Chapter 1 (Preliminary) Leave a Comment / By / Preliminary Which of the following is true in relation to OPC? OPC can have only 1 member and only 1 director OPC has minimum 1 member and minimum 1 director OPC can have only 1 member but minimum 1 director OPC can have only 1 director but minimum 1 member None The Best Dry Fruits Ltd was incorporated under the Companies Act, 1913. Whether the provisions of the Companies Act, 2013 shall apply on it: No, the provisions of the Companies Act, 2013 shall not apply on it. Yes, the provisions of the Companies Act, 2013 shall apply on it. The Companies Act, 1913 was enacted by the British Government, hence only an Act made by British Government shall apply on such company. Since, this company was incorporated by the British Government, hence the Companies Act of UK Govt shall apply. None Company X, a leading automobile manufacturer, has invested in Company Y, a start-up specializing in electric vehicle technology. Company X holds a 25% stake in Company Y and actively participates in its strategic decisions. Based on the provisions of the Companies Act 2013 regarding associate companies, which of the following statements is correct? Company X's investment in Company Y does not qualify as an associate company because Company X does not have control of at least 50% of the total voting power. Company Y qualifies as an associate company of Company X since Company X holds a 25% stake in Company Y and actively participates in its strategic decisions. Company Y cannot be considered an associate company of Company X because it is a start-up and does not meet the minimum criteria for significant influence. Company X's investment in Company Y falls under the category of joint venture and does not qualify as an associate company according to the Companies Act 2013 None In case of a company limited by guarantee, the liability of the members can be enforced At any time when the company so decides Only at the time of winding-up of the company Only by an order of NCLT Only by order of Registrar of companies None In Sumit Marketing Company Private Limited (Authorised capital 50,000 shares of Rs. 10 each and paid-up 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; another 1200 are jointly held by Ramesh, Raksha and Rajneesh and another 3 shares are held by Vishnu and Vishal. Further, 42,000 shares are held by 193 individual persons in their individual capacity. Is it possible for the company to induct more persons? The company is unable to induct more persons since it already has two hundred individual members. The company can induct four more persons as members. The company can induct three more persons as members. The company can induct one more person as its member None BPCL Limited is a company registered under Companies Act, 2013. Apart from ordinary equity shares, BPCL Limited has also issued equity shares with differential voting rights. It will be classified as a Government company when _______ is held by Government More than 50% of the Paid-up share capital More than 50% of the Total Voting Power 51% or more of the Paid-up share capital 51% or more of the Total Voting Power None Which of the following are true in relation to a Private company? It prohibits the transfer of shares and invitation to public to subscribe to its securities It restricts the transfer of shares and invitation to public to subscribe to its securities It prohibits the transfer of shares and restricts the invitation to public to subscribe to its securities It restricts the transfer of shares and prohibits the invitation to public to subscribe to its securities None Roma along with her six friends has got incorporated Roma Trading Ltd. in May 2017. She kept the paid-up share capital at Rs. 90 lakhs. Further, in April 2018, she noticed that in the last financial year, the turnover of the company was well below Rs. 20 crores. Advise whether the company can be treated as a ‘small company’. Roma Trading Ltd. is definitely a ‘small company’ since its paid-up capital is much below Rs. 2 crores and also its turnover has not exceeded the threshold limit of Rs. 20 crores The concept of ‘small company’ is applicable only in case of a private limited company/OPC and therefore, despite meeting the criteria of ‘small company’ it being a public limited company cannot enjoy benefits of ‘small company’. Unlike a private limited company/OPC which automatically becomes a ‘small company’ as soon as it meets the criteria of ‘small company’, Roma Trading Ltd. being a public limited company has to maintain the norms applicable to a ‘small company’ continuously for two years so that, thereafter, it is treated as a ‘small company’. If all the shareholders of Roma Trading Ltd. give an undertaking to the ROC stating that they will not let the paid share capital and also turnover exceed the limits applicable to a ‘small company’ in the next two years, then it can be treated as a ‘small company’. None A Ltd. is the holding company of B Ltd. Another company C Ltd. is the subsidiary company of B Ltd. Is there any relationship between A Ltd. and C Ltd? There is no relationship between A Ltd. and C Ltd. C Ltd. is deemed to be the subsidiary of A Ltd. A Ltd. shall be deemed to be the holding company of C Ltd. provided A Ltd. acquires at least 10% stake in C Ltd C Ltd. shall be deemed to be the subsidiary of A Ltd. if the latter company acquires minimum 10% stake in the former company within six months after C Ltd. becomes subsidiary of B Ltd. None Which of the following statement is incorrect. C Ltd. shall be deemed to be the subsidiary of A Ltd. if the later company exercises more than 50% of the total voting power controls the composition of its board of directors is holding of a company which is the holding for the first mentioned company is subsidiary of a company which is subsidiary of the first mentioned company None Time's up
