Monday, 2 June 2014

Quiz (22 questions ) on "Action points for Listed, Private & Public Companies"

Friends,

Thank you very much for your enthusiastic participation for our earlier quiz " Questions on Incorporation".

We share herewith the quiz questions conducted in Chennai West Study Circle of ICSI - SIRC on 31st May

2014.

You may please give your answers in the comment Section. Correct answers & the one who gave the right
answer will be announced tomorrow in the blog's comment section:



Quiz (22 questions ) on "Action points for Listed, Private & Public Companies"

Compiled by : CS. Mohan Kumar 
1. Certain Board Resolutions are required to be filed with ROC in Form ____

2. Auditor rotation provision ( 5 years for individual, 10 years for firm) will be applicable if the Pvt Co’s paid up capital is more than ___ crores.

3. An independent director who resigns or is removed from the Board shall be replaced by a new independent director at the earliest but not later than the immediate Board meeting or ______ months from the date of such vacancy, whichever is later.

4. Dividend once declared need to be deposited in a separate bank account within __days of declaration.

5. Share Transfer Forms have to be submitted to the company within -- days of execution by the Transferor and Transferee.

6. If the preference shareholder’s dividend is in arrear for more than ______, they can vote on all resolutions of the company.

7. The gap between 2 Board meetings in a Private Limited Company shall not exceed ___ days

8. Companies which have borrowed money in excess of ___________ crores from banks & Financial institutions shall establish a Vigil mechanism

9. Every listed company shall file a return in the prescribed form with the registrar the change , Increase or decrease of _____% in number of shares held by promoters and top ten shareholders of such company, within fifteen days of such change.

10. Shares other than _______can not be issued at discount

11. Listed Companies need to rename their Compensation committee as_________.

12. In section 8 Company, only a person who is a member of the Company can act as a Proxy. Is this statement true?

13. Notice for Board meeting shall be sent to __________, before ______ days of the date of Board meeting.

14. A public Limited shall have a Nomination & Remuneration committee when its paid up capital is more than ____ crores or its Annual turnover is more than _____ crores

15. Every listed company shall disclose in the Board’s report, the ratio of the remuneration of each director to the ______________’s remuneration and such other details as may be prescribed.

16. What is meant by Transaction done through Arms length basis?

17. A transaction with a related party shall be considered material if the transaction / transactions collectively during a financial year exceeds __% of the annual turnover or __of the net worth of the company as per the last audited financial statements of the company, whichever is higher.

18. As per Sec. 186, a Company is prohibited from making Investments through more than ____ layers of Investment Companies.

19. E-Voting facility shall be kept open for a minimum of one day & maximum ___ days. E Voting shall be closed before __ days of AGM

20. What is the important change that Companies need to do from current financial year on the method of charging Depreciation?

21. What shall the Company do - when notice of Board meeting is given less than 7 days before the meeting?

22. Public Limited Companies shall have woman Director in their Board within one year, if their paid up capital is more than _____ crores and Turnover is more than _____ crores

11 comments:

  1. This comment has been removed by the author.

    ReplyDelete
  2. 1. Form MGT-14 under Section 117
    2. 20 Crores
    3. 3 Months
    4.5 days
    5. 60 days
    6. 2 yrs or more
    7. 120 days
    8. Excess of Rs.50 cr
    9. 2%
    10. Sweat Equity
    11. Stakeholders relationship Committee
    12. Yes
    13. all Directors, 7
    14. 10,100
    15. Senior Management employees
    16. Price at a fair market value
    17. 25% of turnover or 10% of networth
    18. 2 layers
    19. 3 days , 3 days prior to the AGM
    20. WDV method and life time of the asset may vary
    21. atleast one independent director should present or ratification is required from independent
    director
    22. 100 (or) 300

    ReplyDelete
    Replies
    1. Vidhya: Except 15, other answers were correct. Answer for 17 also - you may check at the end (In the last comment given by me)

      Delete
    2. Thank you .. But Could you pls check the answer for 17th question once again.

      Delete
    3. Vidhya : Sorry;I should have asked you to check 16th question ie: On Transaction done through Arms length basis; you had answered 17th question correctly.

      Delete
  3. 1. MGT14
    2. 20 Crores
    3. 3 months
    4. 5 days
    5. 60 days
    6. Two years
    7. For big companies 120 days and for small and dormant companies June 30 or December 31 (i.e. Within each half of the calendar year
    8. 50 crores
    9. 2%
    10. Sweat equity shares
    11. Nomination and remuneration committee
    12. True
    13. Every director and 7 days
    14. 10 crores
    15. Median
    16. There is no conflict of interest.
    transaction between related parties as if they were unrelated
    17. 25% turnover or 10% networth
    18. Two layers
    19. 3 days and 3 days
    20. Useful life of assets in years
    21. Atleast one independent director must present at board meeting
    22. Paidup capital 100 crores or turnover 300 crores

    ReplyDelete
    Replies
    1. Very good show Bindu Madhava. All the answers are correct ! Well done !

      Delete
  4. 1. MGT 14
    2. 20 Crores
    3. 180 days
    4. 5 days
    5. 60 days
    6. 2 years or more
    7. 120 days
    8. 50 Crores
    9. 5%
    10.Sweat equity shares
    11.Nomination and Remuneration committee
    12. True
    13. Every Director: not less than 7 days
    14. Paid up Capital is more than 10 Cr or its annual turn over Rs.100 Cr
    15. Median Employee's
    16. a transaction between two related parties that is conducted as if they were unrelated, so that there is no conflict of interest.
    17. 25% of turnover ; 10% of networth
    18. two layers
    19. 3 days
    20. Useful life of assets (previously Rs.5000 worth of assets can depreciated fully now not possible.)
    21 Board may be called at shorter notice to transact urgent business subject to the condition that at least one independent director, shall be present at the meeting:
    22.paidup 100 crores turnover 300 crores

    ReplyDelete
    Replies
    1. Venkat : You have answered 19 questions correctly; Questions 3,9 & 17 are not correct. Kindly check the correct answers in my comment given below.

      Delete
    2. Dear Sir,
      Thank you, But could you please check the answer for question no.17th question once again. As per your attached word file
      "A transaction with a related party shall be considered material if the transaction / transactions collectively during a financial year exceeds _25_% of the annual turnover or 10% of the net worth of the company as per the last audited financial statements of the company, whichever is higher".

      Delete
  5. Friends,

    Thanks for your wonderful participation. Correct answers are given below:

    Answers:

    1. MGT 14
    2. 20 Crores
    3. 3 months
    4. 5 days
    5. 60 days
    6. 2 years (Sec 47)
    7. 120 days
    8. 50 crores
    9. 2 %
    10. Sweat equity
    11. Stakeholders Relationship committee
    12. True
    13. To all Directors in India; 7 days
    14. 10 crores paid up capital or 100 crores Turnover
    15. Median Employees’ remuneration
    16. Arm’s Length Basis means transaction entered into as if parties were unrelated so that there is no conflict of interest.
    17. 5 % Turnover; 20 % Networth
    18. Two
    19. 3 days, 3 days
    20. Charging of Depreciation is Changed from percentage of assets every year to the useful life of the assets every year.
    21. Make sure atleast 1 independent Director is present; if not, circulate it to all Independent Directors & Atleast one shall approve it.
    22. 100 crores paid up capital & 300 crores turnover

    ReplyDelete