Summarize MCQs

1.
Special resolution means a resolution passed by a majority of not less than;

(a)
2.
2/3
(b) 4/5
(c) 1/3
(d) None of the above
Companies Ordinance 1984 is not applicable to;

(a)
(d)
3.
Co-operative societies
(b) NPO
Trading company owned by provinces
(c) SMC
(e) A & D
Minimum number of directors of a listed company should not be less than

(a) 3
4.
(b) 2
(c) 7
(d) 5
Quorum of a general meeting of a listed company shall be ten members present in person
having voting power not less than
(a) 35% (b) 25% (c) 20% (d) 10%
5.
Minimum number of members in case of a public company should not be less than_________
(a) 10
6.
(b) 3
(d) 7
(d) 5
The Board of Directors of each listed company shall have preferably not less than
Whichever is higher, of the total members of the board as independent directors?
(a) 1/4th
7.
(b) More than 4 (c) 1/3rd or 3
No director shall be considered independent if one or more of the following circumstances

exist except:
(a)
He has been an employee of the company, any of its subsidiaries, associated
company, associated undertaking or holding company within the last three years;
(b)
He has, or has had within the last three years, a material business relationship with
the company either directly, or as a partner, shareholder, director of a body that has such a
relationship with the company.
(c)
He has received in the three years preceding his appointment as director or receives
additional remuneration excluding retirement benefits from the company apart from a
directors fee or has participated in the companys share option or a performance related pay
scheme.
(d)
8.
He is not a close relative of the companys directors or major shareholders
Appropriate arrangements for professional indemnity insurance cover is encouraged in

respect of_________
(a)
9.
Dependent Director
(b) Independent director (c) CEO (d) CFO
In case of listed company, Executive directors, i.e., paid executives shall not be more than
________of the elected directors, including the Chief Executive.
(a) 1/2
10.
(b) 1/4 (c) 1/ 3 (d) None of the above
Any casual vacancy in the Board of Directors of a listed company shall be filled up by the
directors at the earliest but not later than ____________ thereof.
(a) 24 days
1
(b) 91 days
(c) 90 days
(d) 30 days
11.
Appointment, Remuneration and terms and conditions of employment of the Chief Executive
Officer (CEO) and other executive directors of the listed company are determined and
approved by;
(a) External auditor
12.
by SECP
The Board of Directors of a listed company shall meet at least

written
notices (including agenda) of meetings shall be circulated not less than seven days before the
meetings, except in the case of emergency meetings, where the notice period may be reduced
or waived.
(a) Once in year (b) Once in 6 months
13.
(c) once in every quarter of the

financial year
The detail of all related party transactions shall be placed before;

(a) external auditor
(c) the Audit Committee of the company
14.
(c) AUDIT committee
(b) the Board
(b) internal auditor

(d) both a and b
Every company shall maintain a party wise record of transactions, in each financial year,
entered into with related parties in that year along with all such documents and explanations.
The record of related party transaction shall include the following particulars in respect of
each transaction except;
(a)
(b)
(c)
(d)
15.
Name of related party; Nature of relationship with related party

Nature of transaction Amount of transaction
Address of the related party
Terms and conditions of transaction, including the amount of
consideration
received or given.
The appointment, remuneration and terms and conditions of employment of the Chief
Financial Officer (CFO), the Company Secretary and the Head of Internal Audit of listed
companies shall be determine by
(a ) the CEO with the approval of the
Board of Directors.
(b) the BOD with the consent of CEO.
16.
All listed companies shall in the form and manner specified by the Commission ensure that
the annual audited financial statements are sent to every member of the company __________
before the Annual General Meeting is held to consider the same.
(a) at least (30) days
(c) at least (90) days
17.
(b) five years
(c) one years
(d) four years
Every listed company shall require external auditors to furnish a Management Letter to its
Board of Directors not later than____________from the date of audit report.
a) 45 days
19.
(b) at least (21) days

(d) at least 7 days
All listed companies, other than in the financial sector shall at least rotate the engagement
partner of their external auditors after every _______________
(a) two years
18.
(c) Audit committee

(d) SECP
b) 21 days
(c) 40 days
The Chairman BoD shall be elected from amongst the

company.
(a) Executive directors (b) independent directors
Bold/Italic/underlined option is the correct option.
(d) 90 days
of
the
listed
(c) Audit committee
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(d) outside outsource

20.
The time limit for payment of dividend for a listed public limited company is:
(a) 30 days
(b) 45 days
(e) time as prescribed by the state bank
21.
(c) 60 days
As per Companies Ordinance 1984 a listed public limited company is bound to prepare
and present in AGM its financial statements on:
(a) Yearly basis (b) half-yearly basis
(d) daily basis (e) None of these
22.
(c) quarterly basis
As per Companies Ordinance 1984 loose tools are recorded under the head of:
(a) Current assets
(b) fixed assets
(d) long-term deposits (e) None of these
23.
(d) 90 days
(c) long-term investment
In Pakistan a commercial bank can be formed and is registered under the:

(a) Companies Ordinance 1984
(b) Banking Companies Ordinance 1962
(c) State Bank of Pakistan Act 1956
(d) Modaraba Companies Ordinance 1980
(e) None of these
24.
In Pakistan a commercial bank prepares its annual accounts under the:

(c) State Bank of Pakistan Act 1948
(e) None of these
26.
In Pakistan insurance company can be formed and is registered under the:

(c) Insurance Ordinance 2000
(e) None of these
27.
The working of the insurance company is governed by the:

(c) Insurance Ordinance 2000
(e) None of these
28.
in:
The first auditor of a Public Limited Company is appointed by the

(a) 30 days of incorporation
(c) 90 days of incorporation
29.
directors
with
(b) 60 days of incorporation

(d) 120 days of incorporation
A listed company or a company proposing to make application to a stock exchange for

listing of its securities shall obtain the approval of the Commission in preceding
______________to the issue, circulation or publication of its prospectus.
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(a) 50 Days
30
(b) 70 days
(b) 7 days or 30 days

(d) 15 days or 30 days
A person who has subscribed for shares or debentures on the faith of a false statement in
a prospectus has the following remedies:
(a).
(b).
(c).
(d).
(e).
32.
(d) 40 days
No Prospectus shall be issued or an advertisement of a prospectus published in a

newspaper less than _________ or more than_________ before the subscription list is due
to open.
(a) 10 days or 30 days
(c) 30 days or 7 days
31.
(c) 60 days
Against the company

Against the directors and promoters
Against experts
Against auditors, legal adviser, attorney, solicitor and banker or broker being
member of stock exchange.
All of the above.
When a prospectus includes any untrue statement, every person who has signed or
authorized the issue of the prospectus shall be punishable.
(a). With imprisonment for a term up to 2 years
(b). With fine up to Rs.10,000/(c). Both a and b
(d). None of the above
33.
Which one of the following are not the general principles with regard to allotment of
shares.
(a).
(b).
(c).
(d).
34.
Allotment should be made by proper authority

Allotment must be communicated.
The minimum subscription shall be exclusive of the amount payable otherwise
than in cash.
Allotment should be absolute and unconditional.
If any subscription money is not repaid within fifty days after the issue of prospectus, the
director shall be jointly and severally liable to repay that money with surcharge at the
rate of :(a) 1.5 % p.m.
35.
(d) 2.25%p.a
(b). 10-20 days

(d). 10 days
An allotment shall be irregular if it is made by the company in contravention of the

provision of section 68 or 69.
(a).
(b).
(c).
(d).
37.
(c) 1 .75%p.a.
The company shall take decision within _____ of closure of subscription lists and refund
application money to unsuccessful applications within ________.
(a). 10 -15days
(c). 25 -30days
36.
(b) 2.5%p.m.
Minimum subscription not received.

Prospectus is not filed when shares are offered to the public.
Statement in lieu of prospectus is not filed where shares are not offered to the
public.
All above.
The circular u/s 86 (3) shall contain.
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(a).
(b).
(c).
(d).
(e).
38.
Transmission means
(a)
(b)
(c)
(d)
39.
Be in the form prescribed by the authority.

Contain Material information about the affairs of the company.
3 Years latest statement of accounts.
Setting forth the necessity for issued of further capital.
All above.
Transfer of title in shares by operation of law

Transfer of title in shares by voluntary
Transfer of shares for an adequate consideration
Transfer of shares by fixing stamp duty
Which of the following document is not required while transferring shares to successor.
(a) An application
(c) Suitable indemnity
40.
(b) Supporting evidence

(d) Proxy form
In the domain of Company Ordinance, which of the following type(s) of Capital are said to
be similar
(a) Authorized Capital & nominal capital (b) Issued & paid up Capital
(d) Subscribed Capital & minimum capital
(d) Both a and b
41.
Notice of the meeting U/S 95A, shall accompanied by an explanatory
containing all material facts include:
(a)
(b)
(c)
(d)
profits
(e)
42.
Justification for the purchase

Source of funding,
Effects on the financial position of the company
The purchase shall always be in cash and shall be out of the
Debenture constitute loan to the company and debenture holder called
(b) Bonds
(c) TFC
(d) Other Securities
The Company must complete and keep ready for delivery the debenture
within _________ unless otherwise provided in the terms of issue
(a) 60 Days
45.
(c) Director (d) Company secretary
Debenture includes all of the following except

(a) Share
44.
distributable
All above
(a) Shareholder (b) Creditor

43.
statement
(b) 90 Days
(c) 30 Days
Certificates
(d) 40 Days
Which one of the following is not considered a legal document of Joint Stock Company:
(a) Memorandum of association
(c) Prospectus
(b) Articles of association

(d) Shares
46.
A proxy must be a member unless the articles of the company permit appointment of a
non-member as proxy (CO. 1984).
47.
The Court may, on a petition, by members having not less than 10% of the voting power
in the company, that the proceedings of a general meeting be declared invalid by court.
Page 5
48.
The chairman of the board of directors, if any, shall preside as chairman at every general
meeting of the company, but if there is no such chairman, or if at any meeting he is not
present within fifteen minutes after the time appointed for holding the meeting, or is
unwilling to act as chairman, any one of the directors present may be elected to be
chairman, and if none of the directors is present or is unwilling to act as chairman the
members present shall choose one of their member to be the chairman.
49.
The quorum of a general meeting shall be-(a)

in the case of a public listed company, unless the articles provide for a larger
number, not less than ten members present personally, who represent not less
than twenty-five per cent. of the total voting power, either of their own account
or as proxies;
(b)
in the case of any other company, unless the articles provide for a larger number,
two members present personally who represent not less than twenty-five per
cent. of the total voting power, either of their own account or as proxies; and
(c)
In the case of a single member company, single member present in person or by
proxy.
50.
Every company shall hold, in addition to any other meeting, a general meeting, as its
annual general meeting, within eighteen months from the date of its incorporation and
thereafter once at least in every calendar year within a period of four months following
the close of its financial year and not more than fifteen months after the holding of its last
preceding annual general meeting (158 of CO.)
51.
Every company limited by shares and every company limited by guarantee and having a
share capital shall, within a period of not less than three months, not more than six
months, from the date at which the company is entitled to commence business, hold a
general meeting of the members of the company, which shall be called "the statutory
meeting" (157)
52.
Every company having a capital and company not having share capital shall, once in each
year, prepare and file with the registrar a return containing the particulars specified in
Form A & B respectively.
53.
In a limited company, the liability of the directors or of any director may, if so provided
by the memorandum, be unlimited.
54.
A company which reduces its capital shall, unless otherwise directed by the Court for any
special reasons, add to its name until such date as the Court may fix, the words "and
reduced as the last words thereof, and those words shall, until that date, be deemed to
be part of the name of the company.
56.
Whenever a company having a share capital makes any allotment of its shares, the
company shall, within thirty days thereafter file with the registrar a return of the
allotment.
57.
At any general meeting, a resolution put to the vote of the meeting shall, unless a poll is
demanded, be decided on a show of hands (165).
58.
A printed or typed copy of every special resolution shall, within fifteen days from the
passing thereof, be filed with the registrar duly authenticated by the chief executive or
secretary of the company (172)
59.
A copy of the minutes of meeting of board of directors shall be furnished to every

director within 14 days of the date of meeting.
60.
Any member shall at any time after seven days from the meeting be entitled to be
furnished, within seven days after he has made a request in that behalf to the company,
with a certified copy of the minutes of any general meeting at such charge not exceeding
the prescribed amount as may be fixed by the company
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61.
62.
The books containing the minutes of proceedings of the general meetings shall be open to
inspection by members without charge during business hours, subject to such reasonable
restrictions
Companies are required to hold their Annual General Meeting (AGM), within 4 months
from the close of their annual accounts. Last date for
holding of AGM for companies
which close their accounts on June 30, 2012, is on or before October 31, 2012.
63.
Particulars of Directors and Officers including Chief Executive and Auditors are to be
filed on Forms 29 within 14 days of any change/election/appointment made in Annual
General Meetings (AGMs), e.g., the last date of filing of said return by companies which
held their AGM on, October 31, 2012 is November 14, 2012,
64.
Annual return is required to be filed by companies on Forms A/ B within 45 days (in case
of listed companies) and 30 days( in case of other companies), of holding of AGMs. For
example, last date for all other than listed companies which held their AGM on, October
31, 2012 is November 30, 2012. Similarly, for listed companies which held their AGM on,
October 31, 2012 is December 15, 2012.
65.
Annual audited accounts are also required to be filed within 30 days of holding of AGMs.
For example, companies which held their AGM on, October 31, 2012 is November 30,
2012, and companies which held their AGM on November 1,2&3, 2012 is December 1,2 &
3, 2012 respectively.
66.
Every single member company shall have at least one director;
67
Every other private company shall have not less than two directors;
69.
The first directors shall hold office until the election of directors in the first annual general
meeting.
70.
A member shall have such number of votes as is equal to the product of the number of
voting shares or securities held by him and the number of directors to be elected.
The directors of a company shall subject to section 174, fix the number of elected directors
of the company not later than thirty-five days before the convening of the general
meeting at which directors are to be elected, and the number so fixed shall not be
changed except with the prior approval of a general meeting of the company.
71.
72.
Where a person acquires 12.5% or more voting shares in a listed company in his own
name, he may apply to the Commission for requiring the company to hold fresh election
of directors in accordance with the procedure laid down in section 178 in the forthcoming
annual general meeting of the company.
73.
A director elected under section 178 holding office for a period of three years unless he
earlier resigns, becomes disqualified from being a director or otherwise ceases to hold
office.
74.
The quorum for a meeting of directors of a listed company shall not be less than one-third
of their number or four, whichever is greater.
75.
The directors of a public company shall meet at least once in each quarter of a year.
76.
The chief executive shall if he is not already a director of the company, be deemed to be
its director and be entitled to all the rights and privileges, and subject to all the liabilities,
of that office
77.
What is the effective date for compliance with the Code of Corporate Governance 2012
(Code 2012)?
Page 7
Ans.
All provisions, unless provided otherwise in the Code 2012, shall be effective at the date
of issuance.
78.
Is the Code 2012 applicable to modarabas and mutual funds?
Ans.
The Code 2012, being part of the listing regulations of the stock exchanges, is applicable
to all entities listed on the exchanges. The listed entities include not only companies but
also funds, such as modarabas and mutual funds. The requirements of the Code 2012 are,
therefore, applicable to modarabas and mutual funds. Furthermore, the requirements of
the Code 2012 pertaining to the Board of Directors are also applicable to management
companies of such funds, even if these companies are themselves not listed on the stock
exchanges.
79.
What are the implications if a listed company fails to nominate an independent director
on its board?
Ans.
Clause (i)(b) of the Code 2012 requires at least one independent director on the board.
This is now a mandatory provision and any non-compliance will be penalized under
listing regulations.
80.
If an independent director is serving as the chairman of the board at the time of issuance
of the Code 2012, can he also act as the chairman of the audit committee as required by
the Code 2012?
Ans.
Now the Code 2012 requires chairman of audit committee to be an independent director
who is not the chairman of board.
81.
Can the existing independent chairman also act as chairman of committee till the next
election of the board?
82.
It is mandatory as per Clause (xxiv) of the Code 2012 that the independent director is the
chairman of the audit committee. In order to fulfill this requirement, the board shall elect
another director as the chairman of the board.
What is the minimum amount of investment that would qualify a company to nominate a
director for appointment on the board of its investee company?
Ans.
No minimum amount of investment has been prescribed in the Code 2012.
83.
What is the difference between an executive and a non-executive director?
Ans.
Executive directors are the working, whole-time directors of a company. Non-executive

directors, on the other hand are those who are not from among the executive
management team and may or may not be independent. They are expected to lend an
outside viewpoint to the board of directors of a company and do not undertake to devote
their whole working time to the company. The guiding factor in distinguishing between
executive and non-executive directors of a company is the extent of their involvement in
managing the affairs of the company.
An executive director cannot be categorically defined as a "paid director" and a nonexecutive director as one who is "not a paid director". While the fact that a company may
not pay remuneration to its non-executive directors may facilitate their classification as
such, this rule cannot be applied uniformly to all companies since payment of any
remuneration to its directors is at the discretion of each company.
84.
Can a broker be appointed as a director of a listed company?
Ans.
The Code 2012 does not restrict election/nomination of brokers on the boards of listed
companies. However, the Ordinance states that no person shall be appointed as a director
of a listed company if he/she is engaged in the business of brokerage, or is a spouse of
Page 8
such person or is a sponsor, director or officer of a corporate brokerage house. Therefore

a broker cannot be appointed as a director on the board of a listed company.
85.
Is professional indemnity insurance required for all board of directors?
Ans.
Professional indemnity insurance is not mandatory but is encouraged for independent

directors only.
86.
In a board of seven, what will be the composition as per the criteria laid down in the
Code 2012?
Ans.
If there are seven directors on the board of a listed company, the composition as per the
Code 2012 will be: one independent director, two executive directors (including the CEO)
and four non-executive directors.
87.
Ans.
Is the 'Statement of Ethics and Business Practices' still required to be signed by all
directors and employees of listed companies?
No, the Statement of Ethics and Business Practices is no longer required. However, a
Code of Conduct has to be prepared and communicated throughout the company apart
from placing it on the companys website.
88.
Who will evaluate the performance of the board and when?
Ans.
The board has to put in place a mechanism for its evaluation within two years of the
introduction of Code 2012.
89.
A director is serving on the board of 10 listed companies including three listed subsidiary
companies of a holding company. Is he compliant with the requirement of maximum
number of directorships of the revised code?
Ans.
Yes, maximum number of directorships of seven does not include listed subsidiaries of a
listed holding company.
90.
Does the board of directors of a listed company need to specify by a resolution the limits
of materiality for the policies to be presented to the board?
Ans.
The level of materiality should be determined by a resolution in the board meeting.
91.
Can the same person be appointed as the CFO and the CS of a listed company?
Ans.
The terms of reference of the two positions are distinct. It is, therefore, preferred that
separate persons handle the functions of the CFO and company secretary within a listed
company. The SECP Circular No 15 of July 8, 2003 also requires listed companies to have
full time employee designated to perform specific assignments of company secretary.
92.
Can the positions of company secretary and internal auditor be given to one person
within a listed company?
Ans.
No. The two positions carry minimal synergy and, therefore, should be performed by
separate persons.
93.
Can a full time employee (including the CFO and company secretary) of a listed company
hold a similar position in a group company?
Ans.
The Code 2012 does not restrict any full time employee in a listed company from working
in a similar position in a group company. However, appropriate steps should be taken by
the board of directors of the companies concerned to ensure that additional workload
would not affect the quality of work performed by such employee and no conflict of
interest would arise as a result of holding similar positions in two group companies.
Page 9
94.
Should the disclosure in the directors' report regarding the number of board meetings
held during a year include the number of resolutions passed by the board by circulation?
Ans.
The number of resolutions passed by the board of directors of a listed company through
circulation should not be considered in determining the number of board meetings held
during a year for the purpose of the Code 2012.
95.
Does the Code 2012 require quarterly accounts to be filed by listed companies for each
quarter?
Ans.
The listed companies are required to comply with Section 245 of the Companies
Ordinance, 1984, and circulars of the SECP in determining the period for and the manner
in which the quarterly accounts should be published. The only requirement imposed by
the Code 2012 is that these quarterly accounts should be circulated along with the
directors' review on the affairs of the company for the relevant quarter.
96.
Who can perform limited scope review of the half-yearly accounts of listed companies?
Ans.
Only statutory auditors appointed to conduct the annual audit of a listed company can
carry out a limited scope review of the company's half-yearly accounts.
97.
Is there a standard format for Secretarial Compliance Certificate?
Ans.
The Secretarial Compliance Certificate to be filed by Company Secretary of a listed

company is annexed as Appendix A of the Code 2012.
98.
If the CEO and the CFO of a company are out of country/on leave, who will endorse the
financial statements in their place?
Ans.
In view of Sub-section (1) and (2) of Section 241 of the Companies Ordinance, 1984,
depending upon the company policy, if there is an alternative executive officiating in the
capacity of the CEO or the CFO, then he would be competent to endorse and present the
financial statements before the board of directors of the company.
99.
Should listed companies be updating their websites to disseminate financial information?
Ans.
Through its directives, the SECP from time to time directs the listed companies to
circulate their quarterly accounts in addition to half-yearly and annual accounts (as
required in the Companies Ordinance, 1984), and in case of difficulties in circulation of
the same to all shareholders, at least ensure publication of the same in two daily leading
newspapers (one English, one Urdu).
100.
Ans.
What is meant by closed period?

The closed period is a period during which no director, CEO or executive shall, directly
or indirectly, deal in the shares of the listed company in any manner.
The closed period shall start from the day when any document/statement, which forms
the basis of price sensitive information, is sent to the board of directors and terminate
after the information is made public. It is expected that such a restriction would help
minimize the risk of insider trading by key management/directors of the company.
101.
Ultra vires business means?
Ans.
In corporate law, ultra vires describes acts attempted by a corporation that are beyond the
scope of powers granted by the corporation's objects clause, articles of incorporation or in
a clause in its Bylaws, in the laws authorizing a corporation's formation, or similar
founding documents. Acts attempted by a corporation that are beyond the scope of its
charter are void or voidable.
102.
Which companies are required to maintain websites?
Page 10
Ans.
All Listed companies and unlisted companies with paid up capital above Rs.200 million
are required to maintain functional website.
103.
Agent means a person appointed by the:

(a) Commission
(c) Broker/member
104.
Associate of a member means:

(a).
(b).
(c).
(d).
105.
(b).
(c).
(d).
(b).
(c).
(d).
A company engaged principally or wholly in buying and selling securities of

other companies
Person who has issued or proposes to issue any security
A member of an Exchange
Means any person engaged in the business of effecting transactions in securities
for his own account
Underwriter means:
(a).
(b).
(c).
(d).
108.
Segregation of the ownership of a Stock Exchange from the right to trade on such
Stock Exchange
Conversion of a Stock Exchange from a company limited by guarantee to a
company limited by shares
Stock or transferable shares carrying any warrant or right to subscribe
All of the above
Jobber or dealer means:

(a).
107.
Associate firm, any association

Any partner, employee of a member
Officer or director of a member
Both B and C
Corporatization means:
(a)
106.
Writer who writes the words of Ordinance

Any under mentioned person in any section
Any person who issue shares
Who made a contract with an issuer to subscribe
SEC Ordinance 1969 prescribes the trading of securities of companies:

(a). Limited by guarantee
(c). Listed company
109.
(d).
Who demand a polling at AGM to the Chairman of BOD

Who personally works as a handler on ballot box in Elections
Who provides services to an issuer for selecting the required number of
applicants
Both A and C
Stock Exchanges in Pakistan are:

(a) Mutualized
(c) Semi Demutualized
111.
(b). Non-government Organizations

(d). Single member company
Balloter means:
(a).
(b).
(c).
110.
(b) Stock exchange

(b) Demutualized
(d) None of the above.
Commission may specify all for the stock exchange and brokers except;
Page 11
(a)
(b)
(c)
(d)
112.
Qualification for membership of the Exchange; admission, suspension and

expulsion of members;
a members financial responsibility whether by way of minimum capital or a
ratio between net capital or aggregate indebtedness, or both
listing and delisting of securities
Recording of minutes of BOD meetings.
In case of fictitious applications or more than one application for share of companies
offered to the public for issue of shares, the share application money is liable to;
(a) confiscation by Commission
(c) confiscation by the balloter
113.
(b) be returned to applicant

(d) No action be taken
No business shall be transacted on an Exchange in a security, which is not listed on such

Exchange, except;
(a) a Government security
(c) Sukuuks
(b) a Debt security

(d) Non of the above
114.
Commissioners (including chairman) majority are required to be from private sector and are
not less than. & not more than in number.
(a).
115.
3&5
(b). 8 & 9
(b). 3
(b). 3
(b). 63
(b). 6
(d). 6
(c). 5
(d). 6
(c). 60
(d). 61
(c). 4
(d). 3
Chairman is appointed by the ..

(a). Federal government
(c). Ex officio members
121.
(c). 5
Among 09 members of policy boards members constitute being ex officio.

(a). 5
120.
(b). 3
A person who on the date of appointment is older than years age, shall not be
appointed as commissioner.
(a) 62
119.
(d). 6
Not less than three of the commissioner (Term B) appointed shall hold office for the terms of
years & can be reappointed for the further terms of three years.
(a). 2
118.
(c). 5
Not less than three of the commissioner (Term A) first appointed shall hold office for the
terms of years & can be reappointed for the further terms of three years.
(a) 2
117.
(d). 6 & 7
No commissioner shall be appointed as a Chairman for more than consecutive

terms.
(a) 2
116.
(c). 5 & 7
(b). Board
(d). Commerce Minister
Out of nine member, four will be appointed by from the private sector.
(b). Board
(d). Divisions
Page 12
122.
A Member, not being an ex-officio Member, shall hold office for a term of ..Years & can be
appoint for further four years but shall not be eligible if it attain the age of 65 years.
(a). 5
123.
(b). 6
(b). 6
(b). 6
(c). 4
(d). 3
(c). 4
(b). Chairman
(d). 3
(b). 1.5 Million
(c). 4 Million
(b). Annual report

(d). statutory return
A commissioner or a Member may at any time resign his office by a written notice addressed
to the ..
(a) Federal government
130.
(b) Board
(b). Liabilities
(c). Trust deed
(d). Commercial matter
(b). Board
(c). Members
(d). Ex-officio Members
The Commission shall act as the .. Of the Board & enable Board to exercise its power.
(a). Secretariat
134.
(b). Companies Ordinance 1984

(d). SECP ACT 1997
It shall be the duty of the . To conserve the Fund.

(a). Commission
133.
(d) Divisions
Board asked to do & after consultation with the Commission advice the Federal govt. on all
the matter relating to - of industry
(a). Securities
132.
(c) Ex officio members
Commission exercising shall exercise all powers, discharging all duties & performing all
function assigned to the Commission under all laws except:
(a). Law of insurance
(c). Banking Co. Ordinance, 1962
131.
d. 3 Million
Each Commissioner shall give a notice to the Federal government of all direct & indirect
pecuniary interest & nature of such interest shall be disclosed in the__________ of the
commission
(a). Minutes of meeting
(c). Quarterly report
129.
(d). Divisions
Any commissioner or the Member of the committee who fails to disclose his interest guilty of
offense shall be liable to imprisonment of 1 year or a fine not exceeding .. Rupees.
a. 1 Million
128.
(d) Divisions
The meeting of a committee shall be held at such times & places as the may determine.
(a). Member
127.
(c) Ex officio members
The quorum for the board meeting shall have .. Member including chairman.
(a). 5
126.
(b) Chairman
The board shall meet not less than times in a calendar year.
(a). 5
125.
(d). 3
The federal government shall designate one of the Member to be the . Of the
board, who shall in the event of a tie have a casting vote.
(a) Member
124.
(c). 4
(b). Subordinate
(c). Memberd
(d). Ex-officio Members
Within the days from the end of each financial year, the Commission shall in
consultation with Board, cause a report to be prepared on the activities of Commission.
Page 13
(a). 40
135.
(c). 144 (d). 300
(b). Liabilities
(c). Trust deed (d). Commercial
(b). 20
(c). 44
(b). 6
(c). 2
(d). 3
A body to whom disclosure of info under sub-section (8) may be authorized is

(a). A Stock Exchange
(c). A Central depository
140.
(b). Board
(d). Ex- officio Member
(b). Board
(d). Divisions
The power of the . to issue directives, circular, guidelines etc.

(a). Commission
143.
(c). Members
The . may, by notification in the official Gazette, make rules for all.
142.
(b). A Clearing House

(d). All of the above
The chairman may delegate all or any of his function & any power to a & an
employee.
(a). Commission
141.
(d). 33
The Commissioner shall constitute an Appellate Bench of the Commission Comprising not
less than......... Commissioner & if any commissioner has concerned in the decision being
appealed against the Chairman shall nominate another Commissioner.
(a). 5
139.
(b). 363
The Commission shall, within . Days of receipt of the complaint commence a hearing
to determine the veracity of such complaint.
(a). 15
138.
(d). 33
The Commission shall not invest its money in .. or any derivatives thereof
whether listed or not.
(a). Securities
137.
(c). 44
The Policy Board shall, within . Days of the end of each financial year send a copy of
statement of account of Commission certified by the auditors.
(a). 120
136.
(b). 36
(b). Board
(c). Members
(d). Ex- officio Member
The CEO can be removed before the expiration of his term if.
(a). 2/4 of the directors passed resolution.
(b). Company through special resolution.
(c). 25% of the directors passed resolution.
(d). Nothing from above.
144.
No person can be eligible to become the CEO, if it falls under Section.

(a). 185
145.
(c). 189
(d). 188
Following companies shall have whole time company secretary.

(a). Listed
(c). Private
147.
(b). 187
(b). Single Member Company

(d). both A and B
A company cannot make any investments in its associated companies and undertaking unless
it.
Page 14
(a). Pass special resolution

(b) Return on investment is not less the cost of borrowing
(c). 50% of directors pass resolution.
(d). both A and B
148.
CEO draws Bills of Exchange. Is the Bill binding upon the company?
(a). YES
149.
(b). NO
(d). DEPENDS
Following company should maintain a register showing each director, CEO, managing agent,
Chief Accountant, Secretary, and every person holding 10 % shares.
(a). Listed
150.
(c). MAY BE
(b). Private
(c). Single Member
(d). No company
As per Companies Ord. 1984, No Director, CEO, managing agent, Chief Accountant,
Secretary, Auditor, or a person who is directly or indirectly owner of not less than 10 % of
securities of listed company shall not practice
(a). Short selling
(c). Hedging
(b). Selling of securities.

(d). Nothing from above
151.
The books of Accounts shall be maintained for not less than (as per CO. 1984)
(a). 10 years
(b). 5 years
(c). 3 years
(d). 8 years
152.
A company after incorporation provide balance sheet and income statement in AGM not later
than
(a). 18 months
153.
(b). 1 month
(b). 5th
(b). 20
(b). and
(c). 2nd
(d). 10th
(c). 25
(d). 35
(c). 1/3 and 2/3
(d). 2/3 and 1/3
Following companies should maintain consolidated financial statement of the group.

(b). Private
(d). Single member company
(a). Listed
(c). Guarantee limited
158.
(d). 2 years
Expense of special audit to be paid by company and applicants in a ratio of.

(a). by both
157.
(c). 1 year
The commission may order a special audit upon an application by members holding not less
than % of voting right.
(a). 10
156.
(d). 2 years
Private and unlisted companies, which is subsidiary of listed company shall comply to the
requirements of following schedule in making balance sheet and I/S.
(a). 4th
155.
(c). 1 year
The commission, in case of listed company. And in any other case registrar may extend the
period of submission of balance sheet and income statement to
(a). 2 months
154.
(b). 9 months
The subsidiary shall make an interim closing, where the financial year of subsidiary precedes
the day on which the holding companys financial year ends after.
(a) 3 months
(b). 4 months
(c). 6 months
(d). 8 months
Page 15
159.
If the CEO is not in Pakistan than the balance sheet and I/S of company shall be approved by
not less than.
(a). 3 directors
160.
(b). 4 directors
(d). 2 directors
Every listed company shall send its Accounts to the members and stock exchange after close
of every 2nd quarter with in.
(a). 2 months
161.
(c). 5 directors
(b). 1 months
(c). 4 months
(d). 6 months
Dividends cannot be given by a company out of the profit made from

(a). Business of company
(c). Sale of product
(b). Sale or disposal of immovable property

(d). Services
162.
Auditor can be removed before AGM by

(a). 50 % of share holders
(b). Special resolution
(c). cannot be removed
(d). Both A and B
163.
Commission may appoint 1 or more competent persons as the inspector to investigate the
affair of the company on the application of members holding not less than.
(a). 1/5 of voting power
(c). 2/10
164.
166.
a)
b)
167.
a)
b)
168.
a)
b)
169.
a)
b)
(d). 3/10
Commission may impose restrictions on shares for period not exceeding

(a). 4 months
165.
(b). 1/10
(b). 6 months
(c). 8 months
(d). 1 year
As per Listing Regulations of KSE, No company will be listed unless it is registered under the
Ordinance as a public limited company or has been setup under a statute and its minimum
paid-up capital is Rs.
a. 200 million
b. 150 million
c. 100 million
d. 250 million
Majority shareholder means a person who, individually or in concert with his family or as
part of a group, holds ____ or more shares.
10%
c)
30%
20%
d)
40%
The permission granted to form the NBFC shall be valid for period of ____ months unless
extended for a maximum period of ____ months.
6,3
c)
3,1
1.5,2
d)
12, 6
A NBFC shall appoint an individual, having minimum ___ years experience, as its
financial or chief accounting officer.
4
c)
5
3
d)
10
A NBFC shall not sale or transfer ownership of shares in ____, unless it has prior approval
of commission in writing to sale or transfer.
SMC
c)
Public Company
NBFC
d)
Subsidiary
Page 16
170.
a)
b)
The NBFC shall not have a common ____ with the broker.
Director
c)
Internal Auditor
CFO
d)
Secretary
171.
An NBFC shall not make an investment in ____ of any company in excess of 20% of its
equity.
a)
b)
Quoted Shares
unquoted Shares
172.
a)
b)
c)
d)
An NBFC seeking license for undertaking ____ or ____ both shall not be eligible for
seeking license for any other form a business.
Investment advisory, management services
Management service, House building Finance
Venture Capital, Investment Advisory
Management Service, Venture Capital
173.
a)
b)
An NBFC may engage in leasing operation except ____.

Land and Buildings
c)
Plant and Equipment
Machinery
d)
Vehicles
174.
The license of previous year shall be deemed ________ in the process of applying for a new
license by an NBFC.
invalid
c)
Expire
Valid
d)
none of above
a)
b)
175.
176.
c)
d)
c)
d)
Bonds
Debentures
A Chief Executive of the Company may be removed before expiration of the term by
a) By Directors of the Company
c) By the Creditors
d) A & B above.
b) By the Company by special
Resolutions
Companies incorporated or formed outside Pakistan are required to :
a) established a place of business in
Pakistan
b) deliver to the registrar any change
in directors
the Registrar the charter, statute or
memorandum and articles of a foreign
company
All of the above.
Page 17
177)
If 10 members of a private company are also employees of that company what are the maximum no
of members allowed to formulate such company under Companies Ordinance 1984?
a)
17
c)
50
b)
21
d)
60
178)
Which of the following is not a body corporate under Companies Ordinance 1984?
a)
National Bank of Pakistan
b)
Engro Foods Ltd.
179)
c)
Allied Industrial Cooperative

Development Society Ltd.
d)
State Bank of Pakistan
The term Registrar under Companies Ordinance 1984 refers to;?
a)
Additional registrar
d)
Assistant registrar
b)
Registrar
e)
All of the above
c)
Deputy registrar
180)
In case of Company Limited by Guarantee and not having share capital, how much of the guaranteed
amount the member has to pay at the time of Incorporation?
a)
10% of the guaranteed amount
c)
b)
d)
181)
a)
b)
182)
Which of the following is not a member of the company?

Subscriber to the memorandum of the
company
c)
Share Holder of the company
d)
None of the above
Every person to whom is shares are

allotted
If CDC holds more than fifty percent of voting securities of a company in electronic form, such
company will be the __________ of CDC.
a)
Associate
c)
Parent
b)
Subsidiary
d)
None of the above.
183)
a)
More than______ percent of shareholding in company A by company B will justify that A is the
subsidiary of B:
40
b)
50
Page 18
c)
184)
30
d)
60
The Federal Government may by notification in official Gazette empower civil court to competent
court under companies ordinance 1984, otherwise _______ at which companys registered office is
situated has jurisdiction under Companies ordinance 1984:
a)
High court
c)
District Court
b)
Session Court
d)
None of these
185)
Apart from extra ordinary cases all the matters shall be disposed of and judgment be given by the
court as quick as possible but not later than _____days from the date of presentation of the petition or
application to the Court:
a)
120
c)
50
b)
80
d)
90
186)
The court judgment or order to wind up for the company having paid up capital equal to or more
than _________ can be appealed to supreme court and all appeal of others in same case will depend
on supreme court grant leave to appeal.
a)
Two million rupees
c)
Ten million rupees
b)
Half million rupees
d)
One million rupees
187)
Association or partnership or company consisting of more than ___persons is bound to be registered

as company under Companies ordinance 1984.
a)
10
c)
15
b)
20
d)
30
188)
An accountant or Lawyer partnership firm consisting of 25 persons is bound to be registered as a

company under Companies ordinance 1984.
a)
189)
True
b)
False
As per section 15 of Companies Ordinance 1984, A person individually can form:
a)
Public Limited Company only
b)
Private Limited Company as single member company only
c)
Both a & b
d) Not specified in law
Page 19
190)
Can there be authorized capital clause written in memorandum of a company limited by
guarantee.
a)
191)
No
c)
Impossible
d)
None of these
Date of Birth
b)
CNIC
c)
Qualification
d)
No of shares
d)
Not always
Does memorandum of a company bears the signature of subscribers.

a)
193)
b)
What is written against each subscriber name in memorandum of a company?

a)
192)
Yes
Yes
b)
No
c)
Not necessary
________________ is required to alter the memorandum of association.

a)
No BOD approval
b)
Special Resolution
c)
CEO approval
d)
None of all
194)
Is SECP approval required to change the registered office from a place in Punjab to a place in
Islamabad Capital Territory?
a)
Yes
b)
No
195)
Is commission approval required for a change in place of registered office from one city to
another in a province?
a)
No
b)
Yes
c)
Not necessary
d)
None of these
196)
An application for confirmation of the alteration of any provision of the memorandum of the
company under sub section (2) of section 21 shall be submitted to the commission not later than
________ days.
a)
14
b)
21
c)
60
d)
90
197)
After how many days a company may file a printed copy of altered memorandum of association
with the registrar.
a)
14
b)
21
c)
60
d)
90
198)
Is it mandatory for the companies to register articles of association with the SECP as articles
usually specify internal procedures?
a)
Yes
b)
No
c)
Not necessary
d)
None of these
Page 20
199)
Can a company alter the capital clause of memorandum for reduction in capital by a special
resolution?
a)
Yes
b)
No
c)
May be
d)
None of these
200)
If the commission refuses to register the memorandum due to some defects or deficiencies, can
this decision be questioned in any court or other authority.
Yes in appellate
b) High Court
c) Supreme Court
d) Cannot be Challenged
court
Is it required to take approval of commission for alteration in articles of associations?
a)
201)
a)
Yes
b)
No
202)
As the memorandum of association is altered by a special resolution, the articles of association
can be altered by a simple resolution as articles are internal affairs of the company. This statement is :
a)
203)
True
b)
False
What is the proof of existence of the company?
a) Memorandum
c)
Certificate of Incorporation
b) Article of Association
d) a and b
204)
In how many days, at the request of the member, copy of memorandum needs to be sent by the
company?
a) Within 20 days
b) Within 90 days
c)
205)
Within 14 days
d) Within 11 days
What is the proof of existence of the company?
a)
Memorandum
c)
Certificate of Incorporation
b)
Article of Association
d)
a and b
206)
In how many days, at the request of the member, copy of memorandum needs to be sent by the
company?
a)
Within 20 days
c)
Within 14 days
b)
Within 90 days
d)
Within 11 days
Page 21
207)
a)
208)
ABC Limited company wants to rectify his name with BAC Limited while the company was
registered two years ago. Is the company law provides any provision for such rectification?
Yes
b)
No
A Company change its name by,
a)
A special resolution plus Approval of

Registrar
c)
Board of Director Approval plus

Approval of Registrar
b)
2/3 Approval of Commission plus

approval of Registrar
d)
None of them
209)
A company shall mention his former name with his new name for a period of
a)
Six months
c)
Eighteen months
b)
Twelve months
d)
Twenty months
210)
Whose final approval shall be required for conversion of public limited to private limited
a)
of shareholder
c)
a&c
b)
Commission
d)
None of them
211)
a)
212)
ABC Public Limited has three members, one of them is died and no member has been replaced for
eight months. Shall the two member of the company be liable for whole debt of company contracted
during that tenure?
Yes
b)
No
In case of joint holder of a share, the notice is given by the company to,
a)
Both of them separately
c)
Whose name first in the register
b)
Any one of them
d)
Whose name second in the register
213)
Which of them shall not be given a notice of general meeting,
a)
Member
b)
Auditor
214)
a)
c)
Person entitled to share in consequence

of death of member
d)
None of them
Do debentures holders have voting rights?

Convertible Debentures may have a voting right at the option of the company
Page 22
b)
Debentures holders having voting right immediately before the commencement of this ordinance
cannot exercise this right at the meeting of the company.
c)
This option is available on fully convertible debentures only.
d)
Both A and B
215)
What is a redeemable Capital?
a)
It is just like a debt, which is required to be refunded after within maturity period.
b)
It is not a debt but a equity instrument.
c)
It can only be redeem at the option of the company.
d)
None of above
216)
Certain Mortgages and charges to be void if
a)
Not registered with the concerned registrar in the prescribed manner
b)
Form 16 is not filed.
c)
If a mortgage charge is not registered with in 21 days of its creation.
d)
All of the above
217)
Any loan or Debt can be converted into ordinary Shares even if it was not originally convertible.
a)
If the loan or debt was not convertible ab-initio then it can never be converted.
b)
Any loan or debt can be satisfied on conversion into shares on the option of creditors.
c)
Only partly convertible loans can be converted into shares.
d)
Both A and C
218)
Can a company borrow a loan even if it is not mentioned in the article of memorandum?
a)
No, a company can do only those things which are allowed by its Memorandum.
b)
Its not necessary that this provision is contained in the Memorandum.
c)
It is ancillary to business so company can borrow.
d)
Both B and C
219)
What is floating Charge?
Page 23
a)
It is the charge that keeps on floating.
c)
b)
This charge is entered by way of

hypothecation.
This charge is done on Immoveable

Assets.
d)
Both A and b
220)
What are the remedies available to debenture holders for realizing security?
a)
For realizing security they have the only option given by this ordinance is to reissue that
debenture.
b)
They can file suit for specific performance of the contract.
c)
The debt can be converted into shares at the option of the company.
d)
Both B and C
221)
What is the modification of charge?
a)
It occurs when the amount of charge changes.
b)
It occurs when terms and condition of charge changes and particulars of charge are required to
change.
c)
Form 16 should be filed for this purpose.
d)
All of the above
222)
What is the register of mortgages and charges?
a)
In these register particulars of mortgages and charges created by the company is recorded by the
registrar.
b)
It is the register substitutable for the register of shareholders.
c)
This register is open to inspection by any person without any fee.
d)
Both A and C
223)
The Commission on being satisfied that the omission to register a mortgage or charge within the time
required by section 121,was accidental or due to inadvertence or to some other sufficient cause, or is
not of a nature to prejudice the position of creditors or shareholders of the company, The commission
may:
a) Impose a Monetary penalty
Page 24
b) Impose a Monetary as well as criminal penalty

c) Order that the time for registration be extended
d) None of the above
224)
It shall be the duty of a company to give intimation to the registrar of the payment or satisfaction, in
full, of any charge or mortgage created by the company and requiring registration under section 121
and 122 within:
a)
Twenty One Days
c)
Fourteen Days
b)
Thirty Days
d)
None of the above.
225)
Notice of the situation of the registered office and of any change therein shall be given within
twenty-eight days after the date of the incorporation of the company or of the change, as the case may
be, shall be given to:
a)
The Commission
c)
The Shareholders
b)
The Registrar
d)
The Creditors & Debtors
226)
If the registered office is situate in a place beyond the local limits of the ordinary original civil
jurisdiction of a High Court, The name should be painted and affix in
a)
Letters easily legible in English
b)
letters easily legible in Urdu
c)
In the characters of one of the vernacular languages used in that place
d)
None of the above
227)
Where any notice, advertisement or other official publication of a company contains a statement of
the amount of the authorized capital of the company, such notice, advertisement or other official
publication shall also contain:
a)
Premium\Discount on Shares
b)
Retained Earnings
228)
a)
c)
The amount of the capital which has

been subscribed and the amount paid up
d)
None of the above
Every company having more than fifty members shall, unless the register of members is in such a
form as to constitute in itself an index, keep an index of the names of the members of the company
and shall, make the necessary alteration in the index with in.
Twenty One Days
b)
Thirty Days
Page 25
c)
229)
230)
Fourteen Days
None of the above.
The register of members & the register of debenture holders shall be open to the inspection of
members & debenture holders daily during working days for at least:
a) Two Hours
c) Six Hours
b) Four Hours
If an un discharged insolvent act as CEO or director, he shall be liable for

a) Imprisonment not exceeding 2 years
b) Fine not exceeding ten thousand rupees
231)
d)
c) It can be both of the above

A Company can close the register of members or debenture holders, as the case may be, for any time
or time not exceeding in the whole ________ days in a year and not exceeding 30 days at a time.
a)
b)
50
70
c)
d)
60 days
45 days
232)
If a company having a share capital shall once in a year, with the registrar a return containing the
particulars specified in __________________ as on the date of the Annual General Meeting
a)
Form B of the Third Schedule
b)
Form A of the Third Schedule
c)
Form-26
d)
None of the above.
233)
Every company limited by shares and every company limited by guarantee and having a share
capital shall, within a period of not less than 3 months not more than 6 months at which the business
commence, hold a general meeting of the members of the company which shall be
called____________________.
a)
b)
234)
c)
d)
Statutory Meeting
A&C
The directors shall, at least 21 days before the date on which the statutory meeting is held, forward a
report, in this Ordinance referred as _____________________.
a)
b)
235)
Annual General Meeting

Extra Ordinary General Meeting
Annual Reports
Statutory Reports
c)
d)
Both above
None of the above
The __________________________ shall, in the case of a listed company, be held in the town in which
the ______________________ of the company is situating as recommended by Commission.
a)
AGM, Registered Office
b)
EOGM, Stock Exchange
c)
Board meeting, Registrar
Page 26
d)
236)
The statutory report shall contain a brief account of the state of the companys affairs since its
_______________________ and the ______________________including any change or proposed change
affecting the interest of shareholders and business prospects of the company.
a)
b)
237)
b)
c)
d)
None of the above

Both of the above.
General meetings of the

company.
Statutory meetings.
c)
d)
Extraordinary General meeting.

None of the above.
Notice of an extraordinary general meeting shall be sent to the members at least __________days
before the date of the meeting.
a)
b)
239)
Incorporation & business plan

Share capital & members.
All general meetings of a company, other than the annual general meeting and the statutory meeting
shall be called _______________________.
a)
238)
None of the above
30 Days
21 Days
c)
d)
45 Days
None of the above.
Notice of the meeting specifying the place and the date and hour of the meeting along with a
statement of the business to be transacted at the meeting shall be given.
a)
b)
240)
241)
To every member of the company.

To any person entitled to a share in consequence of death of a member if the interest of
such person is known to the company.
c)
To the auditors or auditors of the company.
d)
All of the above.
The company having a share capital, ________________ shall have votes proportionate to the paid-up
value of the shares carrying voting rights held by him according to the entitlement of the class of such
shares.
c)
Members
a)
Directors
d)
All of the above
b)
Chairman
Any member of company entitled to attend & vote at a meeting of the company shall be entitled as a
proxy to appoint another person, shall have such rights as respects speaking & voting at the meeting
as are available to a member.
a)
The statement is invalid for those who have no share capital.
b)
A member shall not be entitled to appoint more than one proxy for attend the meeting.
c)
A proxy must be a member unless the articles of the company permit appointment of a
non-member as proxy.
d)
All of the above.
Page 27
242)
The members having not less than ______________________ in the company may give notice of a
resolution and such resolution together with the supporting statement if any which they propose to
be considered at the meeting of the company.
a)
b)
243)
10 per cent voting power.

None of the above.
________________________ of result of voting by show of hands to be evidence.

a)
b)
c)
244)
c)
d)
1/3 voting power

75 per cent voting power
d)
Board of Directors
Chairmans declaration
Both of the above
None of the above
A printed or typed copy of every special resolution shall be filed with the Registrar with in:
a)
10 days
c)
20 days
b)
15 days
d)
dont need to file
245)
A copy of special resolution can be provided to the employee only when ___ and after getting_____:
a)
Employee request and proper fee
b)
Directors permission and declaration
c)
After Board of Directors approval and undertaking
246)
Preparation of minutes of the Board of Directors and other Committees meetings are important or
not and in how many days copy of the minutes shall be provided to directors:
a)
Yes, 14 days
c)
Yes, 20 days
b)
No
d)
Yes, 45 days
247)
Minutes of all meetings shall be kept at the:

a)
Company Registered office
b) with Audit Committee

248)
a)
b)
c)
c)
With registrar
d)
At Compnays discretion
After how many days of meeting a member can put request to obtain copy of the minutes:
7 days
3 days
20 days
d)
45 days
Page 28
249)
a)
b)
250)
a)
b)
251)
a)
b)
c)
252)
a)
b)
c)
253)
a)
b)
254)
a)
b)
255)
a)
b)
256)
a)
b)
Minimum number of a Directors for listed public company is:

7
3
c)
d)
5
9
A public company not listed on stock exchange can have 03 directors at minimum:
No, 7
No, 4
c)
d)
No, 5
Yes
Every company may have one artificial person as director according to Companies Ordinance:
Yes
No, at least two persons
No, at least three persons
d)
No, only a natural person can be the

director of company
Who are the first directors of the company and how long their tenure is:
Initial subscribers, until election of directors in first AGM
All the person who are associates of related companies, for two years
There are no initial directors till election of the company
When initial directors / first directors got retired:
Until the election of directors in first
AGM
Until they are not asked to stop working
as directors by Chief Executives
c)
d)
After five years

After three years
The company fixes the number of elected directors not later than ____ days before AGM.
7 days
45 days
c)
d)
35 days
90 days
If numbers of contesting persons are equal of the numbers of directors to be elected, all contesting
person stand elected. This process is called.
Un-opposed election
smooth election
c)
d)
Un-contested election
Reconciliation
What percentage of voting shares a person need to request to commission for conducting fresh
elections of directors:
10%
12.5%
c)
d)
15%
30%
Page 29
257)
a)
b)
258)
a)
b)
259)
a)
b)
260)
a)
b)
261)
a)
b)
262)
a)
b)
c)
d)
263)
The court may declare election of all directors or anyone director invalid on request of a person
holding ________ percentage of shares:
10%
20%
25%
30%
What is the maximum time required to appeal in court of law to declare an election invalid?
13 days
90 days
c)
d)
5 days
30 days
c)
d)
2 years
3 years
A tenure for an elected director is:

24 months
5 years
An elected director can be removed by company at any time by:

Resolution
Secretary
c)
d)
CFO
CEO
If any defect found in appointment of director then whether his all actions and decision taken before
discovering of such default remain valid:
No
Yes remain valid
c)
d)
No Board will review

invalid
A person cannot become director of the company if he/she is:

A minor, unsound, insolvent, loan defaulter
Convicted by court of law
Not a member except nominee, CEO, Employee and Creditor
All of above
The remuneration of a director for performing extra services shall be determined by the ____ of the
company
a) Chairman
b) Company secretary
264)
c)
d)
c) Shareholders
d) Board of directors
Whenever a director is absent for a period of ______, an alternate director can be appointed in his
place.
a) 2 weeks
b) a month
c) 3 months or more
d) None of these
Page 30
265)
_____ grants leave of absence to the original director and appoints a member as alternate director
a) Shareholders
b) Board
266)
In case of appointment of an alternate director, the company secretary shall file particulars of
directors on form 29 within a period of _____
a) 45 days
b) 14 days
267)
270)
a) Within fourteen days of his appointment

b) Immediately after his appointment
c) In first quarterly meeting
The directors of the company as from the date of commencement of business or as from the date not
later than ______, appoint a CEO
c) 15th day after first board meeting
The minimum numbers of shares to be acquired by the CEO

a) One share
b) Nil
272)
c) no restrictions
The director shall file with the registrar, the particulars of any loan taken without approval of the
commission prior his appointment
a) 15th day after the incorporation

b) 20th day after the incorporation
271)
c) Once in each quarter of a year

d) Annually
If in a meeting, the chairman is not present within _____, the members present can choose one of
them to be the chairman of the meeting
a) Ten minutes
b) twenty minutes
269)
c) A week
The directors of a public company shall meet at least ______

a) Once in a month
b) Twice a year
268)
c) CEO
d) Company secretary
c) 500 shares
d) As stated in companys article
The 1 tenure of office for which CEO may be appointed is

a) 1 year
b) Not more than 3 years
c) 5 years
Page 31
273)
a)
The CEO can be removed by a resolution passed by

3/4th majority of directors or special
resolution
b) 50% of directors
c) Not less than 90% of the directors

d) 50% of the shareholders
274)
CEO of _______ company cant engage in a business competing with companys business
275)
a) A Private limited
b) Single member company
c) Public company
d) No restriction under companies ordinance
Following ____ companies are required to have secretary.
a) Listed, Single member company
b) Listed, private, Unlisted private
276)
c) Public, Private
d) All of above
____ companies shall have an independent share registrar
a) Listed
b) Public
c) Private
d) All of the above
Page 32

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1.

Special resolution means a resolution passed by a majority of not less than;

(d) None of the above

Companies Ordinance 1984 is not applicable to;

Minimum number of directors of a listed company should not be less than

(d) None of the above

(b) More than 4 (c) 1/3rd or 3

No director shall be considered independent if one or more of the following circumstances

He is not a close relative of the companys directors or major shareholders

Appropriate arrangements for professional indemnity insurance cover is encouraged in

(b) Independent director (c) CEO (d) CFO

(b) 1/4 (c) 1/ 3 (d) None of the above

The Board of Directors of a listed company shall meet at least

(c) once in every quarter of the

The detail of all related party transactions shall be placed before;

(c) AUDIT committee

(b) the Board

(b) internal auditor

Name of related party; Nature of relationship with related party

(b) five years

(c) one years

(d) four years

(b) at least (21) days

(c) Audit committee

The Chairman BoD shall be elected from amongst the

Bold/Italic/underlined option is the correct option.

(c) Audit committee

(d) outside outsource

(c) quarterly basis

(c) long-term investment

In Pakistan a commercial bank can be formed and is registered under the:

In Pakistan a commercial bank prepares its annual accounts under the:

In Pakistan insurance company can be formed and is registered under the:

The working of the insurance company is governed by the:

The first auditor of a Public Limited Company is appointed by the

(b) 60 days of incorporation

A listed company or a company proposing to make application to a stock exchange for

Bold/Italic/underlined option is the correct option.

(b) 7 days or 30 days

No Prospectus shall be issued or an advertisement of a prospectus published in a

Against the company

Allotment should be made by proper authority

(b). 10-20 days

An allotment shall be irregular if it is made by the company in contravention of the

Minimum subscription not received.

The circular u/s 86 (3) shall contain.

Bold/Italic/underlined option is the correct option.

Be in the form prescribed by the authority.

Transfer of title in shares by operation of law

(b) Supporting evidence

Justification for the purchase

Debenture constitute loan to the company and debenture holder called

(d) Other Securities

(c) Director (d) Company secretary

Debenture includes all of the following except

(a) Shareholder (b) Creditor

(b) Articles of association

Bold/Italic/underlined option is the correct option.

The quorum of a general meeting shall be-(a)

A copy of the minutes of meeting of board of directors shall be furnished to every

Bold/Italic/underlined option is the correct option.

Every single member company shall have at least one director;

Bold/Italic/underlined option is the correct option.