We are presenting you the Companies Act MCQ Part 4 for SEBI Grade A Companies Act Section of the exam.
Q1. If a company violates the Section 33 of Companies Act related to Abridged Prospectus, then it shall be punishable with fine of _________?
If a company violates the provisions of Section 33 of Companies Act 2013, it shall be punishable with a fine of fifty thousand rupees for each default.
Q2. The minimum amount payable on application on every security shall not be less than _____ per cent. of the nominal amount of the security
The amount payable on application on every security shall not be less than five per cent. of the nominal amount of the security or such other percentage or amount, as may be specified by the Securities and Exchange Board by making regulations in this behalf
Q3. Sweat Equity Shares are issue to _____?
“Sweat Equity Shares” means such equity shares as are issued by the Company to its Directors or Employees at a discount or for consideration, other than cash, for providing their know-how or making available rights in the nature of intellectual property rights or value additions
Q4. The Company shall not issue Sweat Equity Shares for more than _____ of existing paid-up share capital at one-time
The Company shall not issue Sweat Equity Shares for more than 15% of existing paid-up share capital or issue value of shares Rs.5,00,00,000/- (Rupees Five Crores), whichever is higher.
Q5. What is the lock-in period of Sweat Equity Shares?
The Sweat Equity Shares are non-transferable and are in lock-in period for a period of 3 years from the date of allotment
Q6. In which of the following cases a company can use Capital Redemption Reserve?
The company can use the Capital Redemption Reserve to issue the fully paid-up bonus shares.
Q7. As per Companies Act 2013, what is maximum tenure of preference shares except for infrastructure projects?
A company limited by shares may, if so authorised by its articles, issue preference shares which are liable to be redeemed within a period not exceeding twenty years from the date of their issue. A company may issue preference shares for a period exceeding twenty years for infrastructure projects
Q8. Which among the following is type of share issued to existing shareholders to increase its subscribed share capital?
A rights issue is a way by which a listed company can raise additional capital. However, instead of going to the public, the company gives its existing shareholders the right to subscribe to newly issued shares in proportion to their existing holdings
Q9. Which among the following is type of share issued to existing shareholders without receipt of any consideration from shareholders for issuance of such shares?
Bonus shares are the additional shares that a company gives to its existing shareholders on the basis of shares owned by them. Bonus shares are issued to the shareholders without any additional cost
Q10. Which among the following is type of share issued to employees of the company usually at discounted price?
An ESOP (Employee stock ownership plan) refers to an employee benefit plan which offers employees an ownership interest in the organization. A company grants ESOPs to its employees for buying a specified number of shares of the company at a defined price after the option period (a certain number of years)
You must also read following MCQs:
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