QUESTION BANK

CORPORATE LAWS

B.Com (H)- Semester II

MCQs

1) EGM can be called by

a) Board of Directors
b) Board on the request of a requisition
c) Requisitionists
d) All of the above

2) Petition for Compulsory winding up of a company can be filed by

a) The company
b) Creditors and also by contributories
c) The Registrar
d) All of the above

3) First auditor of a company other than a government company is appointed by

a) Board of directors
b) Shareholders
c) None of these
d) All of the above

4) Producer company is based on the principles of

a) Patronage
b) Mutual Assistance
c) Limited Return
d) All of the above

5) Which of the following documents contain thr rules and regulations to govern the internal
management of the company
a) Company Act 2013
b) Memorandum of Association
c) Prospectus
d) Articles of Association

6) A person who raises a concern about wrongdoing within n organiisation is called

a) Promoter
b) Whistle Blower
c) Inside Trader
 d) Auditor

7) At present the number of depositories operating in India are

a) One
b) Two
c) Three
d) Four

8) Converting physical scrips into computerized ledger accounts maintained by the depository is
called
a) Dematerialisation
b) Rematerialisation
c) Digitalisation
d) None of the above

9) Remedies available to an aggrieved shareholder for misrepresentation in the prospectus against

the directors and other officials of the company are
a) Civil Liability
b) Criminal Liability
c) Action for Deceit
d) All of the above

10) An association of persons carrying on any business for profits shall be termed as illegal
association when the number of persons exceed
a) 10
b) 50
c) 100
d) 20

SHORT QUESTION

1) What is meaning lifting of corporate veil?

2) Explain the legal position of promoters.
3) What is meant by a Producer Company?
4) What are the benefits of Depository Systems?
5) When is it just and equitable for Tribunal to wind up a company?
6) Distinguish between AGM and EGM.
7) Write a short note on book building process and GDR.
8) Write a short note on Independent Director.
9) Explain what is meant by a small company.
10) “Dividend once declared cannot be revoked”. Explain the statement.

LONG QUESTION
1) Who can be a director of a company? Explain the provisions of the Companies Act relating to the
appointment of directors by the Board of Directors.
2) What is meant by rotation of auditors. What are the provisions related to appointment and
rotation of auditors?
3) Explain the Doctrine of Ultra Vires with its effects.
4) What is meant by EGM? Who can call the EGM and when?
5) What is the online registration process of a company?
6) What is meant by scrip less trading? Explain the terms participant, registered owner and
beneficial owner.
7) Explain Voluntary winding up of a company.
8) Define a prospectus. Explain the red herring prospectus, abridged prospectus and shelf
prospectus.
9) What is meant by Investor Education and Protection Fund? Explain the provisions related to its
establishment.
10) Explain the duties and liabilities of a Director.
 Question Bank
BALLB/BBA LLB 406: Corporate Law-II

UNIT-I
1. Must a limited company under the companies Act have directors?
2. What are the qualifications of a director?
3. When is a person disqualified for appointment as a director of a company?
4. Briefly state the provisions of the Companies Act, 1956, regarding the mode of
appointment of the directors of a Company.
5. When is an office of Director of a Public Company deemed to be vacated?
6. “Directors are not only agents but also in some sense trustees of the Company”.
Discuss.
7. State how the managing director of a Public limited Company is appointed and what
his duties are?
8. Can a managing director act before obtaining the approval?
9. Briefly state the provisions of the Companies Act, 1956, regarding the mode of
appointment of the Company Secretary.
10. Explain the role of a Company Secretary in a Company.

UNIT – II
11. What are the different kinds of meetings of the shareholders of a Company? When
and how these meetings held?
12. What is statutory meeting? What is statutory report and what are its contents?
13. What are the Statutory provisions regarding the holding of an Annual general
Meeting. What business is transacted at such a meeting?
14. “The AGM alone is the Company’s primary organ and Directors are merely the
company’s agents or servants at all the time subservient to the general meeting of a
Company on requisition?
15. Can the directors of a Company postpone the holding of its annual general meeting
beyond the statutory time limit on the ground that the annual accounts are not ready?
16. What do you understand by a Quorum? Must a quorum be present through out a
meeting? What is the procedure if a Quorum is never formed?
17. What are the requisites of a valid meeting?
18. What do you understand by a Proxy? What are the statutory provisions regarding
proxy?
19. What are the various Kinds of Motions?
20. Describe the kinds and proceedings of Resolutions.

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 UNIT – III
21. “The will of Majority must prevail” is the principle of Company Management. Are
there any exceptions to this rule?
22. “A proper balance of the rights of the majority and minority shareholders is essential
for smooth functioning of a Company”. Why?
23. What are the provisions of the Companies Act, 1956 for the prevention of oppression
of the minority shareholders and mismanagement of a Company?
24. What remedies are available to the minority shareholders of a Company against
oppression and mismanagement?
25. “Majority will have its way but the minority must be allowed to have its say”. Discuss
this proposition.
26. What are the powers given to the tribunal and the Central government by the
Companies Act, 1956 against prevention of oppression and mismanagement?
27. Who may apply for relief to the Company Law tribunal?
28. What do you mean by Corporate Social responsibility?
29. Describe the emerging trends in Corporate Social responsibility.
30. Write a short note on significance of Corporate Social responsibility.

UNIT – IV
31. What do you mean by the term ‘Compromises’ and ‘Arrangement’?
32. How can a company make a compromise or arrangement with its members or
creditors without going into liquidation?
33. Set out briefly the methods by which the reconstruction of a company can be carried
out?
34. What do you mean by the Amalgamation? State the difference between
Amalgamation and Merger.
35. How may the Amalgamation of a company with another company be able to be
carried out?
36. State the powers of central Government to provide for the amalgamation of
companies in the public interest.
37. Explain the provisions of compromise during the Winding up of a Company?
38. Explain the provisions of compromise when a company is a going concern.
39. Define the powers of court during reconstruction of Company.
40. Explain about acquisition of shares of dissenting shareholders during reconstruction
of company.
UNIT – V
41. What do you mean by the winding up of a Company?
42. What are the different modes of winding up?
43. When can a company be wound up by the court? Who are the persons entitled to
present a petition for the winding up of a company by the court?

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44. Under what circumstances will the court order a compulsory winding up of a
company? What is the effect of a winding up order?
45. Explain the various consequences of winding up of a Company.
46. Define provisions about the voluntary winding up by the creditors.
47. Explain various types of voluntary winding up of a Company.
48. What is the difference between Member’s voluntary winding up and Creditor’s
voluntary winding up.
49. Discuss the meaning of Contributories and provisions regarding them.
50. What do you mean by Liquidators?

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