MCQ on Memorandum and Articles of Association
Multiple
Choice Questions and Answers (MCQS)
Companies Act 2013 MCQs (2021 – 2022)
Given below are MCQ on Memorandum and Articles of Association updated for 2021 – 2022 exams. These MCQ on Memorandum and Articles of Association are useful for B.Com, BBA, M.Com, MBA, UGC – NET (NTA NET), CA – IPCC, CMA Intermediate, CS Foundation CSEET Exam and all other competitive exams of commerce stream students.
Choose the Correct Alternative:
1. The most important document of a company is it’s:
a) Memorandum of Association
b) Articles of Association
c) Prospectus
d) Pre-incorporation contracts
Ans:
a) Memorandum of Association
2. Any act done by the company which goes beyond the
powers of memorandum of association will be called as __:
a) Ultra virus
b) Intra virus
c) Constructive notice
d) Indoor management
Ans:
a) Ultra virus
3. The memorandum of a company is dealt under which
section:
a) Sec. 2(45)
b) Sec. 2(46)
c) Sec. 2(55)
d) Sec. 2(56)
Ans:
d) Sec. 2(56)
4. How many members should sign the moa in case of
private company?
a) 1 (One)
b) 2 (Two)
c) 7 (Seven)
d) 50 (Fifty)
Ans:
b) 2 (Two)
Also you can read Company Law Chapter wise MCQs together with some additional Questions:
1. Company Law MCQs (130+ Questions)
2. Formation of Companies MCQs
3. MCQ on Memorandum and Articles of Association
7. MCQ on Winding Up of A Company
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5. How many members should sign the moa in case of public
company?
a) 1 (One)
b) 2 (Two)
c) 7 (Seven)
d) 50 (Fifty)
Ans:
c) 7 (Seven)
6. How many members should sign the moa in case of One
Person Company (OPC)?
a) 1 (One)
b) 2 (Two)
c) 7 (Seven)
d) 50 (Fifty)
Ans:
a) 1 (One)
7. Which documents contains the constitution of a
company?
a) Memorandum of Association
b) Articles of Association
c) Prospectus
d) Pre-incorporation contracts
Ans:
a) Memorandum of Association
8. The list of rules and regulations of company is known
as what?
a) Memorandum of Association
b) Articles of Association
c) Prospectus
d) Pre-incorporation contracts
Ans:
b) Articles of Association
9. The rules and regulations for the internal management
of a company are contained in its:
a) Memorandum of Association
b) Articles of Association
c) Prospectus
d) Pre-incorporation contracts
Ans:
b) Articles of Association
10. Memorandum of association defines the relation of the
company with the:
a) Outside world
b) Members
c) Employees
d) Lenders
Ans:
a) Outside world
11. The articles of association establish the
relationship between the company with the:
a) Outside world
b) Members
c) Employees
d) Lenders
Ans:
b) Members
12. The articles of association and the memorandum of
association are drafted by:
a) Promoters
b) Registrar
c) Shareholders
d) Creditors
Ans:
a) Promoters
13. Alteration of Memorandum of Association (MOA) is done
only by passing:
a) Ordinary resolution
b) Special resolution
c) Ordinary resolution with approval by ROC of Companies
d) Special resolution with approval by ROC of Companies
Ans:
c) Ordinary resolution with approval by ROC of Companies
14. Alteration of articles must be done only by passing:
a) Ordinary resolution
b) Special resolution
c) Ordinary resolution with approval by ROC of Companies
d) Special resolution with approval by ROC of Companies
Ans:
b) Special resolution
15. What is known as a charter of a company?
a) Memorandum of Association
b) Articles of Association
c) Prospectus
d) Pre-incorporation contracts
Ans:
a) Memorandum of Association
[Hint: Memorandum
of association is also known as charter of the company.]
16. The doctrine of indoor management is an ______to the
doctrine of constructive notice:
a) Exception
b) Extension
c) Alternative
d) None of the above
Ans:
b) Extension
17. Doctrine of ultra vires means:
a) Acts done outside the prospectus of the company
b) Acts done outside the contract of the company
c) Acts done outside the resolutions of the company
d) Acts done outside the memorandum of the company
Ans:
d) Acts done outside the memorandum of the company
18. The article of association needs to be signed by:
a) All proposed directors of the company
b) Registrar of companies
c) Promoters
d) Subscribers of MOA
Ans:
d) Subscribers of MOA
19. A company can change its name by passing:
a) Ordinary resolution
b) Special resolution
c) Ordinary resolution with approval of ROC of companies
d) Special resolution with approval of ROC of Companies
Ans:
d) Special resolution with approval of Central Government
20. Which of the following companies need not have their
own articles of association?
a) Unlimited companies
b) Companies limited by guarantee
c) Private companies limited by shares
d) Public companies limited by shares
Ans:
d) Public companies limited by shares
21. Companies must have their own articles:
a) Unlimited companies
b) Companies limited by guarantee
c) Private companies limited by shares
d) All of the above
Ans:
d) All of the above
22. The memorandum and articles of a company are open to inspection
by:
a) Members of the company
b) Creditors of the Company
c) Everyone
d) Registrar of the Company
Ans:
c) Everyone
23. Which companies are not required to have any
memorandum or articles of association?
a) Unlimited companies
b) Companies limited by guarantee
c) Private companies limited by shares
d) It is mandatory for every company
Ans:
d) It is mandatory for every company
24. Which of the following content is not specified in
AOA (articles of association) of the company?
a) Borrowing powers of the company
b) Voting rights and proxies
c) Transfer and transmission of shares
d) Name and address of the company
Ans:
d) Name and address of the company
25.
The doctrine which advocates the fact that company cannot act beyond the scope
of its memorandum of association is:
a) The doctrine of constructive notice
b) The doctrine of Indoor management.
c) The doctrine of ultra vires
d) None of the above
Ans:
c) The doctrine of ultra vires
26. The most important clause in the memorandum of
association of a company is:
a) Name clause
b) Object clause
c) Registered office clause
d) Liability clause
Ans:
b) Object clause
27. The memorandum of company is dealt under which
section?
a) Sec. 2(52)
b) Sec. 2(54)
c) Sec. 2(56)
d) Sec. 2(58)
Ans:
c) Sec. 2(56)
28. The succession clause is only applicable for:
a) Private companies
b) Public companies
c) OPC (One Person Company)
d) Small Companies
Ans:
c) OPC (One Person Company)
State whether the following statements are true or false:
1) Can a company sign on behalf of a person in memorandum and articles?
Ans: True
2) Memorandum of association does not include rules and regulation relating to internal management of the company.
Ans: True
3) The registered office clause of memorandum of association contains the address of the registered office of the company.
Ans: True
4) Government companies must have their own articles.
Ans: True
5) The management authority system of company is decided by MOA.
Ans: False, AOA
6) Public companies must have their own articles.
Ans: True
7) The name of a company can be changed by passing a special resolution and with the approval of central government.
Ans: True
8) The doctrine of indoor management is also known as “Turquand rule”.
Ans: True
9) The doctrine of indoor management protects the outsiders against the action done by the company.
Ans: True
10) Doctrine of constructive notice presumes that anyone dealing with the company has knowledge about the company’s articles of association.
Ans: True
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