Company Secretary MCQ with Answers PDF

Multiple choice questions of Subject Commerce Company Secretary MCQ with Answers PDF ( Company Secretary MCQ with Answers PDF Quiz ) for Entrances (Entrance Exam) Conducted by different Central and State Universities are given below.

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Company Secretary MCQ with Answers PDF | a Company Secretary has to be

1. Acompany secretary should have thorough kowledge of provisions of

(a) income tax

(b) Companies Act

(c) labour law

(d) All of the above

Ans. d

2. Minimum number of directors in a private company is

(a) 1

(c) 3

(b) 2

(d) 4

Ans. b

3 What is not included in the remuneration of director under Companies Act?

(a) Salary

(b) incentive in profit

(c) Fee paid as managing director

(d) Fees of attending the meeting

Ans. d

4. If a director fails to attend three consecutive meetings, without seeking permission of the Board of Directors, then what may be the consequences in this case?

(a) He will not become director of any company further

(b) He has to vacant his office

(c) He will have to pay a tine of rs. 50000

(d) Any one of the above

Ans. b

5. Qualification share is related with

(a) auditor of the company

(b) officer of the company

(c) director of the company

(d) None of these

Ans. c

6. Minimum number of directors in a public company is

(a) 1

(b) 2

(c) 3

(d) 4

Ans. c

7. A person who is company secretary and director of company is

(a) employee director

(c) executive director

(b) non-executive director

(d) independent director

Ans. c

8. The appointment of a statutory auditor under Section 224A is with reference to 25% of

(a) paid-up capital

(b) issued capital

(c) subscribed capital

(d) only equity capital

Ans. c

9. A special notice is required for

(a) removal of a member

(b) removal of the company secretary

(c) removal of a nominee director

(d) None of the above

Ans. d

10. Age limit of a director in a public company is

(a) 50

(c) 65

(b) 60

(d) no limit

Ans. c

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A company secretary has to be | Company Secretary MCQ with Answers PDF

11. As per the provisions of the Companies Act, 1956, the form of proxy must be deposited with the company atleast

(a) 24 hours before the time of AGM

(b) 36 hours before the time of AGM

(c) 48 hours before the time of AGM

(d) 72 hours before the time of AGM

Ans. c

12. In a listed company with 11 directors, what is the quorum for the board meeting?

(a) 2 directors

(c) 4 directors

(b) 3 directors

(d) 5 directors

Ans. c

13. Age limit of a director in a private company is

(a) 50

(c) 65

(b) 60

(d) no limit

Ans. d

14. On striking off the name of a company considered defunct, the Registrar of Companies is required to

(a) publish notice thereof in official gazette

(b) inform the State Government

(c) inform the Central Government

(d) inform the Ministry of Corporate Affairs

Ans. a

15. The initial disclosure by a director or officer of a listed company under the SEBI (Prohibition of insider trading) Regulation, 1992 has to be made within

(a) 4 days of the concerned person’s joining the company

(b) 7 days of the concerned person’s joining the company

(c) 15 days of the concerned person’s joining the company

(d) 21 days of the concerned person’s joining the company

Ans. a

16. As per clause 49 of the listing agreement, the audit committee comprising of five directors must have a minimum of

(a) 2 independent directors

(b) 3 independent directors

(c) 4 independent directors

(d) 1 independent director

Ans. c

17. What is the percentage of average net profit to be contributed as political contribution passed by Board of Directors?

(a) 10%

(b) 5%

(c) 15%

(d) None of the above

Ans. b

18. Generally, rights and obligations of the company are regulated in

(a) Memorandum of Association

(b) Articles of Association

(c) partnership deed

(d) None of the above

Ans. a

19. What is the nominal value of shares that must be there with the director of the company as per company article?

(a) 50000

(c) 5000

(b) 150000

(d) no limit

Ans. c

20. What is the maximum number of companies in which a person can be a director at a time?

(a) 10

(b) 15

(c) 20

(d) 25

Ans. b

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21. Which schedule discusses about the provision for managerial remuneration?

(a) Schedule X

(c) Schedule XII

(b) Schedule XIII

(d) None of these

Ans. b

22. Out of the following, which states the maximum number of directors in a company?

(a) Memorandum of Association

(b) Articles of Association

(c) Board of Directors

(d) Central Government

Ans. b

23. What is the maximum duration for holding the office by a director who is appointed against a casual vacancy?

(a) Till the end of the next AGM

(b) Till the period allotted to the person against whom he has been appointed after casual vacancy

(c) Till the other regular director is appointed

(d) None of the above

Ans. b

24. Who can appoint an alternate director in special conditions?

(a) Board of Directors

(b) Shareholders themselves in AGM

(c) State Government

(d) None of the above

Ans. b

25. In which type of companies, there is no limit for the number of directorship?

(a) Private company

(c) Limited company

(b) Public company

(d) None of these

Ans. a

26. Out of the following, who will be called for AGM?

(a) Equity shareholders

(b) Preference shareholders

(c) Auditor

(d) All of these

Ans. d

27. Out of the following, who will issue the Secretarial Compliance Certificate?

(a) Board of Directors

(b) Company secretary who is in practice

(c) Central Government

(d) All of the above

Ans. b

28. Who is liable to file various legal returns to Registrar of Companies?

(a) Chartered accountant

(c) Statutory auditor

(b) Managing director

(d) Company secretary

Ans. d

29. When a company issues shares to its existing shareholdes l than the market price in proportion to their present holdings it is called

(a) bonus issue

(c) right issue

(b) new issue

(d) None of these

Ans. c

30. Statutory duty of a company secretary includes

(a) issue of shares

(b) observe all legal formalities with being specifically authorized to do so

(c) call for AGM

(d) All of the above

Ans. b

Company Secretary mcq pdf | Multiple Choice Questions on Secretarial Practice

31. The minimum number of members in a public limited company is

(a) 5

(b) 6

(c) 7

(d) 9

Ans. c

32. The contract signed by the promoters of company

(a) can ratified by the company after incorporation

(b) is legally binding upon the company after registration

(c) cease to be the personal liability of promoters after incorporating the company

(d) remain the personal liability of the promoters

Ans. d

33. For how long the first director hold the office?

(a) Till the end of that particular financial year in which he was appointed

(b) Till the directors are duly appointed under Section 255

(c) Till his turns come for retirement

(d) None of the above

Ans. b

34. Who will be called a small shareholder in a company?

(a) A person holding shares less than 50,000

(b) A person holding shares less than 1,00,000

(c) A person holding shares less than 20,000

(d) None of the above

Ans. c

35. What is a shadow director?

(a) A director who has management responsibilities in the company

(b) A person appointed to attend board meetings and vote in place of a director

(c) A person whose directions or instructions, the directors of a company follow

(d) Anyone who acts as a director, although not validly appointed as one

Ans. c

36. Which Act gives the court power to disqualify someone from being a director, if they have been guilty of fraudulent trading or have been participating in wrongful trading?

(a) Companies Act, 2006

(b) Insolvency Act, 1986

(c) Fraudulent Trading Act, 2006

(d) Company Directors Disqualification Act, 1986

Ans. d

37. Where court action is taken against a director for breach of duty, any compensation awarded by the court is payable to

(a) the Board of Directors

(b) the shareholders

(c) the company

(d) the creditors

Ans. c

38. What is the statutory minimum age of a direcsort

(a) 15

(c) 18

(b) 20

(d) None of these

Ans. c

39. Where does the director of a company elected?

(a) Board mooting

(b) General meeting by ordinary resolution

(c) General meeting by especial resolution

(d) None of the above

Ans. b

40. Out of the following decisions, which must be approved by the shareholders?

(a) To sell one of the undertakings of the company

(b) To make calls on shares

(c) To issue debentures

(d) All of the above

Ans. a

Company Secretary MCQ with Answers PDF | Company secretary quiz questions

41. A shareholder who wishes to make a proposal that director is dismissed must give the company special notice of their proposal prior to the meeting How many days, notice is required for special notice!

(a) 12

(c) 28

(b) 14

(d) 15

Ans. c

42. In order to be a company secretary of a private limited company, what qualifications must you have?

(a) You need no qualifications

(b) A member of ICSA

(c) A qualified lawyer

(d) Both b and c

Ans. b

43. Which one of the following statements is not correct?

(a) The auditor cannot be an officer or employee of the company or in partnership with someone who is an officer or employee of the company

(b) An auditor cannot be removed before the expiry of his term of office

(c) An auditor has the duty to audit a company’s accounts and to report to the shareholders on whether the accounts give a true and fair view of the financial position of the company and have been properly prepared in accordance with the Companies Act, 2006

(d) It is a criminal offence for anyone to knowingly or recklessly give an auditor misleading. false or deceptive information

Ans. a

44. Directors’ responsibilities are unlikely to include

(a) a duty to propose high dividends for shareholders

(b) a duty of care

(c) a duty to keep proper accounting records

(d) a fiduciary duty

Ans. a

45. Disqualification of directors may result from breaches of

(a) The Financial Service Act, 1986

(b) The Companies Act, 2006 and Insolvency Act, 1986

(c) The Sale of Goods Act, 1979

(d) None of the above

Ans. b

46. Which of the following actions will not help directors to protect themselves from non-compliance with their obligations and responsibilities?

(a) Keeping themselves fully informed about company affairs

(b) Ensuring that regular management accounts are prepared by the company

(c) Including a disclaimer clause in their service contracts

(d) All of the above

Ans. c

47. Directors may not be disqualified for

(a) paying inadequate attention to the company finances

(b) being convicted of drunken driving

(c) continuing to trade when the company is insolvent

(d) persistent breaches of company legislation

Ans. b

48. A company may become insolvent if it

(a) makes a loss

(b) cannot pay creditors in full after realization of its assets

(c) cannot meet its budgeted level of profit

(d) None of the above

Ans. b

49. Which of the following is not one of the underlying principles of the corporate governance combined code of practice?

(a) Acceptability

(c) Openness

(b) Integrity

(d) Accountability

Ans. a

50. When an act is beyond the powers of the……… it is said to be ultra vires a company. 

(a) directors

(c) Both ‘a’ and ‘b’

(b) company

(d) None of these

Ans. b

For More Commerce MCQs Topic Wise Click Here

1. Bookkeeping and Accounting 2. Not-for-Profit Organisations
3. Partnership4. Accounting for Specific Business and Transactions
5. Corporate Accounting6. Cost Accounting
7. Management Accounting8. Business Communication
9. Business Organisation and Management10. Business Environment
11. Marketing Management12. Financial Management
13. Human Resource Management14. Office Management
15. Consumer’s Theory and Demand16 Production, Cost, Revenue
17. Supply18. Forms of Market
19. National Income20. Government Budget
21. Theory of Income & Employment and Inflation22. Money and Banking
23. International Trade24. India’s Foreign Trade and international Organisations
25. Industrial Policy26. Statistics
27. Business Law28. Company Law
29. Auditing30. Entrepreneurship Development
31. Income Tax32. Insurance
33. International Business34. Company Secretary and Secretarial Methods
35. Stock Exchange

Basic Knowlege: A company secretary is a vital role within a company, responsible for ensuring that the organization complies with all legal and regulatory requirements. They act as a liaison between the company’s board of directors, shareholders, and various regulatory bodies. Here’s an overview of the duties and responsibilities typically associated with the role of a company secretary:

  1. Corporate Governance: Company secretaries play a crucial role in upholding corporate governance standards. They advise the board of directors on their legal and regulatory obligations, ensuring that the company operates ethically and transparently.
  2. Regulatory Compliance: One of the primary responsibilities of a company secretary is to ensure that the company complies with all relevant laws, regulations, and guidelines. This includes filing statutory returns, maintaining statutory registers, and ensuring that the company’s activities are in accordance with its memorandum and articles of association.
  3. Board Support: Company secretaries support the board of directors in various ways, including organizing board meetings, preparing agendas and board packs, and taking minutes of meetings. They also assist with the induction and training of new board members.
  4. Shareholder Relations: Company secretaries act as a point of contact for shareholders, handling queries, and facilitating communication between shareholders and the company’s management. They also ensure that shareholder meetings, such as annual general meetings, are conducted in accordance with legal requirements.
  5. Corporate Reporting: Company secretaries oversee the preparation and filing of corporate documents, such as annual reports, financial statements, and other regulatory filings. They ensure that these documents are accurate, timely, and comply with relevant regulations.
  6. Risk Management: Company secretaries play a role in identifying and managing risks within the organization. They may be involved in assessing compliance risks, overseeing internal controls, and developing risk management strategies.
  7. Ethical Standards: Company secretaries uphold ethical standards within the organization, promoting integrity, honesty, and accountability among employees and management.

In summary, company secretaries play a pivotal role in ensuring that a company operates efficiently, ethically, and in compliance with all legal and regulatory requirements. They provide valuable support to the board of directors, management, and shareholders, helping to maintain trust and confidence in the company’s governance and operations.

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