(CA Inter)May26/Sep26

10 Food lovers Inc. was incorporated as a one person company (OPC) on 1st September 2015 with paid up share capital of Rs. 25 lacs. This OPC wants to convert itself into a private limited company during the year ending on 31st March 2017. But the provisions of the Companies Act, 2013 prohibits an OPC from doing so before the expiry of a specified period. From the following options in which situation this OPC will mandatorily be converted into a private/public company even before expiry of such period— a. After the expiry of two years from the date of its incorporation b. Paid up share capital of the company is increased beyond fifty lakh rupees c. The average annual turnover during the relevant period exceeds one crore rupees d. If the application is filed with the ROC within 90 days of its incorporation as OPC, to be converted into a Private Limited company

9 In Roopali Marketing Company Private Limited (Authorised capital 50,000 shares of Rs. 10 each and paidup share capital of Rs. 4,50,000), 1000 shares are jointly held by Abeer and Abheek; another 800 shares are jointly held by Seema and Srividya; and another 1200 are jointly held by Ramesh, Raksha and Rajneesh. Further, 42,000 shares are held by 193 individual persons in their individual capacity. Is it possible for the company to induct more persons? a) The company is unable to induct more persons since it already has two hundred individual members. b) The company can induct four more persons as members. c) The company can induct another 20 persons (i.e. 10% of two hundred individual members) after seeking permission from the concerned ROC. d) If the company does not want to seek permission of the concerned ROC, it can induct only 10 more persons (i.e. 5% of two hundred individual members).

8 Shruti, a common friend of Suchitra and Sukanya, got incorporated OPC sometime before and during a chit-chat with her friends informed them that there is some limit on the maximum capital which her OPC can have and she would have to convert her OPC either into a private or public limited company if such limit exceeded. Suchitra and Sukanya who are desirous of forming a private limited company for carrying on textile trading business, are unsure about the maximum capital which a private limited company can have. Advise. (a) A private limited company can have maximum of Rs. One crore as share capital. (b) A private limited company can have maximum of Rs. Two crores as share capital. (c) A private limited company can have maximum of Rs. Five crores as share capital. (d) A private limited company can have unlimited share capital.

5. I.T.C limited changed its name to ITC limited. Company and officers thereat made default by failing to makealteration in every issued copy of memorandums and articles. In this context you are required to pick incorrect statements out of followings (i) Alternation shall be made to every copy of MOA/AOA because these are considered as public document. (ii) Alternation shall be made to every copy be it in electronic form or otherwise. (iii) Penalty shall be rupees one thousand for every copy of the articles issued without such alteration. (a) (ii) only (b) (iii) only (c) (ii) and (iii) only (d) None of (i), (ii) and (iii)

4. Modern Furniture incorporated on 30th June 2022, its directors filled a declaration under section 10A (1)(a)regarding receipt of payment i.e. value of share (against share subscribed by subscriber) to registrar on 18thApril 2023. The company and its officers (officers who are in default) shall be charged with penalty of: (a) ₹ 1,11,000 and ₹ 1,11,000 respectively (b) ₹ 50,000 and ₹ 1,11,000 respectively (c) ₹ 1,11,000 and ₹ 50,000 respectively (d) ₹ 50,000 and ₹ 1,00,000 respectively

2. 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

🌟Company Law MCQ's🌟 Chapter 2 : Incorporation of Company

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