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UPMSP Secretarial Practice study materials
UPMSP Secretarial Practice study resources

UPMSP Secretarial Practice practice questions

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Question 1Nature and Scope of Secretarial Practice

In the traditional classification of secretarial functions, which duty is regarded as the primary and most fundamental responsibility of a company secretary?

  1. Negotiating wage settlements with trade unions
  2. Preparing the annual financial statements for audit
  3. Designing the company's marketing campaigns
  4. Ensuring statutory compliance and maintaining statutory registers and records Correct answer.

Explanation

The secretary's core function is to ensure the company complies with statutory requirements and to maintain the statutory registers, minutes and records required by company law. Marketing and wage negotiation fall outside the secretarial role, and preparing financial statements is the responsibility of the accountant or auditor.

Question 2Nature and Scope of Secretarial Practice

A company secretary who is described as a 'servant of the company but not a servant of the directors' is best understood as holding which position?

  1. An officer of the company accountable to the company itself Correct answer.
  2. A personal employee of the managing director
  3. A mere clerical assistant with no legal standing
  4. An independent contractor engaged only for board meetings

Explanation

The secretary is an officer of the company, appointed by the board but owing duties to the company as a legal entity. This means the secretary is not the personal servant of any director and must act in the company's interest even when the board changes.

Question 3Nature and Scope of Secretarial Practice

Which of the following best distinguishes the 'scope' of secretarial practice from the 'nature' of secretarial practice?

  1. Scope refers to statutory penalties, while nature refers to voluntary codes
  2. Scope refers to the range of functions performed, while nature refers to the essential character of the role Correct answer.
  3. Scope refers to the secretary's salary, while nature refers to the secretary's qualifications
  4. Scope refers to the company's business, while nature refers to the company's profits

Explanation

Nature describes what the role essentially is, such as its legal status and fiduciary character, while scope describes the range of duties and activities the secretary performs. The two concepts are complementary but answer different questions about the role.

Question 4Nature and Scope of Secretarial Practice

Under company law, which of the following persons is typically recognised as an 'officer' of a company in relation to secretarial practice?

  1. The statutory auditor of the company
  2. A casual worker employed for a single day
  3. The company secretary, where the law so designates the office Correct answer.
  4. A shareholder holding one share

Explanation

Company law commonly lists the secretary among the officers of a company alongside directors and the managing director. The designation matters because officers carry specific statutory duties and liabilities.

Question 5Nature and Scope of Secretarial Practice

A newly incorporated company must appoint its first secretary. Which statement best reflects the usual statutory expectation regarding this appointment?

  1. The appointment requires the unanimous consent of all shareholders in writing
  2. The appointment may be postponed indefinitely until the first annual general meeting
  3. The appointment must be made within the period prescribed by company law and the board records it in the minutes Correct answer.
  4. The appointment must be made by the statutory auditor

Explanation

Company law generally requires a company to have a secretary from incorporation or within a prescribed period, with the board making and minuting the appointment. Shareholder unanimity and auditor involvement are not the normal route for this appointment.

Question 6Nature and Scope of Secretarial Practice

Which of the following activities falls outside the recognised scope of secretarial practice?

  1. Maintaining the register of members
  2. Convening board meetings and recording minutes
  3. Conducting the statutory audit of the company's accounts Correct answer.
  4. Advising the board on corporate governance compliance

Explanation

The statutory audit is reserved for a qualified independent auditor and cannot be performed by the secretary, whose duties lie in administration, compliance and governance support. Meeting administration, registers and governance advice are classic secretarial functions.

Question 7Nature and Scope of Secretarial Practice

A secretary learns that a director has breached a fiduciary duty but the board wishes to keep the matter quiet. What does the secretary's position as an officer of the company require?

  1. Disclose the matter to the company's competitors
  2. Report the matter through the proper channels, since the duty is owed to the company Correct answer.
  3. Resign immediately without informing anyone
  4. Follow the board's instruction and take no further action

Explanation

Because the secretary owes duties to the company as a legal entity, the secretary must act in the company's interest and escalate breaches through proper channels such as the chairman or the board as a whole. Blind obedience to individual directors would conflict with that duty.

Question 8Nature and Scope of Secretarial Practice

Which statement best describes the secretary's role in relation to the board of directors?

  1. The secretary advises the board on procedure and compliance while remaining non-voting Correct answer.
  2. The secretary replaces absent directors during voting
  3. The secretary directs the board's decisions and votes at board meetings
  4. The secretary appoints and removes directors at will

Explanation

The secretary supports the board by advising on procedure, law and governance, and by implementing decisions, but does not vote or control the board. Decision-making authority remains with the directors.

Question 9Nature and Scope of Secretarial Practice

The secretary's duty of confidentiality is best described by which statement?

  1. It ends automatically when the secretary retires from office
  2. It applies only to information already published in the annual report
  3. It applies only to written documents, not to oral discussions
  4. It continues after leaving office in respect of information learned in the role Correct answer.

Explanation

Confidentiality is a continuing obligation that survives the end of employment or office, because the information was received in a fiduciary capacity. It covers both written and oral information, and does not lapse merely because some information is later published.

Question 10Nature and Scope of Secretarial Practice

Which of the following best illustrates the secretary acting in a 'compliance' capacity rather than an 'administrative' capacity?

  1. Advising the board that a proposed loan to a director would breach statutory limits Correct answer.
  2. Typing the agenda for a board meeting
  3. Filing correspondence in the company's records room
  4. Booking a venue for the annual general meeting

Explanation

Compliance work involves interpreting legal requirements and warning the board about unlawful proposals. Typing, filing and booking venues are administrative support tasks that do not require legal judgement.

Question 11Nature and Scope of Secretarial Practice

Which historical development most contributed to the modern expansion of the company secretary's role from clerk to governance professional?

  1. The abolition of general meetings
  2. The decline of international trade
  3. The growth of joint stock companies and increasingly detailed company legislation Correct answer.
  4. The invention of the typewriter

Explanation

As joint stock companies multiplied and legislation imposed more reporting and meeting obligations, the secretary's duties expanded from clerical work to legal compliance and governance. Office equipment and trade patterns did not drive this legal evolution.

Question 12Nature and Scope of Secretarial Practice

A company proposes to appoint a person as secretary who lacks the qualifications prescribed by law. What is the correct position?

  1. The appointment becomes valid after one year of service
  2. The appointment is valid because the board's decision is final
  3. The appointment is invalid, and the company must appoint a qualified person Correct answer.
  4. The appointment is valid if the auditor approves it

Explanation

Where the law prescribes qualifications for the office of secretary, an appointment of an unqualified person does not satisfy the statutory requirement. The company must appoint someone who meets the prescribed criteria, and the auditor cannot cure the defect.

Question 13Nature and Scope of Secretarial Practice

Which of the following duties is most closely associated with the secretary's responsibility towards members of the company?

  1. Approving the company's product pricing policy
  2. Issuing share certificates and handling correspondence about share transfers Correct answer.
  3. Selecting the company's advertising agency
  4. Setting the salaries of senior executives

Explanation

The secretary serves members by maintaining the register, issuing certificates and processing transfers and related correspondence in accordance with the articles and law. Pricing, advertising and executive pay are management decisions outside the secretarial remit.

Question 14Nature and Scope of Secretarial Practice

The secretary of a listed company is asked to comment on the separation of the roles of chairman and chief executive. This task falls within which aspect of the modern secretarial role?

  1. Payroll administration
  2. Product quality control
  3. Statutory audit preparation
  4. Corporate governance advisory work Correct answer.

Explanation

Advising on board structure and the balance of power between chairman and chief executive is a governance matter, which is a core modern secretarial function. Audit preparation, payroll and quality control belong to other functions.

Question 15Nature and Scope of Secretarial Practice

Which statement correctly describes the secretary's duty regarding the minutes of board meetings?

  1. Minutes should be drafted by the auditor and signed by a shareholder
  2. Minutes should record only the names of those present
  3. Minutes should record the decisions and the reasoning sufficiently to show that duties were properly discharged Correct answer.
  4. Minutes should be destroyed after the meeting to protect confidentiality

Explanation

Proper minutes serve as the official record of deliberations and decisions and support accountability and compliance. They should capture decisions and relevant reasoning, not merely attendance, and they must be preserved as company records.

Question 16Nature and Scope of Secretarial Practice

A secretary is also a director of the same company. Which statement best captures the consequence for the secretary's duties?

  1. The secretarial duties are suspended while the person sits on the board
  2. The director role automatically overrides all secretarial duties
  3. The person must manage the potential conflict and observe the duties attached to each role Correct answer.
  4. The person may ignore confidentiality because directors have unlimited access

Explanation

Holding both offices does not extinguish either set of duties; the individual must recognise conflicts and act transparently, for example by disclosing interests and abstaining where appropriate. Neither role automatically cancels the other.

Question 17Nature and Scope of Secretarial Practice

Which of the following best explains why the secretary is often described as the 'custodian of the company's records'?

  1. The secretary is responsible for maintaining and safeguarding statutory registers, minutes and records Correct answer.
  2. The secretary personally owns all company documents
  3. The secretary sells company records to raise funds
  4. The secretary may alter records at the request of any director

Explanation

The description reflects the secretary's responsibility to keep statutory registers, minute books and other records accurate, complete and available for inspection as required by law. Ownership remains with the company, and records cannot be altered at will.

Question 18Nature and Scope of Secretarial Practice

A company secretary is asked to sign a statutory declaration confirming that the company has complied with a legal filing requirement. What does this responsibility indicate about the secretary's role?

  1. The secretary may sign without checking the underlying facts
  2. The board alone bears responsibility regardless of who signs
  3. The secretary has personal accountability for the accuracy of the declaration Correct answer.
  4. The declaration is a purely ceremonial document with no legal effect

Explanation

Signing a statutory declaration attaches personal responsibility to the signatory for the truth of its contents. The secretary must therefore verify the facts before signing, and the document is not merely ceremonial.

Question 19Nature and Scope of Secretarial Practice

Which of the following is the most accurate description of the secretary's relationship with the company's auditors?

  1. The secretary prepares the audit opinion on the auditor's behalf
  2. The secretary supervises the auditor's professional judgement
  3. The secretary appoints the auditor without member approval
  4. The secretary coordinates the provision of records and information needed for the audit Correct answer.

Explanation

The secretary acts as a channel between the company and the auditor, ensuring records and information are made available and meetings are arranged. The auditor's judgement remains independent, and appointment is governed by statute and members.

Question 20Nature and Scope of Secretarial Practice

Which statement best reflects the changing scope of secretarial practice in the context of increasing regulation and digital record-keeping?

  1. The role now combines legal compliance, governance advice and management of digital statutory records Correct answer.
  2. The role has been abolished in modern companies
  3. The role now focuses solely on preparing tax returns
  4. The role has narrowed to typing and filing only

Explanation

Modern secretarial practice blends traditional record-keeping with legal compliance and governance advice, and digital systems have changed how statutory records are maintained and inspected. The role has broadened rather than narrowed or disappeared.

Question 21Company Formation and Incorporation

Under the Companies Act 2013, which document fixes the relationship between a company and its members as well as among the members themselves and is binding on the company and all members?

  1. The prospectus
  2. The Table F
  3. The Memorandum of Association
  4. The Articles of Association Correct answer.

Explanation

The Articles of Association are the internal rulebook of the company. They govern the rights of members among themselves and the manner in which the company's affairs are conducted, and they create a binding contract between the company and its members. The memorandum, by contrast, defines the company's relationship with the outside world.

Question 22Company Formation and Incorporation

A promoter of a company to be registered under the Companies Act 2013 signs a preliminary contract for office premises in the company's proposed name before incorporation. What is the legal position of such a pre-incorporation contract?

  1. It is enforceable only against the Registrar of Companies
  2. It binds the company automatically once the certificate of incorporation is issued
  3. It binds the promoters personally, and the company is not bound unless it adopts it after incorporation Correct answer.
  4. It is void and creates no rights or liabilities for anyone

Explanation

A company has no legal existence before incorporation, so it cannot be a party to a contract made on its behalf. The promoters are personally liable on such a contract, and the company becomes bound only if, after incorporation, it enters into a fresh contract or otherwise adopts the transaction.

Question 23Company Formation and Incorporation

Which clause of the Memorandum of Association states the amount of share capital with which the company is registered and its division into shares of a fixed amount?

  1. The object clause
  2. The situation clause
  3. The capital clause Correct answer.
  4. The liability clause

Explanation

The capital clause of the memorandum specifies the authorised or registered capital of the company and how it is divided into shares. It sets the ceiling beyond which the company cannot issue shares without altering the memorandum.

Question 24Company Formation and Incorporation

A private company wishes to alter its articles to remove a pre-emptive right of existing members over fresh share issues. Which step is legally required?

  1. Approval of the Regional Director without any member resolution
  2. No resolution is needed because articles can be altered by the company secretary
  3. An ordinary resolution passed by the board of directors alone
  4. A special resolution passed by the members and filing of the altered articles with the Registrar within the prescribed time Correct answer.

Explanation

Section 14 permits a company to alter its articles by passing a special resolution, and the altered articles must be filed with the Registrar within fifteen days. Alteration must also remain consistent with the memorandum and the Act, and any entrenchment provision must be respected.

Question 25Company Formation and Incorporation

The doctrine of ultra vires, as applied to companies registered under the Companies Act 2013, means that an act is beyond the company's powers when it falls outside which document?

  1. The board's minutes book
  2. The Memorandum of Association Correct answer.
  3. The register of members
  4. The Articles of Association

Explanation

Ultra vires means beyond the powers. A company's powers are limited by the object clause and other clauses of its memorandum, so an act outside the memorandum is void and cannot be ratified even by unanimous consent of shareholders. Acts merely outside the authority of directors but within the memorandum are not ultra vires the company.

Question 26Company Formation and Incorporation

Which of the following is a characteristic that distinguishes a public company from a private company under the Companies Act 2013?

  1. A public company must have at least seven members, while a private company needs a minimum of two Correct answer.
  2. A private company must have at least three directors
  3. A public company cannot issue shares to the public
  4. A public company need not have a registered office

Explanation

A private company requires a minimum of two members, while a public company requires at least seven. A private company is restricted in the number of its members and in inviting public subscription, whereas a public company may raise capital from the public.

Question 27Company Formation and Incorporation

A company registered under the Companies Act 2013 wants to change its registered office from one state to another. Which authority must approve this change?

  1. The Regional Director, after a special resolution of members Correct answer.
  2. The Registrar of Companies of the new state alone
  3. The members by ordinary resolution
  4. The board of directors by resolution

Explanation

Shifting the registered office from one state to another requires alteration of the memorandum, which needs a special resolution of members and approval of the Regional Director. The Regional Director's approval protects creditors and other stakeholders before the change takes effect.

Question 28Company Formation and Incorporation

What is the significance of the certificate of incorporation issued by the Registrar of Companies?

  1. It is issued only after the company holds its first annual general meeting
  2. It is conclusive evidence that the company has been duly registered and legally exists Correct answer.
  3. It certifies that the company has obtained all state and municipal trade licences
  4. It is a provisional licence that lapses if business does not commence within one year

Explanation

Section 7 provides that the certificate of incorporation is conclusive evidence that the requirements of the Act have been complied with and that the company is duly registered. Once issued, the company acquires a separate legal personality from the date mentioned in the certificate.

Question 29Company Formation and Incorporation

Under the Companies Act 2013, a company may be formed for any lawful purpose by seven or more persons as a public company. Which document must each subscriber sign at the time of registration?

  1. Both the memorandum and the articles of association, in the presence of at least one witness Correct answer.
  2. Only the declaration of compliance by a professional
  3. Only the memorandum of association
  4. Only the articles of association

Explanation

Section 4 requires the subscribers to subscribe their names to the memorandum and also to sign the articles, and both signatures must be attested by at least one witness. The declaration of compliance by a professional is a separate requirement filed with the Registrar.

Question 30Company Formation and Incorporation

Which statutory provision of the Companies Act 2013 deals with the formation of a company and the requirements relating to the memorandum and articles?

  1. Section 139
  2. Section 2
  3. Section 12
  4. Section 4 Correct answer.

Explanation

Section 4 of the Companies Act 2013 provides for the formation of a company for any lawful purpose and prescribes the contents of the memorandum and the requirement of articles. Section 12 deals with registered office, and Section 139 with appointment of auditors.

Question 31Company Formation and Incorporation

A company has an object clause permitting trading in textiles. It later enters into a contract to trade in cement and claims the contract is valid. Which statement best describes the legal position?

  1. The contract is voidable at the option of the company alone
  2. The contract is valid because the board approved it unanimously
  3. The contract is valid because the other party acted in good faith
  4. The contract is void as ultra vires the company and cannot be ratified by members Correct answer.

Explanation

An act outside the object clause of the memorandum is ultra vires the company and is void ab initio. Ratification, even by unanimous consent of all shareholders, cannot validate it because the company's capacity is limited by its memorandum.

Question 32Company Formation and Incorporation

What is the minimum number of directors required for a public company under the Companies Act 2013?

  1. One
  2. Two
  3. Three Correct answer.
  4. Five

Explanation

Section 149 requires a public company to have a minimum of three directors, a private company two, and a one person company one director. The maximum number of directors is fifteen unless increased by special resolution.

Question 33Company Formation and Incorporation

A promoter enters into a contract on behalf of a company that is yet to be incorporated, and after incorporation the company enters into a fresh contract on the same terms with the same party. What is the effect?

  1. The promoter is automatically released from all liability by incorporation
  2. The fresh contract is void because the company had already been promoted
  3. The company is liable retrospectively from the date of the original contract
  4. The company becomes bound by the fresh contract, and the promoter's liability on the original contract continues unless discharged Correct answer.

Explanation

A company cannot be bound by a pre-incorporation contract because it did not exist at the time. If it later enters into a fresh contract, it becomes liable on that new contract, but the promoter remains liable on the original unless the other party agrees to release him.

Question 34Company Formation and Incorporation

Which of the following statements about the name of a company under the Companies Act 2013 is correct?

  1. A company must obtain the Registrar's approval for its name, and a name identical or too nearly resembling an existing company's name may be refused Correct answer.
  2. A company may use any name of its choice without approval
  3. A company's name is approved only after the first annual general meeting
  4. A company may use a name suggesting government patronage without any restriction

Explanation

Section 4 requires the proposed name to be approved by the Registrar, who may refuse a name that is undesirable or too closely resembles an existing company's name. Names suggesting connection with the government require special approval and are restricted.

Question 35Company Formation and Incorporation

What is the effect of the liability clause in the memorandum of a company limited by shares?

  1. It names the states in which the company may operate
  2. It fixes the amount of dividend payable to each member
  3. It states that the liability of members is limited to the unpaid amount on their shares Correct answer.
  4. It specifies the objects for which the company is formed

Explanation

The liability clause declares the nature of members' liability. In a company limited by shares, each member's liability is limited to the amount remaining unpaid on the shares held by him.

Question 36Company Formation and Incorporation

A company alters its articles in a manner that deprives a minority shareholder of a dividend already declared and unpaid. Which statement is correct?

  1. The alteration is valid if the board ratifies it
  2. The alteration is invalid because it cannot retrospectively take away an accrued right of a member Correct answer.
  3. The alteration is valid only if the affected member abstains from voting
  4. The alteration is valid because articles may always be altered by special resolution

Explanation

Although articles can be altered by special resolution, the power is not unlimited. An alteration cannot retrospectively divest a member of a right already accrued, such as a declared but unpaid dividend, nor can it be inconsistent with the Act or the memorandum.

Question 37Company Formation and Incorporation

Which of the following is required to be stated in the situation clause of the memorandum of association?

  1. The names of the first auditors
  2. The name of the state in which the registered office of the company is situated Correct answer.
  3. The number of directors on the board
  4. The amount of authorised share capital

Explanation

The situation clause must state the name of the state in which the registered office of the company is to be situated. The exact address of the registered office is intimated separately to the Registrar under Section 12.

Question 38Company Formation and Incorporation

A company registered as a private company wishes to convert into a public company. Which of the following is the correct first step?

  1. Reduce the number of members to below seven before conversion
  2. Pass a special resolution altering the articles to remove the restrictions applicable to a private company Correct answer.
  3. Apply directly to the Central Government for a fresh certificate of incorporation
  4. Issue a prospectus before any member resolution is passed

Explanation

Conversion of a private company into a public company requires alteration of the articles, by special resolution, to delete the restrictive provisions applicable to private companies. The altered articles are then filed with the Registrar, who issues a fresh certificate of incorporation.

Question 39Company Formation and Incorporation

What does the doctrine of indoor management, associated with companies, primarily protect?

  1. Directors who act beyond the articles
  2. Outsiders dealing with a company who assume that internal procedures have been properly followed Correct answer.
  3. Members who wish to inspect the memorandum
  4. Promoters who have not signed the articles

Explanation

The doctrine of indoor management, also called the Turquand rule, protects outsiders who deal with a company in good faith. They may assume that internal procedures required by the articles have been complied with, since they cannot inspect the company's internal workings.

Question 40Company Formation and Incorporation

Which document must a company file with the Registrar to record the particulars of its members and the shares held by them after incorporation?

  1. The register of members is filed annually with the Registrar as part of the annual return Correct answer.
  2. The register of members is filed only when a member dies
  3. The register of members is filed with the Regional Director
  4. The register of members is maintained at the registered office and is not filed with the Registrar

Explanation

A company must maintain a register of members and file an annual return with the Registrar containing, among other particulars, the details of its members and shareholding. The register itself is kept at the registered office and is open to inspection by members.

Question 41Company Formation and Incorporation

A company's object clause permits manufacture of bicycles. The board decides to invest surplus funds in a fixed deposit with a bank. Is this act ultra vires?

  1. No, because incidental and ancillary acts necessary for the company's business are within its implied powers Correct answer.
  2. Yes, because it is not expressly mentioned in the object clause
  3. Yes, because only the members can decide on investments
  4. No, because the board has unlimited powers

Explanation

A company has implied powers to do acts that are incidental or ancillary to the attainment of its stated objects. Temporary investment of surplus funds is a normal incidental act and is not ultra vires merely because it is not expressly listed.

Question 42Company Formation and Incorporation

What is the significance of Table F in Schedule I of the Companies Act 2013?

  1. It prescribes the format of the auditor's report
  2. It contains the model set of articles for a company limited by shares Correct answer.
  3. It contains the model form of the memorandum for a company limited by guarantee
  4. It lists the forms used for filing annual returns

Explanation

Table F in Schedule I provides the model articles of association for a company limited by shares. A company may adopt these articles in whole or in part, or may frame its own articles consistent with the Act.

Question 43Company Formation and Incorporation

A subscriber to the memorandum of a company fails to pay the amount due on the shares subscribed by him. What is the consequence?

  1. The Registrar personally recovers the amount from him
  2. He is liable to pay the amount, and the company may enforce it as a debt due Correct answer.
  3. His shares are automatically forfeited without any notice
  4. He incurs no liability because subscription to the memorandum is only a formality

Explanation

A subscriber to the memorandum is treated as a member and is bound to pay the amount due on the shares he has subscribed. The company can enforce this as a debt, and the subscriber cannot escape liability by claiming that he subscribed only to enable incorporation.

Question 44Company Formation and Incorporation

Which of the following best explains the doctrine of lifting the corporate veil?

  1. It applies only to one person companies
  2. It permits courts to disregard the separate legal personality of a company in cases of fraud, improper conduct or statutory requirement Correct answer.
  3. It automatically applies whenever a company suffers a loss
  4. It allows members to ignore the memorandum whenever they wish

Explanation

A company is a separate legal person distinct from its members, but courts may disregard this separateness where the corporate form is used for fraud, evasion of law, or where a statute requires it. This is known as lifting or piercing the corporate veil.

Question 45Company Meetings: Types, Notice, Agenda, Quorum

Under the Companies Act, 2013, what is the minimum period of clear notice required for an annual general meeting of a company whose articles are silent on the matter?

  1. Twenty-one days Correct answer.
  2. Forty-eight hours
  3. Seven days
  4. Fourteen days

Explanation

Section 101 of the Companies Act, 2013 prescribes twenty-one clear days' notice for a general meeting unless the company's articles prescribe a longer period. Shorter notice is permitted only with the consent of the requisite majority of members in the manner the section allows.

Question 46Company Meetings: Types, Notice, Agenda, Quorum

A private company holds its annual general meeting. Which statement correctly reflects the quorum requirement under the Companies Act, 2013?

  1. Ten members personally present
  2. Two members personally present Correct answer.
  3. Five members personally present
  4. Three members personally present

Explanation

Section 103 fixes the quorum for a private company at two members personally present. For public companies the quorum rises with membership, but the private company threshold remains two.

Question 47Company Meetings: Types, Notice, Agenda, Quorum

In the context of company meetings, what does an 'agenda' primarily do?

  1. Records the minutes of the previous meeting
  2. Certifies the quorum at the start of the meeting
  3. Sets out the voting result on each resolution
  4. Lists the items of business to be transacted in order Correct answer.

Explanation

An agenda is the ordered list of business items to be taken up at a meeting, usually circulated with the notice. It gives members a structured plan of the proceedings and helps the chairman conduct the meeting in sequence.

Question 48Company Meetings: Types, Notice, Agenda, Quorum

A statutory meeting is required to be held by which category of company?

  1. Every company limited by guarantee
  2. Every private company limited by shares
  3. Every unlimited company
  4. Every public company limited by shares Correct answer.

Explanation

Section 1(2A) read with the statutory meeting provisions applies the statutory meeting requirement to a public company limited by shares. The meeting must be held within six months of commencement of business, and the statutory report is sent to members beforehand.

Question 49Company Meetings: Types, Notice, Agenda, Quorum

Which of the following is an example of an extraordinary general meeting?

  1. A meeting convened to consider a special resolution for alteration of the object clause Correct answer.
  2. A meeting of the board of directors called to approve the annual accounts
  3. The annual meeting held within six months of the close of the financial year
  4. The first meeting of members held after incorporation

Explanation

An extraordinary general meeting is any general meeting of members other than the annual general meeting or statutory meeting. Altering the object clause requires a special resolution and is typically transacted at an EGM.

Question 50Company Meetings: Types, Notice, Agenda, Quorum

Who is ordinarily entitled to preside over a general meeting of a company when the articles so provide?

  1. The company secretary
  2. The managing director
  3. The auditor
  4. The chairman of the board Correct answer.

Explanation

The chairman of the board normally presides over general meetings as provided in the articles. In the absence of the chairman, the articles usually specify who takes the chair, such as the directors present electing one of their number.