CA Inter Law MCQ Quiz ( ICAI MCQ 21-40)

21. Where there is a change in the rights of one class of shareholders of a company that also affects the rights of another class therein, then:

(a) A special resolution should be passed at a general meeting in this regard

(b) The company need not to do anything further

(c) the consent in writing of three-fourths of such other class of shareholders shall also be obtained

(d) A resolution at a joint meeting of both the classes should be passed

22. Rajesh Infrastructure Limited wants to issue preference shares for a period exceeding 20 years for financing its proposed infrastructure project. On the basis of which statement, company can do so?

(a) Yes, the company can issue irredeemable preference shares by passing a special resolution

(b) Yes, company can issue preference shares for a period exceeding 20 years with the prior approval of Central Government

(c) Yes, the company can issue irredeemable preference shares for infrastructure project

(d) Yes, the company can issue preference shares for financing an infrastructure project for a period exceeding to 20 years.

23. If a company has Authorised Share Capital of ₹ 6,00,000, Paid-up Share Capital of ₹ 5,00,000 and a loan of ₹ 2,00,000 obtained from the State Government. The State Government has directed the company to convert its loan into equity shares, then such order shall have the effect of increasing:

(a) The subscribed share capital of the company

(b) The paid-up share capital of the company

(c) The Authorised Share Capital of the company

(d) All of the above

24. A company bought back 10% of its equity shares in August 2020. Due to certain miscalculations during the first buy-back, it again bought back another 10% equity shares in September 2020. Is second buy-back valid?

(a) It can do so subject to the fulfilment of other conditions because maximum buy-back in a financial year is up to 25%

(b) It cannot do so because there must be a time gap of 12 months between two buy-backs

(c) It can buy back shares within one year but the company should pass an ordinary resolution at a meeting of its board

(d) It can buy back shares within one year but the company will have to pass a special resolution

25. Swagat Hospitality Limited defaulted in the repayment of last two instalments of term loan availed from National Commercial Bank. On 30 th September, 2019, they cleared all the dues by repaying it. When can it issue equity shares with differential voting rights?

(a) Upon expiry of five years from the date on which the default was made good

(b) Upon expiry of three years from the end of the financial Year in which the default was made good

(c) Upon expiry of five years from the end of the financial Year in which the default was made good

(d) Upon expiry of seven years from the end of the financial Year in which the default was made good

26. Radha, the original allottee of 2000 equity shares in Murti Mechanical Toys Private Limited has transferred the same to Ruchi. The instrument of transfer dated 21st August, 2020, duly stamped and signed by Radha was handed over to Ruchi. Advise Ruchi regarding the latest date by which the instrument of transfer along with share certificates must be delivered to the company, to register the transfer in its register of members.

(a) 21 st August, 2020.

(b) 20 th September, 2020

(c) 20 th October, 2020.

(d) 19 th November, 2020.

27. Shreem Lakshmi Jewellery Store Private Limited was incorporated on 27 th August, 2020 with 30 persons as subscribers to the Memorandum of Association and with an Authorised share capital of ₹ 1 crore divided into equal number of shares off ₹ 1 each. Each subscriber subscribed for ₹ 1.00 lac shares. Advise the company about by what date it needs to deliver the share certificates to the subscribers.

(a) 17 th September, 2020.

(b) 30 th September, 2020.

(c) 27 th October, 2020.

(d) 27 th November, 2020.

28. Keshika, the original allottee and owner of 1000 equity shares of ₹ 50 eachin Modern Biscuits Private Limited, wanted to transfer these shares to her younger sister Vanshika by way of gift. She completed the transfer deed in all respects and delivered the same to the company along with the share certificates on 17 th July, 2020. However, the company di not register the transfer even after the expiry of more than one month nor did it send any notice of refusal. The lone reminder to the company remained unanswered. An appeal is to be filed against the company with the National Company Law Tribunal (NCLT) against this failure to register transfer of the said shares. Who has the right to file the appeal in this regard?

(a) Keshika, who continues to remain owner and transferor of the said equity shares till they are registered in the name of Vanshika, has the right to file an appeal with NCLT against the company.

(b) Vanshika, as transferee and potential owner of equity shares, has the right to file an appeal with NCLT against the company.

(c) Both Keshika and Vanshika have to file a joint appeal with NCLT against the company, for neither Keshika nor Vanshika are authorised to file the appeal individually.

(d) As per its discretion, NCLT may allow either Keshika or Vanshika to file an appeal against the company.

29. Vanita Watches Limited has proposed to issue sweat equity shares to five of its employees for the ‘value additions’ made by them in term of economic benefits which proved beneficial to the company. The period for which the employees who have been allotted the said sweat equity shares cannot transfer them is:

(a) One year from the date of allotment

(b) Three years from the date of allotment

(c) Five years from the date of allotment

(d) Six months from the date of allotment

30. Prithvi Cements Limited is desirous of issuing debentures carrying voting rights. Choose the right option from the following:

(a) Prithvi Cements Limited can issue debentures carrying voting rights by passing an ordinary resolution at a general meeting of the company.

(b) Prithvi Cements Limited can issue debentures carrying voting rights by passing a special resolution at a general meeting of the company.

(c) Prithvi Cements Limited can issue such debentures carrying voting rights only if it mortgages its land and buildings worth two times the amount of the debentures.

(d) Prithvi Cements Limited cannot issue debentures carrying voting rights.

31. While making an application to the Tribunal for seeking its confirmation in respect of extinguishing the liability of ₹ 3 per equity share, Medhavi Publishers Limited has to file a certificate along with the application, that the accounting treatment proposed by it for such reduction of share capital is in conformity with the accounting standards specified in the prescribed Section. Advise the company as to who can issue such certificate?

(a) Any of the directors of the company as authorised by the Board may issue such certificate

(b) A practicing company secretary is authorised to issue such certificate

(c) The auditor of the company is authorised to issue such certificate

(d) The legal advisor of the company is authorised to issue such certificate

32. A reserve account that shall not be used by the company for any purpose other than repayment of deposits is called:

(a) Debenture redemption reserve account

(b) Deposit repayment reserve account

(c) Capital redemption reserve account

(d) Free reserve account

33. Normally no deposits are repayable earlier than ______ from the date of such deposits or renewal thereof.

(a) 3 months

(b) 6 months

(c) 12 months

(d) 1 year

34. Bhumi Real Estate Developers Limited has accepted deposits from its members. There is no default in repayment of such deposits on their maturity. The statutory amount to be deposited by the company on or before 30th April of each year in a specified account opened with its bankers, till the deposits are fully repaid is:

(a) Not less than 50% of the amount of its deposits maturing during the following financial year.

(b) Not less than 30% of the amount of its deposits maturing during the following financial year.

(c) Not less than 20% of the amount of its deposits maturing during the following financial year.

(d) Not less than 10% of the amount of its deposits maturing during the following financial year.

35. A Limited Company is accepting deposits of various tenures from its members from time to time. The current Register of Deposits, maintained at its registered office is complete. State the mandatory minimum period for which it should be preserved in good order.

(a) Four years from the financial year in which the latest entry is made in the Register.

(b) Six years from the financial year in which the latest entry is made in the Register.

(c) Eight years from the financial year in which the latest entry is made in the Register.

(d) Ten years from the latest date of entry.

36. Dream World Entertainment Limited, has accepted deposits worth ₹ 50.00 lacs from public on 1 st April 2019 for a period of 24 months i.e. repayment of deposit would be made on 31 st March 2021. The rate of interest payable on such deposits is 9% p.a. One of the depositors Mr. Aman requested the company on 1 st June 2020 for premature repayment of his deposit of ₹ 6.00 lacs along with interest. Advise the company in the said matter.

(a) The company can make premature repayment of deposits only with an intention to reduce the total amount of deposits to bring it within permissible limits. Hence, in the given case, the company cannot repay the deposit before the actual maturity.

(b) The company can prematurely repay the deposit along with interest @9% p.a. for the period of 12 months (from 1 st April 2019 to 31 st March 2020).

(c) The company can prematurely repay the deposit along with interest @8% p.a. for the period of 12 months (from 1 st April 2019 to 31 st March 2020).

(d) The company can prematurely repay the deposit along with interest @8% p.a. for the period of 14 months (from 1 st April 2019 to 31 st May 2020).

37. Suneet Spices Limited decides to raise deposits of ₹ 20.00 lacs from its members. However, it proposes to secure such deposits partially by offering a security worth ₹ 15.00 lacs. Which of the following options best describe such deposits:

(a) Fully secured deposits (except a small portion)

(b) Unsecured deposits

(c) Partially secured deposits

(d) These cannot be classified as deposits

38. What is the maximum tenure for which a company can accept or renew deposits from its members as well as public?

(a) 12 months

(b) 24 months

(c) 36 months

(d) 48 months

39. Ruchita wants to renew her deposit of ₹ 5.00 lakh with Kewal Constructions Limited before the expiry of original period for availing higher rate of interest. The fresh period, for which Ruchita is required to renew her deposit to be eligible for the higher rate shall be

(a) One and a half times the unexpired period of original deposit.

(b) Double the unexpired period of original deposit.

(c) Six months more in addition to the unexpired period of deposit.

(d) Longer than the unexpired period of deposit.

40. Any person acquiring property, on which charge is registered under section 77, shall be deemed to have notice of the charge from:

(a) the expiry of thirty days of such charge

(b) the date of application for registration of the charge

(c) the date of acquiring the property

(d) the date of such registration

Chartered Notes

CA Inter Law MCQ Quiz ( ICAI MCQ 21-40)

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