Chapter 1: Introduction to Company (6-8 marks)
Recurring Questions:
Types of companies (Private, Public, Government, Holding, Subsidiary)
Features of company
Advantages and disadvantages of companies
One Person Company (OPC) - definition and features
Distinguish between Private and Public company
Key Concepts:
Minimum members for private company: 2 (maximum 200)
Minimum members for public company: 7 (no maximum limit)
OPC introduced in Companies Act, 2013
Chapter 2: Formation of Company (8-10 marks)
Recurring Questions:
Stages in formation of company (Promotion, Incorporation, Commencement)
Documents required for incorporation
Certificate of Incorporation
Certificate of Commencement
Promoter - definition, role, and duties
Memorandum of Association (MOA) vs Articles of Association (AOA)
Important Points:
MOA contains 6 clauses (Name, Registered Office, Objects, Liability, Capital,
Association)
AOA contains internal rules and regulations
Promoter is the person who takes steps to form a company
Chapter 3: Share and Share Capital (12-15 marks)
HIGHEST WEIGHTAGE CHAPTER
Equity Shares (Most Important):
Definition and features of equity shares (appears every year)
Rights of equity shareholders
Advantages and disadvantages
Preference Shares (Very Important):
Definition and types of preference shares (frequently asked)
Types: Cumulative, Non-cumulative, Participating, Non-participating,
Redeemable, Irredeemable, Convertible, Non-convertible
Features of preference shares
Rights of preference shareholders
Share Capital:
Types of share capital (Authorized, Issued, Subscribed, Called-up, Paid-up)
Issue of shares (at par, at premium, at discount)
Calls in arrears and calls in advance
Forfeiture and reissue of shares
Key Facts (Frequently Asked):
Dividend on preference shares paid at fixed rate
Dividend paid first to preference shareholders, then equity
Share certificate issued for partly or fully paid up shares
Minimum paid-up capital for private company: ₹1 lakh
Minimum paid-up capital for public company: ₹5 lakh
Chapter 4: Debentures (10-12 marks)
VERY HIGH WEIGHTAGE
Recurring Questions:
Definition of debentures and types (appears almost every year)
Features of debentures
Advantages and disadvantages
Distinction between Shares and Debentures (frequently asked)
Distinction between Equity shares and Preference shares
Types of Debentures:
Secured vs Unsecured
Redeemable vs Irredeemable
Convertible vs Non-convertible
Registered vs Bearer
First vs Second mortgage
Key Points:
Debenture holder is a creditor of the company (NOT owner)
Debenture capital is borrowed/loan capital
Interest on debentures is fixed and paid even in loss
Interest is a charge on profit
Debenture holders have NO voting rights
Chapter 5: Stock Exchange and SEBI (10-12 marks)
Recurring Questions:
Functions of Stock Exchange (explain in detail - frequently asked)
Primary market vs Secondary market
Depository system - Demat account
SEBI - objectives, functions, and powers
NSE (National Stock Exchange) and BSE (Bombay Stock Exchange)
Key Terms (Fill in the Blanks):
Primary market also known as New Issue Market
FPO (Follow-on Public Offering) - subsequent offering after IPO
IPO (Initial Public Offering) - first time offering
Demat shares are dematerialized (paperless)
Depository Receipt traded in USA is called ADR (American Depository Receipt)
Traded in Europe: GDR (Global Depository Receipt)
Chapter 6: Public Deposits (6-8 marks)
Recurring Questions:
Definition and features of public deposits
Advantages and disadvantages (to company and depositors)
Rules for accepting deposits
Deposit Trustee
Key Facts:
Company has to appoint Deposit Trustee/Depositary to protect interest of
depositors
Depositors have NO voting rights
Rate of interest is fixed
Companies cannot collect deposits from members (this is FALSE statement)
Chapter 7 & 8: Company Meetings (14-16 marks)
HIGHEST WEIGHTAGE - MOST IMPORTANT
Annual General Meeting (AGM) - Very Important:
Definition and features of AGM
Business transacted in AGM (ordinary business)
Notice period: 21 clear days minimum
Gap between two AGMs: maximum 15 months
First AGM: within 18 months from incorporation
Quorum requirements
Extraordinary General Meeting (EGM) - Very Important:
Definition and purpose
When to call EGM
Who can call EGM (Board, Requisitionists, Tribunal)
Business transacted: special/urgent business
Notice period: 21 clear days
Board Meeting:
Quorum
Notice period: minimum 7 days
Maximum gap: 120 days
Important Persons:
Chairman - presides over meeting
Secretary - prepares agenda, notice, minutes
Proxy - person authorized to vote on behalf of member
Proxy can vote only by show of hands (NOT poll)
Minutes:
Written record of proceedings
Must be signed by Chairman
Preserved for 8 years (Board Meeting), permanent (General Meeting)
Key Facts (Repeatedly Asked):
Notice must be sent 21 clear days before General Meeting
Secretary prepares agenda before meeting
Chairman prepares minutes after meeting
Voting methods: Show of hands, Poll, Postal ballot, E-voting
Quorum for private company: 2 members
Quorum for public company: 5 members (if members ≤1000)
Chapter 9 & 10: Correspondence/Business Letters (12-15 marks)
VERY HIGH WEIGHTAGE - PRACTICE ESSENTIAL
Most Important Letter Formats (Write Complete Letters):
1. Application for shares with allotment letter (appears frequently)
2. Letter to bank for loan
3. Letter to supplier for credit/trade discount
4. Complaint letter and reply
5. Inquiry letter and reply
6. Order letter
7. Letter to Registrar for extension of AGM
8. Letter requesting information
Letter Writing Tips:
Include: Sender's address, Date, Receiver's address, Subject, Salutation, Body,
Closing, Signature
Use proper format with all elements
Business tone - formal and professional
Clear subject line
Proper paragraph structure
Note: Chapters 7 and 8 letter solutions are VERY IMPORTANT for HSC Board Exam
2025 (as per multiple sources)
🔥 MOST FREQUENTLY ASKED QUESTIONS (Last 5 Years)
Section A: Objective Questions (20 marks)
Fill in the Blanks (Most Repeated):
1. "Company has to pay ______ to government" - Fees/Tax
2. "Debenture capital is a ______ capital of a company" - Borrowed/Loan
3. "The dividend is paid first to ______ shareholders" - Preference
4. "The holder of bond is ______ of the company" - Creditor
5. "Company has to appoint ______ to protect the interest of depositors" - Deposit
Trustee/Depositary
6. "The rate of interest payable on debentures is ______" - Fixed
7. "Demat shares are ______" - Dematerialized/Paperless
8. "Central government is a borrower in the money market through the issue of
______" - Treasury Bills/Government Securities
9. "General Meeting must have a notice of at least ______ clear days" - 21
10. "The gap between two annual general meetings should not be more than ______
months" - 15
11. "The secretary has to prepare ______ before the meeting" - Agenda/Notice
12. "The person who presides over the meeting is known as ______" - Chairman
13. "A proxy can vote only in the case of voting by ______" - Show of hands
14. "The notice of the general meeting must be sent to all members ______ clear
days before the meeting" - 21
15. "The business transacted in extraordinary general meeting is ______ business" -
Special/Urgent
16. "Primary market is also known as ______" - New Issue Market
17. "FPO refers to ______" - Follow-on Public Offering
True/False (Identify Errors):
1. "Finance is related to money and money management" - TRUE
2. "Share certificate is issued for partly or fully paid up shares" - TRUE
3. "Government company can collect deposits from its members" - FALSE
(companies cannot collect deposits from members)
4. "Depositors are given voting rights" - FALSE
5. "Primary market is also known as new issue market" - TRUE
6. "Depository Receipt traded in USA is called as Global Depository Receipt" -
FALSE (it's ADR - American Depository Receipt)
7. "FPO refers to offering of shares to the public for the first time" - FALSE (that's
IPO; FPO is subsequent offering)
8. "Bonus shares are issued as a free gift to the preference shareholders" - FALSE
(issued to equity shareholders)
One Word/Term:
1. "Person who takes steps to form a company" - Promoter
2. "Document containing internal rules of company" - Articles of Association
(AOA)
3. "Shares with fixed dividend rate" - Preference Shares
4. "Person who lends money to company" - Debenture holder/Creditor
5. "Market for new securities" - Primary Market/New Issue Market
6. "Paperless shares" - Demat/Dematerialized shares
7. "Person authorized to vote on behalf of member" - Proxy
8. "Written record of meeting proceedings" - Minutes
Match the Columns:
Company types
Share types
Debenture types
Meeting types
Market types
Section B & C: Theory Questions
15 Marks Questions (Most Frequent):
1. What is an equity share? Explain its features (appears almost every year)
2. Define preference shares. What are the different types of preference shares?
3. What are preference shares? State its features
4. What is Debenture? Discuss the different types of debentures
5. Functions of Stock Exchange (explain in detail)
6. Business transacted in Annual General Meeting (AGM)
7. Distinguish between AGM and EGM (tabular format)
10 Marks Questions:
1. Explain types of companies
2. Features of company
3. Advantages of debentures
4. Functions of SEBI
5. Depository system - advantages
6. Advantages and disadvantages of equity shares
7. Rights of equity shareholders
8. Public deposits - advantages to company
9. Procedure for calling EGM
10. Role of Chairman in meeting
8 Marks Questions:
1. Distinguish between:
o Shares and Debentures (very frequently asked)
o Equity shares and Preference shares (frequently asked)
o MOA and AOA
o Private and Public company
o Primary and Secondary market
o Cumulative and Non-cumulative preference shares
2. Types of share capital
3. Features of debentures
4. Rights of preference shareholders
Section D: Letter Writing (10-15 marks)
Most Common Letter Questions:
1. Write a letter applying for shares (with allotment details)
2. Write a letter to bank requesting loan for business
3. Write a letter to supplier requesting credit period/trade discount
4. Write a complaint letter (regarding defective goods/delayed delivery)
5. Write an inquiry letter (for product information/quotation)
6. Write a letter to Registrar of Companies requesting extension of time for
AGM
7. Write a circular letter to shareholders
8. Write letter for opening bank account
Letter Format Points (Essential):
Sender's full address (top left)
Date
Receiver's address
Reference number (if applicable)
Subject line (clear and concise)
Salutation (Dear Sir/Madam)
Body (3-4 paragraphs)
Closing (Yours faithfully/sincerely)
Signature with name and designation
📌 PREPARATION STRATEGY
Must-Master Topics (70%+ weightage):
1. Share and Share Capital (Equity + Preference + Types)
2. Debentures (Definition, Types, Distinctions)
3. Company Meetings (AGM + EGM complete details)
4. Letter Writing (Practice 10-12 different formats)
5. Stock Exchange (Functions + SEBI)
High-Priority Definitions:
Equity share
Preference share
Debenture
Promoter
AGM
EGM
Stock Exchange
Primary Market
Secondary Market
Proxy
Minutes
Quorum
Important Numbers/Facts to Memorize:
Notice period for General Meeting: 21 clear days
Gap between two AGMs: maximum 15 months
First AGM: within 18 months
Notice for Board Meeting: 7 days
Maximum gap between Board Meetings: 120 days
Minutes preservation: Board Meeting (8 years), General Meeting (permanent)
Private company members: min 2, max 200
Public company members: min 7, no max
Quorum private company: 2 members
Quorum public company: 5 members (≤1000)
💡 EXAM TIPS & TRICKS
For Objective Questions:
1. Read carefully - many are negative statements or tricky
2. Common traps:
o "Depositors have voting rights" - FALSE
o "Companies can collect deposits from members" - FALSE
o "GDR traded in USA" - FALSE (it's ADR)
o "FPO is first time offering" - FALSE (that's IPO)
3. Learn all fill-in-the-blank answers by heart
4. Practice True/False with error identification
For Theory Questions:
1. Always start with clear definition
2. Write in points format with proper numbering
3. Use headings and subheadings
4. Include introduction and conclusion
5. Underline key terms
6. For 15-mark questions: write 7-8 detailed points
7. For 10-mark questions: write 5-6 points
8. Distinction questions: always use tabular format
For Letter Writing:
1. Practice writing complete letters - format is crucial
2. Must include ALL elements (address, date, subject, etc.)
3. Keep language formal and professional
4. Divide body into 3-4 clear paragraphs
5. Time allocation: 15-20 minutes per letter
6. Practice at least 10 different letter types
Time Management:
Section A (Objective): 30-35 minutes
Section B (Short answers): 40-45 minutes
Section C (Long answers): 60-70 minutes
Section D (Letters): 30-35 minutes
Revision: 10-15 minutes
📚 Chapter-Wise Priority Order
Tier 1 (Must Master - 45+ marks):
Share and Share Capital
Debentures
Company Meetings (AGM/EGM)
Letter Writing
Tier 2 (Very Important - 25+ marks):
Stock Exchange and SEBI
Formation of Company
Public Deposits
Tier 3 (Important - 10+ marks):
Introduction to Company
Correspondence with Statutory Authorities
🎯 FINAL REVISION CHECKLIST
1 Week Before Exam:
✅ Revise all definitions
✅ Practice 15 different letter formats
✅ Memorize all fill-in-the-blanks answers
✅ Practice 5 distinction questions
✅ Revise all numerical facts (days, months, members)
1 Day Before Exam:
✅ Quick revision of all key terms
✅ Review letter formats one final time
✅ Go through previous year objective questions
✅ Read all important "explain" questions once
Remember:
20-25% questions repeat from previous years
Letter writing is scoring - don't skip practice
Distinction questions are easy marks if format is correct
Features/Types questions appear EVERY year