Explanation: Section 73 provides restrictions on accepting deposits from public.

17. Who appoints the first auditor of a company?

A. Board of Directors
B. Shareholders
C. Audit Committee
D. Central Government

Answer: A
Explanation: As per Section 139(6), Board appoints within 30 days.

18. Rotation of auditors applies to —

A. Small Company
B. OPC
C. Listed Companies
D. Section 8 Company

Answer: C
Explanation: Mandatory rotation applies to listed companies and certain large companies.

19. Maximum number of directorships a person can hold as per Section 165?

A. 10
B. 15
C. 20
D. 25

Answer: C
Explanation: Maximum 20, but only 10 public companies allowed.

20. Section 188 relates to —

A. Related Party Transactions
B. Loans and Investments
C. Managerial Remuneration
D. Insider Trading

Answer: A
Explanation: Deals with RPT requirements and approvals.

21. Which Section of the Companies Act, 2013 deals with loans to directors?

A. Section 179
B. Section 185
C. Section 188
D. Section 186

Answer: B
Explanation: Section 185 prohibits companies from giving loans to directors, subject to certain exceptions.

22. Which Section governs inter-corporate loans and investments?

A. Section 185
B. Section 186
C. Section 190
D. Section 192

Answer: B
Explanation: Section 186 deals with limits and disclosures for loans and guarantees to other companies.

23. Maximum managerial remuneration allowed for public companies is —

A. 5% of net profits
B. 10% of net profits
C. 11% of net profits
D. 15% of net profits

Answer: C
Explanation: Section 197 fixes overall managerial remuneration at 11% of net profits.

24. Section 42 relates to —

A. Public Offer
B. Rights Issue
C. Private Placement
D. Bonus Shares

Answer: C
Explanation: Section 42 regulates private placements with strict compliance requirements.

25. The term “Officer in Default” is defined under —

A. Section 2(60)
B. Section 2(70)
C. Section 2(76)
D. Section 2(65)

Answer: A
Explanation: Section 2(60) lists persons liable for defaults, including KMPs.

26. In which case did the Supreme Court hold that shareholders cannot sue for wrongs done to the company unless exceptions apply?

A. Salomon v. Salomon
B. Foss v. Harbottle
C. LIC v. Escorts
D. Tata Engineering case

Answer: B
Explanation: Foss v. Harbottle established the rule of majority and derivative action exceptions.

27. Section 62 deals with —

A. Buyback
B. Allotment of shares
C. Further Issue of Share Capital
D. Transfer of Shares

Answer: C
Explanation: It includes rights issue, ESOPs, and preferential allotment.

28. Section 66 relates to —

A. Reduction of Share Capital
B. Conversion to Public Company
C. Bonus Issues
D. Share Transfer

Answer: A
Explanation: Reduction requires NCLT approval.

29. Minimum subscription for a public issue must be achieved within —

A. 60 days
B. 30 days
C. 120 days
D. 90 days

Answer: B
Explanation: As per the Act and SEBI norms, 90% minimum subscription must be achieved within 30 days.

30. Provisions for buy-back of securities are provided under —

A. Section 69
B. Section 68
C. Section 70
D. Both B and C

Answer: D
Explanation: Section 68 sets conditions; Section 70 lists prohibitions.

31. In which landmark case did the Supreme Court hold that “Company is a separate legal person distinct from its shareholders”?

A. Gilford Motor Co.
B. Salomon v. Salomon
C. Foss v. Harbottle
D. Vodafone case

Answer: B
Explanation: Salomon principle forms the foundation of corporate personality.

32. Which Section deals with declaration and payment of dividend?

A. Section 123
B. Section 124
C. Section 125
D. Section 120

Answer: A
Explanation: Dividend can be declared from profits only.

33. Which account holds unpaid dividends for 7 years?

A. Investor Education and Protection Fund
B. Unpaid Dividend Account
C. Suspense Account
D. CSR Account

Answer: B
Explanation: After 7 years, transferred to IEPF (Section 125).

34. Rotation of directors in a public company is governed by —

A. Section 149
B. Section 152
C. Section 162
D. Section 169

Answer: B
Explanation: One-third of directors retire by rotation.

35. Which Section defines “Key Managerial Personnel”?

A. Section 2(19)
B. Section 2(51)
C. Section 2(76)
D. Section 2(87)

Answer: B
Explanation: KMP includes CEO, CFO, CS, and whole-time directors.

36. Section 7 deals with —

A. Incorporation
B. Articles of Association
C. Memorandum of Association
D. Prospectus

Answer: A
Explanation: Section 7 prescribes incorporation process.

37. Doctrine of Indoor Management was explained in which case?

A. Royal British Bank v. Turquand
B. Salomon case
C. Ashbury Railway case
D. Oriental Metal Printers case

Answer: A
Explanation: Outsiders can assume internal compliance.

38. Exception to indoor management doctrine?

A. Where fraud exists
B. Where internal procedures are followed
C. Where memorandum is silent
D. None

Answer: A
Explanation: Fraud, forgery, and suspicion create exceptions.

39. Section 8 companies are —

A. Not-for-profit companies
B. Government companies
C. Dormant companies
D. Foreign companies

Answer: A
Explanation: Section 8 companies work for charitable objectives.

40. Maximum number of members in an OPC?

A. One
B. Two
C. Five
D. Unlimited

Answer: A
Explanation: OPC can have only one member.

41. Quorum for a public company general meeting with more than 1000 members is —

A. 15
B. 30
C. 5
D. 20

Answer: B
Explanation: Section 103 prescribes tier-based quorum.

42. Section 447 deals with —

A. Deposits
B. Fraud
C. Insider Trading
D. Oppression and Mismanagement

Answer: B
Explanation: Stringent penalties for fraud.

43. Which tribunal adjudicates corporate matters?

A. CCI
B. ITAT
C. NCLT
D. SEBI

Answer: C
Explanation: NCLT formed under Section 408.

44. Appeal from NCLT goes to —

A. Supreme Court
B. High Court
C. NCLAT
D. SEBI

Answer: C
Explanation: NCLAT under Section 410.

45. Which Section deals with oppression and mismanagement?

A. Sections 241–244
B. Sections 220–225
C. Sections 100–110
D. Section 447

Answer: A
Explanation: Members may approach NCLT under Section 241.

46. Landmark case on oppression & mismanagement: “There must be continuous acts of oppression” —

A. LIC v. Escorts
B. Shanti Prasad Jain v. Kalinga Tubes
C. Salomon case
D. Gilford case

Answer: B
Explanation: Supreme Court explained scope of oppression.

47. Section 2(87) defines —

A. CEO
B. KMP
C. Subsidiary Company
D. Foreign Company

Answer: C
Explanation: Defines holding–subsidiary relationship.

48. Mandatory appointment of woman director applies to —

A. All companies
B. Listed companies
C. Section 8 companies
D. Small companies

Answer: B
Explanation: Listed companies and certain large public companies must appoint one woman director.

49. Section 46 deals with —

A. Share Certificates
B. Debentures
C. Loans
D. Conversion

Answer: A
Explanation: Share certificate is a proof of title.

50. Which amendment decriminalised many offences under the Act?

A. Amendment Act 2015
B. Amendment Act 2017
C. Amendment Act 2020
D. Amendment Act 2022

Answer: C
Explanation: 2020 Act shifted many offences to monetary penalties.

51. Minimum number of members in a private company?

A. 2
B. 1
C. 3
D. 5

Answer: A
Explanation: Private company must have minimum 2 members.

52. Which case held that “shareholder is not the owner of company’s property”?

A. LIC v. Escorts
B. Bacha F. Guzdar v. CIT
C. Vodafone case
D. Salomon case

Answer: B
Explanation: Supreme Court clarified shareholder’s limited rights.

53. Which Section defines a related party?

A. Section 2(76)
B. Section 2(87)
C. Section 188
D. Section 185

Answer: A
Explanation: Defines relationships for RPTs.

54. Section 134 mandates —

A. CSR
B. Signing of financial statements and Board’s report
C. Auditor rotation
D. Prospectus filing

Answer: B
Explanation: Board’s report must be signed by directors.

55. The prospectus is governed under Sections —

A. 23–40
B. 68–70
C. 149–172
D. 200–210

Answer: A
Explanation: These sections regulate public offer documents.

56. Shelf prospectus is under Section —

A. 31
B. 33
C. 34
D. 39

Answer: A
Explanation: Used by financial institutions to issue securities over a period.

57. Key provision for corporate governance in the Act?

A. Section 173
B. Section 177
C. Section 179
D. Section 188

Answer: B
Explanation: Section 177 mandates Audit Committee.

58. Quorum for Board meeting is —

A. 1/3rd or 2 directors, whichever higher
B. 1/2 directors
C. 3 directors minimum
D. 4 directors

Answer: A
Explanation: Section 174 requirement.

59. Section 173 deals with —

A. Oppression
B. Board Meetings
C. Articles
D. CSR

Answer: B
Explanation: First board meeting within 30 days.

60. A dormant company concept is in Section —

A. 455
B. 446
C. 458
D. 426

Answer: A
Explanation: Dormant status for inactive companies.

61. Who investigates corporate fraud?

A. SFIO
B. SEBI
C. RBI
D. NCLAT

Answer: A
Explanation: SFIO investigation under Section 212.

62. Landmark case on lifting corporate veil for tax avoidance?

A. Vodafone International Holdings v. Union of India
B. Salomon case
C. Foss case
D. Escorts case

Answer: A
Explanation: Supreme Court discussed tax avoidance vs evasion.

63. Section 92 deals with —

A. Annual Return
B. AGM
C. Share Transfer
D. Loans

Answer: A
Explanation: Annual return signed by director and CS.

64. Which Section deals with appointment of CS?

A. Section 203
B. Section 177
C. Section 149
D. Section 152

Answer: A
Explanation: Appointment of KMP including CS.

65. Which Section governs removal of directors?

A. 167
B. 169
C. 170
D. 173

Answer: B
Explanation: Directors can be removed by shareholders.

66. The “Registered Office” shift from one state to another requires approval of —

A. NCLT
B. ROC
C. SEBI
D. RBI

Answer: A
Explanation: Section 13 requires special resolution + NCLT approval.

67. Section 10A (inserted in 2019) deals with —

A. Commencement of Business Declaration
B. CSR
C. Independent Directors
D. Debentures

Answer: A
Explanation: Mandatory filing before commencing business.

68. Who signs the Auditor’s Report?

A. MD
B. Company Secretary
C. Auditor
D. CFO

Answer: C
Explanation: Auditor signs under Section 143.

69. Section 140 deals with —

A. Removal of Auditor
B. Remuneration
C. Duties
D. Resignation

Answer: A
Explanation: Auditor removal requires special resolution + CG approval.

70. Section 230 deals with —

A. Amalgamation
B. Oppression
C. Share Transfer
D. Fraud

Answer: A
Explanation: Section 230–232 deal with mergers.

71. Landmark case on valuation of shares during merger?

A. Hindustan Lever Employees’ Union v. Hindustan Lever Ltd.
B. Salomon case
C. Vodafone case
D. Bharti case

Answer: A
Explanation: SC upheld fairness of valuation.

72. Section 248 relates to —

A. Strike off of companies
B. Fraud
C. AGM
D. Deposits

Answer: A
Explanation: ROC may strike off inactive companies.

73. Section 2(45) defines —

A. Government company
B. Foreign company
C. Subsidiary
D. Associate company

Answer: A
Explanation: Govt controls 51% or more.

74. Which company must appoint a vigil mechanism?

A. All companies
B. Listed companies
C. Section 8 companies
D. Private companies only

Answer: B
Explanation: Section 177(9) requires listed companies to have whistleblower mechanism.

75. Who can inspect books under Section 206?

A. ROC
B. SEBI
C. CCI
D. RBI

Answer: A
Explanation: Registrar can inspect books and call for information.

76. Section 2(42) defines —

A. Listed company
B. Foreign company
C. Private company
D. OPC

Answer: B
Explanation: Foreign company has a business place in India.

77. Maximum number of partners in LLP replaced company limit?

A. 10
B. 20
C. No limit
D. 50

Answer: C
Explanation: Unlimited partners allowed under LLP Act.

78. Which Section deals with “Ultra vires” acts?

A. Section 4
B. Section 10
C. Section 12
D. Section 16

Answer: A
Explanation: Section 4 includes object clause; anything beyond it is ultra vire

79. Landmark case on ultra vires doctrine?

A. Ashbury Railway Carriage v. Riche
B. Turquand case
C. Foss case
D. Salomon case

Answer: A
Explanation: Contract ultra vires objects clause was void.

80. Which Section prescribes filing of resolutions?

A. Section 117
B. Section 121
C. Section 159
D. Section 179

Answer: A
Explanation: Certain resolutions must be filed within 30 days.

81. Annual General Meeting is governed by —

A. Section 96
B. Section 98
C. Section 100
D. Section 92

Answer: A
Explanation: AGM must be held annually within prescribed time.

82. Section 101 relates to —

A. Notice of AGM
B. Dividend
C. Buyback
D. Audit

Answer: A
Explanation: 21 days clear notice required.

83. Special resolution requires how much voting percentage?

A. 50%
B. 66%
C. 75%
D. 80%

Answer: C
Explanation: At least 75% votes required.

84. Section 108 allows —

A. E-voting
B. Postal ballot
C. Proxy voting
D. None

Answer: A
Explanation: Mandatory e-voting for listed companies.

85. Postal ballot governed under —

A. Section 110
B. Section 108
C. Section 121
D. Section 150

Answer: A
Explanation: Used for certain matters even without a physical meeting.

86. Insider trading prohibition in Companies Act is covered under —

A. Section 195 (Repealed in 2017)
B. Section 447
C. Section 2(70)
D. Section 235

Answer: A
Explanation: Section 195 was deleted due to duplication with SEBI laws.

87. Filing of financial statements is under —

A. Section 137
B. Section 135
C. Section 134
D. Section 92

Answer: A
Explanation: Companies must file audited statements with ROC.

88. Which Section deals with books of accounts?

A. Section 128
B. Section 129
C. Section 130
D. Section 132

Answer: A
Explanation: Books must be kept at registered office.

89. Section 132 establishes —

A. NFRA
B. SEBI
C. RBI
D. ICAI

Answer: A
Explanation: NFRA oversees auditing discipline.

90. Which amendment introduced NFRA?

A. 2013 Act
B. 2015 Amendment
C. 2017 Amendment
D. 2019 Amendment

Answer: A
Explanation: NFRA was established by the 2013 Act but notified later.

91. Fraud under Section 447 includes —

A. Wrongful gain
B. Wrongful loss
C. Intent to deceive
D. All of the above

Answer: D
Explanation: Comprehensive definition with strict penalties.

92. Section 245 allows —

A. Class Action Suits
B. Oppression
C. Audit
D. Takeovers

Answer: A
Explanation: Members and depositors can file class actions.

93. Landmark class action case in India?

A. ICICI vs SEBI
B. Cyrus Mistry v. Tata Sons
C. BCCI case
D. Sahara case

Answer: B
Explanation: While not a formal class action, it shaped minority protection.

94. Section 129A (2021 Amendment) mandates —

A. Periodic Financial Statements for certain companies
B. CSR
C. RPT
D. Loans

Answer: A
Explanation: Certain companies must prepare periodic financial statements.

95. Section 173(2) allows Board meetings through —

A. Email
B. Video conferencing
C. Phone calls
D. WhatsApp

Answer: B
Explanation: VC allowed with minutes recorded.

96. Minimum directors in a public company?

A. 1
B. 2
C. 3
D. 4

Answer: C
Explanation: Public companies require minimum 3 directors.

97. Which Section allows resignation of directors?

A. Section 168
B. Section 172
C. Section 169
D. Section 171

Answer: A
Explanation: Resignation effective upon delivery of notice.

98. Section 203 requires companies to appoint —

A. KMP
B. Nominee Director
C. Auditor
D. Liquidator

Answer: A
Explanation: Applies to listed and certain large companies.

99. Section 430 bars —

A. Civil Court jurisdiction
B. Criminal cases
C. Tax disputes
D. Arbitration

Answer: A
Explanation: Civil courts cannot entertain matters assigned to NCLT/NCLAT.

100. Section 466 deals with —

A. Revival of struck-off companies
B. Reduction of capital
C. CSR
D. Directors’ duties

Answer: A
Explanation: NCLT can restore companies struck off under Section 248.