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All questions of Liquidation Of Company for B Com Exam
What is the main purpose of preparing a Liquidator's Final Statement of Account?- a)To showcase the financial performance of the company in its final year of operation.
- b)To document the liquidator's qualifications and achievements during the winding up process.
- c)To distribute the remaining assets among the shareholders.
- d)To provide a record of the liquidator's activities, including asset realization and debt payments, for the winding up process.
Correct answer is option 'D'. Can you explain this answer?
a)
To showcase the financial performance of the company in its final year of operation.
b)
To document the liquidator's qualifications and achievements during the winding up process.
c)
To distribute the remaining assets among the shareholders.
d)
To provide a record of the liquidator's activities, including asset realization and debt payments, for the winding up process.
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Universal Academy answered |
The main purpose of preparing a Liquidator's Final Statement of Account is to provide a comprehensive record of the liquidator's activities, including the realization of assets, payments to creditors, and distribution of funds, throughout the winding up process.
What is the meaning of "default" as defined in the Insolvency and Bankruptcy Code, 2016?- a)Inability to repay debts
- b)Non-filing of financial statements
- c)Non-repayment of debt that has become due and payable
- d)Commercial insolvency
Correct answer is option 'C'. Can you explain this answer?
a)
Inability to repay debts
b)
Non-filing of financial statements
c)
Non-repayment of debt that has become due and payable
d)
Commercial insolvency
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Universal Academy answered |
In the Insolvency and Bankruptcy Code, 2016, "default" is defined as non-repayment of a debt, whether whole or in part, that has become due and payable by a corporate person.
Prior to the amendment, under which Act were the provisions for winding up through any mode governed, including voluntary winding up and winding up by the Tribunal?- a)Companies Act, 1956
- b)Insolvency and Bankruptcy Code, 2016
- c)Companies Act, 2013
- d)Companies (Court) Rules, 1959
Correct answer is option 'A'. Can you explain this answer?
a)
Companies Act, 1956
b)
Insolvency and Bankruptcy Code, 2016
c)
Companies Act, 2013
d)
Companies (Court) Rules, 1959
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Universal Academy answered |
Prior to the amendment, winding up through any mode, including voluntary winding up and winding up by the Tribunal, was governed by the provisions of the Companies Act, 1956.
Who is a "contributory" in the context of company liquidation?- a)A person who contributes to the company's social activities.
- b)A person who is responsible for contributing to the company's charitable donations.
- c)A person liable to contribute to the assets of the company in the event of winding up.
- d)A person who contributes to the company's annual financial statements.
Correct answer is option 'C'. Can you explain this answer?
a)
A person who contributes to the company's social activities.
b)
A person who is responsible for contributing to the company's charitable donations.
c)
A person liable to contribute to the assets of the company in the event of winding up.
d)
A person who contributes to the company's annual financial statements.
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Universal Academy answered |
A "contributory" is a person who is legally liable to contribute to the assets of the company in case of its winding up. This contribution is based on the person's status as either a present or past member of the company.
In the context of liquidation, who is responsible for realizing the company's assets, paying its debts, and distributing the surplus among members?- a)A shareholder of the company.
- b)The Registrar of Companies.
- c)An Official Liquidator appointed by the Tribunal.
- d)A voluntary liquidator appointed by the company's management.
Correct answer is option 'C'. Can you explain this answer?
a)
A shareholder of the company.
b)
The Registrar of Companies.
c)
An Official Liquidator appointed by the Tribunal.
d)
A voluntary liquidator appointed by the company's management.
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Universal Academy answered |
In the context of liquidation, an Official Liquidator or a liquidator appointed by the Tribunal takes control of the company's affairs, realizes its assets, pays its debts, and distributes any surplus among the members.
Which provision of the 2013 Act introduced a new ground for winding up based on the non-filing of financial statements and annual returns?- a)Section 255
- b)Section 468(3)
- c)Section 271(d)
- d)Section 271(b)
Correct answer is option 'C'. Can you explain this answer?
a)
Section 255
b)
Section 468(3)
c)
Section 271(d)
d)
Section 271(b)
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Universal Academy answered |
Section 271(d) of the 2013 Act introduced a new ground for winding up based on the non-filing of financial statements and annual returns for the immediately preceding five financial years.
What is the purpose of the Liquidator's remuneration in the winding up process?- a)To compensate the liquidator for their efforts in asset realization and debt payments.
- b)To cover the legal charges incurred during the winding up process.
- c)To provide additional funds for the company's future operations.
- d)To distribute among the shareholders as a part of the final surplus.
Correct answer is option 'A'. Can you explain this answer?
a)
To compensate the liquidator for their efforts in asset realization and debt payments.
b)
To cover the legal charges incurred during the winding up process.
c)
To provide additional funds for the company's future operations.
d)
To distribute among the shareholders as a part of the final surplus.
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Universal Academy answered |
The Liquidator's remuneration serves as compensation for the liquidator's efforts in realizing the company's assets, managing its affairs, and making payments to creditors during the winding up process.
Which authority is responsible for initiating corporate insolvency resolution process under the Insolvency and Bankruptcy Code, 2016?- a)High Court
- b)Registrar of Companies
- c)Tribunal
- d)Insolvency Professional
Correct answer is option 'C'. Can you explain this answer?
a)
High Court
b)
Registrar of Companies
c)
Tribunal
d)
Insolvency Professional
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Universal Academy answered |
The Tribunal (adjudicating authority) is responsible for initiating the corporate insolvency resolution process under the Insolvency and Bankruptcy Code, 2016.
When will the provisions of voluntary liquidation of corporate persons under the Insolvency and Bankruptcy Code, 2016 be applicable?- a)Immediately after the notification of Section 255
- b)Once the Rules are prescribed by the Central Government
- c)On April 1, 2017
- d)When the Tribunal is established
Correct answer is option 'B'. Can you explain this answer?
a)
Immediately after the notification of Section 255
b)
Once the Rules are prescribed by the Central Government
c)
On April 1, 2017
d)
When the Tribunal is established
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Universal Academy answered |
The provisions of voluntary liquidation of corporate persons under the Insolvency and Bankruptcy Code, 2016 will be applicable once the corresponding Rules are prescribed by the Central Government.
Which type of winding up is now dealt with by the provisions of Sections 7 to 9 of the Insolvency and Bankruptcy Code, 2016?- a)Voluntary winding up
- b)Winding up on inability to pay debts
- c)Winding up on just and equitable grounds
- d)Winding up on grounds of fraudulent conduct
Correct answer is option 'B'. Can you explain this answer?
a)
Voluntary winding up
b)
Winding up on inability to pay debts
c)
Winding up on just and equitable grounds
d)
Winding up on grounds of fraudulent conduct
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Universal Academy answered |
Winding up on inability to pay debts is now dealt with by the provisions of Sections 7 to 9 of the Insolvency and Bankruptcy Code, 2016.
In case of winding up on grounds other than inability to pay debts, which authority now has the jurisdiction to hear such cases, as per the current legal position?- a)High Courts
- b)Company Law Board
- c)Insolvency and Bankruptcy Board of India
- d)National Company Law Tribunal
Correct answer is option 'D'. Can you explain this answer?
a)
High Courts
b)
Company Law Board
c)
Insolvency and Bankruptcy Board of India
d)
National Company Law Tribunal
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Universal Academy answered |
In case of winding up on grounds other than inability to pay debts, the National Company Law Tribunal (NCLT) now has the jurisdiction to hear such cases, as per the current legal position.
Which entity appoints the liquidator in the case of a voluntary winding up?- a)The Tribunal.
- b)The Central Government.
- c)The contributories.
- d)The Registrar of Companies.
Correct answer is option 'C'. Can you explain this answer?
a)
The Tribunal.
b)
The Central Government.
c)
The contributories.
d)
The Registrar of Companies.
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Universal Academy answered |
In a voluntary winding up, the liquidator is appointed by a resolution passed in a general body meeting of the members and/or creditors of the company.
Which proceedings related to voluntary winding up will continue to be dealt with by the High Courts?- a)Proceedings pending before the Tribunal
- b)Proceedings pending before the High Courts till April 1, 2017
- c)Proceedings transferred to the Tribunal
- d)Proceedings pending before the High Courts on December 15, 2016
Correct answer is option 'B'. Can you explain this answer?
a)
Proceedings pending before the Tribunal
b)
Proceedings pending before the High Courts till April 1, 2017
c)
Proceedings transferred to the Tribunal
d)
Proceedings pending before the High Courts on December 15, 2016
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Universal Academy answered |
Proceedings related to voluntary winding up that were pending before the High Courts till April 1, 2017, will continue to be dealt with by the High Courts in accordance with the provisions of the 1956 Act.
Which statement is true regarding the liquidator's remuneration in the process of winding up?- a)The liquidator's remuneration is fixed and not subject to any calculations.
- b)The liquidator's remuneration is solely based on the number of years they have been involved in the winding up process.
- c)The liquidator's remuneration is calculated as a percentage of assets realized and payments made to unsecured creditors.
- d)The liquidator is not entitled to any remuneration in a voluntary winding up scenario.
Correct answer is option 'C'. Can you explain this answer?
a)
The liquidator's remuneration is fixed and not subject to any calculations.
b)
The liquidator's remuneration is solely based on the number of years they have been involved in the winding up process.
c)
The liquidator's remuneration is calculated as a percentage of assets realized and payments made to unsecured creditors.
d)
The liquidator is not entitled to any remuneration in a voluntary winding up scenario.
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Universal Academy answered |
The liquidator's remuneration is calculated as a percentage of assets realized and payments made to unsecured creditors. It is based on the work and effort put in by the liquidator during the winding up process.
In which situations can a company be wound up by the Tribunal according to the Companies Act, 2013?- a)If the company wants to merge with another company.
- b)If the company has failed to file financial statements for three consecutive years.
- c)If the company is unable to pay its debts.
- d)If the company wants to change its business structure.
Correct answer is option 'C'. Can you explain this answer?
a)
If the company wants to merge with another company.
b)
If the company has failed to file financial statements for three consecutive years.
c)
If the company is unable to pay its debts.
d)
If the company wants to change its business structure.
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Universal Academy answered |
According to the Companies Act, 2013, a company can be wound up by the Tribunal if it is unable to pay its debts, among other specified circumstances.
Which provision of the 2013 Act deals with the circumstances under which a company can be wound up by the Tribunal, including grounds like acting against the sovereignty of India and conducting affairs fraudulently?- a)Section 271(d)
- b)Section 468(3)
- c)Section 255
- d)Section 271(e)
Correct answer is option 'D'. Can you explain this answer?
a)
Section 271(d)
b)
Section 468(3)
c)
Section 255
d)
Section 271(e)
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Universal Academy answered |
Section 271 of the 2013 Act deals with the circumstances under which a company can be wound up by the Tribunal, including grounds like acting against the sovereignty of India, conducting affairs fraudulently, and other specified reasons.
What is the main purpose of liquidation or winding up of a company?- a)To distribute the company's assets among its shareholders.
- b)To revive and rehabilitate a sick company.
- c)To merge with another company for increased profitability.
- d)To convert the company's assets into cash for operational purposes.
Correct answer is option 'A'. Can you explain this answer?
a)
To distribute the company's assets among its shareholders.
b)
To revive and rehabilitate a sick company.
c)
To merge with another company for increased profitability.
d)
To convert the company's assets into cash for operational purposes.
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Universal Academy answered |
The main purpose of liquidation or winding up of a company is to bring its existence to an end and distribute its assets among its creditors and members. This is typically done when a company is unable to continue its operations or has fulfilled its purpose.
What is the difference between a present member and a past member in the context of contributories?- a)Present members are individuals who are currently employed by the company, while past members are former employees.
- b)Present members have contributed more to the company's assets, while past members have contributed less.
- c)Present members are liable to contribute unpaid amounts on shares, while past members are exempt from such liability.
- d)Present members have voting rights in winding up decisions, while past members do not.
Correct answer is option 'C'. Can you explain this answer?
a)
Present members are individuals who are currently employed by the company, while past members are former employees.
b)
Present members have contributed more to the company's assets, while past members have contributed less.
c)
Present members are liable to contribute unpaid amounts on shares, while past members are exempt from such liability.
d)
Present members have voting rights in winding up decisions, while past members do not.
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Universal Academy answered |
A present member is liable to contribute the unpaid amounts on shares held by them during winding up, whereas a past member's liability is limited if they ceased to be a member before the commencement of winding up.
Which section of the Insolvency and Bankruptcy Code, 2016 led to the amendment of the Companies Act, 2013 to define the term "winding up"?- a)Section 271(a)
- b)Section 255
- c)Section 468(3)
- d)Section 59
Correct answer is option 'B'. Can you explain this answer?
a)
Section 271(a)
b)
Section 255
c)
Section 468(3)
d)
Section 59
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Universal Academy answered |
Section 255 of the Insolvency and Bankruptcy Code, 2016 led to the amendment of the Companies Act, 2013 by introducing a new definition for the term "winding up."
What is the purpose of the Liquidator's Final Statement of Account?- a)To provide an overview of the company's financial performance in its last year of operation.
- b)To showcase the liquidator's qualifications and achievements during the winding up process.
- c)To list all the shareholders and their contributions to the company.
- d)To document the liquidator's activities, including asset realization and debt payments, for the winding up process.
Correct answer is option 'D'. Can you explain this answer?
a)
To provide an overview of the company's financial performance in its last year of operation.
b)
To showcase the liquidator's qualifications and achievements during the winding up process.
c)
To list all the shareholders and their contributions to the company.
d)
To document the liquidator's activities, including asset realization and debt payments, for the winding up process.
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Universal Academy answered |
The Liquidator's Final Statement of Account serves as a documentation of the liquidator's activities during the winding up process, including the realization of assets, payments to creditors, and distribution of funds among stakeholders.
Chapter doubts & questions for Liquidation Of Company - Advanced Corporate Accounting 2025 is part of B Com exam preparation. The chapters have been prepared according to the B Com exam syllabus. The Chapter doubts & questions, notes, tests & MCQs are made for B Com 2025 Exam. Find important definitions, questions, notes, meanings, examples, exercises, MCQs and online tests here.
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