JavaScript isn't enabled in your browser, so this file can't be opened. Enable and reload.
Chapter 4 Share Capital and Debentures
SHARE CAPITAL AND DEBENTURES
Sign in to Google
to save your progress.
Learn more
* Indicates required question
Email
*
Your email
Share Capital consolidation and division resulting in changes in the voting percentage of shareholders shall take effect if it is approved by-
*
10 points
Shareholders
Debtors
Creditors
Tribunal
Free Ltd. is proposing to issue bonus share. Which of the following amount can be used for issue of bonus shares as per Companies Act, 2013?
*
10 points
Free reserves
Securities premium account
Capital redemption reserve account
All of the above
Dissenting shareholders having at least _______ of issued shares of that class can apply against cancellation of variation of shareholders right.
*
10 points
5%
10%
15%
20%
Equity shares’ can never be repaid, except:
*
10 points
In case of buy back of shares
When there is an approved scheme of reduction of capital
Liquidation
All of the above
The buyback can be made from
*
10 points
The existing shareholders on a proportionate basis
Open market
Employee to whom shares are issued under stock option or sweat equity share
All of the above
Shares can be issued at:
*
10 points
Par
Premium
Discount
All of the above
When is the company required to transfer funds to capital redemption reserve?
*
10 points
When company purchase its own shares out of free reserves or securities premium account
When company sells its own shares out of free reserves or securities premium account
When company purchase its own shares out of capital redemption account
When company purchase shares of subsidiary company out of free reserves or securities premium account
ABC is unlisted company. Sweat equity shares issued by ABC Ltd. cannot exceed __________ of existing paid up capital or shares of issue value of:
*
10 points
10%; ₹ 5 crores, whichever is higher
15%; ₹ 5 crores, whichever is higher
10%; ₹ 5 crores, whichever is lower
15%; ₹ 5 crores, whichever is lower
In case of Buy Back, Ratio of Debts is ________ the Capital + Free Reserves after buy back:
*
10 points
Not more than thrice
Not more than twice
More than thrice
More than twice
Shares which are issued by a company to its directors or employees at a discount or for a consideration:
*
10 points
Equity Shares
Preference Shares
Sweat Equity Shares
Redeemable preference shares
Which among the following is true –
*
10 points
A company can issue shares at discount only
A company can issue shares at premium only
A company can issue shares at both discount and premium
None of the above
ABC Ltd. has passed Board resolution for buy-back on 1st January 2018. It should be complete:
*
10 points
On or before 31st March 2018
On or before 30th June 2018
On or before 30th September 2018
On or before 31st December 2018
Any share issued by a Company at a discount shall be:
*
10 points
Valid
Void
Voidable
None of the above
A company cannot issue –
*
10 points
Redeemable preference shares
Irredeemable preference shares
Commutative preference shares
Participative preference shares
Securities premium account can be utilized for issue of:
*
10 points
Shares at a discount
Rights issue
Issue of bonus shares
Issue of preference shares
Part of the capital for which application have been received from the public and shares allotted to them
*
10 points
Nominal capital
Issued capital
Subscribed capital
Called up capital
__________ approving buyback should be passed at the general meeting, if buy-back exceeds _____ of paid capital plus free reserves.
*
10 points
Special Resolution; 10%
Special Resolution; 15%
Ordinary Resolution; 10%
Ordinary Resolution; 15%
The rights attached to the shares of any class may be varied with the consent in writing of the holders of the issued shares of that class having not less than –
*
10 points
1/3 of the shareholding
½ of the shareholding
¾ of the shareholding
2/3 of the shareholding
Where the Dividend in respect of Class of Preference Shares has not been paid for a period of Two Years or more, such class of Preference Shareholders shall have a right to vote
*
10 points
On all the Resolutions Placed before the Company.
For Those Related to their Interest.
Cannot Vote for Any.
Only for Dividend Related Decisions.
Company cannot reduce its capital if:
*
10 points
Has not appointed independent director
Has not appointed woman director
Is in arrears in repayment of deposits
All of the above
Appointment of debenture trustee is mandatory when___
*
10 points
The company issues prospectus to member exceeding 500 for subscription of debentures
The company issues prospectus to member exceeding 1000 for subscription of debentures
The company issues prospectus to member exceeding 100 for subscription of debentures
The company issues prospectus to member exceeding 50 for subscription of debentures
Can a Company issue Debentures with Voting Rights?
*
10 points
Yes
No
May be
Only upto their Interest
Fresh share certificate can he issued by company:
*
10 points
If the share certificates are subdivided or consolidated
For replacement of certificates which are defaced, mutilated, torn or old, decrepit, worn out
Where the pages oil the reverse for-recording transfers have been duly utilized
All of the above
Which of the below mentioned reserves cannot be used to issue fully paid up bonus shares?
*
10 points
Specific Reserve
Revaluation Reserve
Free Reserve
None of the above
In which of the following case duplicate share certificate may not be issued?
*
10 points
When Certificate is proved to have been lost or destroyed
When Certificate has been defaced
When Certificate has been mutilated or torn
None of the Above
Is there a provision for nominations in securities of a company?
*
10 points
Yes
No
Nomination can be made with permission of CG
Nomination is not applicable
Share capital can be reduced by –
*
10 points
Special resolution
Ordinary resolution
Special resolution with special notice
Board resolution
Falcon Ltd. has adopted Table F as its Articles of Association. Company wants to make calls on shares. There must be at least _____ gap between two calls.
*
10 points
15 days
30 days
One month
Two months
The equity shares can be issued with –
*
10 points
Voting rights
Differential rights as to dividend
Differential rights as to voting
All the above
Par value of shares means the ……. Value for the shares
*
10 points
Actual
Face
Market
Dividend
India Cements Ltd. has offered its existing members to take new shares in proportion to their existing shareholding. It is:
*
10 points
Public issue
Right issue
Sweat equity
Bonus issue
The securities premium account can be used
*
10 points
For premium on redemption of preference shares
To write off commission paid or discount allowed on issue of shares or debentures of the company
To make corporate investment
Both (a) and (b)
In case of further issue of share capital –
*
10 points
Shares shall be first issued to existing shareholders
Shares shall be issued to outside shareholders
Both (a) and (b)
None of the above
The subscribed capital of a company is:
*
10 points
never more than the issued capital
never less than the issued capital
always equal to the issued capital
prescribed percentage of the issued capital
In case of employee stock option, there shall be minimum ______ period between grant of option and vesting of option.
*
10 points
1 year
2 years
3 years
As decided by company
As per Companies Act, 2013, ABC (P) Ltd. shall pass ______ to issue employees stock option.
*
10 points
Ordinary resolution
Special resolution
Unanimous Board resolution
Resolution with postal ballot
As per Companies Act, 2013, company can buy-back its shares out of:
*
10 points
Securities Premium Account
Proceeds of any shares or other specified securities
Proceeds of same kind of shares issued earlier
Both (a) and (b)
_________ instrument in the form of a depository receipt, by whatever name called, created by a foreign depository outside India and authorised by a company making an issue of such depository receipts.
*
10 points
Employees stock option
Sweat equity
Preferential issue
Global depository receipt
Pick out the correct answer from the following and give reasons: The securities premium account cannot be utilized
*
10 points
In writing off the preliminary expenses of the company
In writing off expenses of commission paid on issue of shares of the company
For redemption of redeemable preference shares
In providing for the premium payable on the redemption of redeemable preference shares.
Right to renounce is available only in:
*
10 points
Bonus issue
Private placement
Right issue
Public Offer
Fully Paid up bonus shares can be issued by the company out of-
*
10 points
Its free reserves
The securities premium account
The capital redemption reserve account
All of the above
Under what circumstances funds of capital redemption reserve account may be applied?
*
10 points
For purchasing its own securities
For issue of fully paid up bonus shares
For purchase of assets
For issue of sweat equity shares
In the case of buy-back declaration of solvency is given. It is signed by:
*
10 points
Two directors, out of which one should be MD, if any
Two directors, out of which one should be KMP, if any
Three directors, out of which one should be MD, if any
All directors and Company Secretary of company, if any
Which of the following action of company is complying provisions of Companies Act, 2013?
*
10 points
A Ltd. has issued certificate after 3 months from allotment of any shares
B Ltd. has issued certificate within One month to subscribers to the memorandum
Both of the above
None of the above
ABC Ltd. wants to issue redeemable preference shares for a period of 35 years. Advise whether it can do so.
*
10 points
Yes, ABC Ltd. can issue redeemable preference shares
Yes, ABC Ltd. can issue redeemable preference shares but for only 30 years
Instead of issuing of shares for 35 years, ABC Ltd. should issue irredeemable preference shares.
Yes, ABC Ltd. can issue redeemable preference shares for a period not extending 20 years.
As per section 2(50) of Companies Act, 2013, _____ means such capital as the company issues from time to time for subscription.
*
10 points
Issued capital
Nominal capital
Subscribed capital
Paid up capital
In case of buy back, if default of repayment is remedied and a period of ____has elapsed, company may buy back its securities.
*
10 points
5 years
4 years
3 years
2 years
Who among following can be member of company as per Companies Act, 2013?
*
10 points
ABC Ltd. unlisted company
Seva, registered co-operative society
Both of the above
None of the above
Calls in advance must be authorized by:
*
10 points
AOA
MOA
MOA and AOA
No authorization required.
A company may issue debentures
*
10 points
Wholly Convertible
Partly Convertible
Both (a) & (b)
None of the above
The rights attached to any class of shares can be varied. With consent of holders of at least ______ of issued shares of that class or with a special resolution passed at the separate meeting of that class.
*
10 points
60%
75%
80%
90%
Who among following can be member of company as per Companies Act, 2013?
*
10 points
ABC LLP
XYZ & Co., partnership firm
Both of the above
None of the above
A company can issue sweat equity shares if authorized –
*
10 points
Company in general meeting by ordinary resolution
Company in general meeting by special resolution
Board of Directors
Audit committee
Maximum buy back limit in any year is _____ of total paid up equity capital
*
10 points
25%
10%
20%
No limit
A company can issue bonus shares out of:
*
10 points
Free reserves
Securities premium account
Capital redemption account
All the above
When company cannot issue bonus shares as per Companies Act, 2013?
*
10 points
If its Articles of Association is silent
If its members have passed special resolution authorising issue of bonus shares
Both of the above
None of the above
What type of resolution is required for buy back of securities by the company upto 10%?
*
10 points
Ordinary Resolution
Special Resolution
Board Resolution
Resolution by Circulation
Choose the correct answer from the following and give reasons:Sources of funds for buy back of shares are:
*
10 points
Free reserves or securities premium account
The proceeds of any shares or other specified securities
(a) and (b) both
None of the above.
Company can issue preference shares redeemable for:
*
10 points
Period not exceeding 20 years, if authorised by Articles
Period not exceeding 10 years, if authorised by Articles
Period not exceeding 20 months, if authorised by Articles or not
Period not exceeding 10 months, if authorised by Articles or not
A limited company having a share capital may, if so authorized by its articles, alter its memorandum to increase its authorized share capital by such amount as it thinks expedient –
*
10 points
In a General Meeting
In a Board Meeting
In a Committee Meeting
None of the above.
After buy back the same kind of securities cannot be issued for:
*
10 points
3 months
6 months
8 months
1 year
As per Regulation 15 of Table-F of Companies Act, 2013, joint holders of a share shall be _____ liable to pay all calls made on shares.
*
10 points
Jointly
Severally
Either (a) or (b)
Both (a) and (b)
Submit
Page 1 of 1
Clear form
This content is neither created nor endorsed by Google.
Report Abuse
-
Terms of Service
-
Privacy Policy
Forms
