Commercial Law and Preliminaries of Auditing · Class 12 Commerce
Ch 2Company Law — Class 12 Commercial Law and Preliminaries of Auditing, concept-first.
Company Law is Unit 2, Part A (Commercial Law) of the Semester III (Class XII) paper, carrying 10 of the 40 marks. Semester III is a 100% Multiple Choice Question (MCQ) paper — every mark in the real WBCHSE examination for this unit is earned through 1-mark MCQs, not through long descriptive answers.
Key concepts
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Company and Body Corporate
A company (Section 2(20), Companies Act, 2013) is an artificial legal person created by registration, existing entirely separately from the people who own or manage it.
Most relevant Q&A
Chapter contents
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Overview
Company Law is Unit 2, Part A (Commercial Law) of the Semester III (Class XII) paper, carrying 10 of the 40 marks.
Introduction — Definition, Body Corporate, Types of Companies
Definition of Company — Section 2(20), Companies Act, 2013: "company means a company incorporated under this Act or under any previous company law." In plain language, a company is an artificial legal…
Incorporation of a Company
Formation of a company begins with promotion — the persons (promoters) who conceive the business idea, decide the company's proposed name, objects, and capital structure, and take the steps needed to…
Prospectus
Public Offer vs Private Placement — Section 23: a public company may raise share capital in two broad ways: (i) a public offer, by issuing a prospectus inviting the general public to subscribe; or (ii…
Accounts of Companies
Books of Account — Section 128: every company must keep proper books of account at its registered office, on an accrual basis and according to the double-entry system, giving a true and fair view of t…
More questions
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- Q1Under Section 2(20) of the Companies Act, 2013, a 'company' means: (A) Any business organisation with more than one owner (B) A company inco…Free
- Q2Which of the following is generally NOT considered an essential feature of a company? (A) Perpetual succession (B) Limited liability of memb…Free
- Q3The Reserve Bank of India and the Life Insurance Corporation of India are examples of which type of company? (A) Registered Company (B) Stat…Free
- Q4Under Section 2(45) of the Companies Act, 2013, a company is classified as a Government Company if: (A) It is registered under the Companies…Preview
- Q5A company incorporated outside India, having a place of business in India and conducting business activity here, is classified under the Com…Preview
- Q6A public company wishing to convert itself into a private company must, in addition to passing a special resolution altering its Articles, a…Preview
- Q7Which of the following clauses is NOT typically found in a company's Memorandum of Association? (A) Object Clause (B) Liability Clause (C) C…Preview
- Q8Under Section 10A of the Companies Act, 2013, a company having a share capital cannot commence business or exercise borrowing powers until:…Preview
- Q9A prospectus filed with the Registrar before the opening of the subscription list, which does not carry complete particulars of the price or…Preview
- Q10A person who subscribes for shares on the faith of a prospectus containing an untrue statement, and who suffers a loss as a result, may clai…Preview
- Q11Under Section 128 of the Companies Act, 2013, a company's books of account must be kept on which basis? (A) Cash basis and single-entry syst…Preview
- Q12Which of the following is a valid ground of disqualification for appointment as a company's auditor under Section 141? (A) The person is a p…Preview
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- Q13Bright Textiles Private Limited has grown rapidly and now wants to raise funds by inviting the general public to subscribe to its shares thr…Free
- Q14Mr. Kapoor, a Chartered Accountant, is currently a full-time employee in the finance department of Zenith Manufacturing Ltd. The company's B…Preview
- Q15Sunrise Public Ltd. wants to raise ₹50 crore through debentures in four separate tranches over the next ten months, and would prefer not to…Preview