MCQ for CA Intermediate LAW - PART 1 - CORPORATE LAWS - Chapter 4 - SHARE CAPITAL AND DEBENTURES

Sample Multiple Choice Questions (MCQ's) for CA Intermediate - Paper 2 - Corporate and Other Laws - PART 1 - Corporate Laws - Chapter 4: SHARE CAPITAL AND DEBENTURES - For Practice relevant for May/November 23 Examinations

Q:1 Central Government has power to convert Debentures issued by a Company into Shares.

1. True
2. False

Answer: 1

Q:2 Option to redeem the Redeemable Preference Shares only lies with holders thereof.

1. True
2. False

Answer: 1

Q:3 Right Shares are those Shares which are issued by newly formed Company.

1. True
2. False

Answer: 2

Q:4 Preference Shares can be redeemed (i) out of Company's profits which would otherwise be available for Dividends, and (ii) out of the proceeds of fresh issue of Shares.

1. True
2. False

Answer: 1

Q:5 Right Shares are those Shares which are issued by newly formed Company.

1. True
2. False

Answer:2

Q:6 Central Government has power to convert Debentures issued by a Company into Shares.

1. The articles of association of the company shall authorize issue of shares with differential rights;
2. The issue of shares shall be authorized by an ordinary resolution passed at a general meeting of the shareholders;
3. The issue of shares shall be authorized by special resolution passed at a general meeting of the shareholders;
4. The company shall have consistent track record of distributable profits for the last three years;

Answer: 3

Q:7 Under Co.Act, the Underwriting Commission on Shares must not exceed -

1. 2% of IP of Shares
2. 5% of IP of Shares,
3. 5% of IP of Shares
4. 5% of IP of Shares (M 10) (IP = Issue Price)

Answer: 2

 

CA Intermediate LAW - PART 1 - Corporate Laws - MCQ for Chapter 5 -   

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