CMA Final · Free
Corporate and Economic Laws MCQs for CMA Final
Chapter-wise Corporate and Economic Laws MCQs with answers and explanations. Try the sample questions below, then practise a set of 10 with instant right/wrong.
Practise 10 Law MCQsSample Corporate and Economic Laws MCQs with answers
Q1 · The Companies Act, 2013
Under the Companies Act, 2013, what is the maximum number of directors a public company can have without a special resolution?
- (a) 10
- (b) 12
- (c) 15
- (d) 20
Show answer ↓
Answer: (c) 15
(c) is correct: Section 149 allows up to 15 directors in a company, and more than 15 requires a special resolution. (a), (b) and (d) do not match the statutory limit of 15.
Q2 · SEBI Regulations
Which of the following is a prohibited transaction under SEBI (Prohibition of Insider Trading) Regulations, 2015?
- (a) Trading by a designated person during the trading window
- (b) Trading by an insider while in possession of unpublished price sensitive information
- (c) Pledging shares in the ordinary course of business
- (d) Subscribing to shares in a rights issue
Show answer ↓
Answer: (b) Trading by an insider while in possession of unpublished price sensitive information
(b) is correct: trading while in possession of unpublished price sensitive information is prohibited under the Insider Trading Regulations. (a) is permitted outside the closed window, (c) and (d) are not insider trading violations in themselves.
Q3 · Foreign Exchange Management Act, 1999
Under the Foreign Exchange Management Act, 1999, which authority is responsible for administering the Act?
- (a) Securities and Exchange Board of India
- (b) Reserve Bank of India
- (c) Ministry of Corporate Affairs
- (d) Competition Commission of India
Show answer ↓
Answer: (b) Reserve Bank of India
(b) is correct: the RBI administers FEMA, 1999 in consultation with the Central Government. The other bodies regulate securities, corporate matters or competition respectively.
Q4 · Corporate Governance and Social Responsibility and Sustainability
ABC Ltd, a listed company, had a net profit (computed under Section 198) of ₹8 crore, ₹10 crore and ₹12 crore in the three immediately preceding financial years. What is the minimum CSR spend required in the current year under Section 135 of the Companies Act, 2013?
- (a) ₹30 lakh
- (b) ₹20 lakh
- (c) ₹24 lakh
- (d) ₹10 lakh
Show answer ↓
Answer: (b) ₹20 lakh
(b) is correct: the required spend is 2% of the average net profit of the three preceding years. The average is (8+10+12)/3 = ₹10 crore, and 2% of that is ₹20 lakh. ₹24 lakh wrongly applies 2% to the latest year's profit only.
Q5 · Insolvency and Bankruptcy Code, 2016
An operational creditor wishes to file an application to initiate CIRP against a corporate debtor under Section 9 of the IBC, 2016. Before filing, the creditor must:
- (a) Obtain the approval of the Committee of Creditors
- (b) Deliver a demand notice of the unpaid operational debt to the corporate debtor
- (c) Get the debt admitted by the Debt Recovery Tribunal
- (d) Appoint a liquidator
Show answer ↓
Answer: (b) Deliver a demand notice of the unpaid operational debt to the corporate debtor
(b) is correct: under Section 8, an operational creditor must first deliver a demand notice. It can apply under Section 9 only if the debtor neither pays nor disputes the debt within 10 days. (a) is wrong because the CoC is constituted only after CIRP begins.
Practise Corporate and Economic Laws MCQs
Pick a chapter or practise all chapters. Your score card and analysis open in the free app.
Featured · Today
Daily MCQ set · CMA Final
Today's question of the day plus quick questions from your level.
Course
Level
Subject
Chapter
Free · no sign-up · questions checked by Bruno, the Studycaller AI
More CMA Final MCQs
Free app · 5 lakh+ learners
Unlimited Law MCQs in the app
Score cards, weak-topic analysis, timer, ICAI-level questions and case studies — free on Android and iPhone.