Tag: basis of classification of business activities

Questions Related to basis of classification of business activities

Only special business is transacted at Annual General Meeting.

elements of business fundamentals of business activities characteristics of vocational activities basis of classification of business activities classification of business

  1. True

  2. False

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Correct Option: B
Explanation:

False , Annual General Meeting is a mandatory yearly gathering of company's interested shareholders . At the meeting the directors of the company present an annual report containing information for the shareholders about the company's performance and strategy. Shareholders with voting rights vote on current issues such as appointment of board of directors , executive compensation, divident payment and selection of auditors.

State the following statement is True or False.

21 clear days notice should be given is case of Board Meeting.

elements of business fundamentals of business activities characteristics of vocational activities basis of classification of business activities classification of business

  1. True

  2. False

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Correct Option: B
Explanation:

This statement is False because of the following reasons:

(i) Notice refers to a formal invitation in writing indicating the day,date ,time and place attend meeting.
(ii) The chairman of the board is the proper authority to convene Board Meeting.
(iii)To conduct Board Meeting, a notice of reasonable period should be given.
(iv) However, the company 's Article of Association can provide a definite period of notice case of board meeting.
Thus, there is no need to serve 21 clear days notice in case of Board Meeting.

State the following statements is True or False:

The meeting of shareholders which is held in between two consecutive Annual General Meetings is Extra Ordinary General meeting.

elements of business fundamentals of business activities characteristics of vocational activities basis of classification of business activities classification of business

  1. True

  2. False

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Correct Option: A
Explanation:

True, the meeting which is held between two consecutive Annual General Meetings is called Extraordinary General Meeting . It is a sort notice meeting o members and the shareholders especially to consider a particular matter. 

The general meeting held after the completion of the financial year is the Annual General Meeting .
elements of business fundamentals of business activities characteristics of vocational activities basis of classification of business activities classification of business

  1. True

  2. False

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Correct Option: A
Explanation:

True , the general meeting held after the completion of the financial year is the Annual General Meeting . Annual General Meeting is a meeting conducted annually f or the members or shareholders for holding elections or reporting on theyear's events.

The general meeting held only once in the life of the company is the statutory meeting.
elements of business fundamentals of business activities characteristics of vocational activities basis of classification of business activities classification of business

  1. True

  2. False

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Correct Option: A
Explanation:

true, statutory meeting is the first meeting of the shareholders of a company. It must be held within a period of less than one month not more than six months from the date at which the company is entitled to the commencement of business . it is only held once in a lifetime of a company.

President of National Company Law Tribunal cannot be re-appointed on expiry of his term.

elements of business fundamentals of business activities characteristics of vocational activities basis of classification of business activities classification of business

  1. True

  2. False

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Correct Option: B
Explanation:
Section 10FE, Companies Act, talks about the "term of office of president and members."
The President and every other Member of the Tribunal shall hold office as such for a term of three years from the date
on which he enters upon his office but shall be eligible for re-appointment :
Provided that no President or other Member shall hold office as such after he has attained, -
(a) in the case of the President, the age of sixty-seven years ;
(b) in the case of any other Member, the age of sixty-five years :
Provided further that the President or other Member may retain his lien with his parent cadre or Ministry or
Department, as the case may be, while holding office as such.
Appointment of the Auditors is made at the Annual General Meeting.
elements of business fundamentals of business activities characteristics of vocational activities basis of classification of business activities classification of business

  1. True

  2. False

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Correct Option: A
Explanation:

True , the appointment of the auditor is made at Annual General Meeting . Every company shall appoint an auditor at it's first annual general meeting who shall hold its first office from conclusion of that meeting to its sixth annual general meeting

The written record of the proceedings at the meeting are the minutes.
elements of business fundamentals of business activities characteristics of vocational activities basis of classification of business activities classification of business

  1. True

  2. False

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Correct Option: A
Explanation:

Minutes also known as minutes of meeting are instant records. They typically describe the events of the meeting and may include a list of attendees, a statement of the issues considered by the participants and related responses or the decision of the issue.

Registrar of Companies is appointed by State Government.

elements of business fundamentals of business activities characteristics of vocational activities basis of classification of business activities classification of business

  1. True

  2. False

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Correct Option: A
Explanation:

True

 the Registrar of Companies is appointed by state government under the Ministry of Corporate Affairs that deals with the administration of Company act 2013 ...

The gap between two general meetings should not be more than _______ months. 
elements of business fundamentals of business activities characteristics of vocational activities basis of classification of business activities classification of business

  1. five

  2. ten

  3. fifteen

  4. twenty

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Correct Option: C