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B Com Exam  >  B Com Test  >  Company Law  >  Test: Introduction & Power to make Arrangements With Creditors & Members - B Com MCQ

Introduction & Power to make Arrangements With Creditors Members - Free


MCQ Practice Test & Solutions: Test: Introduction & Power to make Arrangements With Creditors & Members (10 Questions)

You can prepare effectively for B Com Company Law with this dedicated MCQ Practice Test (available with solutions) on the important topic of "Test: Introduction & Power to make Arrangements With Creditors & Members". These 10 questions have been designed by the experts with the latest curriculum of B Com 2026, to help you master the concept.

Test Highlights:

  • - Format: Multiple Choice Questions (MCQ)
  • - Duration: 10 minutes
  • - Number of Questions: 10

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Test: Introduction & Power to make Arrangements With Creditors & Members - Question 1
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Which of the following is NOT considered a mode of corporate restructuring?

Detailed Solution: Question 1

Corporate restructuring methods include mergers, demergers, amalgamations, and compromises. Dissolution is not a mode of corporate restructuring but refers to the termination of a company's legal existence.

Test: Introduction & Power to make Arrangements With Creditors & Members - Question 2
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What is the primary requirement for a compromise to exist?

Detailed Solution: Question 2

A compromise involves the settlement of a dispute by mutual concessions. It requires parties to agree and adjust their claims through concessions.

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Test: Introduction & Power to make Arrangements With Creditors & Members - Question 3
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Under what circumstance can a compromise not occur?

Detailed Solution: Question 3

If shareholders have to completely give up their rights, it does not constitute a compromise. A compromise implies mutual concessions and settlements.

Test: Introduction & Power to make Arrangements With Creditors & Members - Question 4
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In an amalgamation, what happens to the shareholders of the amalgamating companies?

Detailed Solution: Question 4

In an amalgamation, shareholders of amalgamating companies become shareholders of the amalgamated (new) company.

Test: Introduction & Power to make Arrangements With Creditors & Members - Question 5
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What is the significance of an 'arrangement' in corporate restructuring?

Detailed Solution: Question 5

An arrangement involves the reorganization of a company's share capital, including consolidating shares, dividing shares into different classes, and modifying preferential rights.

Test: Introduction & Power to make Arrangements With Creditors & Members - Question 6
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What is the purpose of filing a resolution in Form No. MGT-14 according to Section 230?

Detailed Solution: Question 6

Filing a resolution in Form No. MGT-14 is required under Section 230 to call and conduct a meeting of creditors or members for sanctioning a compromise or arrangement.

Test: Introduction & Power to make Arrangements With Creditors & Members - Question 7
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Who must file an application to the Tribunal to disclose material facts about the company?

Detailed Solution: Question 7

An application to the Tribunal disclosing material facts about the company must be filed by the company, its creditors, or its members, as specified under Section 230.

Test: Introduction & Power to make Arrangements With Creditors & Members - Question 8
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Which regulatory authorities should be sent notice when a compromise or arrangement is proposed?

Detailed Solution: Question 8

Notice should be sent to the Central Government, income-tax authorities, the Reserve Bank of India, the Securities and Exchange Board, the Registrar, stock exchanges, and other relevant authorities as mentioned in Section 230.

Test: Introduction & Power to make Arrangements With Creditors & Members - Question 9
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What is the minimum threshold for creditors' outstanding debt to raise an objection to a compromise or arrangement?

Detailed Solution: Question 9

Creditors holding outstanding debt amounting to not less than five percent of the total outstanding debt can raise objections to a compromise or arrangement.

Test: Introduction & Power to make Arrangements With Creditors & Members - Question 10
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What is the significance of Section 231(1) in relation to a compromise or arrangement?

Detailed Solution: Question 10

Section 231(1) empowers the Tribunal to supervise the implementation of a compromise or arrangement and provide necessary directions to ensure proper execution.

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About this B Com Practice Test

This test contains 10 MCQs on Introduction & Power to make Arrangements With Creditors & Members with detailed solutions for each question. It is part of the Company Law course on EduRev, designed to align with the current B Com syllabus. Each solution explains not just the correct answer but also gives you an understanding of the topic — not just to attempt the question but also help you prepare for the exam with practice.

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If you found this Introduction & Power to make Arrangements With Creditors & Members MCQ Test helpful, you can further enhance your B Com preparation with in-depth courses on EduRev, for all the subjects and topics available in Company Law course. The course offers:
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