Tag: government companies

Questions Related to government companies

The Advisory Committee is set up to advise the Central Government and Company Law Board on the administration of the Companies Act.

commercial applications public sector enterprises role of government and development policies government companies government and taxes

  1. True

  2. False

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Correct Option: A
Explanation:

This statement is True because of the following reasons:

(i) Section (411-415) of the Companies Act states "For the purpose of advising the Central and the Company Law Board on such matters arising cut of the administration of this companies Act as may be referred to it by that the Government  or Board.
(ii) The Central Government  may constitute an Advisory  Committee consisting not more than five person with suitable qualifications.
(iii) The committee is mainly set up to guide and advise the Central Government and Company Law Board on matter arising out of the administration of the Companies Act.
(iv) The advisory committee has power only to give advice.
(v) It has no power to investigate the matter or to make an inquiry.
(vi) Thus, the Advisory Committee is set up to advise the Central Government and Company Law Board on the administration of the Companies Act.

The Registrar of Companies is recognised as a statutory authority under the Indian Companies Act, 1956.

commercial applications public sector enterprises role of government and development policies government companies government and taxes

  1. True

  2. False

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Correct Option: A
Explanation:

This statements is True because of the following reasons:

(i) The Registrar  of Companies is a full time government officer working at the lower level in  regard to regulation and control of joint stock companies operating   within his jurisdiction. 
(ii)  The act has given wide powers to the Registrar.
(iii) He is an important constituent of the monitoring mechanism created for effective supervision  and control on joint stock companies.
(iv) The Registrar is responsible for the administration of the Companies Act in the state in which he is appointed.
(v) He has to see that registered companies operate within the legal limits of the Act.
(vi) He is even authorised to initiate disciplinary action against a company for non- compliance of the legal provisions.
(vii) The Registrar of companies is the most important constituent of the monitoring mechanism for joint stock companies in India.
(viii) For the above reasons the Registrar of companies is recognised as a statutory authority under the Companies Act,1956.

Central Government or tribunal is not bound to follow advice of the advisory committee.

commercial applications public sector enterprises role of government and development policies government companies government and taxes

  1. True

  2. False

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Correct Option: B
Explanation:

The Advisory committee shall consist of not more than 5 persons with suitable qualification.The central Govt, is not bound to constitute an Advisory Committee and even if it is constituted neither the Central Govt, nor the Company Law Board or the National Company Law Tribunal is bound to accept its advice.

Company Law Board is constituted as quasi-judicial body.

commercial applications public sector enterprises role of government and development policies government companies government and taxes

  1. True

  2. False

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Correct Option: A
Explanation:

This statement is True , due to the following reasons:

(i) The company Law Board was established by the Companies (Amendment) Act,1963 with the aim of better and convenient administration of the companies.
(ii) The Company Law Board was constituted by the Central Government .
(iii)The Company Law Board is an independent quasi - judicial body.
(iv) It is constituted to exercise some of the judicial and quasi - judicial functions which were previously exercise by the court or the Central Government.
(v) It was constituted on 1st February,1964.
(vi) But with effect from 31st May,1991 Company Law Board was constituted by the Central Government as an independent quasi - judicial body.
(vii) The company Law Board shall consist maximum nine members.
(viii) One of the member shall be appointed by the Central Government as the Chairman.
(ix) The Company Law Board has the power to discover and inspect the documents to be used as evidence.
(x) To examine witness on oath.
(xi) Granting adjournment,etc.

Ministry responsible for administration of Companies Act, 1956 ______________.

commercial applications public sector enterprises role of government and development policies government companies government and taxes

  1. State Government

  2. Central Government

  3. Local Government

  4. None of these

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Correct Option: B
Explanation:

The Ministry of Corporate Affairs (MCA) is an Indian government ministry.ThisMinistry is primarily concerned with administration of the Companies Act 2013, the Companies Act 1956, the Limited Liability Partnership Act, 2008 & other allied Acts and rules & regulations frame.

National Tribunal shall not have power to review its own decisions.

commercial applications public sector enterprises role of government and development policies government companies government and taxes

  1. True

  2. False

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Correct Option: B
Explanation:

National Company Law Tribunal has powers to review its own decisions(within 2 years from the date of order).

 To ensure fair play and avoidance of judicial error, the procedural laws provide for appeals, revisions and reviews, and allow parties to file innumerable applications and raise vexatious objections as a result verdict get delayed. 
Appeals against the order of the NCLT will go to NCLAT, exclusively dedicated for this purpose. 

High Court shall have jurisdiction irrespective of place of registered office of the company.

commercial applications public sector enterprises role of government and development policies government companies government and taxes

  1. True

  2. False

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Correct Option: A

Ministry of Finance is primarily responsible for administration of Companies Act.

commercial applications public sector enterprises role of government and development policies government companies government and taxes

  1. True

  2. False

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Correct Option: B

Official liquidators have an important role to play in the winding up of a company.

commercial applications public sector enterprises role of government and development policies government companies government and taxes

  1. True

  2. False

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Correct Option: A
Explanation:

This statements is True because of the following reasons:

(i) The liquidator is a person who helps the court to complete the liquidation proceedings i.e. in releasing the assets of the company and distributing them among the creditors and  contributors most fairly.
(ii) It may be noted that only 'Official Liquidator' can function  as  liquidator in compulsory  winding up of a company under the order of the court and the court has no power to appoint private persons as liquidators.
(iii)The liquidator has to complete the liquidation proceeding in a just  and fair manner.
(iv) He has to see that justice is done to the creditors and other connected with the company which is closed down.
(v) The role played by liquidators is responsible and delicate and it need a fairs approach  openness and sound judgement.
(vi) Thus, official liquidations have an important role to play in the winding up of a company. 

Minister responsible for assisting his senior minister in administration of Companies Act_________________.

commercial applications public sector enterprises role of government and development policies government companies government and taxes

  1. prime Minister

  2. Chief Minister

  3. President

  4. Ministry of Corporate Affairs

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Correct Option: D
Explanation:

The Ministry of Corporate Affairs is an Indian government ministry. This Ministry is primarily concerned with the administration of the Companies Act 2013, the Companies Act 1956, the Limited Liability A corporate affairs manager is responsible for creating and communicating a favorable public image for his employer or client. He often does this through media campaigns designed to reach investors, consumers, employees, industry analysts, customers, government agencies and other stakeholders.