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CA Final MCQs
Quiz
Q1. Mr. X, ID of KKJ Ltd. was already in receipt of remuneration and reimbursement of expense. The Company is proposing to pay profit related commission and offer stock option of shares to incentivize him for his excellent contribution in the year. Is the proposal valid?
Company can only offer stock options
Company can only pay profit linked commission
Both are allowed
None of the both are allowed
Q2. Casual Vacancy of an Independent director shall be filled by BOD not later than
Immediate BM
3 months
Earlier of (a) or (b)
Later of (a) or (b)
Q3. KLM Ltd. unlisted, seek to appoint Small Shareholder’s Director. How can they do so if the small shareholders have not applied for the same?
Suo-motu, BM-OR
Suo-motu, GM-OR
Cannot be done
Take prior CG approval
Q4. HGK Ltd. appointed Mr. Ram as Small shareholder’s Director. Mr. Sham brother of Mr. Ram, Director of a Section 8 Company receives 32% of its receipts from HGK Ltd. Can Mr. Ram continue as a Small shareholder’s Director?
Yes
No, because he loses his independence
Cancontinuebytakingapprovalfrom Company
None of the above.
Q5. Shareholders of PQR Ltd. seek to appoint Small Shareholder’s Director. What is the eligibility criterion of these shareholders’ to apply?
Holding shares of ? Rs. 20,000 Paid-up value
Holding shares of ? Rs. 20,000 Market value
Holding shares of ? Rs. 20,000 face value
None of the above
Q6. HGK Ltd. appointed Mr. Ram as Small shareholder’s Director. Mr. Sham brother of Mr. Ram is the Director of a Section 8 Company which receives 32% of its income from HGK Ltd. Can Mr. Ram continue as a Small shareholder’s Director?
Yes
No, because he loses his independence
Can continue by taking approval from Company
None of the above.
Q7. Casual Vacancy of an Independent director shall be filled by
GM-OR
EGM
GM-SR
BM-OR
Q8. HGK Ltd. seeks to appoint Mr. Ram as Independent Director. Mr. Sham brother of Mr. Ram is a deemed Director of a Section 8 Company which holds 6% of the voting power of HGK Ltd. Can Mr. Ram be so appointed?
Yes
No
Yes, GM-SR
Yes, GM-UR
Q9. PQR Ltd. to which appointment of Independent Director is applicable ceases to fulfill the conditions of applicability for 3 consecutive years; compliance with this section is
not required until it again meets any of the condition
still required
is decided by the Company based on the circumstances
None of the above
Q10. Acts conducted by the Company were ultra vires to the AOA and MOA of the Company. Will the ID be held responsible?
Yes, held primarily responsible
Held responsible only if the acts occurred within his knowledge and his consent or connivance.
Held responsible based on the terms of appointment.
None of the above
