Practice Corporate Law Questions and Answers

• The NCLT admits a company's insolvency application and the CIRP commences. Under Sections 17-20 of the IBC, 2016 the management of the corporate debtor dur...
• The COMMITTEE OF CREDITORS (CoC) in the Corporate Insolvency Resolution Process under Section 21 of the IBC, 2016 is composed of:
• For the resolution plan to be approved, the Committee of Creditors may approve it by a vote of not less than ___% of the financial creditors:
• Two companies propose an AMALGAMATION under which the undertaking of one company is transferred to another and its members receive shares of the transferee...
• A company proposes a RELATED PARTY TRANSACTION with a director and his relative exceeding the prescribed threshold. Under Section 188 of the Companies Act,...
• A charge created by a company on its property or undertaking or any part thereof must be REGISTERED with the Registrar of Companies within ___ days of its ...
• A company, finding itself unable to pay its debts, wishes to VOLUNTARILY initiate the Corporate Insolvency Resolution Process against itself. Under the IBC...
• During the CIRP, the Resolution Professional verifies claims and fixes the voting share. A creditor who supplied raw materials to the corporate debtor clai...
• Despite time extensions, no resolution plan is approved in a CIRP and the prescribed period lapses. Under the IBC, 2016 the corporate debtor shall then, as...
• Under Section 31 of the IBC, 2016, a resolution plan approved by the Committee of Creditors and sanctioned by the Adjudicating Authority is BINDING on:
• Under Section 12 of the IBC, 2016, the Adjudicating Authority shall, as a rule, ADMIT or REJECT an application for the commencement of the CIRP within ___ ...
• Maintenance of BOOKS OF ACCOUNT and other relevant books and papers, with proper financial statements, at the REGISTERED OFFICE of the company for a prescr...
• A creditor who has supplied goods to a corporate debtor and is owed money seeks to initiate the CIRP against it. As an OPERATIONAL creditor under Section 9...
• In the LIQUIDATION of a corporate debtor under Section 53 of the IBC, 2016, the HIGHEST PRIORITY in the distribution of the proceeds of the liquidation est...
• At a company's general meeting, a SPECIAL RESOLUTION is proposed. For the resolution to be passed, under Section 114 of the Companies Act, 2013 the number ...
• Under Section 12 of the Companies Act, 2013, a company shall, within ___ days of its incorporation, be required to have a REGISTERED OFFICE capable of rece...
• A resolution plan submitted under the IBC, 2016 contains a provision PURPORTING to override or escape a mandatory requirement of the law (irrespective of t...
• Apart from corporations, the insolvency resolution framework under the IBC, 2016, for individuals and PARTNERSHIP FIRMS - and for persons who are corporate...
• A citizen challenges a government measure that collects and profiles his personal data, contending it violates his RIGHT TO PRIVACY. Following the nine-Jud...
• A company invites subscription to its securities from the PUBLIC without obtaining a valid PROSPECTUS/offer document and without complying with the disclos...
• For the purposes of the Companies Act, 2013, a company is a SUBSIDIARY of another if that other company, inter alia, CONTROLS the composition of its Board,...
• Under Section 139(2) of the Companies Act, 2013, an INDIVIDUAL auditor may be appointed for a term of FIVE consecutive years, but an AUDIT FIRM (a firm of ...
• A financial creditor's application under Section 7 has been ADMITTED and the CIRP has commenced; the parties now reach a settlement and wish to withdraw th...
• Under Section 29A of the IBC, 2016, certain persons are INELIGIBLE to submit a resolution plan, including:
• An appeal against an order of the Adjudicating Authority (NCLT) under the IBC, 2016 lies to the NATIONAL COMPANY LAW APPELLATE TRIBUNAL (NCLAT) within:
• Under Section 39(3) of the Companies Act, 2013, the amount payable on application for securities offered to the public shall not be less than what percenta...
• Under the Companies Act, 2013, which of the following is correct with regard to the tenure and remuneration of an independent director of a company?
• Under the Limited Liability Partnership Act, 2008, which of the following statements is correct?
• Pratham Ltd had a net profit of ₹6 crore in the immediately preceding financial year, although its net worth and turnover did not cross the other statuto...
• Under section 139(2) of the Companies Act, 2013, the maximum term for which an individual auditor may be appointed, and the cooling-off period before re-ap...
• Apex Co-operative Bank Ltd, a banking company, proposes to advance a housing loan to its whole-time director in the ordinary course of its business. Under ...
• Under section 2(51) of the Companies Act, 2013, 'key managerial personnel' in relation to a company includes the chief executive officer or the managing di...
• Under section 149 of the Companies Act, 2013, every listed public company must have at least one-third of its total number of directors as independent dire...
• Ramesh, the managing director of Sudarshan Ltd, fabricated invoices and diverted ₹2 crore of company funds to his personal account. If he is convicted of...
• Under Section 14 of the Insolvency and Bankruptcy Code, 2016, once an application for the Corporate Insolvency Resolution Process of a company is admitted,...
• Under Section 12 of the Insolvency and Bankruptcy Code, 2016, the Corporate Insolvency Resolution Process must ordinarily be completed within which time fr...
• Before an operational creditor may file an application for initiation of the Corporate Insolvency Resolution Process under Section 9 of the Insolvency and ...
• After the 2019 amendment, a resolution plan submitted under Section 30 of the Insolvency and Bankruptcy Code, 2016 can be approved by the committee of cred...
• A bank holding 30% of the voting share in the committee of creditors of XYZ Ltd voted against a resolution plan. The plan was nonetheless approved by credi...
• As per Section 135 of the Companies Act, 2013, a company must constitute a Corporate Social Responsibility Committee if, in the immediately preceding finan...