Tag: joint stock company

Questions Related to joint stock company

The term company Limited by shares is defined in section _________ of Companies Act, $2013$.

business organisation and correspondence joint stock company 6 - meetings, proposal and winding up of a company meetings and other aspects of a company joint stock companies joint stock company

  1. $2(10)$

  2. $3(5)$

  3. $2(22)$

  4. $2(1)$

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Correct Option: C
Explanation:

As per section 2(22) of the Companies Act 2013, "A company limited by shares is a company whose shareholders have a liability limited to the extent of the amount unpaid, if any on the shares held by the shareholders." 

Declaration of dividend is an important agenda of _________.

business organisation and correspondence joint stock company 6 - meetings, proposal and winding up of a company meetings and other aspects of a company joint stock companies joint stock company

  1. Statutory Meeting

  2. Annual General Meeting

  3. Extraordinary General Meeting

  4. Joint Meeting of the shareholders and debenture-holders

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Correct Option: B
Explanation:

Dividends are distribution of profits earned by the company. In companies act, 2013 a procedure for declaration and payment of dividend is described. An AGM may have various agenda to discuss but distribution of dividend is stated as one of the important agenda. 

Dividends only distributed after declaration in AGM at the rate decided by the board.

Which of the following are the rights available to agents?

business organisation and correspondence joint stock company 6 - meetings, proposal and winding up of a company meetings and other aspects of a company joint stock companies joint stock company

  1. Right to remuneration

  2. Right to retainer

  3. Right to lien

  4. All of the above

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Correct Option: D
Explanation:

An agent is any person who has been legally empowered to act on behalf of another person. Agents are employed to represent their client in negotiations or dealings with third parties. 

As per the terms of agency contract, agent has rights to claim remuneration. 
Agent has right to deduct the amount which is due to him by principal, from amount payable to principal. 
Agent can exercise right of lien but contract act has not specified whether it is general lien or particular lien. Therefore the nature of agent’s lien depends upon mutual understanding.

One person can never be a quorum for company meetings.

business organisation and correspondence joint stock company 6 - meetings, proposal and winding up of a company meetings and other aspects of a company joint stock companies joint stock company

  1. True

  2. False

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Correct Option: A

Select the correct option given below:

An extraordinary general meeting is held ______.

business organisation and correspondence joint stock company 6 - meetings, proposal and winding up of a company meetings and other aspects of a company joint stock companies joint stock company

  1. once in a year

  2. once in the life time

  3. under special circumstances

  4. None of these

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Correct Option: C
Explanation:

An extraordinary general meeting is the meeting of the members of the organisation, shareholders of the company that occurs at an irregular time. It happens when an issue arises which requires the input of the entire membership and is too serious or urgent to wait until the next annual general meeting. Hence an extraordinary general meeting is held under special circumstances.

Select the correct option given below:
The Annual General Meeting is held ________ in a year.
business organisation and correspondence joint stock company 6 - meetings, proposal and winding up of a company meetings and other aspects of a company joint stock companies joint stock company

  1. once

  2. twice

  3. thrice

  4. none of the above

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Correct Option: A
Explanation:

The Annual General Meeting is a meeting which is held annually i.e once in a year. It is an yearly meeting of shareholders of a company especially for holding elections  and reporting of yearly events.

At least _______ board meetings must be held during the year.
business organisation and correspondence joint stock company 6 - meetings, proposal and winding up of a company meetings and other aspects of a company joint stock companies joint stock company

  1. one

  2. two

  3. three

  4. four

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Correct Option: D
Explanation:

Board meetings are meetings held at intervals to discuss problems and the policies of the company . It should be held at least four times a year. 

Select the correct option given below:

The gap between two annual general meetings should not be more than ________.

business organisation and correspondence joint stock company 6 - meetings, proposal and winding up of a company meetings and other aspects of a company joint stock companies joint stock company

  1. 10 months

  2. 15 months

  3. 18 months

  4. 21 months

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Correct Option: B
Explanation:

The provisions of the sub section (1) of section 96 of the Companies Act, 2013 clearly states that the period between two Annual General Meetings shall not be more than 15 months.

The meeting of shareholders which is held under special circumstances is the ________ . 
business organisation and correspondence joint stock company 6 - meetings, proposal and winding up of a company meetings and other aspects of a company joint stock companies joint stock company

  1. Annual General meeting

  2. Statutory meeting

  3. Extra Ordinary General meeting

  4. None of these

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Correct Option: C
Explanation:

Extraordinary General Meeting is a meeting of the members or the shareholders of the company which is held at a short notice especially in order to consider a particular matter. Hence the meeting of shareholders which is held under special circumstances is the Extraordinary General Meeting.  

The business transacted in extra ordinary general meeting is _______ .
business organisation and correspondence joint stock company 6 - meetings, proposal and winding up of a company meetings and other aspects of a company joint stock companies joint stock company

  1. Ordinary Business

  2. Routine Business

  3. Special Business

  4. None of these

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Correct Option: C