Companies Act MCQ Part 1 for SEBI Grade A

May 26, 2020
SEBI Grade A Test Series

Dear aspirants,
We are presenting you the Companies Act MCQ Part 1 for SEBI Grade A Companies Act Section of the exam.

Companies Act MCQ Part 1 for SEBI Grade A

Q1. Under which section of Companies Act 2013, the term Company has been defined?

  1. Section 1(3)
  2. Section 3(1)
  3. Section 4(2)
  4. Section 2(4)

Answer: (2)

Q2. What is the minimum number of persons required to form a public company?

  1. 1
  2. 2
  3. 5
  4. 7

Answer: (4)
Seven or more persons are required to form a public company

Q3. What is the minimum number of persons required to form a private company?

  1. 1
  2. 2
  3. 5
  4. 7

Answer: (2)
Two or more persons are required to form a private company

Q4. Which new type of company was introduced in Companies Act 2013?

  1. One Person Company
  2. Two Person Company
  3. Limited Liability Partnership
  4. Public Private Partnership

Answer: (1)
One Person Company is a private company which is one formed by one person by subscribing their names or his name to a memorandum and complying with the requirements of Companies Act

Q5. What is the maximum number of persons required to form a public company?

  1. 50
  2. 100
  3. 200
  4. Unlimited

Answer: (4)
In order for a company to be public, it should have a minimum of 7 members (maximum  unlimited).

Q6. What is the maximum number of persons required to form a private company?

  1. 50
  2. 100
  3. 200
  4. Unlimited

Answer: (3)

Minimum of only 2 members (and maximum of 200) are required to form a private company

Q7. What is the minimum paid up capital required to incorporate a private company?

  1. Rs 1 lakh
  2. Rs 5 lakh
  3. Rs 10 lakh
  4. No minimum paid-up capital requirements

Answer: (4)

Q8. What is the minimum paid up capital required to incorporate a public company?

  1. Rs 1 lakh
  2. Rs 5 lakh
  3. Rs 10 lakh
  4. No minimum paid-up capital requirements

Answer: (4)
The minimum paid-up share capital requirement of INR 100,000 (in case of a private company) and INR 500,000 (in case of a public company) under Companies Act 2013 has been done away with. Consequently, the definitions of private and public companies stand amended in Companies Act Amendment 2015. Accordingly, no minimum paid-up capital requirements will now apply for incorporating private as well as public companies in India.

Q9. What is the minimum of directors required in the case of a public company?

  1. 1
  2. 2
  3. 3
  4. 4

Answer: (3)
A minimum number of three directors in the case of a public company

Q10. What is the minimum of directors required in the case of a private company?

  1. 1
  2. 2
  3. 3
  4. 4

Answer: (2)
A minimum number of two directors in the case of a private company

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Tags: Companies Act MCQ Part 1, Companies Act MCQ Part 1 Quiz