Practice Corporate Law Questions and Answers

• 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...
• Under Section 165 of the Companies Act, 2013, a person may hold office as director in how many companies at the same time, and in not more than how many pu...
• Under Section 8 of the Insolvency and Bankruptcy Code, 2016, an operational creditor may deliver a demand notice to the corporate debtor in respect of an u...
• The NCLT admitted a petition filed under Section 7 of the Insolvency and Bankruptcy Code, 2016 by a financial creditor against ABC Ltd. The moratorium unde...
• Under Section 7 of the Limited Liability Partnership Act, 2008, at least one designated partner of an LLP must be resident in India, which means a person w...
• A partner of an LLP resigns by notice in writing. Under Section 24 of the Limited Liability Partnership Act, 2008, the LLP must file the notice of such res...
• Under Section 135 of the Companies Act 2013, the CSR obligation applies to a company which, in the immediately preceding financial year, has a net worth of...
• Mr. R, a director of a bank, was convicted of an offence involving moral turpitude and sentenced to two years' imprisonment on 1 April 2025. His sentence e...
• Sunrise Infra Ltd. has defaulted on a term loan of ₹25 crore availed from Northern Bank. The bank, as a financial creditor, files an application to initi...
• After a corporate insolvency resolution process against a corporate debtor was admitted by the NCLT on 1 March, its creditor bank invoked the SARFAESI Act ...
• Under Section 12 of the Insolvency and Bankruptcy Code 2016, the corporate insolvency resolution process must be completed within 180 days, extendable once...
• For the approval of a resolution plan, Section 30 read with Section 21 of the Insolvency and Bankruptcy Code 2016 requires the vote of the committee of cre...
• Under Section 2(60) of the Companies Act 2013, an 'officer who is in default' includes certain specified persons. Which of the following is NOT included as...
• PQR Ltd had a net worth of ₹40 crore, a turnover of ₹160 crore and a net profit of ₹6.5 crore in the immediately preceding financial year. As regards...
• Under Section 164 of the Companies Act 2013, a person becomes ineligible for appointment or reappointment as a director of a company if the company has fai...
• XYZ Ltd supplied goods on credit to ABC Ltd, which failed to pay ₹25 lakh despite reminders. The supplier now wishes to initiate the corporate insolvency...
• Under Section 29A of the Insolvency and Bankruptcy Code 2016, which of the following persons is INELIGIBLE to submit a resolution plan for a corporate debt...
• For a resolution plan to be approved by the Committee of Creditors under the Insolvency and Bankruptcy Code 2016, as amended in 2019, it must receive the a...
• Under section 7 of the Limited Liability Partnership Act, 2008, at least one designated partner of an LLP shall be a resident in India, and a person is tre...
• Under the Limited Liability Partnership Act, 2008, which of the following correctly states the liability of a partner of an LLP?
• Under Section 3 of the Bharatiya Vayuyan Adhiniyam, 2024, the Directorate General of Civil Aviation constituted under the Aircraft Act, 1934 is: