The Companies Act, 2013

Description: Test your knowledge on the Companies Act, 2013, a significant legislation governing companies in India.
Number of Questions: 14
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Tags: corporate law company formation directors' duties share capital
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Which section of the Companies Act, 2013 defines the term 'company'?

  1. Section 2(20)

  2. Section 2(21)

  3. Section 2(22)

  4. Section 2(23)


Correct Option: A
Explanation:

Section 2(20) of the Companies Act, 2013 defines a company as a body corporate formed and registered under this Act or any previous company law.

What is the minimum number of directors required for a private company?

  1. 1

  2. 2

  3. 3

  4. 4


Correct Option: B
Explanation:

According to Section 149(1) of the Companies Act, 2013, a private company must have a minimum of 2 directors.

Which section of the Companies Act, 2013 deals with the issue of shares?

  1. Section 42

  2. Section 43

  3. Section 44

  4. Section 45


Correct Option: A
Explanation:

Section 42 of the Companies Act, 2013 provides the framework for the issue of shares by a company.

What is the maximum number of layers of subsidiaries allowed under the Companies Act, 2013?

  1. 1

  2. 2

  3. 3

  4. 4


Correct Option: B
Explanation:

Section 185(1) of the Companies Act, 2013 limits the number of layers of subsidiaries to two.

Which section of the Companies Act, 2013 governs the appointment of auditors?

  1. Section 139

  2. Section 140

  3. Section 141

  4. Section 142


Correct Option: A
Explanation:

Section 139 of the Companies Act, 2013 deals with the appointment of auditors by a company.

What is the minimum paid-up share capital required for a public company?

  1. ₹1 lakh

  2. ₹5 lakh

  3. ₹10 lakh

  4. ₹15 lakh


Correct Option: B
Explanation:

As per Section 48(1) of the Companies Act, 2013, the minimum paid-up share capital for a public company is ₹5 lakh.

Which section of the Companies Act, 2013 defines the concept of 'related party'?

  1. Section 2(76)

  2. Section 2(77)

  3. Section 2(78)

  4. Section 2(79)


Correct Option: A
Explanation:

Section 2(76) of the Companies Act, 2013 provides the definition of 'related party'.

What is the maximum tenure for which a director can be appointed?

  1. 3 years

  2. 5 years

  3. 7 years

  4. 10 years


Correct Option: B
Explanation:

Section 152(1) of the Companies Act, 2013 specifies that the maximum tenure for a director is 5 years.

Which section of the Companies Act, 2013 deals with the concept of 'corporate social responsibility' (CSR)?

  1. Section 135

  2. Section 136

  3. Section 137

  4. Section 138


Correct Option: A
Explanation:

Section 135 of the Companies Act, 2013 introduces the concept of CSR for certain classes of companies.

What is the minimum number of members required to form a company?

  1. 1

  2. 2

  3. 3

  4. 4


Correct Option: B
Explanation:

According to Section 3(1) of the Companies Act, 2013, a company can be formed by a minimum of 2 members.

Which section of the Companies Act, 2013 governs the issue of debentures?

  1. Section 76

  2. Section 77

  3. Section 78

  4. Section 79


Correct Option: A
Explanation:

Section 76 of the Companies Act, 2013 provides the framework for the issue of debentures by a company.

What is the maximum number of directors allowed on the board of a public company?

  1. 10

  2. 12

  3. 15

  4. 20


Correct Option: C
Explanation:

Section 149(1) of the Companies Act, 2013 sets the maximum number of directors on the board of a public company at 15.

Which section of the Companies Act, 2013 deals with the concept of 'independent directors'?

  1. Section 149

  2. Section 150

  3. Section 151

  4. Section 152


Correct Option: A
Explanation:

Section 149 of the Companies Act, 2013 introduces the concept of independent directors on the board of a company.

What is the minimum number of shareholders required for a public company?

  1. 7

  2. 10

  3. 15

  4. 20


Correct Option: A
Explanation:

According to Section 3(1) of the Companies Act, 2013, a public company must have a minimum of 7 shareholders.

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