Company Accounts

Share Capital

Easy

common

Which of the following statements are true with reference to a "company"?

(A) The directors of the company are the owners of the company.

(B) A company is an artificial person.

(C) A company has its common seal.

(D) The liability of the members of the company is limited to the extent of shares held by them

Choose the correct answer from the options given below:

(A), (B) and (D) only

(A), (B) and (C) only

(A), (B), (C) and (D)

(B), (C) and (D) only

✅ Correct Option: 4

(A) False: The shareholders (members) are the owners of the company. The directors are agents or representatives appointed to manage the company's affairs.

(B) True: A company is an artificial legal person created by law. it can sue, be sued, and own property in its own name.

(C) True: A company traditionally uses a common seal as its official signature for executing formal documents (though modern laws in some jurisdictions have made it optional, it remains a core legal characteristic).

(D) True: In a company limited by shares, the liability of members is limited to the unpaid amount on the shares they hold.

Hence option 4 (B, C and D are true) is the correct answer.

2023: 28 May Shift 1

Match List - I with List - II.

List - I	List - II
(A) Over Subscription	(I) Minimum amount that must be raised by issue of shares
(B) Minimum subscription	(II) Application received is more than shares issued
(C) Under Subscription	(III) Allotment of shares without issue of prospectus
(D) Private Placement	(IV) Application received is less than shares issued

Choose the correct answer from the options given below :

2025: 22 May Shift 2

Part of the subscribed capital which has been called up on the shares, i.e., what the company has asked the shareholders to pay is known as ……….

2022: 8 Aug Shift 2

Amalgamation is a form of:

2026: 13 May Shift 1

Varun Ltd. forfeited 40,000 equity shares of Rs. 100 each for non-payment of first and final call of Rs. 40 per share. The maximum amount of discount per share at which these shares can be re-issued will be :-

2025: 13 May Shift 1

Which of the following is not the characteristics of company-

2026: 24 May Shift 1

Abhay, a shareholder, failed to pay the money for second and final call of Rs. 20 on 1,000 shares issued to him at Rs. 120 (face value Rs. 100 per share). His shares were forfeited after the second call. Share capital A/c would be debited by:

Solution

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