Company Law MCQs

By: Prof. Dr. Fazal Rehman | Last updated: May 29, 2025

1. : The union government can hire such a number of directors in a company as it may think essential:
(A) At its own initiative
(B) On the request of at least a hundred members of the company
(C) On the request of members holding at least 10% voting rights
(D) Any of the above

2. : When is the dividend on preference capital paid?
(A) Whenever profits
(B) Only if there are profits
(C) Even if there are no profits
(D) Only when the directors suggest and recommend it

3. : The private company needs conversion into a public company by which of the following means?
(A) An ordinary resolution
(B) A specific and special resolution
(C) A specific and special resolution and union government’s approval
(D) A specific and special resolution and company law board approval

4. : A share certificate once issued by the company binds it in two ways, namely by estoppel as to payment, and by estoppel as to?
(A) Title
(B) Profit
(C) Dividend
(D) None

5. : Which of the following is the most significant document of a company?
(A) Prospectus
(B) Annual report
(C) Memorandum of Association
(D) Articles of Association

6. : The policies and rules for the internal management of a company are contained in which of the following?
(A) Prospectus
(B) Annual report
(C) Memorandum of Association
(D) Articles of Association

7. : The election for directors is held in a general meeting through a separate resolution passed by which of the given majority?
(A) Single
(B) Two-thirds
(C) Three-fourths
(D) Five-sixths

8. : Which is outside the powers of the board of directors?
(A) To issue debentures
(B) To make loans
(C) To remit the payment of any debt due by a director
(D) To issue prospectus

9. : The least subscription is to be received within how many days of the offer?
(A) 90
(B) 80
(C) 120
(D) 160

10. : What is the meaning of the share capital of a company?
(A) Equity share capital
(B) Preference share capital
(C) Equity and preference share capital
(D) Equity and preference share capital and debentures

11. : A shareholder in a company can be/can’t be?
(A) Can be its debenture holder
(B) Cannot be its debenture holder
(C) Alone can become its debenture holder
(D) Must also become its debenture holder within a year of being a shareholder

12. : Which of the following is the document that need not be ready and registered with the Registrar of Companies in public limited companies?
(A) Statutory declaration
(B) Memorandum of Association
(C) Articles of Association
(D) Directors’ undertakings to take up and pay for qualification shares