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

Quiz

Q1. For every day of default, the Director holding more than the Statutory Maximum number of Directorships shall be liable to pay:

1000

5000

10000

15000

Q2. Director who makes undue gain or involves in a situation with conflict of interest or takes action without reasonable and due care or without exercise of proper judgement or diligence shall be punishable with:

Fine: 1-5 Lakh

Fine : 2-5 Lakh

Fine: 5-10 Lakh

Fine : upto 20 Lakh

Q3. Which of the following shall not be included in calculating Directorships:

Directorshipof Dormant Company

Alternate Directorships

CasualVacancy Directorships

Additional Directorships

Q4. Mr. Snehil, a director of LMN Ltd. assigned his office to his son when he went on a vacation abroad for 1 week. Is the act of the director valid?

Yes

Allowed if approval from GM is sought

None of the above

Q5. Maximum no. of Directorships for all forms of Companies (excluding exceptions as per Act) shall be:

Q6. Private Company which is a Holding Company of Public Company shall be calculated as:

Public Company

Private Company

Not calculated at all

None of these

Q7. Director resignation from excess Directorships shall be valid w.e.f:

Q8. Maximum no. of Public Companies in which a person can be Director:

Q9. Will the Director who makes undue gain in the aforesaid case have other liabilities apart from fine:

Yes, shall be required to pay amount equal to gain made to Company

Yes, shall be required to pay amount equal to twice the gain made to Company

Yes, shall be required to pay amount equal to thrice the gain made to Company

None of these

Q10. Director who exceeds the maximum number of Directorships shall notify his wish to continue as Director to:

Co. in which he wishes to continue

Registrar

Both

Tribunal/CG

Q11. Private Company which is a Subsidiary Company of Public Company shall be calculated as:

Public Company

Private Company

Not calculated at all

None of these

Q12. LMN Ltd. is Whole Owned Subsidiary of Government Company. The members of LMN Ltd. applied for inspection of Register of Directors maintained u/s 170. Company seeks your advice.

Sec 171 gives the right to Members for inspection of register.

If the members ask for inspection of register in Business Hours the same is permitted.

Both (a) and (b)

Sec 171 is not applicable to Whole Owned Subsidiary of Government Company

Q13. Mr. Gold director of Ornaments Private Ltd. has committed a crime involving moral turpitude and has been sentenced to imprisonment in March 2015 for 2 years and 6 months. When shall he vacate his office if he has filed a further appeal within 7 days?

Within 7 days from the date of disposal of further appeal

On disposal of further appeal

Immediately on conviction

None of the above

Q14. Loan Ltd. did not file its Annual Return for a continuous period of 2 years from 2014-15 to 2015-16. Mr. D, was appointed as a Director on nomination of CG in 2016, will he be disqualified to act as a director?

Yes, since not filing Annual Return for a continuous period of 3 years is a company level default u/s 164.

No, since he was appointed after the defaulting periods.

No, he will continue to be qualified only for a period of 6 months from the date of appointment.

None of the above appointed by the CG nomination

Q15. A lesser no. of Maximum Directorships that a Director of its Company can have shall be notified by that Company through:

GM-OR

GM-SR

BM-OR

BM-SR