MULTIPLE-CHOICE QUESTIONS WITH ANSWERS

MULTIPLE-CHOICE QUESTIONS WITH ANSWERS RELATED TO

THE COMPANIES ACT, 2013

Which body regulates the provisions of The Companies Act, 2013?
A) Ministry of Corporate Affairs
B) Securities and Exchange Board of India (SEBI)
C) Reserve Bank of India (RBI)
D) Institute of Chartered Accountants of India (ICAI)

Answer: A) Ministry of Corporate Affairs

What is the minimum number of members required to form a private company under the Companies Act, 2013?
A) 1
B) 2
C) 3
D) 7

Answer: B) 2

Which section of The Companies Act, 2013 deals with the incorporation of companies?
A) Section 7
B) Section 12
C) Section 33
D) Section 54

Answer: A) Section 7

What is the maximum number of directors that a company can appoint as per The Companies Act, 2013?
A) 12
B) 15
C) 20
D) No limit

Answer: D) No limit

Which financial statement is not mandatorily required to be prepared by a company according to The Companies Act, 2013?
A) Balance Sheet
B) Profit and Loss Account
C) Cash Flow Statement
D) Statement of Changes in Equity

Answer: C) Cash Flow Statement

Which type of company is required to have at least one woman director on its board as per The Companies Act, 2013?
A) Private Limited Company
B) Public Limited Company
C) Government Company
D) Partnership Firm

Answer: B) Public Limited Company

What is the maximum number of members a private company can have as per The Companies Act, 2013?
A) 50
B) 100
C) 200
D) No maximum limit

Answer: D) No maximum limit

What is the minimum number of directors required for incorporating a public company under The Companies Act, 2013?
A) 2
B) 3
C) 5
D) 7

Answer: B) 3

Which section of The Companies Act, 2013 deals with the issue of shares at a discount?
A) Section 54
B) Section 53
C) Section 64
D) Section 79

Answer: B) Section 53

Who can file a complaint regarding any offence under The Companies Act, 2013?
A) Only shareholders of the company
B) Only directors of the company
C) Shareholders, directors, and any person authorized by the Central Government
D) Only the Central Government

Answer: C) Shareholders, directors, and any person authorized by the Central Government

Which form is filed for the incorporation of a company under The Companies Act, 2013?
A) Form DIR-12
B) Form INC-7
C) Form AOA-2
D) Form MGT-14

Answer: B) Form INC-7

What is the minimum notice period required for calling an Annual General Meeting (AGM) of a company under The Companies Act, 2013?
A) 7 days
B) 14 days
C) 21 days
D) 30 days

Answer: C) 21 days

What is the maximum number of directors in a public company according to The Companies Act, 2013?
A) 12
B) 15
C) 20
D) No limit

Answer: D) No limit

What percentage of profits should a company transfer to the reserves before declaring a dividend under The Companies Act, 2013?
A) 5%
B) 10%
C) 15%
D) It depends on the company’s discretion

Answer: D) It depends on the company’s discretion

Which section of The Companies Act, 2013 deals with the powers of the National Financial Reporting Authority (NFRA)?
A) Section 132
B) Section 210
C) Section 186
D) Section 248

Answer: A) Section 132

What is the maximum number of members that a one-person company (OPC) can have under The Companies Act, 2013?
A) 10
B) 15
C) 20
D) It remains a one-person company

Answer: D) It remains a one-person company

Who has the power to remove an auditor before the expiry of their term under The Companies Act, 2013?
A) Auditor himself/herself
B) Shareholders in a general meeting
C) Board of Directors
D) Registrar of Companies

Answer: B) Shareholders in a general meeting

What is the minimum number of members required for the formation of a public company under The Companies Act, 2013?
A) 2
B) 3
C) 5
D) 7

Answer: B) 3

Which section of The Companies Act, 2013 deals with the concept of Corporate Social Responsibility (CSR)?
A) Section 125
B) Section 135
C) Section 188
D) Section 201

Answer: B) Section 135

How often should a company hold its board meetings as per The Companies Act, 2013?
A) Once a year
B) At least twice a year
C) At least four times a year
D) There is no specific requirement

Answer: B) At least twice a year

Which form is used for filing an annual return by a company under The Companies Act, 2013?
A) Form MGT-7
B) Form AOC-4
C) Form ADT-1
D) Form INC-22

Answer: A) Form MGT-7

What is the minimum number of directors required for a private company under The Companies Act, 2013?
A) 1
B) 2
C) 3
D) 4

Answer: B) 2

Which section of The Companies Act, 2013 deals with the powers and duties of auditors?
A) Section 134
B) Section 139
C) Section 148
D) Section 152

Answer: B) Section 139

Who has the authority to appoint the first auditor of a company under The Companies Act, 2013?
A) Board of Directors
B) Shareholders in a general meeting
C) Comptroller and Auditor General of India
D) Registrar of Companies

Answer: B) Shareholders in a general meeting

What is the maximum number of partners allowed in a company under The Companies Act, 2013?
A) 50
B) 100
C) 200
D) No limit

Answer: D) No limit

Which section of The Companies Act, 2013 deals with the appointment of a managing director, whole-time director, or manager?
A) Section 196
B) Section 210
C) Section 228
D) Section 241

Answer: A) Section 196

What is the minimum number of directors required for a public company under The Companies Act, 2013?
A) 1
B) 2
C) 3
D) 4

Answer: C) 3

Which form is used for filing financial statements by a company under The Companies Act, 2013?
A) Form MGT-14
B) Form AOC-4
C) Form ADT-1
D) Form INC-22A

Answer: B) Form AOC-4

Which section of The Companies Act, 2013 deals with the prevention of oppression and mismanagement?
A) Section 200
B) Section 225
C) Section 241
D) Section 259

Answer: C) Section 241

What is the tenure of an independent director in a company under The Companies Act, 2013?
A) 3 years
B) 5 years
C) 7 years
D) 10 years

Answer: B) 5 years

According to The Companies Act, 2013, what percentage of the profits of a company is required to be transferred to the Reserve Fund before declaring dividends?
A) 5%
B) 10%
C) 15%
D) It depends on the company’s discretion

Answer: D) It depends on the company’s discretion

What is the minimum number of members required for the formation of a producer company under The Companies Act, 2013?
A) 2
B) 5
C) 10
D) 15

Answer: C) 10

Which section of The Companies Act, 2013 deals with the powers and duties of the company secretary?
A) Section 141
B) Section 205
C) Section 220
D) Section 234

Answer: B) Section 205

Who has the authority to approve the appointment of an auditor in a company under The Companies Act, 2013?
A) Board of Directors
B) Registrar of Companies
C) Shareholders in a general meeting
D) Comptroller and Auditor General of India

Answer: C) Shareholders in a general meeting

Under The Companies Act, 2013, how often should a company file its financial statements with the Registrar of Companies?
A) Annually
B) Quarterly
C) Bi-annually
D) Once in two years

Answer: A) Annually

Which form is used for intimating the Registrar of Companies about the appointment of a managing director, whole-time director, or manager in a company?
A) Form DIR-12
B) Form MGT-14
C) Form MR-1
D) Form INC-22A

Answer: A) Form DIR-12

What percentage of profits is required to be transferred to the Investor Education and Protection Fund (IEPF) under The Companies Act, 2013?
A) 5%
B) 10%
C) 15%
D) 20%

Answer: B) 10%

Which section of The Companies Act, 2013 deals with the powers and duties of the National Company Law Tribunal (NCLT)?
A) Section 409
B) Section 422
C) Section 241
D) Section 458

Answer: B) Section 422

What is the maximum number of directors that can be appointed by a company without passing a special resolution according to The Companies Act, 2013?
A) 10
B) 12
C) 15
D) 20

Answer: D) 20

Who appoints the first directors of a company under The Companies Act, 2013?
A) Registrar of Companies
B) Promoters of the company
C) Shareholders in a general meeting
D) Board of Directors

Answer: B) Promoters of the company

Which section of The Companies Act, 2013 deals with the maintenance of books of accounts by a company?
A) Section 128
B) Section 134
C) Section 145
D) Section 152

Answer: A) Section 128

What is the minimum percentage of net profits that a company can contribute to Corporate Social Responsibility (CSR) activities under The Companies Act, 2013?
A) 1%
B) 2%
C) 3%
D) 5%

Answer: B) 2%

According to The Companies Act, 2013, who is responsible for appointing the first auditor of a company?
A) Board of Directors
B) Registrar of Companies
C) Comptroller and Auditor General of India
D) Shareholders in a general meeting

Answer: D) Shareholders in a general meeting

Which section of The Companies Act, 2013 deals with the punishment for non-compliance with provisions regarding the issue and transfer of securities?
A) Section 40
B) Section 56
C) Section 72
D) Section 118

Answer: B) Section 56

What is the maximum number of directors that can be appointed in a private company without passing a special resolution?
A) 10
B) 12
C) 15
D) 20

Answer: D) 20

Which form is used to file a declaration of solvency by a company when winding up voluntarily?
A) Form INC-28
B) Form MGT-14
C) Form GNL-2
D) Form MGT-7

Answer: A) Form INC-28

According to The Companies Act, 2013, what is the maximum number of layers of subsidiaries a company can have?
A) 1
B) 2
C) 3
D) No restriction

Answer: C) 3

Which section of The Companies Act, 2013 deals with the procedure for conversion of a public company into a private company?
A) Section 14
B) Section 18
C) Section 36
D) Section 14A

Answer: A) Section 14

Who can file a petition for the winding up of a company under The Companies Act, 2013?
A) Only shareholders
B) Only creditors
C) Shareholders, creditors, or the company itself
D) Only the Central Government

Answer: C) Shareholders, creditors, or the company itself

Under The Companies Act, 2013, what is the maximum number of members a private company can have for inviting deposits from the public?
A) 50
B) 75
C) 100
D) 200

Answer: B) 75

Which section of The Companies Act, 2013 deals with the appointment of auditors in government companies?
A) Section 139
B) Section 148
C) Section 149
D) Section 139(5)

Answer: B) Section 148

Who can remove the auditor of a company before the expiry of their term under The Companies Act, 2013?
A) Comptroller and Auditor General of India
B) National Financial Reporting Authority (NFRA)
C) Securities and Exchange Board of India (SEBI)
D) Shareholders in a general meeting

Answer: D) Shareholders in a general meeting

What is the time limit within which the first board meeting of a newly incorporated company must be held under The Companies Act, 2013?
A) 15 days
B) 30 days
C) 60 days
D) 90 days

Answer: D) 90 days

Which form is filed to intimate the Registrar of Companies about the change in registered office of a company?
A) Form INC-22
B) Form DIR-12
C) Form MGT-14
D) Form AOC-4

Answer: A) Form INC-22

According to The Companies Act, 2013, what is the tenure of the first auditor appointed by the Comptroller and Auditor General of India (CAG)?
A) 2 years
B) 3 years
C) 4 years
D) 5 years

Answer: B) 3 years

Which section of The Companies Act, 2013 deals with the powers of the Central Government to appoint a competent authority?
A) Section 396
B) Section 439
C) Section 418
D) Section 424

Answer: A) Section 396

What is the maximum period within which shares must be issued upon the receipt of the application money under The Companies Act, 2013?
A) 30 days
B) 45 days
C) 60 days
D) 90 days

Answer: B) 45 days

Which section of The Companies Act, 2013 deals with the prevention of oppression and mismanagement of companies?
A) Section 212
B) Section 217
C) Section 241
D) Section 259

Answer: C) Section 241

According to The Companies Act, 2013, what percentage of the net profits is required to be transferred to a reserve fund before declaring dividends?
A) 5%
B) 10%
C) 15%
D) It’s at the company’s discretion

Answer: D) It’s at the company’s discretion

Which section of The Companies Act, 2013 deals with the powers and functions of the Serious Fraud Investigation Office (SFIO)?
A) Section 206
B) Section 210
C) Section 211
D) Section 213

Answer: C) Section 211

What is the minimum number of directors required for a public company according to The Companies Act, 2013?
A) 1
B) 2
C) 3
D) 4

Answer: C) 3

Which section of The Companies Act, 2013 deals with the registration of charges by a company?
A) Section 67
B) Section 77
C) Section 87
D) Section 117

Answer: A) Section 67

According to The Companies Act, 2013, how often should a company hold its Annual General Meeting (AGM)?
A) Once a year
B) Twice a year
C) Thrice a year
D) It depends on the company’s discretion

Answer: A) Once a year

What is the minimum number of members required for the formation of a public company under The Companies Act, 2013?
A) 2
B) 3
C) 5
D) 7

Answer: B) 3

Which form is used for filing the appointment of a managing director, whole-time director, or manager in a company with the Registrar of Companies?
A) Form MGT-14
B) Form DIR-12
C) Form MR-1
D) Form INC-22A

Answer: B) Form DIR-12

According to The Companies Act, 2013, what is the maximum number of directors a company can have?
A) 12
B) 15
C) 20
D) No limit

Answer: D) No limit

Which section of The Companies Act, 2013 deals with the powers and duties of the Company Law Board (CLB)?
A) Section 430
B) Section 431
C) Section 432
D) Section 433

Answer: B) Section 431

What is the maximum number of partners allowed in a company under The Companies Act, 2013?
A) 50
B) 100
C) 200
D) No limit

Answer: D) No limit

Which form is used for filing the financial statements by a company with the Registrar of Companies?
A) Form AOC-4
B) Form MGT-14
C) Form ADT-1
D) Form INC-22A

Answer: A) Form AOC-4

Which section of The Companies Act, 2013 deals with the provisions related to the prevention of oppression and mismanagement of companies?
A) Section 215
B) Section 221
C) Section 241
D) Section 251

Answer: C) Section 241

What is the maximum number of layers of subsidiaries allowed as per The Companies Act, 2013?
A) 1
B) 2
C) 3
D) No restriction

Answer: C) 3

Which section of The Companies Act, 2013 deals with the punishment for non-compliance with provisions regarding the issue and transfer of securities?
A) Section 45
B) Section 56
C) Section 67
D) Section 78

Answer: B) Section 56

What is the maximum period within which shares must be issued upon the receipt of the application money under The Companies Act, 2013?
A) 30 days
B) 45 days
C) 60 days
D) 90 days

Answer: B) 45 days

Answer: D) Shareholders in a general meeting

Which form is filed to intimate the Registrar of Companies about the change in registered office of a company?
A) Form INC-22
B) Form DIR-12
C) Form MGT-14
D) Form AOC-4

Answer: A) Form INC-22

According to The Companies Act, 2013, what is the tenure of the first auditor appointed by the Comptroller and Auditor General of India (CAG)?
A) 2 years
B) 3 years
C) 4 years
D) 5 years

Answer: B) 3 years

Which section of The Companies Act, 2013 deals with the powers and functions of the National Company Law Tribunal (NCLT)?
A) Section 407
B) Section 421
C) Section 425
D) Section 430

Answer: C) Section 425

What is the minimum number of directors required for a public company according to The Companies Act, 2013?
A) 1
B) 2
C) 3
D) 4

Answer: C) 3

Which section of The Companies Act, 2013 deals with the registration of charges by a company?
A) Section 67
B) Section 77
C) Section 87
D) Section 117

Answer: A) Section 67

According to The Companies Act, 2013, how often should a company hold its Annual General Meeting (AGM)?
A) Once a year
B) Twice a year
C) Thrice a year
D) It depends on the company’s discretion

Answer: A) Once a year