MULTIPLE CHOICE QUESTION FOR CORPORATE LAWS AND COMPLIANCE

• Payment of Commission on exports made towards equity investment in wholly owned subsidiary abroad of an Indian Company is
  • Permissible
  • Prohibited
  • Forwarded
  • Restricted

• All Board members and senior management personnel should affirm compliance with the Code on annual basis. The annual report of the Company shall contain a declaration to this effect signed by the
  • Auditor
  • Director
  • Managing Director
  • CEO

• SEBI has to be responsive to the needs of the three groups which constitute the Market. Which of the following does not constitute the Market?
  • The issuers of securities
  • The investors
  • The brokers
  • The market intermediaries

• Which of the following listing provides arbitrage opportunities to the investors, whereby they can make profit based on the difference in the prices prevailing in the said exchanges?
  • Multiple listing
  • Initial listing
  • Listing for right issue
  • Listing for public issue

• Which of the following is not the objective of Competition Act, 2002?
  • To prevent practices having adverse effect on competition
  • To prevent competition in market
  • To protect the interest of the consumers
  • To ensure freedom of trade carried on by the other participant in marketing India and for matter connected there with or incidental thereto

• An association of producers, sellers or distributors, traders or service providers who, by agreement amongst themselves, limit, control or attempt to control the production, distribution, sale or price of or trade in goods or provision of services is known as
  • Acquisition
  • Agreement
  • Cartel
  • Pool

• An authorised dealer, money changer, offshore banking or any other persons for the time being authorized to deal in foreign exchange or foreign securities is known as
  • Authorised banker
  • Authorised dealer
  • Authorised person
  • Authorised money changer

• The process of money laundering generally involves three stages. Which is the second stage?
  • Placement
  • Layering
  • Integration
  • Contribution

• The asset in respect of which no default in repayment of principal or payment of interest has occurred is known as
  • Non-performing Asset
  • Standard Asset
  • Sub-standard Asset
  • Doubtful Asset

• A person who fails to get appointed as a director in a general meeting cannot be appointed as
  • Additional director
  • Alternate director
  • Independent director
  • Nominee director

• Which of the following is not the correct manner in the event of any change in his particulars as stated in Form DIR-3, an applicant intimate such change to the Central Government within a period of 30 days of such change in Form DIR-3?
  • The applicant shall download Form DIR-6 from the portal
  • The form shall be digitally signed by CA or CS or CMA
  • The applicant shall submit the fees
  • The applicant shall submit the form DIR-6

• In which of the following principle, every member holds equal rights with other members of the company in the same class? The scale of rights of members of the same class must be held evenly for smooth functioning of the company.
  • Interference
  • Non-interference
  • Indifference
  • Difference

• SEBI has three functions rolled into one body. Which of the following is not the function of SEBI?
  • Quasi-legislative
  • Quasi-judicial
  • Quasi-executive
  • Quasi-official

• Which of the following is not the condition for issue of IDR?
  • Issue size should not be more than Rs. 50 crores
  • Minimum application amount should be Rs. 20,000
  • At least 50% of the IDR issued should be allotted to qualified institutional buyers on proportionate basis
  • There will be only denomination of IDR of the issuing company

• For the appointment, reappointment, remuneration and removal of the director of a banking company, prior approval of  should be obtained.
  • Chairman
  • RBI
  • Managing Director
  • Finance Secretary

• Which of the following Committee was formed by SEBI for improving standards of Corporate Governance of Listed Companies in India?
  • Naresh Chandra Committee
  • N.R. Narayan Murthy Committee
  • Kotak Committee
  • Kumar Mangalam Birla Committee

• The company shall furnish to the Registrar verification of its registered office within a period of  from the date of its incorporation.
  • 30 days
  • 45 days
  • 60 days
  • 90 days

• Out of following which item cannot be exercised by the Board of Directors of ABC Ltd.?
  • To diversify the business of the company
  • To take over a company
  • To approve amalgamation, merger or the reconstruction
  • To sell of the whole or substantially the whole of the undertaking of the company

• The board may fill any casual vacancy in the office of an auditor within 30 days but where such vacancy is caused by the resignation of an auditor, such appointment shall also be approved by the company at a general meeting concerned within of the recommendation of the Board.
  • one month
  • two months
  • three months
  • six months

• In case the Comptroller and Auditor General of India does not appoint first auditor within the stipulated date who will appoint such auditor within next 30 days?
  • Shareholders
  • Board of Directors
  • Managing Directors
  • Company Secretary

• Under which principle of Corporate Governance, it implies the responsibility of the Chairman, the Board of Directors and the Chief Executive for the use of company’s resources in the best interest of the company and its shareholders?
  • Independence
  • Accountability
  • Transparency
  • Ethics

• Any person aggrieved by an order of NCLT may prefer an appeal to the Appellate Tribunal within a period of  from the date on which a copy of the order of the Tribunal is made available to the person aggrieved.
  • 120 days
  • 60 days
  • 45 days
  • 30 days

• Which of the following is not the objective of The Prevention of Money Laundering Act, 2002?
  • To prevent and control money laundering
  • To confiscate and seize the property obtained from the laundered money
  • To generate profit for an individual or a group
  • To deal with any other issue connected with money laundering in India

• A promise whereby the assured undertakes that some particular thing shall or shall not be done or that some conditions shall be fulfilled or affirms or negatives the existence of a particular state of facts. This principle of Insurance is known as
  • Warranty
  • Good faith
  • Conditions
  • Indemnity

• Which of the following is not the benefits of CSR Programme?
  • Mutual trust
  • Attracting and retaining employees
  • Communities as suppliers
  • Enhancing corporate reputation

• An agreement or arrangement in writing for transfer of assets, or funds, goods or services, from or to the corporate debtor is known as
  • Transfer
  • Transfer of property
  • Transaction
  • Transmission

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