Tag: promotion and formation of a company

Questions Related to promotion and formation of a company

Registration is ________ for every company.

business organisation and correspondence joint stock company 3 - promotion and formation of a company formation and promotion of a company promoter promotion and formation of a company

  1. voluntary

  2. compulsory

  3. optional

  4. none of these

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Correct Option: B
Explanation:

The registration is compulsory for every company under the Company Act, 2013.

State the following statement is True or False:
Formation of company is simple and easy.

business organisation and correspondence joint stock company 3 - promotion and formation of a company formation and promotion of a company promoter promotion and formation of a company

  1. True

  2. False

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Correct Option: A
Explanation:

True

Formation of company is simple and easy. Ministry of Corporate Affairs has simplified the incorporation of companies.Incorporation of a company can be done with prior name approval or using SPICe form, wherein incorporation certificate is provided if name is acceptable to the MCA.

State the following statement is True or False:
All companies can start business after receiving the Certificate of Incorporation.

business organisation and correspondence joint stock company 3 - promotion and formation of a company formation and promotion of a company promoter promotion and formation of a company

  1. True

  2. False

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Correct Option: A
Explanation:

True

Companies registered wit the Registrar of Companies can start a business right after incorporation. Which means once the company receives its Certificate of Incorporation from the Registrar, it can start its business. 

The promoters are __________ of the company.
business organisation and correspondence joint stock company 3 - promotion and formation of a company formation and promotion of a company promoter promotion and formation of a company

  1. shareholders

  2. directors

  3. pioneers

  4. none of these

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Correct Option: C
Explanation:

Promoters are those person who is among the first to explore or settle a new company hence they might be called as pioneers.

State the following statement is True or False:
The second stage in the formation of a Joint Stock Company is incorporation.

business organisation and correspondence joint stock company 3 - promotion and formation of a company formation and promotion of a company promoter promotion and formation of a company

  1. True

  2. False

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Correct Option: A
Explanation:

True

Incorporation or registration is the second stage in the formation of a company. It is the registration that brings a company into existence. A company is properly constituted only when it is duly registered under the Act and a Certificate of Incorporation has been obtained from the Registrar of Companies.

The Registrar of Companies issues incorporation certificate to the company.

business organisation and correspondence joint stock company 3 - promotion and formation of a company formation and promotion of a company promoter promotion and formation of a company

  1. True

  2. False

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Correct Option: A
Explanation:

This statements is true,due to the following reasons:


(i) "Registrar " means a registrar,an additional, a joint, a deputy or an assistant registrar , having the duty of registering companies under this act.


(ii) They area appointed in each state by the Central Government.

(iii) The Registrar is a statutory authority under the Companies Act.

(iv) His appointment is made under section 609(2) of the Companies Act and is responsible  for the administration of the company law in his states.

(v) The Registrar of companies has to carry out routine functions  relating to company law  administration.

(vi) He has, therefore been given wide power by the Company Law Board.

(vii) He also performs different functions like to receive notices, returns, reports and record prospectus to be filed by the companies.

(viii) To inspect the Documents, Register, Financial records etc. of a company at any time. 

(ix) To record alteration of Memorandum and Articles of Association of the company.

(x) To issue the Certificate of Incorporation and the Certificate of  Commencement of Business is also the function of the Registrar of companies.

Match the Groups :

(II) Group 'A' Group 'B'
(i) Registrar of Companies (a) Six
(ii) Advisory Committee (b) Disposal of assets of company
(iii) Company Law Board (c) Five members
(iv) Number of Regional Directors (d) Purchase of assets of company
(v) Official Liquidator (e) Nine members
(f) Trading Certificate
(g) Seven members
(h) Eight
(i) Four members
(j) Head of Companies
business organisation and correspondence joint stock company 3 - promotion and formation of a company formation and promotion of a company promoter promotion and formation of a company

  1. (i - f), (ii - c), (iii - e), (iv - a), (v - b)

  2. (i - h), (ii - c), (iii - e), (iv - j), (v - b)

  3. (i - f), (ii - g), (iii - i), (iv - a), (v - b)

  4. (i - a), (ii - c), (iii - j), (iv - h), (v - b)

Show answer
Correct Option: A
Explanation:

The correct matches of the groups are:

Registrar of Companies is a trading certificate.
Advisory committee have Five members.
Company Law Board have Nine members.
Number of Regional Directors are six in number.
Official liquidator job is to dispose of assets of company.  

The working of Registrar of Companies of a region is supervised by ________.

business organisation and correspondence joint stock company 3 - promotion and formation of a company formation and promotion of a company promoter promotion and formation of a company

  1. Court

  2. Advisory Committee

  3. Regional Directors

  4. Shareholders

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Correct Option: C
Explanation:

The seven regional registrar of companies are in charge of the respective regions each region comprising a number of States and Union Territories. They supervise the working of registrars of the companies in their region . They also maintain a liaison between the respective State government and the Central government in matters relating to the administration of the Companies Act.

The Company Law Board consists of not more than ________ members.

business organisation and correspondence joint stock company 3 - promotion and formation of a company formation and promotion of a company promoter promotion and formation of a company

  1. seven

  2. nine

  3. six

  4. ten

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Correct Option: B
Explanation:

The Company Law Board shall consist of such number of members, not exceeding nine, as the Central Government deems fit, to be appointed by that Government by notification in the Official Gazette

The Company Law Board has ________ members.

business organisation and correspondence joint stock company 3 - promotion and formation of a company formation and promotion of a company promoter promotion and formation of a company

  1. four

  2. five

  3. eight

  4. nine

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Correct Option: D
Explanation:

According to the Company Act 2013 , The Company Law Board has nine members.