Tag: human activities - commercial and non-commercial activities

Questions Related to human activities - commercial and non-commercial activities

The qualification share must be purchased by the Directors within ______months from his appointment.
elements of business classification of human activities characteristics of business activities economic and non-economic activities human activities - commercial and non-commercial activities

  1. 2

  2. 4

  3. 8

  4. 6

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Correct Option: A
Explanation:

The article of association of a company may require the Directors of that company to hold some minimum shares at the time of his appointment within such a time limit as prescribed under section 270 of the companies act 1956. This minimum shares is known s 'Qualification Shares'. 

If the Directors doesn't hold that share qualification at the time of his appointment then he must require them within two months of his appointment.

An auditor is appointed for a period of _________.
elements of business classification of human activities characteristics of business activities economic and non-economic activities human activities - commercial and non-commercial activities

  1. one year

  2. ten year

  3. five year

  4. two year

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Correct Option: A
Explanation:

After the incorporation of a company in the first annual general meeting an auditor must be appointed by the board of directors. the auditor will typically hold term till the conclusion of 5 years . The appointment of an auditor can also be made for a period of 1 year renewable at each annual general meeting. 

The nominal value of qualification shares of directors must not exceed Rs._________.
elements of business classification of human activities characteristics of business activities economic and non-economic activities human activities - commercial and non-commercial activities

  1. 2000

  2. 5000

  3. 1000

  4. 1500

Show answer
Correct Option: B
Explanation:

The Article of Association of a company may require the directors of the company to hold some minimum shares at the time of his appointment within certain time prescribed under the Companies Act. The nominal value of the qualification shares shall not exceed Rs 5000.

State the following statement are True or False.

Company Secretary need not attend the Board meeting.

elements of business classification of human activities characteristics of business activities economic and non-economic activities human activities - commercial and non-commercial activities

  1. True

  2. False

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Correct Option: B
Explanation:

At the Board meeting, the Secretary has to obtain the signatures of the directors present in the Director's Attendance Book, ascertain the quorum and read the notice convening the meeting if so desired by the Chairman. Generally, he is requested lo read the minutes of the previous Board meeting. He has to obtain the signature of the Chairman in confirmation of the Minutes when approved. 

Thereafter, he is to assist the Chairman conducting the meeting, give him all necessary information and explanations as and when required, and take notes of the proceedings on the agenda paper including the terms of the resolutions passed.

State the following statement is True or False:

A director can remain absent from three consecutive board meetings without taking leave of absence from the board.

elements of business classification of human activities characteristics of business activities economic and non-economic activities human activities - commercial and non-commercial activities

  1. True

  2. False

Show answer
Correct Option: B
Explanation:
This statement is False because of the following reasons:
(i) Under such circumstance , the director shall take 'leave of absence' from the board meeting.
(ii) As per section 283(9) of the Companies (Amendment)  Act,1988 states,"If a director remains absent for consecutive three board meeting without taking leave of absence from the board" his directorship gets terminated.
(iii) If a director has already remained absent at two consecutive board meeting without prior leave of absence from the board, he must obtain leave of absence from the board if he want to remain absent at the third board meeting also.
(iv) If he fails to take prior leave of absence for the third board meeting,his directorship gets automatically terminated.
(v) Hence, a director cannot remain absent from three consecutive board meeting without taking leave of absence from the board.

State the following statement are True or False.

Secretary gives information to the directors.

elements of business classification of human activities characteristics of business activities economic and non-economic activities human activities - commercial and non-commercial activities

  1. True

  2. False

Show answer
Correct Option: A
Explanation:

This statement is True,due to the following reasons:

(i) The Directors are elected representatives of the shareholders.

(ii) The Company Secretary is an executive officer of a Joint Stock Company.

(iii) The decision taken by the Board of Directors are implemented by the Secretary.

(iv) The Secretary acts as link between the Directors and other management personal and  staff.

(v) The Secretary provides assistance and guidance to the directors while discharging their duties and responsibilities.

(vi) The Secretary is responsible to inform the directors regarding Board Meeting .Hence he/she has to send notice,agenda and other information to all directors of the company.

(vii) The Secretary has to hold the meeting of directors from time to time as per the permissions of the Companies Act.

(viii) So,the Secretary has to perform various duties toward the directors of the  company.

(ix) The Secretary is therefore said to be the ears,eyes,hand and mouth - piece of he 'Board'.

State the following statement is True or False:

A director has to obtain qualification share within two months from the date of his appointment.

elements of business classification of human activities characteristics of business activities economic and non-economic activities human activities - commercial and non-commercial activities

  1. True

  2. False

Show answer
Correct Option: A
Explanation:

True , a director has to obtain qualification shares within two months from the date of his appointment . A share of common stock that a candidature of board  of directors is required to own is called qualification shares

State the following statements is True or False:

The directors are representative of shareholders.

elements of business classification of human activities characteristics of business activities economic and non-economic activities human activities - commercial and non-commercial activities

  1. True

  2. False

Show answer
Correct Option: A
Explanation:

The board of directors should be a representation of both management and shareholder interests, and consist of both internal and external members.The executive board consists of insiders elected by employees and shareholders and is headed by the CEO or managing office

State the following Statement are True or False:

Annual Return must be filed with the Registrar of Companies within 60 days from the Annual General Meeting.

elements of business classification of human activities characteristics of business activities economic and non-economic activities human activities - commercial and non-commercial activities

  1. True

  2. False

Show answer
Correct Option: A
Explanation:
This Statements is True because of the following reasons:-

(i) It is a document that must be filed with the Registrar of Companies at the end of each financial year. 
(ii) The secretary has to file Annual Return along with the audited Balance Sheet, Profit and Loss account and Auditor's Report with the Registrar within 60 days from the date of holding the Annual General Meeting.
The contents of the Annual Return of a company as given in Part I of Schedule of the Companies Act, 1956 are as under: 
(a) The address of the registered office of the company. 
(b) The name and address of any place outside India where any part of the register of members or register of debenture holders is kept under the provisions of the Companies Act.
(c) The details of the breakup of the share capital and debentures of the company as existed on the date of the last Annual General Meeting. 
(d) Particulars of the total amount of indebtedness of the company as existed on the date of the last Annual General Meeting of the company. 
(e) Particulars of directors, managers and secretaries. 
(f) The list of the past and present members and debenture holders. 
(g) The Annual Return is to be filled in the prescribed form as given in part II of the schedule mentioned above. 

Now, Companies Act ,2013 deals with provisions relating to General Meeting.

State the following Statement is True or False:

The power of granting extension of time for holding the Annual General Meeting is vested in the Registrar of Companies.

elements of business classification of human activities characteristics of business activities economic and non-economic activities human activities - commercial and non-commercial activities

  1. True

  2. False

Show answer
Correct Option: A
Explanation:

This Statement is True because of the following reasons:

(i) As per section 166 of the Companies Act, 1956, the company is required to hold its Annual. General Meeting for the financial year ending on 31st march on or before 30th September.
(ii) If for any reason, the company is unable to conduct the meeting, the, company secretary has to write to the Registrar of Companies requesting for extension in time for holding the Annual General Meeting. 
(iii) The company secretary while corresponding to the Registrar of companies has to assure the Registrar of Companies that all necessary formalities would be completed and the meeting would be conducted in the extended time.
(iv) The company secretary gives an undertaking on behalf of the company, of course, to pay the penalty for the delay. 

Provisions relating to this are now dealt by the Companies Act ,2013.