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Test: Management- 3 - B Com MCQ


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10 Questions MCQ Test Company Law - Test: Management- 3

Test: Management- 3 for B Com 2024 is part of Company Law preparation. The Test: Management- 3 questions and answers have been prepared according to the B Com exam syllabus.The Test: Management- 3 MCQs are made for B Com 2024 Exam. Find important definitions, questions, notes, meanings, examples, exercises, MCQs and online tests for Test: Management- 3 below.
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Test: Management- 3 - Question 1

Which of the following types of companies are required to constitute a Nomination and Remuneration Committee as per the Companies Act, 2013?

Detailed Solution for Test: Management- 3 - Question 1
According to the Companies Act, 2013, the Nomination and Remuneration Committee must be constituted by all public companies that have a turnover of 100 crore rupees or more. This committee is responsible for identifying qualified directors and senior management personnel, recommending their appointment and removal, as well as evaluating directors' performance.
Test: Management- 3 - Question 2

In the context of the Nomination and Remuneration Committee, what is the minimum composition requirement for non-executive directors, out of which independent directors should constitute?

Detailed Solution for Test: Management- 3 - Question 2
The Nomination and Remuneration Committee should consist of at least 3 non-executive directors, out of which not less than one-half shall be independent directors. This ensures a balanced and unbiased decision-making process.
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Test: Management- 3 - Question 3

What function does the Stakeholders Relationship Committee perform as per the Companies Act, 2013?

Detailed Solution for Test: Management- 3 - Question 3
The Stakeholders Relationship Committee is responsible for considering and resolving the grievances of security holders of the company. This committee ensures effective communication and management of concerns raised by shareholders, debenture holders, and other security holders.
Test: Management- 3 - Question 4
Which aspect of a company's operations is primarily covered by SEBI (Prohibition of Insider Trading) Regulations, 2015?
Detailed Solution for Test: Management- 3 - Question 4
SEBI (Prohibition of Insider Trading) Regulations, 2015 primarily cover the prevention of insider trading and leakage of price-sensitive information. These regulations ensure that individuals with access to unpublished price-sensitive information do not misuse it for personal gains through trading in securities.
Test: Management- 3 - Question 5
As per Section 135 of the Companies Act, 2013, which of the following companies is required to constitute a Corporate Social Responsibility (CSR) Committee?
Detailed Solution for Test: Management- 3 - Question 5
Companies with a turnover of 1000 crores or more are required to constitute a Corporate Social Responsibility (CSR) Committee under Section 135 of the Companies Act, 2013. This committee formulates and recommends CSR policies, monitors their implementation, and ensures the allocation of a specific percentage of profits towards CSR activities.
Test: Management- 3 - Question 6
What is the minimum number of directors, out of which at least one must be an independent director, required to form the CSR Committee?
Detailed Solution for Test: Management- 3 - Question 6
The CSR Committee must consist of three or more directors, out of which at least one director should be an independent director. This ensures a diverse and responsible approach to the formulation and monitoring of CSR policies.
Test: Management- 3 - Question 7
Who is considered a "Connected Person" as per SEBI (Prohibition of Insider Trading) Regulations, 2015?
Detailed Solution for Test: Management- 3 - Question 7
As per the SEBI regulations, a "Connected Person" is someone who is associated with a company, directly or indirectly, and has frequent communication with its officers. This association can be through various capacities, including contractual, fiduciary, or employment relationships, and it grants access to unpublished price-sensitive information.
Test: Management- 3 - Question 8
What is the definition of an "Insider" under SEBI (Prohibition of Insider Trading) Regulations, 2015?
Detailed Solution for Test: Management- 3 - Question 8
An "Insider" under SEBI (Prohibition of Insider Trading) Regulations, 2015 is either a connected person or someone who is in possession of or has access to unpublished price-sensitive information. This definition includes individuals who may have crucial information about a company's operations that could impact its stock prices.
Test: Management- 3 - Question 9
What requirement is placed on insiders regarding trading in securities as per SEBI regulations?
Detailed Solution for Test: Management- 3 - Question 9
Insiders are required to adhere to specific restrictions when trading in securities. According to SEBI regulations, insiders must not trade in securities when they are in possession of unpublished price-sensitive information. This regulation aims to prevent the misuse of such information for personal gains in stock trading.
Test: Management- 3 - Question 10
What information is considered "unpublished price sensitive information" under SEBI regulations?
Detailed Solution for Test: Management- 3 - Question 10
"Unpublished price sensitive information" includes information that is not generally available to the public and, upon becoming public, is likely to materially affect the price of the company's securities. This information includes financial results, dividends, changes in capital structure, mergers, acquisitions, and other transactions that could impact stock prices.
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