MCQ on Winding Up of
a Company
Voluntary winding up MCQ
Companies Act' 2013 MCQS |
Given below are MCQ on Winding Up of a Company updated for 2021 – 2022 exams. These MCQs on Winding Up of a Company are useful for B.Com, BBA, M.Com, MBA, UGC – NET (NTA NET), CA – IPCC, CMA Intermediate, CS Foundation CSEET Exam and all other competitive exams of commerce stream students.
1. Which of the followings are the modes of winding up?
a) Voluntary winding up (Under IBC Code 2016)
b) Compulsory winding up by tribunal
c) Both a & b
d) None of the above
Ans:
c) Both a & b
2. Which of the following are grounds for compulsory
winding up?
a) Default in filling p/l account and b/s or annual return
b) Inability to pay debts
c) Fraudulent affairs
d) All of the above
Ans:
d) All of the above
3. Which of the following are considered to just and
equitable ground for winding up of a company?
a) Deadlock in management
b) Oppression of minority
c) Quasi partnership
d) All of the above
Ans:
d) All of the above
4. Which of the following cannot file a petition for
winding up?
a) The company
b) Contributory
c) The Registrar
d) Promoters of company
Ans:
d) Promoters of company
Also you can read Company Law Chapter wise MCQs together with some additional Questions:
1. Company Law MCQs (130+ Questions)
2. Formation of Companies MCQs
3. MCQ on Memorandum and Articles of Association
7. MCQ on Winding Up of A Company
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5. Which of the following can file a petition for winding
up?
a) The company
b) Any creditor or prospective creditors
c) The person authorized by the central government
d) All of the above
Ans:
d) All of the above
6. Official liquidators are appointed from a panel of:
a) Firms of chartered accountant
b) Lawyers
c) Cost accountant and company secretaries
d) All of the above
Ans:
d) All of the above
7. Official liquidator is appointed by the:
a) Central government
b) Tribunal
c) Creditors
d) Company
Ans:
b) Tribunal
8. Power of removal of official liquidator vests with:
a) Central government
b) Tribunal
c) Creditors
d) Company
Ans:
b) Tribunal
9. Official liquidator can be removed on the ground of:
a) Failure to exercise due care and diligence in the performance of his powers and functions,
b) Inability to act as the provisional or company liquidator and
c) Conflict of interest or lack of independence during the term of the appointment that would justify removal.
d) All of the above
Ans:
d) All of the above
10. Which of the following is not the duty of a
liquidator?
a) To take over company’s assets for realization
b) To submit report to the tribunal
c) To keep proper books and submit accounts
d) None of the above
Ans:
d) None of the above
11. The order of dissolution can be issued only by the:
a) Central government
b) Tribunal
c) Creditors
d) Company
Ans:
b) Tribunal
12. The report on profess of winding up has to be
submitted by company liquidator to the tribunal:
a) Monthly
b) Quarterly
c) Half yearly
d) Yearly
Ans:
b) Quarterly
13. At the time of commencement of liquidation
proceedings Shareholders of the company are known as:
a) Legal heirs
b) Contributory
c) Preferential creditors
d) None of the above
Ans:
b) Contributory
14. When winding up takes place shareholders are
described as:
a) Legal heirs
b) Contributory
c) Preferential creditors
d) Creditors
Ans:
b) Contributory
15. Which of the following statement is true?
a) A body corporate may be appointed as company liquidator.
b) Body corporate must consist of such professionals as may be approved by the central government.
c) Such professionals must have at least 10 years of experience.
d) All of the above
Ans:
d) All of the above
16. Which one of the following statement is true?
a) The term contributory means a person who is liable to contribute to the assets of a company in the event of winding up.
b) Contributory may be past or present.
c) The liability of a present contributory is limited to the amount remaining unpaid on the shares held by him.
d) Holder of fully paid shares must also liable to contribute.
Ans:
d) Holder of fully paid shares must also liable to contribute.
17. Who are preferential creditors in case of liquidation
of Joint Stock Company?
a) All wages and salary of any employee.
b) All revenues, taxes, cesses and rates due from the company to the governments.
c) Amount of compensation due under workmen’s’ Compensation Act’ 1923.
d) All of the above
Ans:
d) All of the above
18. Which of the following statement is true?
a) The tribunal has the power to declare the dissolution of the company void.
b) The secured creditors’ claim must be satisfied before satisfying unsecured creditors claim.
c) The liability of the shareholders continues even after the company goes into liquidation.
d) All of the above
Ans:
d) All of the above
19. A company may become insolvent if it:
a) Makes continuous loss
b) Cannot pay the amount due to the creditors in full
c) Cannot pay staff salaries and wages
d) Unable to pay taxes.
Ans:
b) Cannot pay the amount due to the creditors in full
20. Company passes special resolution for winding up of
the company voluntarily.
Voluntary winding up MCQ
1. The process of voluntary winding up of solvent company is now shifted from the companies Act’ 2013 to Insolvency and Bankruptcy Code’ 2016.
2. Who are liable as contributories?
a) Past and present members
b) Directors and managers whose liability is unlimited.
c) Holder of fully paid shares unless they do not wish to do so.
d) All of the above
3. The object of winding up is to realize the assets and discharge the liabilities and then if there be any surplus, pay it off to the shareholders.
4. Order of payments on liquidation of companies:
a) Overriding preferential payments
b) Cost of liquidations
c) Preferential payments
d) Secured debentures
e) Unsecured creditors
f) Balance returned to the contributories
5. The burden of proof of fraudulent preference lies on the liquidator.
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