Summarize MCQs

7/26/2019 Summarize MCQs

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1. Special resolution means a resolution passed by a majority of not less than;

(a) 2/3 (b) 4/5 (c) 1/3 (d) None of the above

2. Companies Ordinance 1984 is not applicable to;

(a) Co-operative societies (b) NPO (c) SMC(d) Trading company owned by provinces (e)A & D

3. Minimum number of directors of a listed company should not be less than

(a) 3 (b) 2 (c) 7 (d) 5

4. Quorum of a general meeting of a listed company shall be ten members present in personhaving voting power not less than

(a) 35% (b)25% (c) 20% (d) 10%

5. Minimum number of members in case of a public company should not be less than_________

(a) 10 (b) 3 (d) 7 (d) 5

6 . The Board of Directors of each listed company shall have preferably not less than .Whichever is higher, of the total members of the board as independent directors?

(a) 1/4th (b) More than 4 (c) 1/3rd or 3 (d) None of the above

7 . No director shall be considered independent if one or more of the following circumstancesexist except:

(a)

He has been an employee of the company, any of its subsidiaries, associatedcompany, associated undertaking or holding company within the last three years;

(b)

He has, or has had within the last three years, a material business relationship withthe company either directly, or as a partner, shareholder, director of a body that has such arelationship with the company.

(c) He has received in the three years preceding his appointment as director or receivesadditional remuneration excluding retirement benefits from the company apart from adirectors fee or has participated in the companys share option or a performance related payscheme.

(d) He is not a close relative of the companys directors or major shareholders

8. Appropriate arrangements for professional indemnity insurance cover is encouraged inrespect of_________

(a) Dependent Director (b)Independent director(c) CEO (d) CFO

9. In case of listed company, Executive directors, i.e., paid executives shall not be more than________of the elected directors, including the Chief Executive.

(a) 1/2 (b) 1/4 (c) 1/ 3 (d) None of the above

10. Any casual vacancy in the Board of Directors of a listed company shall be filled up by thedirectors at the earliest but not later than ____________ thereof.

(a) 24 days (b) 91 days (c) 90 days (d) 30 days


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11. Appointment, Remuneration and terms and conditions of employment of the Chief ExecutiveOfficer (CEO) and other executive directors of the listed company are determined andapproved by;

(a) External auditor by SECP (b) the Board (c) AUDIT committee

12. The Board of Directors of a listed company shall meet at least writtennotices (including agenda) of meetings shall be circulated not less than seven days before themeetings, except in the case of emergency meetings, where the notice period may be reducedor waived.

(a) Once in year (b) Once in 6 months (c) once in every quarter of the(d) None of the above financial year

13. The detail of all related party transactions shall be placed before;

(a) external auditor (b) internal auditor(c) the Audit Committee of the company (d) both a and b

14. Every company shall maintain a party wise record of transactions, in each financial year,entered into with related parties in that year along with all such documents and explanations.The record of related party transaction shall include the following particulars in respect ofeach transaction except;

(a) Name of related party; Nature of relationship with related party(b) Nature of transaction Amount of transaction(c) Address of the related party(d) Terms and conditions of transaction, including the amount of consideration

received or given.15. The appointment, remuneration and terms and conditions of employment of the Chief

Financial Officer (CFO), the Company Secretary and the Head of Internal Audit of listedcompanies shall be determine by

(a ) the CEO with the approval of theBoard of Directors.(b) the BOD with the consent of CEO.

(c) Audit committee(d) SECP

16. All listed companies shall in the form and manner specified by the Commission ensure thatthe annual audited financial statements are sent to every member of the company __________before the Annual General Meeting is held to consider the same.

(a) at least (30) days (b) at least (21) days(c) at least (90) days (d) at least 7 days

17. All listed companies, other than in the financial sector shall at least rotate the engagementpartner of their external auditors after every _______________

(a) two years (b)five years (c) one years (d) four years

18. Every listed company shall require external auditors to furnish a Management Letter to itsBoard of Directors not later than____________from the date of audit report.

a) 45 days b) 21 days (c) 40 days (d) 90 days

19. The Chairman BoD shall be elected from amongst the of the listedcompany.

(a) Executive directors (b) independent directors (c) Audit committee


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(d) outside outsource

20. The time limit for payment of dividend for a listed public limited company is:

(a) 30days (b) 45 days (c) 60 days (d) 90 days(e) time as prescribed by the state bank

21. As per Companies Ordinance 1984 a listed public limited company is bound to prepareand present in AGM its financial statements on:

(a) Yearly basis(b) half-yearly basis (c) quarterly basis(d) daily basis (e) None of these

22. As per Companies Ordinance 1984 loose tools are recorded under the head of:

(a) Current assets (b) fixed assets (c) long-term investment(d) long-term deposits (e) None of these

23. In Pakistan a commercial bank can be formed and is registered under the:

(a) Companies Ordinance 1984(b) Banking Companies Ordinance 1962(c) State Bank of Pakistan Act 1956(d) Modaraba Companies Ordinance 1980(e) None of these

24. In Pakistan a commercial bank prepares its annual accounts under the:

(a) Companies Ordinance 1984(b) Banking Companies Ordinance 1962(c) State Bank of Pakistan Act 1948(d) Modaraba Companies Ordinance 1980

(e) None of these

26. In Pakistan insurance company can be formed and is registered under the:

(a) Companies Ordinance 1984(b) Banking Companies Ordinance 1962(c)Insurance Ordinance 2000(d) Modaraba Companies Ordinance 1980(e) None of these

27. The working of the insurance company is governed by the:

(a) Companies Ordinance 1984(b) Banking Companies Ordinance 1962(c)Insurance Ordinance 2000(d) Modaraba Companies Ordinance 1980(e) None of these

28. The first auditor of a Public Limited Company is appointed by the directors within:

(a) 30 days of incorporation (b) 60 days of incorporation(c) 90 days of incorporation (d) 120 days of incorporation

29. A listed company or a company proposing to make application to a stock exchange forlisting of its securities shall obtain the approval of the Commission in preceding______________to the issue, circulation or publication of its prospectus.


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(a) 50 Days (b) 70 days (c) 60 days (d) 40 days

30 No Prospectus shall be issued or an advertisement of a prospectus published in anewspaper less than _________ or more than_________ before the subscription list is dueto open.

(a) 10 days or 30 days (b) 7 days or 30 days(c) 30 days or 7 days (d) 15 days or 30 days

31. A person who has subscribed for shares or debentures on the faith of a false statement ina prospectus has the following remedies:

(a). Against the company(b). Against the directors and promoters(c). Against experts(d). Against auditors, legal adviser, attorney, solicitor and banker or broker being

member of stock exchange.(e). All of the above.

32. When a prospectus includes any untrue statement, every person who has signed orauthorized the issue of the prospectus shall be punishable.

(a). With imprisonment for a term up to 2 years(b). With fine up to Rs.10,000/-(c). Both a and b(d). None of the above

33. Which one of the following are not the general principles with regard to allotment ofshares.

(a). Allotment should be made by proper authority(b). Allotment must be communicated.(c). The minimum subscription shall be exclusive of the amount payable otherwise

than in cash.(d). Allotment should be absolute and unconditional.

34. If any subscription money is not repaid within fifty days after the issue of prospectus, thedirector shall be jointly and severally liable to repay that money with surcharge at therate of :-

(a) 1.5 % p.m. (b) 2.5%p.m. (c) 1 .75%p.a. (d) 2.25%p.a

35. The company shall take decision within _____ of closure of subscription lists and refundapplication money to unsuccessful applications within ________.

(a). 10 -15days (b). 10-20 days(c). 25 -30days (d). 10 days

36. An allotment shall be irregular if it is made by the company in contravention of theprovision of section 68 or 69.

(a). Minimum subscription not received.(b). Prospectus is not filed when shares are offered to the public.(c). Statement in lieu of prospectus is not filed where shares are not offered to the

public.(d). All above.

37. The circular u/s 86 (3) shall contain.


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(a). Be in the form prescribed by the authority.(b). Contain Material information about the affairs of the company.(c). 3 Years latest statement of accounts.(d). Setting forth the necessity for issued of further capital.(e). All above.

38. Transmission means

(a) Transfer of title in shares by operation of law(b) Transfer of title in shares by voluntary(c) Transfer of shares for an adequate consideration(d) Transfer of shares by fixing stamp duty

39. Which of the following document is not required while transferring shares to successor.

(a) An application (b) Supporting evidence(c) Suitable indemnity (d)Proxy form

40. In the domain of Company Ordinance, which of the following type(s) of Capital are said tobe similar

(a) Authorized Capital & nominal capital (b) Issued & paid up Capital(d) Subscribed Capital & minimum capital (d) Both a and b

41. Notice of the meeting U/S 95A, shall accompanied by an explanatory statementcontaining all material facts include:

(a) Justification for the purchase(b) Source of funding,(c) Effects on the financial position of the company(d) The purchase shall always be in cash and shall be out of the distributableprofits(e) All above

42. Debenture constitute loan to the company and debenture holder called

(a) Shareholder (b) Creditor (c)Director (d) Company secretary

43. Debenture includes all of the following except

(a) Share (b) Bonds (c) TFC (d)Other Securities

44. The Company must complete and keep ready for delivery the debenture Certificateswithin _________ unless otherwise provided in the terms of issue

(a) 60 Days (b) 90 Days (c) 30 Days (d) 40 Days

45. Which one of the following is not considered a legal document of Joint Stock Company:

(a) Memorandum of association (b) Articles of association(c) Prospectus (d) Shares

46. A proxy must be a member unless the articles of the company permit appointment of anon-member as proxy (CO. 1984).

47. The Court may, on a petition, by members having not less than 10% of the voting powerin the company, that the proceedings of a general meeting be declared invalid by court.


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48. The chairman of the board of directors, if any, shall preside as chairman at every generalmeeting of the company, but if there is no such chairman, or if at any meeting he is notpresent within fifteen minutes after the time appointed for holding the meeting, or isunwilling to act as chairman, any one of the directors present may be elected to bechairman, and if none of the directors is present or is unwilling to act as chairman themembers present shall choose one of their member to be the chairman.

49. The quorum of a general meeting shall be--(a) in the case of a public listed company, unless the articles provide for a larger

number, not less than ten members present personally, who represent not lessthan twenty-five per cent. of the total voting power, either of their own accountor as proxies;

(b) in the case of any other company, unless the articles provide for a larger number,two members present personally who represent not less than twenty-five percent. of the total voting power, either of their own account or as proxies; and

(c) In the case of a single member company, single member present in person or byproxy.

50. Every company shall hold, in addition to any other meeting, a general meeting, as itsannual general meeting, within eighteen months from the date of its incorporation andthereafter once at least in every calendar year within a period of four months followingthe close of its financial year and not more than fifteen months after the holding of its lastpreceding annual general meeting (158 of CO.)

51. Every company limited by shares and every company limited by guarantee and having ashare capital shall, within a period of not less than three months, not more than sixmonths, from the date at which the company is entitled to commence business, hold ageneral meeting of the members of the company, which shall be called "the statutorymeeting" (157)

52. Every company having a capital and company not having share capital shall, once in eachyear, prepare and file with the registrar a return containing the particulars specified in

Form A & B respectively.

53. In a limited company, the liability of the directors or of any director may, if so providedby the memorandum, be unlimited.

54. A company which reduces its capital shall, unless otherwise directed by the Court for anyspecial reasons, add to its name until such date as the Court may fix, the words "andreduced as the last words thereof, and those words shall, until that date, be deemed tobe part of the name of the company.

56. Whenever a company having a share capital makes any allotment of its shares, thecompany shall, within thirty days thereafter file with the registrar a return of the

allotment.

57. At any general meeting, a resolution put to the vote of the meeting shall, unless a poll isdemanded, be decided on a show of hands (165).

58. A printed or typed copy of every special resolution shall, within fifteen days from thepassing thereof, be filed with the registrar duly authenticated by the chief executive orsecretary of the company (172)

59. A copy of the minutes of meeting of board of directors shall be furnished to everydirector within 14 days of the date of meeting.

60. Any member shall at any time after seven days from the meeting be entitled to befurnished, within seven days after he has made a request in that behalf to the company,with a certified copy of the minutes of any general meeting at such charge not exceeding


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61. The books containing the minutes of proceedings of the general meetings shall be open toinspection by members without charge during business hours, subject to such reasonablerestrictions

62. Companies are required to hold their Annual General Meeting (AGM), within 4 monthsfrom the close of their annual accounts. Last date for holding of AGM for companieswhich close their accounts on June 30, 2012, is on or before October 31, 2012.

63. Particulars of Directors and Officers including Chief Executive and Auditors are to befiled on Forms 29 within 14 days of any change/election/appointment made in AnnualGeneral Meetings (AGMs), e.g., the last date of filing of said return by companies whichheld their AGM on, October 31, 2012 is November 14, 2012,

64. Annual return is required to be filed by companies on Forms A/ B within 45 days (in caseof listed companies) and 30 days( in case of other companies), of holding of AGMs. Forexample, last date for all other than listed companies which held their AGM on, October31, 2012 is November 30, 2012. Similarly, for listed companies which held their AGM on,October 31, 2012 is December 15, 2012.

65. Annual audited accounts are also required to be filed within 30 days of holding of AGMs.For example, companies which held their AGM on, October 31, 2012 is November 30,2012, and companies which held their AGM on November 1,2&3, 2012 is December 1,2 &3, 2012 respectively.

66. Every single member company shall have at least one director;

67 Every other private company shall have not less than two directors;

69. The first directors shall hold office until the election of directors in the first annual generalmeeting.

70. A member shall have such number of votes as is equal to the product of the number ofvoting shares or securities held by him and the number of directors to be elected.71. The directors of a company shall subject to section 174, fix the number of elected directors

of the company not later than thirty-five days before the convening of the generalmeeting at which directors are to be elected, and the number so fixed shall not bechanged except with the prior approval of a general meeting of the company.

72. Where a person acquires 12.5% or more voting shares in a listed company in his ownname, he may apply to the Commission for requiring the company to hold fresh electionof directors in accordance with the procedure laid down in section 178 in the forthcomingannual general meeting of the company.

73. A director elected under section 178 holding office for a period of three years unless heearlier resigns, becomes disqualified from being a director or otherwise ceases to holdoffice.

74. The quorum for a meeting of directors of a listed company shall not be less than one-thirdof their number or four, whichever is greater.

75. The directors of a public company shall meet at least once in each quarter of a year.

76. The chief executive shall if he is not already a director of the company, be deemed to beits director and be entitled to all the rights and privileges, and subject to all the liabilities,of that office

77. What is the effective date for compliance with the Code of Corporate Governance 2012(Code 2012)?


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Ans. All provisions, unless provided otherwise in the Code 2012, shall be effective at the dateof issuance.

78. Is the Code 2012 applicable to modarabas and mutual funds?

Ans. The Code 2012, being part of the listing regulations of the stock exchanges, is applicableto all entities listed on the exchanges. The listed entities include not only companies butalso funds, such as modarabas and mutual funds. The requirements of the Code 2012 are,therefore, applicable to modarabas and mutual funds. Furthermore, the requirements ofthe Code 2012 pertaining to the Board of Directors are also applicable to managementcompanies of such funds, even if these companies are themselves not listed on the stockexchanges.

79. What are the implications if a listed company fails to nominate an independent directoron its board?

Ans. Clause (i)(b) of the Code 2012 requires at least one independent director on the board.This is now a mandatory provision and any non-compliance will be penalized underlisting regulations.

80. If an independent director is serving as the chairman of the board at the time of issuanceof the Code 2012, can he also act as the chairman of the audit committee as required bythe Code 2012?

Ans. Now the Code 2012 requires chairman of audit committee to be an independent directorwho is not the chairman of board.

81. Can the existing independent chairman also act as chairman of committee till the nextelection of the board?

It is mandatory as per Clause (xxiv) of the Code 2012 that the independent director is thechairman of the audit committee. In order to fulfill this requirement, the board shall elect

another director as the chairman of the board.82. What is the minimum amount of investment that would qualify a company to nominate adirector for appointment on the board of its investee company?

Ans. No minimum amount of investment has been prescribed in the Code 2012.

83. What is the difference between an executive and a non-executive director?

Ans. Executive directors are the working, whole-time directors of a company. Non-executivedirectors, on the other hand are those who are not from among the executivemanagement team and may or may not be independent. They are expected to lend anoutside viewpoint to the board of directors of a company and do not undertake to devote

their whole working time to the company. The guiding factor in distinguishing betweenexecutive and non-executive directors of a company is the extent of their involvement inmanaging the affairs of the company.

An executive director cannot be categorically defined as a "paid director" and a non-executive director as one who is "not a paid director". While the fact that a company maynot pay remuneration to its non-executive directors may facilitate their classification assuch, this rule cannot be applied uniformly to all companies since payment of anyremuneration to its directors is at the discretion of each company.

84. Can a broker be appointed as a director of a listed company?

Ans. The Code 2012 does not restrict election/nomination of brokers on the boards of listedcompanies. However, the Ordinance states that no person shall be appointed as a directorof a listed company if he/she is engaged in the business of brokerage, or is a spouse of


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such person or is a sponsor, director or officer of a corporate brokerage house. Thereforea broker cannot be appointed as a director on the board of a listed company.

85. Is professional indemnity insurance required for all board of directors?

Ans. Professional indemnity insurance is not mandatory but is encouraged for independentdirectors only.

86. In a board of seven, what will be the composition as per the criteria laid down in theCode 2012?

Ans. If there are seven directors on the board of a listed company, the composition as per theCode 2012 will be: one independent director, two executive directors (including the CEO)and four non-executive directors.

87. Is the 'Statement of Ethics and Business Practices' still required to be signed by alldirectors and employees of listed companies?

Ans. No, the Statement of Ethics and Business Practices is no longer required. However, aCode of Conduct has to be prepared and communicated throughout the company apartfrom placing it on the companys website.

88. Who will evaluate the performance of the board and when?

Ans. The board has to put in place a mechanism for its evaluation within two years of theintroduction of Code 2012.

89. A director is serving on the board of 10 listed companies including three listed subsidiarycompanies of a holding company. Is he compliant with the requirement of maximumnumber of directorships of the revised code?

Ans. Yes, maximum number of directorships of seven does not include listed subsidiaries of alisted holding company.

90. Does the board of directors of a listed company need to specify by a resolution the limitsof materiality for the policies to be presented to the board?

Ans. The level of materiality should be determined by a resolution in the board meeting.

91. Can the same person be appointed as the CFO and the CS of a listed company?

Ans. The terms of reference of the two positions are distinct. It is, therefore, preferred thatseparate persons handle the functions of the CFO and company secretary within a listedcompany. The SECP Circular No 15 of July 8, 2003 also requires listed companies to havefull time employee designated to perform specific assignments of company secretary.

92. Can the positions of company secretary and internal auditor be given to one personwithin a listed company?

Ans. No. The two positions carry minimal synergy and, therefore, should be performed byseparate persons.

93. Can a full time employee (including the CFO and company secretary) of a listed companyhold a similar position in a group company?

Ans. The Code 2012 does not restrict any full time employee in a listed company from workingin a similar position in a group company. However, appropriate steps should be taken by

the board of directors of the companies concerned to ensure that additional workloadwould not affect the quality of work performed by such employee and no conflict ofinterest would arise as a result of holding similar positions in two group companies.


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94. Should the disclosure in the directors' report regarding the number of board meetingsheld during a year include the number of resolutions passed by the board by circulation?

Ans. The number of resolutions passed by the board of directors of a listed company throughcirculation should not be considered in determining the number of board meetings heldduring a year for the purpose of the Code 2012.

95. Does the Code 2012 require quarterly accounts to be filed by listed companies for eachquarter?

Ans. The listed companies are required to comply with Section 245 of the CompaniesOrdinance, 1984, and circulars of the SECP in determining the period for and the mannerin which the quarterly accounts should be published. The only requirement imposed bythe Code 2012 is that these quarterly accounts should be circulated along with thedirectors' review on the affairs of the company for the relevant quarter.

96. Who can perform limited scope review of the half-yearly accounts of listed companies?

Ans. Only statutory auditors appointed to conduct the annual audit of a listed company cancarry out a limited scope review of the company's half-yearly accounts.

97. Is there a standard format for Secretarial Compliance Certificate?

Ans. The Secretarial Compliance Certificate to be filed by Company Secretary of a listedcompany is annexed as Appendix A of the Code 2012.

98. If the CEO and the CFO of a company are out of country/on leave, who will endorse thefinancial statements in their place?

Ans. In view of Sub-section (1) and (2) of Section 241 of the Companies Ordinance, 1984,depending upon the company policy, if there is an alternative executive officiating in thecapacity of the CEO or the CFO, then he would be competent to endorse and present the

financial statements before the board of directors of the company.

99. Should listed companies be updating their websites to disseminate financial information?

Ans. Through its directives, the SECP from time to time directs the listed companies tocirculate their quarterly accounts in addition to half-yearly and annual accounts (asrequired in the Companies Ordinance, 1984), and in case of difficulties in circulation ofthe same to all shareholders, at least ensure publication of the same in two daily leadingnewspapers (one English, one Urdu).

100. What is meant by closed period?Ans. The closed period is a period during which no director, CEO or executive shall, directly

or indirectly, deal in the shares of the listed company in any manner.The closed period shall start from the day when any document/statement, which formsthe basis of price sensitive information, is sent to the board of directors and terminateafter the information is made public. It is expected that such a restriction would helpminimize the risk of insider trading by key management/directors of the company.

101. Ultra vires business means?

Ans. In corporate law, ultra viresdescribes acts attempted by a corporation that are beyond thescope of powers granted by the corporation'sobjects clause,articles of incorporation or ina clause in its Bylaws, in the laws authorizing a corporation's formation, or similarfounding documents. Acts attempted by a corporation that are beyond the scope of its

charter arevoid orvoidable.

102. Which companies are required to maintain websites?
http://en.wikipedia.org/wiki/Objects_clausehttp://en.wikipedia.org/wiki/Articles_of_incorporationhttp://en.wikipedia.org/wiki/Bylawshttp://en.wikipedia.org/wiki/Void_(law)http://en.wikipedia.org/wiki/Voidablehttp://en.wikipedia.org/wiki/Voidablehttp://en.wikipedia.org/wiki/Void_(law)http://en.wikipedia.org/wiki/Bylawshttp://en.wikipedia.org/wiki/Articles_of_incorporationhttp://en.wikipedia.org/wiki/Objects_clause


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Ans. All Listed companies and unlisted companies with paid up capital above Rs.200 millionare required to maintain functional website.

103. Agent means a person appointed by the:

(a) Commission (b) Stock exchange(c) Broker/member (d) None of the above

104. Associate of a member means:

(a). Associate firm, any association(b). Any partner, employee of a member(c). Officer or director of a member(d). Both B and C

105. Corporatization means:

(a) Segregation of the ownership of a Stock Exchange from the rightto trade on suchStock Exchange

(b). Conversion of a Stock Exchange from a company limited by guarantee to acompany limited by shares

(c). Stock or transferable shares carrying any warrant or right to subscribe(d). All of the above

106. Jobber or dealer means:

(a). A company engaged principally or wholly in buying and selling securities ofother companies

(b). Person who has issued or proposes to issue any security(c). A member of an Exchange(d). Means any person engaged in the business of effecting transactions in securities

for his own account

107. Underwriter means:

(a). Writer who writes the words of Ordinance(b). Any under mentioned person in any section(c). Any person who issue shares(d). Who made a contract with an issuer to subscribe

108. SEC Ordinance 1969 prescribes the trading of securities of companies:

(a). Limited by guarantee (b). Non-government Organizations(c).Listed company (d). Single member company

109. Balloter means:

(a). Who demand a polling at AGM to the Chairman of BOD(b). Who personally works as a handler on ballot box in Elections(c). Who provides services to an issuer for selecting the required number of

applicants(d). Both A and C

110. Stock Exchanges in Pakistan are:

(a) Mutualized (b)Demutualized(c) Semi Demutualized (d) None of the above.

111. Commission may specify all for the stock exchange and brokers except;


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(a) Qualification for membership of the Exchange; admission, suspension andexpulsion of members;

(b) a members financial responsibility whether by way of minimum capital or aratio between net capital or aggregate indebtedness, or both

(c) listing and delisting of securities(d) Recording of minutes of BOD meetings.

112. In case of fictitious applications or more than one application for share of companiesoffered to the public for issue of shares, the share application money is liable to;

(a) confiscation by Commission (b) be returned to applicant(c) confiscation by the balloter (d) No action be taken

113. No business shall be transacted on an Exchange in a security, which is not listed on suchExchange, except;

(a) a Government security (b) a Debt security(c) Sukuuks (d) Non of the above

114. Commissioners (including chairman) majority are required to be from private sector and arenot less than. & not more than in number.

(a). 3 & 5 (b). 8 & 9 (c). 5 & 7 (d). 6 & 7

115. No commissioner shall be appointed as a Chairman for more than consecutiveterms.

(a)

2 (b). 3 (c). 5 (d). 6

116. Not less than three of the commissioner (Term A) first appointed shall hold office for theterms of years & can be reappointed for the further terms of three years.

(a)

2 (b). 3 (c). 5 (d). 6

117. Not less than three of the commissioner (Term B) appointed shall hold office for the terms of years & can be reappointed for the further terms of three years.

(a). 2 (b). 3 (c). 5 (d). 6

118. A person who on the date of appointment is older than years age, shall not beappointed as commissioner.

(a)

62 (b). 63 (c). 60 (d). 61

119. Among 09 members of policy boards members constitute being ex officio.

(a). 5 (b). 6 (c). 4 (d). 3

120. Chairman is appointed by the ..

(a). Federal government (b). Board(c). Ex officio members (d). Commerce Minister

121. Out of nine member, four will be appointed by from the private sector.

(a). Federal government (b). Board

(c). Ex officio members (d). Divisions


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122. A Member, not being an ex-officio Member, shall hold office for a term of ..Years & can beappoint for further four years but shall not be eligible if it attain the age of 65 years.

(a). 5 (b). 6 (c). 4 (d). 3

123. The federal government shall designate one of the Member to be the . Of theboard, who shall in the event of a tie have a casting vote.

(a) Member (b) Chairman (c) Ex officio members (d) Divisions

124. The board shall meet not less than times in a calendar year.

(a). 5 (b). 6 (c). 4 (d). 3

125. The quorum for the board meeting shall have .. Member including chairman.

(a). 5 (b). 6 (c). 4 (d). 3

126. The meeting of a committee shall be held at such times & places as the may determine.

(a). Member (b). Chairman (c). Ex officio members (d). Divisions

127. Any commissioner or the Member of the committee who fails to disclose his interest guilty ofoffense shall be liable to imprisonment of 1 year or a fine not exceeding .. Rupees.

a. 1 Million (b). 1.5 Million (c). 4 Million d. 3 Million

128. Each Commissioner shall give a notice to the Federal government of all direct & indirectpecuniary interest & nature of such interest shall be disclosed in the__________ of thecommission

(a). Minutes of meeting (b). Annual report

(c). Quarterly report (d). statutory return

129. A commissioner or a Member may at any time resign his office by a written notice addressedto the ..

(a) Federal government (b) Board (c) Ex officio members (d) Divisions

130. Commission exercising shall exercise all powers, discharging all duties & performing allfunction assigned to the Commission under all laws except:

(a). Law of insurance (b). Companies Ordinance 1984(c). Banking Co. Ordinance, 1962 (d). SECP ACT 1997

131. Board asked to do & after consultation with the Commission advice the Federal govt. on allthe matter relating to - of industry

(a). Securities (b). Liabilities (c). Trust deed (d). Commercial matter

132. It shall be the duty of the . To conserve the Fund.

(a). Commission (b). Board (c). Members (d). Ex-officio Members

133. The Commission shall act as the .. Of the Board & enable Board to exercise its power.

(a). Secretariat (b). Subordinate (c). Memberd (d). Ex-officio Members

134. Within the days from the end of each financial year, the Commission shall inl h d d h


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(a). 40 (b). 36 (c). 44 (d). 33

135. The Policy Board shall, within . Days of the end of each financial year send a copy ofstatement of account of Commission certified by the auditors.

(a). 120 (b). 363 (c). 144 (d). 300

136. The Commission shall not invest its money in .. or any derivatives thereofwhether listed or not.

(a). Securities (b). Liabilities (c). Trust deed (d). Commercial

137. The Commission shall, within . Days of receipt of the complaint commence a hearingto determine the veracity of such complaint.

(a). 15 (b). 20 (c). 44 (d). 33

138. The Commissioner shall constitute an Appellate Bench of the Commission Comprising notless than......... Commissioner & if any commissioner has concerned in the decision beingappealed against the Chairman shall nominate another Commissioner.

(a). 5 (b). 6 (c). 2 (d). 3

139. A body to whom disclosure of info under sub-section (8) may be authorized is

(a). A Stock Exchange (b). A Clearing House(c). A Central depository (d). All of the above

140. The chairman may delegate all or any of his function & any power to a & anemployee.

(a). Commission (b). Board (c). Members (d). Ex- officio Member

141. The . may, by notification in the official Gazette, make rules for all.

(a). Federal government (b). Board (c). Ex officio members (d). Divisions

142. The power of the . to issue directives, circular, guidelines etc.

(a). Commission (b). Board (c). Members (d). Ex- officio Member

143. The CEO can be removed before the expiration of his term if.

(a). 2/4 of the directors passed resolution.(b). Company through special resolution.(c). 25% of the directors passed resolution.(d). Nothing from above.

144. No person can be eligible to become the CEO, if it falls under Section.

(a). 185 (b). 187 (c). 189 (d). 188

145. Following companies shall have whole time company secretary.

(a).Listed (b). Single Member Company

(c). Private (d). both A and B

147. A company cannot make any investments in its associated companies and undertaking unless


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(a). Pass special resolution(b) Return on investment is not less the cost of borrowing(c). 50% of directors pass resolution.(d). both A and B

148. CEO draws Bills of Exchange. Is the Bill binding upon the company?

(a). YES (b). NO (c). MAY BE (d). DEPENDS

149. Following company should maintain a register showing each director, CEO, managing agent,Chief Accountant, Secretary, and every person holding 10 % shares.

(a).Listed (b). Private (c). Single Member (d). No company

150. As per Companies Ord. 1984, No Director, CEO, managing agent, Chief Accountant,Secretary, Auditor, or a person who is directly or indirectly owner of not less than 10 % ofsecurities of listed company shall not practice

(a). Short selling (b). Selling of securities.(c). Hedging (d). Nothing from above

151. The books of Accounts shall be maintained for not less than (as per CO. 1984)(a). 10 years (b). 5 years (c). 3 years (d). 8 years

152. A company after incorporation provide balance sheet and income statement in AGM not laterthan

(a). 18 months (b). 9 months (c). 1 year (d). 2 years

153. The commission, in case of listed company. And in any other case registrar may extend theperiod of submission of balance sheet and income statement to

(a). 2 months (b). 1 month (c). 1 year (d). 2 years

154. Private and unlisted companies, which is subsidiary of listed company shall comply to therequirements of following schedule in making balance sheet and I/S.

(a).4th (b). 5th (c). 2nd (d). 10th

155. The commission may order a special audit upon an application by members holding not lessthan % of voting right.

(a). 10 (b).20 (c). 25 (d). 35

156. Expense of special audit to be paid by company and applicants in a ratio of.

(a). by both (b). and (c). 1/3 and 2/3 (d). 2/3 and 1/3

157. Following companies should maintain consolidated financial statement of the group.

(a). Listed (b). Private(c). Guarantee limited (d). Single member company

158. The subsidiary shall make an interim closing, where the financial year of subsidiary precedesthe day on which the holding companys financial year ends after.

(a)3 months (b). 4 months (c). 6 months (d). 8 months


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159. If the CEO is not in Pakistan than the balance sheet and I/S of company shall be approved bynot less than.

(a). 3 directors (b). 4 directors (c). 5 directors (d). 2directors

160. Every listed company shall send its Accounts to the members and stock exchange after closeof every 2ndquarter with in.

(a). 2 months (b). 1 months (c). 4 months (d). 6 months

161. Dividends cannot be given by a company out of the profit made from

(a). Business of company (b). Sale or disposal of immovable property(c). Sale of product (d). Services

162. Auditor can be removed before AGM by(a). 50 % of share holders (b). Special resolution(c). cannot be removed (d). Both A and B

163. Commission may appoint 1 or more competent persons as the inspector to investigate theaffair of the company on the application of members holding not less than.

(a). 1/5 of voting power (b). 1/10(c). 2/10 (d). 3/10

164. Commission may impose restrictions on shares for period not exceeding

(a). 4 months (b). 6 months (c). 8 months (d). 1 year

165. As per Listing Regulations of KSE, No company will be listed unless it is registered under theOrdinance as a public limited company or has been setup under a statute and its minimumpaid-up capital is Rs.

a.

200 millionb.

150 millionc. 100 milliond.

250 million166. Majority shareholder means a person who, individually or in concert with his family or as

part of a group, holds ____ or more shares.

a)

10%

b) 20%

c)

30%

d)

40%

167. The permission granted to form the NBFC shall be valid for period of ____ months unless

extended for a maximum period of ____ months.

a)

6,3b)

1.5,2 c)

3,1d)

12, 6

168. A NBFC shall appoint an individual, having minimum ___ years experience, as its

financial or chief accounting officer.

a)

4

b)

3

c)

5

d)

10

169. A NBFC shall not sale or transfer ownership of shares in ____, unless it has prior approval

of commission in writing to sale or transfer.

a)

SMC

b)

NBFC

c)

Public Company

d)

Subsidiary


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170. The NBFC shall not have a common ____ with the broker.

a)

Director

b) CFO

c)

Internal Auditor

d)

Secretary

171. An NBFC shall not make an investment in ____ of any company in excess of 20% of its

equity.

a)

Quoted Shares

b)

unquoted Shares

c)

Bonds

d)

Debentures

172. An NBFC seeking license for undertaking ____ or ____ both shall not be eligible for

seeking license for any other form a business.

a)

Investment advisory, management services

b) Management service, House building Finance

c) Venture Capital, Investment Advisory

d) Management Service, Venture Capital

173.

An NBFC may engage in leasing operation except ____.

a)

Land and Buildingsb) Machinery

c)

Plant and Equipmentd) Vehicles

174. The license of previous year shall be deemed ________ in the process of applying for a new

license by an NBFC.

a)

invalid

b)

Valid

c)

Expire

d)

none of above

175. A Chief Executive of the Company may be removed before expiration of the term by

a)

By Directors of the Companyb)

By the Company by specialResolutions

c)

By the Creditorsd)

A & B above.

176. Companies incorporated or formed outside Pakistan are required to :

a) established a place of business inPakistan

b) deliver to the registrar any changein directors

c) the Registrar the charter, statute ormemorandum and articles of a foreigncompany

d)

All of the above.


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Bold/Italic/underlined option is the correct option. Page 18

177) If 10 members of a private company are also employees of that company what are the maximum no

of members allowed to formulate such company under Companies Ordinance 1984?

a) 17

b) 21

c) 50

d) 60

178) Which of the following is not a body corporate under Companies Ordinance 1984?

a)

National Bank of Pakistan

b) Engro Foods Ltd.

c) Allied Industrial Cooperative

Development Society Ltd.

d) State Bank of Pakistan

179) The term Registrar under Companies Ordinance 1984 refers to;?

a) Additional registrar

b)

Registrar

c) Deputy registrar

d) Assistant registrar

e)

All of the above

180) In case of Company Limited by Guarantee and not having share capital, how much of the guaranteed

amount the member has to pay at the time of Incorporation?

a) 10% of the guaranteed amount

b) 50% of the guaranteed amount

c) 100% of the guaranteed amount

d) 0% of the guaranteed amount

181)

Which of the following is not a member of the company?

a) Subscriber to the memorandum of the

company

b) Every person to whom is shares are

allotted

c) Share Holder of the company

d) None of the above

182) If CDC holds more than fifty percent of voting securities of a company in electronic form, such

company will be the __________ of CDC.

a)

Associate

b)

Subsidiary

c)

Parent

d) None of the above.

183) More than______ percent of shareholding in company A by company B will justify that A is the

subsidiary of B:

a) 40 b) 50


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c) 30 d) 60

184) The Federal Government may by notification in official Gazette empower civil court to competent

court under companies ordinance 1984, otherwise _______ at which companys registered office is

situated has jurisdiction under Companies ordinance 1984:

a)

High court

b) Session Court

c)

District Court

d) None of these

185) Apart from extra ordinary cases all the matters shall be disposed of and judgment begiven by the

court as quick as possible but not later than _____days from the date of presentation of the petition or

application to the Court:

a) 120

b) 80

c) 50

d) 90

186) The court judgment or order to wind up for the company having paid up capital equal to or more

than _________ can be appealed to supreme court and all appeal of others in same case will depend

on supreme court grant leave to appeal.

a) Two million rupees

b) Half million rupees

c) Ten million rupees

d) One million rupees

187) Association or partnership or company consisting of more than ___persons is bound to be registered

as company under Companies ordinance 1984.

a) 10

b) 20

c) 15

d) 30

188) An accountant or Lawyer partnership firm consisting of 25 persons is bound to be registered as a

company under Companies ordinance 1984.

a) True b) False

189) As per section 15 of Companies Ordinance 1984, A person individually can form:

a) Public Limited Company only

b) Private Limited Company as single member company only

c) Both a & b

d) Not specified in law


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190) Can there be authorized capital clause written in memorandum of a company limited by

guarantee.

a) Yes b) No c) Impossible d) None of these

191) What is written against each subscriber name in memorandum of a company?

a) Date of Birth b) CNIC c) Qualification d) No of shares

192) Does memorandum of a company bears the signature of subscribers.

a) Yes b) No c) Not necessary d) Not always

193) ________________ is required to alter the memorandum of association.

a) No BOD approval b) Special Resolution c) CEO approval d) None of all

194) Is SECP approval required to change the registered office from a place in Punjab to a place in

Islamabad Capital Territory?

a) Yes b) No

195) Is commission approval required for a change in place of registered office from one city to

another in a province?

a) No b) Yes c) Not necessary d) None of these

196) An application for confirmation of the alteration of any provision of the memorandum of the

company under sub section (2) of section 21 shall be submitted to the commission not later than

________ days.

a) 14 b) 21 c) 60 d) 90

197) After how many days a company may file a printed copy of altered memorandum of association

with the registrar.

a) 14 b) 21 c) 60 d)90

198) Is it mandatory for the companies to register articles of association with the SECP as articles

usually specify internal procedures?

a) Yes b) No c) Not necessary d) None of these


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199) Can a company alter the capital clause of memorandum for reduction in capital by a special

resolution?

a) Yes b) No c) May be d) None of these

200) If the commission refuses to register the memorandum due to some defects or deficiencies, can

this decision be questioned in any court or other authority.

a) Yes in appellate

court

b) High Court c) Supreme Court d) Cannot be Challenged

201) Is it required to take approval of commission for alteration in articles of associations?

a) Yes b) No

202) As the memorandum of association is altered by a special resolution, the articles of association

can be altered by a simple resolution as articles are internal affairs of the company. This statement is :

a) True b) False

203) What is the proof of existence of the company?

a) Memorandum

b) Article of Association

c) Certificate of Incorporation

d) a and b

204) In how many days, at the request of the member, copy of memorandum needs to be sent by thecompany?

a) Within 20 days

b) Within 90 days

c) Within 14 days

d) Within 11 days205) What is the proof of existence of the company?

a) Memorandum

b)

Article of Association

c) Certificate of Incorporation

d)

a and b

206) In how many days, at the request of the member, copy of memorandum needs to be sent by thecompany?

a) Within 20 days

b) Within 90 days

c) Within 14 days

d) Within 11 days


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207) ABC Limited company wants to rectify his name with BAC Limited while the company wasregistered two years ago. Is the company law provides any provision for such rectification?

a) Yes b) No

208)

A Company change its name by,

a) A special resolution plus Approval ofRegistrar

b) 2/3 Approval of Commission plusapproval of Registrar

c) Board of Director Approval plusApproval of Registrar

d) None of them

209) A company shall mention his former name with his new name for a period of

a) Six months

b)

Twelve months

c) Eighteen months

d)

Twenty months

210) Whose final approval shall be required for conversion of public limited to private limited

a) of shareholder

b) Commission

c) a & c

d) None of them

211) ABC Public Limited has three members, one of them is died and no member has been replaced foreight months. Shall the two member of the company be liable for whole debt of company contractedduring that tenure?

a)

Yes b) No

212) In case of joint holder of a share, the notice is given by the company to,

a) Both of them separately

b) Any one of them

c) Whose name first in the register

d) Whose name second in the register

213) Which of them shall not be given a notice of general meeting,

a) Member

b)

Auditor

c) Person entitled to share in consequenceof death of member

d)

None of them

214) Do debentures holders have voting rights?

a) Convertible Debentures may have a voting right at the option of the company


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b) Debentures holders having voting right immediately before the commencement of this ordinance

cannot exercise this right at the meeting of the company.

c) This option is available on fully convertible debentures only.

d) Both A and B

215) What is a redeemable Capital?

a) It is just like a debt, which is required to be refunded after within maturity period.

b) It is not a debt but a equity instrument.

c) It can only be redeem at the option of the company.

d) None of above

216)

Certain Mortgages and charges to be void if

a) Not registered with the concerned registrar in the prescribed manner

b) Form 16 is not filed.

c) If a mortgage charge is not registered with in 21 days of its creation.

d) All of the above

217) Any loan or Debt can be converted into ordinary Shares even if it was not originally convertible.

a)

If the loan or debt was not convertible ab-initio then it can never be converted.

b) Any loan or debt can be satisfied on conversion into shares on the option of creditors.

c)

Only partly convertible loans can be converted into shares.

d) Both A and C

218) Can a company borrow a loan even if it is not mentioned in the article of memorandum?

a) No, a company can do only those things which are allowed by its Memorandum.

b) Its not necessary that this provision is contained in the Memorandum.

c) It is ancillary to business so company can borrow.

d)

Both B and C

219) What is floating Charge?


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a) It is the charge that keeps on floating.

b) This charge is entered by way of

hypothecation.

c) This charge is done on Immoveable

Assets.

d)

Both A and b

220)

What are the remedies available to debenture holders for realizing security?

a) For realizing security they have the only option given by this ordinance is to reissue that

debenture.

b)

They can file suit for specific performance of the contract.

c) The debt can be converted into shares at the option of the company.

d) Both B and C

221) What is the modification of charge?

a) It occurs when the amount of charge changes.

b) It occurs when terms and condition of charge changes and particulars of charge are required to

change.

c) Form 16 should be filed for this purpose.

d) All of the above

222) What is the register of mortgages and charges?

a)

In these register particulars of mortgages and charges created by the company is recorded by the

registrar.

b) It is the register substitutable for the register of shareholders.

c) This register is open to inspection by any person without any fee.

d) Both A and C

223) The Commission on being satisfied that the omission to register a mortgage or charge within the timerequired by section 121,was accidental or due to inadvertence or to some other sufficient cause, or isnot of a nature to prejudice the position of creditors or shareholders of the company, The commissionmay:

a) Impose a Monetary penalty


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b) Impose a Monetary as well as criminal penalty

c) Order that the time for registration be extended


224) It shall be the duty of a company to give intimation to the registrar of the payment or satisfaction, infull, of any charge or mortgage created by the company and requiring registration under section 121and 122 within:

a) Twenty One Days

b) Thirty Days

c) Fourteen Days


225) Notice of the situation of the registered office and of any change therein shall be given withintwenty-eight days after the date of the incorporation of the company or of the change, as the case may

be, shall be given to:

a) The Commission

b) The Registrar

c) The Shareholders

d) The Creditors & Debtors

226) If the registered office is situate in a place beyond the local limits of the ordinary original civiljurisdiction of a High Court, The name should be painted and affix in

a) Letters easily legible in English

b) letters easily legible in Urdu

c)

In the characters of one of the vernacular languages used in that place


227) Where any notice, advertisement or other official publication of a company contains a statement ofthe amount of the authorized capital of the company, such notice, advertisement or other officialpublication shall also contain:

a) Premium\Discount on Shares

b)

Retained Earnings

c) The amount of the capital which hasbeen subscribed and the amount paid up


228) Every company having more than fifty members shall, unless the register of members is in such aform as to constitute in itself an index, keep an index of the names of the members of the companyand shall, make the necessary alteration in the index with in.

a) Twenty One Days b) Thirty Days


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c) Fourteen Days d) None of the above.

229) The register of members & the register of debenture holders shall be open to the inspection of

members & debenture holders daily during working days for at least:

a)

Two Hours

b) Four Hours

c)

Six Hours

d)None of the above

230) If an un discharged insolvent act as CEO or director, he shall be liable for

a) Imprisonment not exceeding 2 years

b) Fine not exceeding ten thousand rupees

c)It can be both of the above

d)None of the above

231) A Company can close the register of members or debenture holders, as the case may be, for any time

or time not exceeding in the whole ________ days in a year and not exceeding 30 days at a time.

a) 50

b) 70

c) 60 days

d) 45 days

232) If a company having a share capital shall once in a year, with the registrar a return containing the

particulars specified in __________________ as on the date of the Annual General Meeting

a) Form B of the Third Schedule

b) Form A of the Third Schedule

c) Form-26


233) Every company limited by shares and every company limited by guarantee and having a share

capital shall, within a period of not less than 3 months not more than 6 months at which the business

commence, hold a general meeting of the members of the company which shall be

called____________________.

a) Annual General Meeting

b) Extra Ordinary General Meeting

c)

Statutory Meeting

d) A & C

234) The directors shall, at least 21 days before the date on which the statutory meeting is held, forward a

report, in this Ordinance referred as _____________________.

a)

Annual Reportsb) Statutory Reports

c)

Both aboved) None of the above

235) The __________________________ shall, in the case of a listed company, be held in the town in which

the ______________________ of the company is situating as recommended by Commission.

a) AGM, Registered Office

b) EOGM, Stock Exchange c) Board meeting, Registrar


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236) The statutory report shall contain a brief account of the state of the companys affairs since its

_______________________ and the ______________________including any change or proposed change

affecting the interest of shareholders and business prospects of the company.

a) Incorporation & business plan

b) Share capital & members.

c) None of the above

d) Both of the above.

237) All general meetings of a company, other than the annual general meeting and the statutory meeting

shall be called _______________________.

a) General meetings of the

company.

b) Statutory meetings.

c) Extraordinary General meeting.


238)

Notice of an extraordinary general meeting shall be sent to the members at least __________daysbefore the date of the meeting.

a) 30 Days

b) 21 Days

c) 45 Days


239)

Notice of the meeting specifying the place and the date and hour of the meeting along with a

statement of the business to be transacted at the meeting shall be given.

a) To every member of the company.

b)

To any person entitled to a share in consequence of death of a member if the interest of

such person is known to the company.c) To the auditors or auditors of the company.

d) All of the above.

240) The company having a share capital, ________________ shall have votes proportionate to the paid-up

value of the shares carrying voting rights held by him according to the entitlement of the class of such

shares.

a) Directors

b) Chairman

c) Members

d) All of the above

241) Any member of company entitled to attend & vote at a meeting of the company shall be entitled as a

proxy to appoint another person, shall have such rights as respects speaking & voting at the meeting

as are available to a member.

a) The statement is invalid for those who have no share capital.

b) A member shall not be entitled to appoint more than one proxy for attend the meeting.

c) A proxy must be a member unless the articles of the company permit appointment of a

non-member as proxy.

d) All of the above.


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242) The members having not less than ______________________ in the company may give notice of a

resolution and such resolution together with the supporting statement if any which they propose to

be considered at the meeting of the company.

a) 1/3 voting power

b)

75 per cent voting power

c) 10 per cent voting power.

d)

None of the above.

243) ________________________ of result of voting by show of hands to be evidence.

a) Board of Directors

b) Chairmans declaration

c) Both of the above


244) A printed or typed copy of every special resolution shall be filed with the Registrar with in:

a) 10 days

b)

15 days

c) 20 days

d)

dont need to file

245) A copy of special resolution can be provided to the employee only when ___ and after getting_____:

a) Employee request and proper fee

b) Directors permission and declaration

c) After Board of Directors approval and undertaking

246)

Preparation of minutes of the Board of Directors and other Committees meetings are important ornot and in how many days copy of the minutes shall be provided to directors:

a) Yes, 14 days

b) No

c) Yes, 20 days

d) Yes, 45 days

247) Minutes of all meetings shall be kept at the:

a)

Company Registered office

b)

with Audit Committee

c) With registrar

d)

At Compnays discretion

248) After how many days of meeting a member can put request to obtain copy of the minutes:

a) 7 daysb) 3 daysc) 20 days

d) 45 days


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249) Minimum number of a Directors for listed public company is:

a) 7

b) 3

c) 5

d) 9

250) A public company not listed on stock exchange can have 03 directors at minimum:

a) No, 7

b) No, 4

c) No, 5

d) Yes

251) Every company may have one artificial person as director according to Companies Ordinance:

a) Yes

b) No, at least two persons

c) No, at least three persons

d) No, only a natural person can be the

director of company

252) Who are the first directors of the company and how long their tenure is:

a)

Initial subscribers, until election of directors in first AGM

b) All the person who are associates of related companies, for two years

c) There are no initial directors till election of the company

253) When initial directors / first directors got retired:

a) Until the election of directors in first

AGM

b) Until they are not asked to stop working

as directors by Chief Executives

c) After five years

d) After three years

254) The company fixes the number of elected directors not later than ____ days before AGM.

a) 7 days

b) 45 days

c)

35 days

d) 90 days

255) If numbers of contesting persons are equal of the numbers of directors to be elected, all contesting

person stand elected. This process is called.

a) Un-opposed election

b)

smooth election

c) Un-contested election

d)

Reconciliation

256) What percentage of voting shares a person need to request to commission for conducting fresh

elections of directors:

a) 10%

b)

12.5%

c) 15%

d) 30%


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257) The court may declare election of all directors or anyone director invalid on request of a person

holding ________ percentage of shares:

a) 10%

b) 20%

c) 25%

d) 30%

258) What is the maximum time required to appeal in court of law to declare an election invalid?

a) 13 days

b)

90 days

c) 5 days

d) 30 days

259) A tenure for an elected director is:

a) 24 months

b) 5 years

c) 2 years

d) 3 years

260)

An elected director can be removed by company at any time by:

a) Resolution

b) Secretary

c) CFO

d) CEO

261) If any defect found in appointment of director then whether his all actions and decision taken before

discovering of such default remain valid:

a) No

b) Yes remain valid

c) No Board will review

d) invalid

262)

A person cannot become director of the company if he/she is:

a) A minor, unsound, insolvent, loan defaulter

b) Convicted by court of law

c) Not a member except nominee, CEO, Employee and Creditor

d) All of above

263)

The remuneration of a director for performing extra services shall be determined by the ____ of the

company

a)

Chairmanb) Company secretary

c)

Shareholdersd) Board of directors

264) Whenever a director is absent for a period of ______, an alternate director can be appointed in his

place.

a) 2 weeks

b) a month

c)

3 months or more

d)None of these


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265) _____ grants leave of absence to the original director and appoints a member as alternate director

a) Shareholders

b) Board

c) CEO

d)Company secretary

266)

In case of appointment of an alternate director, the company secretary shall file particulars ofdirectors on form 29 within a period of _____

a) 45 days

b) 14 days

c) A week

d)None of the above

267) The directors of a public company shall meet at least ______

a) Once in a month

b) Twice a year

c) Once in each quarter of a year

d)Annually

268)

If in a meeting, the chairman is not present within _____, the members present can choose one ofthem to be the chairman of the meeting

a) Ten minutes

b) twenty minutes

c) no restrictions

d)None of the above

269) The director shall file with the registrar, the particulars of any loan taken without approval of the

commission prior his appointment

a) Within fourteen days of his appointment

b) Immediately after his appointment

c)

In first quarterly meeting

d)None of the above

270) The directors of the company as from the date of commencement of business or as from the date not

later than ______, appoint a CEO

a) 15thday after the incorporation

b) 20thday after the incorporation

c) 15thday after first board meeting


271) The minimum numbers of shares to be acquired by the CEO

a)

One shareb)Nil c)

500 sharesd)As stated in companys article

272) The 1 tenure of office for which CEO may be appointed is

a) 1 year

b)Not more than 3 years

c) 5 years

d)None of the above


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273) The CEO can be removed by a resolution passed by

a) 3/4thmajority of directors or special

resolution

b) 50% of directors

c) Not less than 90% of the directors

d)50% of the shareholders

274)

CEO of _______ company cant engage in a business competing with companys business

a) A Private limited

b) Single member company

c)Public company

d)No restriction under companies ordinance

275) Following ____ companies are required to have secretary.

a)Listed, Single member company

b) Listed, private, Unlisted private

c) Public, Private

d)All of above

276)

____ companies shall have an independent share registrar

a)Listed

b) Public

c) Private

d)All of the above

Documents

Summarize MCQs