Corporate Law questions

1. Define law and its effect on citizens?

2. Explain the classification of Pakistan law?
3. What is a company? Make difference between public & Pvt. Co. (any 5)?
4. Define MOA? Name its contents?
5. Explain Arbitration in AOA?
6. Why there is a need to submit statement in lieu of prospectus?(2 reasons)
7. Which documents are required to be attached to the prospectus?
8. Describe the different categories of share capital?
9. Write down the requirements of application for allotment of shares?
10. According to sec.87, explain issue of shares in lieu of outstanding balance of loan?
11. In which situation public co. cannot commence its business?(4 points)
12. Name the types of companies on the basis of composition of shareholding?
13. Define associated company?
14. What are the sources of law? (Name only)?
15. Differentiate between common & equity law in 3 statements?
16. What is Legislation?
17. Define Single member co.?
18. Is there any difference between public listed & public unlisted co. if any , write any 5?
19. What is the share certificate?
20. Write short notes on any 2: share, chartered co., co. limited by guarantee?

Pakistan Legal System

1. Constitutions of Pakistan were made and implemented in following years.
a) 1947, 1973, 1999 b)1957, 1973, 1987 c)1956,1962,1973
d)1955,1972,2008
1. The Law affecting us all every day while Making employment contracts,
enjoying welfare rights and protection of life and property is
a) Law of citizen b)Law of Business c)Law of Profession d)Company Law
1. A Law is a Rule of Conduct Imposed and Enforced by
a) Supreme Court b)Police c)Himself d)Sovereign
1. Legislation is the process of creation of Law of a country by the parliament
and other bodies to whom it has
a) Controlled Authority b)Delegated Authority c)Transferred Authority
d)Legal Authority
1. Sources of Law in Pakistan are Law of Merchant, Common Law and
……………..
a) Uncommon Law b)Civil Law c)Equity d)Legislation
1. The difference between Common Law and Equity is that Common Law is
flexible and Equity is inflexible. This statement is
a) True b)false c) half true half false
1. Private Law governs the relationship of individuals between ………………….
a) State b)Business c)Judiciary d) individual

Types of Companies
1. The companies which are formed under special statutes are termed as
a) Statutory co. b) Chartered co. c) Govt. co d) Registered Co.
1. A co. whose M.O.A limits the liabilities of its members to the amount as
the member may respectively undertake to contribute to the Assets of
the co. in the event of its winding up is called
a) Co. limited by shares b) co. limited by guarantee c) unlimited co.
1. Where two or more persons hold one or more shares jointly, they shall
be treated as
a) Pvt. Limited co. b) Partnership c) single member co. d)
modarba
1. A co. whose minimum and maximum no of members can be 2 and 5o,
whose rights of share cannot be transferable but it can invite public for
subscription of shares is called
a) Pvt. co. b) public co. c) Chartered co. d) none of them
1. A company whose more than 50 % shares held by some other
company who can appoint or elect more than 50 % of directors called
a) Holding co. b) Subsidiary co. c) Associated co. D) Partner co.
1. A listed co. should have at least ………. Members and unlisted co.
should have at least …….
a) 3 and 9 b) 2 and 7 c) 3 and 7 d) 5 and 11
1. Quorum for general meeting of listed public co. is ……… members
present in person or through proxy having not less than ………voting
powers
a) 7 and 25 % b) 1o and 33 % c) 10 and 25 % d) 7 and 33 %
1. A company in which minimum number of members and directors
should be three in case of unlisted co. and seven is case of listed co. is
called
a) Public co. b) Pvt. co. c) Govt. co d) single member co.
1. Companies are formed by means of special charter granted by head of
state, or king, or queen of the crown called
a) Govt. co. b) Registered co. c) Statutory co. d) Chartered co.
1. A company which have no obligation to raise minimum subscription
and not required to hold a statutory meeting is called
a) Public co. b) Pvt. co. c) Govt. co d) single member co.

Incorporation of Companies and

their conversion
1. If any association, partnership or company of more than ……….. Persons and
is formed for any business for profit, it has an obligation to get itself
registered as under companies ordinance 1984.
a) 10 b)15 c) 20 d) 14

M.O.A& A.O.A
19. M.O.A is a document which sets out the …………. Of the co. and as
such is the foundation upon which the structure of the co. is based
 a) Constitution b) chartered c) both a and b d) none of them

20. A company cannot go beyond its

a) Mission b) share capital c) objectives d) memorandum

21. A company may change its name by passing a

a) Ordinary resolution b) general resolution c) special resolution d)

none of them

22. for changing the registered office co. have to obtained conformation,
within …… days of resolution from the S.E.C.P by filing a petition

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

23. Each subscriber of M.O.A shall write opposite to his name ……………….

a) # of shares he takes b) his designation c) father’s name d)

personal address

24. After the registration of M.O.A registrar issues a certificate of

a) Commencement of business b) incorporation c) registration d)

none of all

25. Rules and regulations subordinate to the M.O.A is called

a) Prospectus b) A.O.A c) Share d) statement in lieu of prospectus

 Prospectus& statement in lieu of
prospectus
26. ………. Usually a circular published by the promoters after the formation
of the company to induce the public to take shares in co.

a) Prospectus b) A.O.A c) Share d) certificate of incorporation

27. prospectus should not issue/published not less than …… or more than
…… days before the subscription date.

a) 14 and 90 b)21 and 60 c) 7 and 30 d) 9 and 45

28. In case of a listed co. approval of the SECP must be obtained within …….
Days before the date of issue.

a) 30 b) 45 c)60 d) 90

29. statement issued in place of prospectus to the registrar for registration ,

at least ……… days before the first allotment of shares called statement in
lieu of prospectus

a)3 b)6 c)9 d)15

30. statement in lieu of prospectus must be signed by every person who is

named as a …… or proposed ……… of the company

a) promotor b) member c)C.E.O d)director

31. if there is some un-true data showed in statement in lieu of prospectus

all signed person could have face imprisonment upto ……… years or fine of
10000 or both

a)2 b)3 c)4 )6

32. Prospectus is filed by a …….. co. and statement in lieu of prospectus is
filed by ……….. co.

a) public unlisted—public listed b)public listed--public unlisted c)single

member--partnership d)none of all

Types of shares and issuance of

shares
33. the maximum amount of capital which a company can issue according to
its memorandum called

a)paid up capital b) issued capital c) subscribed capital d) nominal or

Authorized capital

34. types of shares on which owner will get a fixed rate of dividend every
year is called

a)ordinary shares b) premium shares c) preference shares d)

discounted shares

35. if company failed to issue shares than after …….. days company have to
pay back all collected amount without any surcharge.

a) 30 b)40 c)50 d)60

36. the applicant can avoid the allotment application within

a) 30 b)40 c)50 d)60

37. if company fails to issue shares and also fails to pay cak the money to
the applicants the company will liable to pay …… surcharge for a month

a)1% b) 1.50% c)2% d)2.50%

38. the amount to the unsuccessful applicants shall be refunded within ……
days from the date on which it it became liable to pay

a)40 b)30 c)20 d)10

39. shares that are issued on more than their face value is called ………..
shares

a)discount b)ordinary c)premium d)redeemable shares

40. at the time of redemption a sum equal to the amount redeemed shall be
transferred to ………………..

a) profit& loss account b) general reserve account c) capital redemption

reserve account d) share premium account

True and false

41. there are three types of legal sources legislation, custom and agreement

a) True b) False

42. “Equity denotes a spirit to live honestly to harm no body to render to

every man his due”

a) True b) False

43)a Pvt.co limited company should have minimum 2 directors except single
member co.

a) True b) False

44. a company which is registered without limiting the liability of the

members is called company limited by guarantee
a) True b) False

45. a company having more than 50 % shares of another company will be

called Holding co.

a) True b) False