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

Quiz

Q1. The Serious Fraud Investigation Office shall be headed by a -----------

Director

Member

Inspector

Central Government

Q2. Big company deals in manufacturing of Laptops. Complaint was received by the Central Government on intimation of a special resolution passed by Big Company that its affairs are required to be investigated. The turnover of the company is more than Rs.50 Crore and upto Rs. 200 Crore. Advice

Since the turnover is not so large, Central Government refuses to carry out investigation

Central Government believes that the Laptop Companies require investigation by Cybercrime Department

The Central Government may demand security Rs 15000 for payment of the costs and expenses of the investigation.

None of the above

Q3. The Director shall be an officer not below the rank of a Joint Secretary to the Government of India having knowledge and experience in dealing with matters relating to corporate affairs.

Correct

Incorrect

Q4. The Registrar received complaint from the shareholders of the company that Bloom Company is trying to defraud its creditors. Upon investigation by the Registrar, it was found out that the allegation was true. On submitting the report to the Central Government by The Registrar, Central Government is of the opinion that the further investigation is to be carried out. Thus, Central Government Orders Serious Fraud Investigation Office to investigate into the affairs of the said company. State whether the action of Central Government is Correct or not.

Correct

Incorrect

Q5. The Registrar believes that the books and papers of Sunshine Company are likely to be destroyed by the company on complaint received by him. The Registrar entered and searched the premises of Sunshine company after obtaining an order from the Special Court. The Registrar seized the books and papers as he considered necessary on 1 August 2017. On 5 February 2018, the Sunshine company asked the Registrar to return them the books of account back. But the Registrar refused to do so. Advice.

The Registrar shall return seized books of account within 90 days of such seizure

The Registrar shall return seized books of account within 60 days of such seizure

The Registrar shall return seized books of account within 180 days of such seizure

The Registrar shall return seized books of account within 45 days of such seizure

Q6. Can Central Government order an investigation into the affairs of the company in public interest?

Yes

Q7. The investigation officer of SFIO shall have powers of ------under section 217

Member

Director

Experts

Inspector

Q8. Establishment of SFIO by Central Government and Investigation into the affairs of company by SFIO are guided by ----------- of the Companies Act, 2013 respectively

Section 211 and Section 212

Section 201 and Section 202

Section 210 and Section 211

Section 211 and Section 210

Q9. Where any case has been assigned by the Central Government to the SFIO for investigation under this Act, then other investigating agencies of Central Government shall proceed with the investigation as before.

TRUE

FALSE

Q10. The Registrar believes that the books and papers of DAY Company are likely to be destroyed by the company. He believes so because he received complaint from a group of creditors of the DAY Company. As soon as the Registrar received the complaint, he entered and searched the premises of DAY company. The Registrar even seized the books and papers as he considered necessary. Advice.

Q11. A Company passes ordinary resolution that the affairs of the company ought to be investigated and intimates to the Central Government.

TRUE

FALSE

Q12. The Central Government shall appoint a Director in the Serious Fraud Investigation Office by issue of a ------

Circular

Notice

Notification

Order

Q13. The Registrar submitted a report under section 208. In the report he included recommendation that further investigation into the affairs of the company is necessary. Is The Registrar authorised to do so?

Yes

Q14. Complaint was received by the Central Government on intimation of a special resolution passed by a company that its affairs are required to be investigated. SFIO was authorised by the Central Government to investigate into the affairs of the said company. What is the course of action by SFIO?

On completion of the investigation, SFIO will submit report to the Central Government

SFIO will issue arrest order to the officers in default of the company

Both of the above

None of the above

Q15. SFIO will not have power to arrest in respect of certain offences which are punishable for fraud provided in section 447 and such person.

TRUE

FALSE

Q16. In what circumstances can Central Government order an investigation into the affairs of the company?

In public interest

On the receipt of the report from the Registrar under section 208

On intimation of a special resolution passed by a company that the affairs of the company ought to be investigated.

All of the above

Q17. The Central Government shall order an investigation of the affairs of a company if the Tribunal makes an order that an investigation into the affairs of the company is required.

TRUE

FALSE

Q18. On what grounds, Central Government can order Investigation by SFIO?

In the Public interest

On receipt of a report of the Registrar under section 208

On intimation of a Special Resolution by a company that its affairs are required to be investigated

All of the above

Q19. The special court shall not take cognizance of any offence except upon complaint in writing made by –

The Director

Any officer of the Central Government authorized by general or special order in writing in this behalf

Serious Fraud Investigation office

Any of the Above

Q20. Is the security amount demanded by the Central Government refundable?

Yes, if the investigation results in prosecution