May 26, 2020

Dear aspirants,

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

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

- Section 1(3)
- Section 3(1)
- Section 4(2)
- Section 2(4)

**Answer: (2)**

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

- 1
- 2
- 5
- 7

**Answer: (4)
**

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

- 1
- 2
- 5
- 7

**Answer: (2)
**

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

- One Person Company
- Two Person Company
- Limited Liability Partnership
- Public Private Partnership

**Answer: (1)
**

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

- 50
- 100
- 200
- Unlimited

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

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

- 50
- 100
- 200
- 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?**

- Rs 1 lakh
- Rs 5 lakh
- Rs 10 lakh
- No minimum paid-up capital requirements

**Answer: (4)**

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

- Rs 1 lakh
- Rs 5 lakh
- Rs 10 lakh
- 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,

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

- 1
- 2
- 3
- 4

**Answer: (3)
**A minimum number of

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

- 1
- 2
- 3
- 4

**Answer: (2)
**A minimum number of

**Click to go to SEBI Grade A Preparation Page**

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