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

Quiz

Q1. Investigation proceeding under the provisions of the Companies Act, 2013 is being carried out against Fishy Ltd. During the investigation, The Tribunal has a reasonable ground to believe that the removal, transfer or disposal of funds is likely to take place in a manner that is prejudicial to the interests of the company. So, the Tribunal made an order under section 221 of Companies Act,2013 that the removal, transfer or disposal of funds shall not take place for some time. For how much maximum period the assets shall be freeze by the Tribunal?

1 Year

180 days

6 Months

3 years

Q2. If, from an inspector’s report it appears to the Central Government that any person is guilty of any offence for which he is criminally liable, the Central Government may ------- such person for the offence.

Suspend

Prosecute

Impose a fine

None of the above

Q3. Who shall bear the expenses of Investigation under the provisions of the Companies Act, 2013?

Any person who has filed complaint to do the investigation as per the provisions of the Act.

Any person who is convicted on a prosecution instituted, to such extent as may be specified by the court

Central Government out of Investors Education and Protection Fund

None of the above

Q4. Try Ltd is a company which wants to suspend Mr. Y , the admin manager of the company during the pendency of the investigation conducted as per the provisions of the Companies Act, 2013. The company approached the Tribunal on 1 January 2018 for the proposed action. The company on 13 February 2018 passed an order of suspension without waiting for the orders from Tribunal. Comment whether action done by company is correct

Correct

Incorrect

Q5. The Registrar received complaint from the shareholders of the company that K Ltd. 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. After carrying out Further Investigation, the Inspector considers it necessary to investigate the affairs of the KLtd’sholding company. The Inspector proceeded to investigate the Holding Company of K ltd... Does the Inspector have the power to do so under the provisions of the Companies Act,2013?

Yes, after obtaining prior approval of the Central Government

Yes, no need to obtain Prior approval of the Central Government

Q6. Under section 218, if a person fails without reasonable cause or refuses to produce to an inspector he shall be punishable with-

Imprisonment upto 6 months, Fine not less than RS 20000 upto RS 1 Lakh, fine upto Rs 2000 for every day after the first during which the failure or refusal continues.

Imprisonment upto 6 months, Fine not less than RS 35000 upto RS 1 Lakh, fine upto Rs 2000 for every day after the first during which the failure or refusal continues.

Imprisonment upto 6 months, Fine not less than RS 25000 upto RS 1 Lakh, fine upto Rs 200 for every day after the first during which the failure or refusal continues.

Imprisonment upto 6 months, Fine not less than RS 25000 upto RS 1 Lakh, fine upto Rs 2000 for every day after the first during which the failure or refusal continues.

Q7. Laugh Ltd is a company which wants to suspend Mr. Y, the admin manager of the company during the pendency of the investigation conducted as per the provisions of the Companies Act, 2013. Can the Company do so?

Yes, the company shall make an application to the Tribunal

Yes, no need to make an application to the Tribunal

Q8. Proceeding of investigation is going on against Mr. S who is officer in default of SS Company. An inspector appointed by the Central Government is doing investigation. He wants to examine on oath Mr. S under section 217 of the Companies Act 2013. Comment whether can he do so.

No, examining on oath does not comes under his powers

Yes, with prior approval of the Central Government

Q9. After perusal of the inspector’s report it appears to the Central Government that a company is liable to be wound up under this Act, it may cause to be presented to the Tribunal,

A petition for the winding up of the Company on the ground that it Is just and equitable that it should be wound up

A petition for the restructuring of the Company on the ground that it Is just and equitable that it should be restructured

A petition for the merger of the Company on the ground that it Is just and equitable that it should be merged

None of the above

Q10. Proceeding of investigation is going on against Mr. T who is officer in default of TT Company. An inspector appointed by the Central Government is doing investigation. He ordered Mr. T to produce such books and papers which are relevant for the purposes of his investigation. But Mr. T refuses to do so. What action can be taken against Mr.T?

Imprisonment upto 1 year and fine, which shall not be less than Rs. 25000 but which may extend to Rs 1 Lakh

Imprisonment upto 2 years and fine, which shall not be less than Rs. 25000 but which may extend to Rs 1 Lakh

Imprisonment upto 1 year and fine, which shall not be less than Rs. 20000 but which may extend to Rs 1 Lakh

Imprisonment upto 1 year and fine, which shall not be less than Rs. 2500 but which may extend to Rs 1 Lakh

Q11. Under section 217(3) the inspector shall not keep in his custody any books and papers produced under the provisions of this section for more than------------ days

180

Q12. In addition to the above case, what if the company transfers funds in contravention of order of the Tribunal? What shall be fine to the Company and the officer in default?

Company=Fine not less than Rs.1 Lakh but which may extend to Rs.25 lakh; Officer in default= imprisonment upto 2 years, or with fine not less than Rs. 50000 but which may extend to Rs. 5 Lakh , or with both

Company=Fine not less than Rs.1 Lakh but which may extend to Rs.25 lakh; Officer in default= imprisonment upto 3 years, or with fine not less than Rs. 50000 but which may extend to Rs. 5 Lakh , or with both

Company=Fine not less than Rs.1 Lakh but which may extend to Rs.25 lakh; Officer in default= imprisonment upto2 years, or with fine not less than Rs. 5000 but which may extend to Rs. 5 Lakh , or with both

Company=Fine not less than Rs.1 Lakh but which may extend to Rs.25 lakh; Officer in default= imprisonment upto2 years, or with fine not less than Rs. 500 but which may extend to Rs. 5 Lakh , or with both

Q13. Fry Ltd is a company which wants to suspend Mr. Y, the admin manager of the company during the pendency of the investigation conducted as per the provisions of the Companies Act, 2013. The company approached the Tribunal on 30 January 2018 for the proposed action. The company on 13 February 2018 passed an order of suspension without waiting for the orders from Tribunal. Comment whether action done by company is correct.

Correct

Incorrect

Q14. Bee Company deals in manufacturing of Shoes. During the course of investigation of Bee company Inspector believes that evidence may be available in a country outside India because Bee company has a manufacturing unit in this country also. Inspector makes an application to the competent court in India that he believes that evidence may be available in a country outside India. What will Indian court do?

Issue a letter of request to a court in such country to forward all the evidence collected to the court in India which had issued such letter of request.

Issue a letter of request to a court in such country to ban the manufacturing unit

Issue a letter of request to a court in such country to arrest such officer in default of such company within prescribed time limit.

None of the above.

Q15. Proceeding of investigation is going on against Mr. S who is officer in default of SS Company. An inspector appointed by the Central Government is doing investigation. He wants to examine on oath Mr. S under section 212 of the Companies Act 2013. Comment whether can he do so.

No, examining on oath does not comes under his powers

Yes, with prior approval of the Director, Serious Fraud Investigation Officer

Q16. While an inspector was examining Mr. D on oath, the inspector was taking the notes of examination in writing to which Mr. D objected. Advice whether the objection taken by Mr. D was correct?

Yes

Q17. Mr G, a director of Good Ltd has taken undue advantage due to a fraud taken place in the company. The inspector found out about this during the investigation proceeding carried out by him. The report made by inspector to the Central Government stated this fact. The Central Government files an application to the Tribunal for holding Mr. G personally liable without any limitation of liability. Mr. G objects. Advice whether Action of Central Government is correct or not.

Correct

Incorrect

Q18. WINNERS Company is owned by two brothers namely, Mr. Rahil and Mr. Sahil. But since last 6 months, some of the employees and members have noticed some disputes between the two brothers which is resulting in disturbance of the working of company. They have complaint Central Government to investigate on matters relating to the company. The Central Government appoints inspectors to investigate and report on matters relating to the company----

who are or have been financially interested in the success or failure, whether real or apparent of the company

who are or have been able to control or materially influence the policy of the company

None of the above

A or B

Q19. The Tribunal during the course of proceeding of investigation found out that the minority shareholders of the Dull Ltd. are being cornered by the Company. It appears to the Tribunal that an order of restrictions upon securities is required which may not exceed ---------. The Contravention of the order of the Tribunal attracts----- ------- to the company and ------- to the officers in default.

3 years; fine; fine and/or imprisonment

2 years; fine; fine and/or imprisonment

3 years; fine; fine

3 years; fine; fine and imprisonment

Q20. The Registrar received complaint from the shareholders of the company that R Ltd. 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. After carrying out Further Investigation, the Inspector considers it necessary to investigate the affairs of the R Ltd’s subsidiary company. Does the Inspector have the power to do so?

Yes, after obtaining prior approval of the Central Government

Yes, No need to obtain Prior approval of the Central Government