What Is Known as a Charter of a Company Mcq

Answer: It is incumbent upon the Memorandum of Association to delineate and identify objects so clearly and unambiguously that the reader can identify the industrial sector to which the company`s activities should be limited. And it`s the courts` job to make sure the company doesn`t film a director off the field. This is where the doctrine of ultra vires versus state-owned enterprises comes into play. (6) A change in the registered office of a corporation from one State to another may take place by____. 52. A private company becomes a public limited company if its average turnover in the previous three years 7) The name of a company may be changed by special decision and with the agreement of the central government. Ultra vires acts: Directors must act within the framework of the provisions of the Law on Joint-stock Companies, the Memorandum and the Articles of Association, as these set the limits of the company`s activity and therefore the powers of the board of directors. Negligence: As long as the directors act within the limits of their powers with reasonable skill and care, as can be expected of them as prudent businessmen, they will perform their duties towards the Corporation. 3.

The memorandum of a company is dealt with under which section: the creation of company charters is the beginning of the construction of a new company. Company charters signal the birth of a new company. Once submitted and approved, a business becomes legitimate and legal. The document must be created and filed before the company can act as a company. D. a special resolution and confirmation by the Corporate Law Committee D. shareholders have insurable interests in the ownership of the company 41. Explain the procedure for the judicial liquidation of a company. Answer: An extraordinary general meeting, commonly abbreviated as GAB, is a meeting of members of an organization, shareholders of a corporation or employees of an official body that takes place at an irregular time. The term is generally used when the group would normally hold an Annual General Meeting (AGM), but when a problem arises that requires input from all members and is too serious or urgent to wait for the next General Meeting. Members and/or shareholders must be informed of the purpose of the Extraordinary General Meeting so that they can participate in a position where they can discuss and exercise intelligent judgment, otherwise all resolutions adopted will be invalid 64.

Any of the following points is NOT an advantage of starting the business? 2. Meeting of Directors: When the meeting is held between the directors of the Corporation, it is called a meeting of directors. It is divided into two parts. You are: 92. Which of the following companies is a public company under the Companies Act, 1956? 4. The minimum number of people required to set up a private company is __ Answer: Borland`s Trustee vs. Stahl Bros. in these terms: “A share is the participation of a shareholder in the company, measured by a sum of money, for the purposes of liability primarily and interest in the second, but also consisting of a series of reciprocal agreements entered into by all shareholders in accordance with the Companies Act”. 70. Which of the following reports must be submitted to Parliament by a public authority? Ø (2) At the beginning of the voluntary liquidation, the company ceases its business activities, unless this is necessary for the appropriate liquidation (§ 487). A corporate charter, also known as a “charter” or “by-law”, is a written document filed by the founders of a corporation with the Secretary of State (or Registrar in Canada). It describes the main components of a business, such as goals, structure, and planned operations.

If approved by the state, the company becomes a legal company. R. Foreigners who deal with the company may assume that everything is done regularly Answer: A limited liability company or a guarantee company with share capital is obliged to hold a statutory meeting. Such a statutory meeting takes place only once during the service of the enterprise. This meeting must be held within a period of at least one month or within a maximum period of six months from the date on which it is authorized to start its activities, that is to say, it receives a certificate of commencement of activity. Only the following issues may be discussed at a statutory meeting: – 104. Bondholders of a company are companys__________. Answer: A director`s liability to the corporation may arise from: Breach of fiduciary duty: If a director acts dishonestly in the interest of the corporation, he or she will be held liable for the breach of the duty of loyalty […].