(CA Inter)May26/Sep26

3. Section 40 of the Companies Act, 2013 requires every company shall make an application to one or more recognized stock exchange or exchanges before making public offer. Madhav Casting Limited filed an application to three exchanges for the securities to be dealt with in such stock exchanges, it received permission from couple of them and proceed with public issue. There will be: (a) No penalty, as application has been filed (b) Penalty on Madhav Casting Limited ranging from 5 lakh to 50 lakh (c) Penalty on Madhav Casting Limited ranging from 5 lakh to 50 lakh and every officer of the company who is in default ranging from 50 thousand to 3 lakh (d) Penalty on Madhav Casting Limited ranging from 5 lakh to 50 lakh and every officer of the company who is in default ranging from 50 thousand to 3 lakh and/or Imprisonment upto one year.

2. Modern Furniture Limited, issued a document containing offer of securities for sale that is considered as deemed prospectus under section 25, which requires such document must contains certain matters/disclosures in addition to those required under section 26. Which of following are correct requirements; i. A statement of the net amount received or to be received as consideration for the securities to which the offer relates ii. The persons making the offer were named in the prospectus as promoters of the company. iii. The time and place at which the underlying contract for allotment may be inspected.

🌟Company Law MCQ's🌟 Chapter 3: Prospectus & Allotment

17 Rajesh has formed a ‘One Person Company (OPC)’ with his wife Roopali as nominee. For the last two years his wife Roopali is suffering from terminal illness and due to this hard fact he wants to change her as nominee. He has a trusted and experienced friend Ramnivas who could be made nominee or his (Rajesh) son Rakshak who is of seventeen years of age. Whom should he nominate as nominee in place of his wife? (a) Since blood relation can only be appointed as nominee in case of OPC, Rajesh needs to appoint his son Rakshak. (b) Rajesh can appoint his friend Ramnivas as nominee in his OPC (c) Roopali is not agreeable to the proposal of Rajesh and hence, Rajesh cannot change her as the nominee (d) Mr. Ramnivas can be appointed as nominee

16 Today, it’s May 2023. Mr. Nilanjan Chattopadhyay a 24 years old Indian youngster, who returned back to India in January month of 2023 after completing his education in bio nutrient and willing to form an OPC; but not sure about the requirements or pre-conditions regarding eligibility. He read some articles on provisions related to OPC and concluded; (i) OPC can be formed by Indian Citizen only (ii) He can’t form OPC because in immediate previous year he was not resident in India Choose the correct option: (a) Both the conclusions are valid (b) None of the conclusion is valid (c) First conclusion is invalid (d) Second conclusion is invalid

15 The Best Dry Fruits Ltd was incorporated under the Companies Act, 1913. Whether the provisions of the Companies Act, 2013 shall apply on it: (a) No, the provisions of the Companies Act, 2013 shall not apply on it . (b) Yes, the provisions of the Companies Act, 2013 shall apply on it . (c) The Companies Act, 1913 was enacted by the British Government, hence only an Act made by British Government shall apply on such company. (d) Since, this company was incorporated by the British Government, hence the Companies Act of UK Govt shall apply.

13 L made an offer to MD of a company. MD accepted the offer though he had no authority to do so. Subsequently L withdrew the offer but the company ratified the MD’s acceptance. State which of the statement given hereunder is correct: (a) L was bound with the offer (b) An offer once accepted cannot be withdrawn (c) Both option (a) & (b) is correct (d) L is not bound to an offer

11 Abhilasha and Amrita have incorporated a ‘not for profit’ private limited company which is registered under Section 8 of the Companies Act, 2013. One of their friends has informed them that their company can be categorized as a ‘small company’ because as per the last profit and loss account for the year ending 31st March, 2019, its turnover was less than Rs. 2.00 crores and its paid up share capital was less than Rs. 50 Lacs. Advise. (a) A section 8 company, which meets the criteria of ‘turnover’ and ‘paid-up share capital’ in the last financial year, can avail the status of ‘small company’ only if it acquires at least 5% stake in another ‘small company’ within the immediately following financial year. (b) If the acquisition of minimum 5% stake in another ‘small company’ materializes in the second financial year (and notin the immediately following financial year) after meeting the criteria of ‘turnover’ and ‘paid-up share capital’ then with the written permission of concerned ROC, it can acquire the status of ‘small company’. (c) The status of ‘small company’ cannot be bestowed upon a ‘not for profit’ company which is registered under Section 8 of the Companies Act, 2013. (d) A section 8 company, if incorporated as a private limited company (and not as public limited company) can avail the status of ‘small company’ with the permission of concerned ROC, after it meets the criteria of ‘turnover’ and ‘paid-up share capital’