MCQ on Company Law: Part I - Our Legal World

1. The term company is defined under which section of the Companies Act, 2013?

Section 2(15)

Section 2(20)

Section 2(5)

Section 2(18)

2. Which of the following case is about doctrine of ultra vires?

Royal British Bank v. Turquand

Premier Industrial Bank Ltd. v. Carlton Mfg. Co. Ltd.

Rajendra nath dutta v. shibendra nath mukherjee

Attorney General v. great Eastern railway co.

3. Various cases have established that the rule in the case of “Royal British Bank v.Turquand did not operate in a completely in a restricted manner.
which one of the following statements is Incorrect

This rule only protected “outsiders”, that is persons dealing ‘externally’ with the company

Actual notice of the failure to comply with the internal procedures precluded reliance upon the rule

An outsider could not rely upon this rule where the nature of the transaction is suspicious

If the transaction in question could not in the circumstance have been validly entered into by the company, even then the third party could enforce the rule.

4. Read Assertion (A) and Reason (R) and answer by using code given below:
Assertion (A): Under the Company Law, though any outsider is presumed to be aware of the documents which are publicly accessible. but not the internal proceedings of which he Cannot reasonably aware of, because those are not accessible to the public.
Reason (R): The doctrine of indoor management evolved as a partial exception to the Doctrine of Constructive Notice and the rule was laid down Royal British Bank v. Turquand,

Both (A) and (R) are correct and (R) is the correct explanation of (A)

both (A) and (R) are correct and (R) is not the correct explanation of (A)

(A) is true but (R) is false

(A) is false but (R) is true,

5. Which of the following case is about doctrine of ultra vires?

Royal British Bank v. Turquand

Premier Industrial Bank Ltd. v. Carlton Mfg. Co. Ltd.

Rajendra nath dutta v. shibendra nath mukherjee

Attorney General v. great Eastern railway co.

6. Which section of the Companies Act, 2013 deals with the ‘Alteration of Memorandum of Association’?

Section 12

Section 13