CA Inter – Paper 2 (Law) – MCQ

Compiled by: CA. Pankaj Garg

Chapter – 7: Management Administration

1. Swiss Commodities Private Limited was (b) It is possible with consent of 50% members is
incorporated in 2021. Company was not received.
running its business properly due to (c) It is possible if consent of 75% members is
unexpected ups and downs. It could not hold received.
its first annual general meeting in the year (d) It is possible if consent of 100% members is
2022. The company is planning to apply for received.
extension of time for holding the AGM from
4. Mr. N is a Company Secretary of Mayo Private
the Registrar of Companies. On which grounds
Limited. For calling Company’s Annual
Company can get an extension? General meeting, Mr. N has to issue notice of
(a) They will not get any extension. that meeting before stipulated period of time.
(b) If Company proves that their financial Draft notice is ready with him. However, he is
statements are confiscated. confused on agenda items for which he has to
(c) If they prove that directors have fell below attach explanatory statement to the notice.
Please help him to understand which agenda
numbers.
item needs explanatory Statement?
(d) If they prove that members are not available.
(a) Consideration of Auditors Report.
2. The Board of Directors of Gama Ltd. did not (b) Fixing remuneration of Auditor.
call the Extra Ordinary General meeting
(c) Fixing remuneration of Manager.
within 21 days from the date of receipt of
(d) Declaration of any dividend.
requisition from members, then the
requisitionists may themselves call a meeting 5. Wide Infra Limited is a Company with 1,350
within a period of from the date members. Extraordinary General Meeting of
Wide Infra Limited was scheduled on 15th
of requisition.
November, 2022 at 11 a.m. On the day of
(a) 15 days
meeting, 3 members were present at 10.45
(b) 30 days a.m. What number of members is required to
(c) 1 month fulfil quorum requirement?
(d) 3 months (a) Additional 4 members before 11.30 a.m.
3. Soya Limited was incorporated in 2014 and (b) Additional 4 members before 11.15 a.m.
has its registered office in Noida. Company (c) Additional 12 members before 11.30 a.m.
wants to call its 4th Annual General Meeting (d) Additional 12 members before 11.15 a.m.
in Mumbai. Whether it is possible? 6. The members of Matrix Limited requisitioned
(a) It is not possible as Annual General Meeting for calling Extra Ordinary General Meeting to
has to be held in Noida. consider some urgent matters. The same was

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CA Inter – Corporate & Other Laws (MCQ) Compiled by: CA. Pankaj Garg
called by the company. Meeting was members did not attend the meeting. Out of
scheduled on 31st August, 2022. However, remaining 100 members, 20 members
required quorum was not present at the abstained from voting. Advice the company,
meeting. In this case, what Matrix Limited how many members should vote in favour of
shall do? resolution, if it has to be passed as a Special
(a) Matrix Limited shall adjourn the meeting to Resolution? [MTP-March 19]
the same day in the next week at the same (a) 60 votes
time and place. (b) 80 votes
(b) Matrix Limited shall adjourn the meeting to (c) 41 votes
such other day at such other time and place.
(d) 20 votes
(c) The meeting shall be cancelled.
11. ABC Infrastructures Limited is a listed
(d) Matrix Limited shall proceed ahead with the
company quoted at National Stock Exchange.
available quorum.
The company closed its Register of Members
7. In Annual General Meeting, which one of the
in June and August, 2022 for 12 and 21 days
following will be treated as special business?
respectively. The CFO of company has
(a) Declaration of any dividend. informed the company secretary to consider
(b) Fixing of the remuneration of the auditors. closing of register in December for another 15
(c) Appointment of directors in place of those days for some strategic reasons. Referring to
retiring. the provisions of Companies Act, 2013,
(d) Regularization of Director’s Appointment. examine the validity of above action of the
8. Every listed company shall file with the company. [MTP-April 19]
Registrar a copy of the report on each annual (a) Valid, as the closure of register of members
general meeting within ______ of the conclusion by company each time is not exceeding 30
of the annual general meeting. days.
(a) 7 days (b) Invalid, as company cannot go for closure of
(b) 30 days Register of members more than twice in a
(c) 60 days year.
(d) 90 days (c) Invalid, as the period of closing register of
members exceeding 30 days in a year.
(d) Invalid, as the period of closing the Register
QUESTIONS FROM RTPs, MTPs AND PAST EXAMS
of members by the company is exceeding 45
(MEMORY BASED) OF ICAI
days in a year.
12. The Annual General meeting of Tirupati Ltd.
9. Annual general meeting need to be called by
was scheduled for 28th December, 2022. Mr.
giving 21 days’ clear notice. However it can be
Ananat, shareholder of Tirupati Ltd. has
called on a shorter notice if members entitled
desired to inspect inspection of proxies
to vote in that meeting give their consent in
writing or by electronic mode. In such case, lodged with the company. The notice for
how many members have to give their inspection should be given at least
consents? [MTP-March 19] _____________ before the meeting. [MTP-April 19]
(a) 75% of members entitled. (a) 24 hours
(b) 90% of members entitled. (b) 1 day
(c) 91% of members entitled. (c) 2 days
(d) 95% of members entitled. (d) 3 days
10. Supertech Computers Pvt. Ltd has 120 13. In the current financial year Zunee Traders
members. It sends notice to all of them. 20 Limited, a non-listed company, has 556

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CA Inter – Corporate & Other Laws (MCQ) Compiled by: CA. Pankaj Garg
members, increased from 451 members accorded by at least 38 members who are
which it had in the immediate previous entitled to vote at the AGM.
financial year. For the forthcoming Annual (d) Taxila Traders Limited can convene AGM at
General Meeting (AGM), advise the company shorter notice than statutorily required if
whether it is required to provide to its consent in writing or by electronic mode is
members the facility to exercise their right to accorded by at least 36 members who are
entitled to vote at the AGM.
vote at this AGM by electronic means.
[MTP-Oct. 19] 15. Which one of the following requires ordinary
resolution? [MTP-May 20]
(a) Since the company has more than 500
(a) To change the name of the company.
members it is required to provide to its
(b) To alter the articles of association.
members the facility to exercise their right
(c) To reduce the share capital.
to vote at the forthcoming AGM by
electronic means. (d) To declare dividends.

(b) The company is not required to provide to 16. Red Flag Ltd., which has its registered office at
its members the facility to exercise their Delhi and having 12,500 members is holding
right to vote at the forthcoming AGM by its Annual General Meeting in Ashoka Hotel.
Despite swanky arrangements most of the
electronic means since its members are less
members did not turn up and quorum was not
than 1,000.
present within half an hour of the schedule
(c) Though the company is required to provide
time of the meeting, as a result meeting was
to its members the facility to exercise their
adjourned. However, due to heavy booking
right to vote at the forthcoming AGM by schedule, hotel authorities could not make
electronic means because it has more than available, for adjourned meeting, sufficient
500 members, it can, as a one-time measure, space in the same hall where meeting was
seek exemption from RoC beforehand and originally called but allowed conduct of
in that case, it need not provide facility of meeting in a different hall on a different floor
voting by electronic means. next week at same time. Please advise the
(d) Only a listed company is required to provide option available to board: [RTP-Nov. 20]
to its members the facility to exercise their (a) The meeting stands adjourned
right to vote at the General Meetings by automatically to the same place and time
electronic means. next week as per provisions of law. There is
no alternate but to hold meeting in the same
14. All the 40 members of Taxila Traders Limited
have valid voting rights. Due to some urgency, hall.
its directors are desirous of convening Annual (b) As same banquet hall is not available
General Meeting (AGM) at a shorter notice meeting can be held at different place as
than statutorily required. Is it possible for may be decided appropriate by the Board.
them to do so? [RTP-Nov. 19] (c) As the same hall is not available to conduct
(a) Taxila Traders Limited cannot convene meeting after one week, a fresh notice of 21
AGM at shorter notice than statutorily days is needed for a different location.
required. (d) As the same hall is not available to conduct
(b) Taxila Traders Limited can convene AGM at the meeting, the company needs to conduct
shorter notice than statutorily required, if meeting electronically through internet and
consent in writing or by electronic mode is give sufficient notice to shareholders.
accorded by all the 40 members who are
17. Neha is a director of Primus Limited. She
entitled to vote at the AGM.
intends to participate in the board meeting
(c) Taxila Traders Limited can convene AGM at
through video conferencing and has
shorter notice than statutorily required if
intimated the same to the chairperson at the
consent in writing or by electronic mode is

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CA Inter – Corporate & Other Laws (MCQ) Compiled by: CA. Pankaj Garg
beginning of calendar year. Advise, Neha for company, one of whom shall be the
how long such declaration shall be valid. Managing director, if there is one and
[MTP-March 21, March 22] company secretary of the company.
(a) 1 month 20. The Annual General Meeting of Brother
(b) 6 months Limited was held on 25th May, 2022.
(c) 1 year According to the provisions of Companies Act,
(d) She has to furnish declaration for each 2013, till what date the company should
meeting separately. submit report of AGM to the registrar?
18 A resolution shall be a special resolution [MTP-Nov. 21]
when the votes cast in favour of the resolution (a) 4.06.2022
by members are not less than ______________the (b) 9.06.2022
number of votes, if any, cast against the
(c) 24.06.2022
resolution. [MTP-April 21, April 22]
(d) 25.06.2022
(a) Twice
(b) Three times 21. Gama Limited’s General Meetings are held at
(c) One third its registered office situated in Delhi. The
minute book of General meetings of Gama
(d) One fourth
Limited will be kept at:
19. The Annual General Meeting (AGM) of ALL-
[MTP-May 20, Nov. 21, March 22]
WELL Limited was held on 31.8.2022.
(a) that place where members of Gama Limited
Suppose the Chairman of the company after
will decide.
two days of AGM went abroad for next 31
(b) that place where all employees of Gama
days. Due to the unavailability of the
Limited will decide.
Chairman, within time period prescribed for
submission of copy of report of AGM with the (c) registered office of the company Gama
Limited.
registrar, the report as required was signed
by two Directors of the company, of which one (d) that place where senior officials of Gama
was additional Director of the company. Limited will decide.
Comment on the signing of this report of AGM. 22. Amber Limited is a manufacturer of
[MTP-Nov. 21] glassware. Its paid up share capital is divided
into 20,000 shares of ₹ 100 each. The
(a) Yes, the signing is in order as the report can
company is maintaining its register of
be signed by any director in the absence of
members as per the provisions of the
Chairman.
Companies Act, 2013. The company wanted to
(b) No, the signing is not in order as only the
close its register of members for declaring
Chairman is authorised to sign the report. dividend. It may do so by giving minimum
(c) Yes, the signing is in order, as in the absence …….. days’ notice. [RTP-May 22]
of Chairman at least two directors should (a) 7 days.
sign the report. (b) 10 days.
(d) No, the signing is not in order, since in case (c) 15 days.
the Chairman is unable to sign, the report (d) The register of members cannot be closed.
shall be signed by any two directors of the

Answers
1 (a) 2 (d) 3 (d) 4 (c) 5 (c)
6 (c) 7 (d) 8 (b) 9 (d) 10 (a)

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CA Inter – Corporate & Other Laws (MCQ) Compiled by: CA. Pankaj Garg
11 (d) 12 (d) 13 (b) 14 (c) 15 (d)
16 (b) 17 (c) 18 (b) 19 (d) 20 (c)
21 (c) 22 (a)

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