AIBE 21 Company Law MCQs, Top 15 MCQs With Answers

Company Law is an important subject for law aspirants preparing for the AIBE examination. Many students find this subject difficult because it includes technical definitions, legal provisions, statutory sections, and procedural concepts under the Companies Act, 2013. However, with proper revision and regular MCQ practice, students can improve their understanding and score better in the examination.

AIBE 21 Company Law MCQs help students revise important topics like company features, types of companies, directors, meetings, share capital, winding up, and legal doctrines. Practicing these questions also improves legal reasoning and speed during the exam.

Importance of Company Law for AIBE 21

Company Law is often considered challenging because students need to remember sections, legal definitions, and company procedures. Unlike subjects that rely heavily on theory, Company Law requires conceptual clarity and understanding of practical application.

In the AIBE examination, MCQs from Company Law are generally based on:

• Definitions under the Companies Act, 2013

• Important statutory sections

• Company management and governance

• Liability and share capital

• Meetings and resolutions

• Directors and promoters

• Winding up procedures

• Landmark case laws

Students should focus on understanding concepts instead of memorizing answers blindly.

AIBE 21 Company Law MCQs

Practicing MCQs is one of the most effective ways to prepare Company Law for the AIBE 21 examination. These questions help students revise important sections, legal concepts, and case laws under the Companies Act, 2013.

Q1. Which one of the following is NOT an essential feature of a company?

A. Perpetual Succession
B. Unlimited Liability
C. Separate Property
D. Transferability of Shares

Answer: B. Unlimited Liability

Q2. Companies Act of 2013 consists of how many sections?

A. 440
B. 430
C. 470
D. 465

Answer: C. 470

Q3. The paid-up share capital means:

A. Aggregate amount of money credited as paid-up in respect of shares issued
B. Includes amount credited as paid-up in respect of company shares
C. Includes any other amount received in respect of such shares by whatever name called

Options:

A. A & B are correct
B. A & C are correct
C. B & C are correct
D. All of the above

Answer: A. A & B are correct

Q4. Government company means:

A. Any company in which not less than 51% of paid-up share capital is held by the Central Government
B. Any company in which not less than 51% of paid-up share capital is held by the State Government
C. Any company in which not less than 51% of paid-up share capital is held by both Central and State Governments
D. All of the above

Answer: D. All of the above

Q5. Government Company is defined under:

A. Section 2(44)
B. Section 2(45)
C. Section 2(46)
D. Section 2(48)

Answer: B. Section 2(45)

Q6. The liability of members if shares limit the company:

A. Guarantee amount
B. Unlimited liability
C. Unpaid value of shares
D. None of the above

Answer: C. Unpaid value of shares

Q7. Company Liquidator, in so far as it relates to the winding up of a company, means a person appointed by:

A. The Tribunal in case of winding up by Tribunal
B. The company or creditors in case of voluntary winding up
C. Both (A) and (B)
D. None of the above

Answer: C. Both (A) and (B)

Q8. Private Company is defined under which section of the Companies Act?

A. Section 2(68)
B. Section 2(64)
C. Section 2(69)
D. Section 2(65)

Answer: A. Section 2(68)

Q9. Promoter is a person:

A. Named as such in a prospectus or annual return under Section 92
B. Who has control over the affairs of the company directly or indirectly
C. In accordance with whose advice or instructions the Board acts
D. All of the above

Answer: D. All of the above

Q10. Public company is defined under which section?

A. Section 2(68)
B. Section 2(71)
C. Section 2(73)
D. Section 2(74)

Answer: B. Section 2(71)

Q11. The Article of Association of a company is dealt under:

A. Section 5
B. Section 4
C. Section 9
D. Section 10

Answer: A. Section 5

Q12. In which of the following cases was the issue of Corporate Veil decided first?

A. Solomon v. Solomon
B. Lee v. Lee
C. Dhulia Amalner
D. In Re Kondali Tea Co.

Answer: A. Solomon v. Solomon

Q13. The auditor of a Government company is appointed by:

A. Central Government
B. Comptroller and Auditor General of India
C. Directors of the Company
D. Shareholders of the Company

Answer: B. Comptroller and Auditor General of India

Q14. Which section of the Companies Act fixes the maximum number of partners in a partnership firm?

A. Section 464
B. Section 463
C. Section 460
D. Section 450

Answer: A. Section 464

Q15. The Companies Act, 2013 came into force on:

A. 1 April 2014
B. 1 April 2013
C. 1 January 2014
D. 1 January 2013

Answer: A. 1 April 2014

Company Law is an important subject for AIBE 21 preparation. Although many students consider it difficult, regular MCQ practice and conceptual understanding can make the subject easier. Students should focus on important statutory definitions, company structure, governance rules, directors, resolutions, winding up, and landmark cases.

Topics like Government Company, Promoter, Paid-up Share Capital, Ultra Vires Doctrine, Board Meetings, and Public Company requirements are highly important for examination preparation. Revising important sections and practicing question-based learning can improve confidence and performance in the examination.

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