SEBI Grade A 2022 – Companies Act Question
SEBI Grade A 2022 – Companies Act Question

Companies Act Question for SEBI Grade A 2022

SEBI Grade A Companies Act Practice Question Test. Companies Act study material for SEBI Grade A Exam 2022. Costing, Companies Act, Economics, Commerce & Accountancy, Management and Finance Notes PDF for SEBI Grade A Preparation 2022. As we all know The Security Exchange Board of India (SEBI) has released the SEBI Grade A 2022 Notification for the recruitment of 120+ Assistant Managers across the country.

If you are preparing for SEBI Grade A 2022, you will come across a section on “Costing, Companies Act and Economics”. In this post, you will attempt the Companies Act for your SEBI Grade A Preparation 2022. If you prepare this thoroughly, you can very easily crack SEBI Grade A 2022.

SEBI Grade A 2022 – Companies Act Question | Set- 4

Solving the SEBI Grade A Companies Act Question will help the candidates to get acquainted with different types of questions. SEBI Grade A Companies Act Question will also increase the precision and accuracy which saves a good amount of time in the actual exam.


1. _____ of Companies Act, 2013 defines dividend.

A. Section 2(8)

B. Section 2(35)

C. Section 2(70)

D. Section 2(92)

E. None of above

Show Correct Answers

Correct Answer – B. Section 2(35)

Explanation: Apply hint given in previous part. Since most of the words start with a or b or c, Section 2(8) is less likely to be the answer. Section 2(35) is most likely to be the answer.

2. Which of the following is NOT correct about Equity and Preference share-

A. Dividend for preference shares is generally cumulative

B. Equity shareholder enjoys higher preferential rights in matters of payment of dividend

C. Preference shareholders enjoy higher preferential rights in matters of repayment of capital

D. None of the above

E. None of above

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Correct Answer – B. Equity shareholder enjoys higher preferential rights in matters of payment of dividend

Explanation: Shares can be classified into two categories – Preference shares and equity shares. Preference shares: According to Section 43 of Companies Act 2013, persons holding preference shares are assured of preferential dividend at a fixed rate during the life of the company. Equity shares: Equity shares are those shares, which are not preference shares. It means they do not enjoy any preferential rights in the matter of payment of dividend or repayment of capital.

3. A company has to transfer _______ of the profits of the company to the reserves of the current year, before the declaration of dividend.

A. 10%

B. 15%

C. 20%

D. As company may consider appropriate

E. None of above

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Correct Answer – D. As company may consider appropriate

Explanation: A company may, before the declaration of any dividend in any financial year, transfer such percentage of its profits for that financial year as it may consider appropriate to the reserves of the company. Therefore, the company may transfer such percentage of profit to reserves before declaration of dividend as it may consider necessary. Such transfer is not mandatory and the percentage to be transferred to reserves is to be decided at the discretion of the company.

4. Dividend is payable in ______

A. Cash

B. Cheque

C. Any electronic mode

D. All of the above

E. None of above

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Correct Answer – D. All of the above

Explanation: Any dividend payable in cash may be paid by cheque or warrant or in any electronic mode to the shareholder entitled to the payment of the dividend.

5. ‘P’ in IEPF stands for _______

A. Provident

B. Policy

C. Protection

D. Perpetual

E. None of above

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Correct Answer – C. Protection

Explanation: Investor Education and Protection Fund (Section 125)

6. All shares for which dividend has not been paid or claimed for ______ consecutive years or more shall be transferred by the company by the company in the name of IEPF.

A. 5

B. 7

C. 10

D. 15

E. All of the above

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Correct Answer – B. 7

Explanation: Section 124(6): All shares in respect of which [dividend has not been paid or claimed for seven consecutive years or more shall be] transferred by the company in the name of Investor Education and Protection Fund along with a statement containing such details as may be prescribed.

7. _______ of Companies Act deals with IEPF.

A. Section 123

B. Section 124

C. Section 125

D. Section 127

E. All of the above

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Correct Answer – C. Section 125

8. In how many days from the date of declaration of dividend, it shall be deposited in a separate bank account?

A. 5 days

B. 7 days

C. 15 days

D. 21 days

E. All of the above

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Correct Answer – A. 5 days

Explanation: Section 123(4): The amount of the dividend, including interim dividend, shall be deposited in a scheduled bank in a separate account within five days from the date of declaration of such dividend.

9. Which of the following amounts is not credited to the IEPF Account?

A. Unpaid dividend account of company

B. Matured deposit with company

C. Profit on sale of asset

D. Matured debentures with companies

E. All of the above

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Correct Answer – C. Profit on sale of asset

10. First auditor shall be appointed by the BOD within ________ days of the date of registration of the company.

A. 15

B. 30

C. 60

D. 90

D. None of above

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Correct Answer – B. 30

Explanation: Section 139(6): Notwithstanding anything contained in sub-section (1), the first auditor of a company, other than a Government company, shall be appointed by the Board of Directors within thirty days from the date of registration of the company and in the case of failure of the Board to appoint such auditor, it shall inform the members of the company, who shall within ninety days at an extraordinary general meeting appoint such auditor and such auditor shall hold office till the conclusion of the first annual general meeting.

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