MOST IMPORTANT “ONE-LINER”: Companies Act, 2013 (Indian Perspective)

1. The term ‘Company’ is derived from a Latin word—Com+panis (i.e Together+Bread).
2. Act No._______Companies Act, 2013—Act No. 18.
3. The Companies Act, 2013 came into force on—29.08.2013.
4. The Companies Act, 2013 amended latest in—September 2023.
5. Total Sections under Companies Act, 2023—470 Sections.
6. True/ False– Even the company has a nationality and domicile, it has no citizenship—True.
7. Which is a leading case on corporate personality different from its members—Saloman VS. Saloman (HoL, 1897)
8. The expression ‘Company’ is defined under Section_____of the Companies Act—Section 2(20)
9. One Person Company’ (OPC) means a company which has only one person as a member. OPC is defined under Section—Section 2(62).
10. Private Company’ (PVC) is defined under Section—Section 2(68).
11. Paid up capital: There is no requirement of minimum paid up capital for a Private Company—True.
12. Public Company’ (PBC) is defined under Section—Section 2(71).
13. Paid up capital: There is no requirement of minimum paid up capital for a Public Company—True.
14. Section 2(85) of the Companies Act, 2013defines—Small Company.
15. ‘Small Company‘ means a company, other than a public company, paid-up share capital of which does not exceed Rs._______lakh or such higher amount as may be prescribed which shall not be more than Rs.________—Rs. 50 Lakh; Rs. 10 Crore.
16.  ‘Small Company‘ means a company, other than a public company, turnover of which as per its last profit and loss account does not exceed Rs._________ or such higher amount as may be prescribed which shall not be more than Rs.________Crore—Rs. 2- Crore; Rs. 100 Crore.
17. Subsidiary Company is a company in which the holding company exercises or control of more than ________% of the total voting power—50% or 1/2. [2(87)]
18. Such part of the capital, which has been called for payment is known as – Called-up capital [S.2(15)]
19. The expression ‘Charged’ is defined under Section—Section 2(16)
20. ‘Charge’ means an interest or lien created on the property or assets of a company or any of its undertakings or both as security and includes a mortgage—Section 2(16)
21. True/ False: A subscriber of the memorandum of association shall be deemed to have agreed to become a member of the company—True.
22. True/ False: A company can not buy its own shares and become a member of it—True.
23. True/ False: Since a partnership firm is not a legal person, it can not buy any share in its own name and thus can not become a member of a company—True.
24. True/ False: A society registered under the Societies Registration Act, 1860, can hold shares in the company—True.
25. True/ False: A non-resident can not become a member of a company other than compliance of FEMA, 1999 and permission of RBI—True.
26. Insolvent Person— True/ False: An insolvent person may remain a member of a company as long as he is on Register of Members—True.
27. Insolvent Person— True/ False: An insolvent person is entitled to vote but he loses all beneficial interest in the shares and company will pay dividend on his shares to Official Assignee or Receiver—True.
28. Trade Union— True/ False: A Trade Union registered under the Trade Union Act, can be registered as a member and can hold shares in a company in its own corporate name.—True.
29. Statutory Companies: Memorandum of Association is not required for statutory companies.
30. Statutory Companies: The Statutory Companies are governed by Special Act and also by the provisions of the Companies Act to  the extent of consistency.
31. Companies Limited by Guarantee: A CLBG may or may not have a share capital, but if such company has a equity share capital then each member is required to pay the amount of the fixed share capital, as in case of a company limited by share in addition to the Guarantee. Thus, the liability is restricted to the amount of the share plus the amount of Guarantee. A CLBG may also be a private Company or a Public Company.
32. Nationalized Banks: The NB are incorporated under which Act—Banking Companies (Acquisition and Transfer) of Undertakings Act, 1970/1980.
33. True/ False: The term ‘dividend’ includes any interim dividend—True.
34. True/ False: Memorandum of Association is not required for statutory companies—True.
35. True/ False: The MOA and AOA are registered with the RoC at the time of incorporation—True.
36. Doctrine of ‘ultra vires’ (UV) was given in which case?—Ashbury Railway Carriage and Iron Company Vs. Riche (1875)
37. True/ False: An ultra-vires transaction is void ab initio and therefore can not become intra-vires by reason of ratification—True.
38. Doctrine of Tracing—The lender can trace the asset created out of borrowing and can proceeds against those assets for recovery of money due. Such act is popularly known as—Doctrine of Tracing.
39. Doctrine of Constructive Notice: The ‘Doctrine of Indoor Management ’ is an exception to ‘doctrine of constructive notice’—True.
40. Doctrine of CN: The ‘Doctrine of Constructive Notice (CN) protects the insiders of a company against dealing with outsiders—True.
41. Doctrine of IM: The ‘Doctrine of Indoor Management’ (DIM) was first illustrated in case of—Royal British Bank Vs.  Turquand (1856)
42. Doctrine of IM: The ‘Doctrine of Indoor Management’ (DIM) protects outsiders dealing with the company—True.
43. True/ False: Clauses in MOA can be altered by Special Resolution and the approval of whom?—Central Government.
44. True/ False: Clauses in AOA can be altered by Special Resolution and the approval of Central Government is not required—True.
45. A ‘red herring prospectus’ is issued prior to the issue of a prospectus—True. [S. 32]
46. Fictitious person– When a person gets or tries to get shares in his fictitious name, he shall be punished with imprisonment upto_______years—5-years [Refer Section 38]
47. Section _______of the Companies Act, 2013 deals with kinds of ‘share capital’—Section 43.
48. Charge’ means an interest or lien created on the property or assets of a company or any of its undertakings or both as security and includes a mortgage—Section 2(16)
49. Which Chapters of the Companies Act, 2013 deals with Registration of Charges—Chapter 6. [Sections 77 – 87]
50. Which Section of the Companies Act, 2013 imposes duty upon the Company to register the particulars of the charge with the Registrar of Companies within thirty days of its creation—Section 77.
51. As per Section 77 of the Companies Act, 2013 it is the duty of the Company to register the particulars of the charge with the Registrar of Companies within ________ days of its creation—30-days.
52. As per Section 77 of the Companies Act, 2013 it is the duty of the Company to register the particulars of the charge with the Registrar of Companies within ________ days of its creation and the Registrar upon application by the Company may extend such period upto_______days with additional fees—30-days; 300-days.
53. Maintenance of Register—Every company shall maintain registers of members, register of shareholders and register of security-holders under Setion______of the Companies Act, 2013—Sectioin 88.
54. Result of Non-maintenance of Register—If a company does not maintain a Register under Section 88, the company shall be liable for penalty of Rs._____lakh and every official responsible shall shall also be liable for penalty of Rs._________?—Rs.3 lakh; Rs.50,000/-
55. Closure of Register—The Company after 7 days notice in paper publication in local are where Register Office of Company is situated shall close the Registers of members/ shareholders for ______days at a time and maximum _____days each year—30 days; 45 days.
56. Rights conferred upon the members of a company by the MoA and AoA are called—Documentary Rights.
57. As per Section_______of the Companies Act, 2013, the company shall held Annual General Meeting (AGM) shall be held every year—Section 96.
58. The Board may, whenever it deems fit, call an Extraordinary General Meeting (EGM) of the company under Section__________of the Companies Act, 2023—Section 100.
59.  Section 101- General Notice of meeting—A general meeting of a company may be called by giving not less than clear _________days‘ notice either in writing or through electronic mode—21-days.
60. Section 101- Shorter Notice of meeting—A general meeting may be called after giving a shorter notice if consent is given in writing or by electronic mode by not less than____________% of the members entitled to vote at such meeting—95%.
61. Section_______of the Companies Act, 2013 talks of ‘quorum of meeting’—Section 103.
62. The Central Government shall establish a Fund to be called the Investor Education and Protection Fund (IEPF) under Section________of the Companies Act, 2013—Section 125.
63. Under Section________of the Companies Act, 2013, the Central Government may constitute a National Financial Reporting Authority (NFRA) to provide for matters relating to accounting and auditing standards under this Act—Section 132.
64. Section 135 deals with—Corporate Social Responsibility (CSR)
65. A person shall be eligible for appointment as an auditor of a company only if he is professionally a __________—Chartered Accountant.
66. True/ False: Ownership of a company lies with whom—Shareholders.
67. True/ False: Only individual can be appointed as Director of a Company and no body corporate/ firm or association can be appointed as Director of a company—True.
68. True/ False: The Directors are agent of the Company—True.
69. Which Section ______of CA, 2013 provides that every Company shall have a Board of Directors—Section 149.
70. The BoD shall consists of individuals—True.
71. Min no. of Directors in Private Co—2- Directors. [S.149]
72. Max no. of Director in a Private company—15 Directors.
73. Min no. of Directors in Public Co—3- Directors. [S.149]
74. Max no. of Director in a Public Company—15 Directors.
75. Min no. of Directors in OPC—1- Directors.
76. Max no. of Director in a company—15 Directors.
77. A company may appoint more than fifteen directors after passing a________ resolution—Special Resolution. [S.149]
78. Every company shall have at least one-Director who has stayed in India for a total period of not less than ________days in the during the financial year—182 Days. S.149]
79. Min. Independent Director— Every listed public company shall have at least ________ of the total number of directors as independent directors—One-Third. S.149]
80. Every director shall be appointed by the company in _______ meeting—General Meeting. [S.152]
81. DIN No:- No person shall be appointed as a director of a company unless he has been allotted the Director Identification Number (DIN) under Section_______?—Section 154.
82. The DIN No. shall be allotted within the period of _____month from the date of application of DIN No. to the Central Govt.—One-month.
83. Proposal for Director—To have proposal of 14 days notice with s.1 lakh as security. In case the person is appointed as Director or gets 25% of total valid votes, the security of Rs.1 lakh shall be refunded.
84. A person appointed as a director shall not act as a director unless he gives his consent to hold the office as director and such consent has been filed with the Registrar within ________days of his appointment—30 Days.
85. Additional Director—The Board of Directors can appoint Additional Directors and they hold office upto the date of the next AGM of the Company.
86. Separate Resolution: Separate resolutions are required to appoint every director in a meeting unless a proposal to move such resolution has first been agreed to at the meeting without  any vote being cast against it—True.
87. Consent—A person can not act as Director unless he within______days of his appointment , signs and files with the RoC his consent to act as Director—30 Days.
88. Retirement by Rotation—2/3 Directors who have been longest in office since the date of appointment shall retire on rotation in every AGM.
89. Re-appointment—
90. Section_______of the Companies Act, 2013 deals with the disqualifications for appointment of director—Section 164.
91. Section 165- Number of directorships:— No person, after the commencement of this Act, shall hold office as a director, including any alternate directorship, in more than ________companies at the same time—20 Companies.
92. Section :167- Vacation of office of director—The office of a director shall become vacant in case, he absents himself from all the meetings of the Board of Directors held during a period of _______months with or without seeking leave of absence of the Board—12 Months.
93. Section :167- Vacation of office of director—The office of a director shall become vacant in case, he is convicted by a court of any offence, whether involving moral turpitude or otherwise and sentenced in respect thereof to imprisonment for not less than _______months: Provided that the office shall be vacated by the director even if he has filed an appeal against the order of such court—6-months.
94. Alternate Director—The BoD can appoint alternate Director, in case of absence of Original Director for a period of not less than_______months—Three Months.
95. If a person, functions as a director even when he knows that the office of director held by him has become vacant on account of any of the disqualifications, he shall be punishable with fine which shall not be less than one lakh rupees but which may extend to five lakh rupees.
96. Section 181-The Board of Directors of a company may contribute to bona fide charitable and other funds, provided that prior permission of the company in general meeting shall be required for such contribution in case any amount the aggregate of which, in any financial year, exceed five per cent. of its average net profits for the three immediately preceding financial years.
97. No Loan/ Guarantee to Director—No Company shall, directly or indirectly, advance any loan to Directors or any other person in whom Director is interested—True. [S.185]
98. The company may contribute an amount to the National Defence Fund (NDF) or any other Fund approved by the Central Government for the purpose of national defence under Section_______of the Companies Act, 2013—Section 183.
99. The rules regarding payment required to be made to a Director as compensation for loss of office, etc. in connection with the transfer of undertaking , property or share are provided under Section______of the Companies Act, 2013—Section 191. 
100. Prohibition on Insider Trading– No person including any director or key managerial personnel of a company shall enter into insider trading. Which Section of the Companies Act, 2013 provides so—Section 196.
101. SFIO—The Central Government, under Section________of the Companies Act, 2013 shall establish an office to be called the Serious Fraud Investigation Office (SFIO) to investigate frauds relating to a company—Section 211.
102. The Central Government to provide for amalgamation of companies in public interest under Section__________—Section 237.
103. Section 245of the Companies Act, 2013 deals with—Class Action.
104. Where the Registrar has reasonable cause to believe that a company has failed to commence its business within ________ year of its incorporation, he shall send a notice to the company and all the directors of the company, of his intention to remove the name of the company from the register of companies and requesting them to send their representations along with copies of the relevant documents, if any, within a period of ________ days from the date of the notice—One-year; 30-days.
105. Chapter ______ of the Companies Act, 2013 deals with ‘winding up’—Chapter-XX.
106. Section_______of the Companies Act, 2013 deals with ‘mode of winding up’—Section 270.

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