MCQs for CA Final Exam - CAFinal[dot]Org: Complete Learning Portal for CA Final Students

Quiz

Q1. Company seeks to appoint Mr. X, a retiring director. Under which section can the same be done?

Sec 160

Sec 152(7)

152(1)

Any of the above

Q2. In the same situation as above, if he reappointed as NED, what will be his position?

May continue as NED for 3 years

May continue as ED for 3 years

MaycontinueasEDfor2 years and as NED for 1 year

None of the above

Q3. Mr. Chetan, an Executive Director is rotated after 3 years of his 5 year tenure and retires & vacates office as NED. Explain his position in the Company.

Can continue as ED

Cannot continue as ED

Cancontinueas employee

None of the above

Q4. In the situation above, if resolution for A’s retirement and re-appointment was passed. However, before the resolution for B’s could be taken up for consideration, the meeting was adjourned. In the adjourned meeting also, the said resolution could not be taken up and the meeting was ended without passing the resolution for B’s retirement and reappointment. What will be the status of B as a director in the company?

Q5. Under sec 160, any person who wants himself to be appointed or a member wants to nominate any person shall apply at registered office of company with fees of Rs. 1 lakh or higher amount as may be prescribed. FUD Ltd, receives an application for appointment of 1 director by members, 2 recommended by Nomination and Remuneration Committee constituted u/s 178 including 1 Independent Director. What is the total amount deposited with Company on such application?

INR 3 Lakhs

INR 2 Lakhs

INR 1 Lakh

Nil

Q6. A company XYZ Ltd. has 8 directors including 1 Additional Director, 1 Casual Vacancy Director, 1 Small Shareholder’s Director. Calculate number of Directors to be rotated.

None of the above

Q7. Mr. PQR has been appointed as Additional Director on the Board of Meghna Ltd. on 12th January, 2016. Mr. PQR has filed his consent to Act as a Director only with the company. Is the appointment valid?

Yes, as consent with Company is paramount for assuming office

No, Filing of consent with ROC is mandatory to assume office

Yes, as filing of consent with ROC is not mandatory for Additional Director

None of the above

Q8. ABC Company Ltd. in its First General Meeting appointed 6 Directors whose period of office is liable to be determined by rotation. Will it make any difference, if ABC Company Ltd. does not carry on business for Profit?

Sec 8 companies are exempted

Sec 8 companies are not exempted

Retirement shall be as per terms of agreement

None of the above

Q9. Company XYZ Ltd. seeks to appoint an Additional Director on account of increase in work load. Which of the following ways can be opted for his appointment?

AOA gives power then BM-OR can be passed

If AOA is silent then GM-OR to grant power and BM-OR to make the appointment

Both a. and b.

Neither a. or b.

Q10. A company on the Board consisting of the following: a. Mr. Independent, Mr. Archie as nominees from two Public Financial Institutions. b. Mr. X, Mr. Y, Mr. Z appointed at the 2nd AGM. c. Mr. A, Mr. B appointed at the 3rd AGM. d. Mr. Addition was appointed as additional director subsequent to 3rd AGM. e. Mr. Casual was appointed as director in place of Mr. Soul who died and was earlier appointed during the 3rd AGM. f. Mr. Excellent was appointed as Managing Director for 5 years w.e.f. 2nd AGM. g. Mr. One More was appointed as additional Director soon after appointment of Mr. Addition. List out in order, who shall be vacating the office at the 4th AGM of the company.

Mr. Addition, Mr. One More, 2 from Mr. X, Mr. Y & Mr. Z and Mr. Casual

Any 2 from Mr. X, Mr. Y & Mr. Z and Mr. Casual

Mr. Addition, Mr. One More, 2 from Mr. X, Mr. Y & Mr. Z and Mr. Casual on the day Mr. Soul would have retired

Any 2 from Mr. X, Mr. Y & Mr. Z and Mr. Casual on the day Mr. Soul would have retired