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B Com Exam  >  B Com Test  >  Company Law  >  Members & Shareholders - B Com MCQ

Members & Shareholders - Free MCQ Test with solutions for B Com Company


MCQ Practice Test & Solutions: Members & Shareholders (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 "Members & Shareholders". 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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Members & Shareholders - Question 1
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When can a person become a member of a company by estoppel?

Detailed Solution: Question 1

A person can become a member of a company by estoppel if they hold shares and allow their name to be retained on the register of members. Even if their entry on the register is improper, they cannot later deny their membership.

Members & Shareholders - Question 2
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In the case of a company limited by guarantee, what is the extent of the liability of its members?

Detailed Solution: Question 2

In a company limited by guarantee, the liability of its members is limited to the amount they undertook to contribute to the company's assets in case of winding up. They are not liable beyond this specified amount.

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Members & Shareholders - Question 3
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When does a holder of share warrant become a member of the company?

Detailed Solution: Question 3

A holder of a share warrant becomes a shareholder immediately upon the issuance of the share warrant. However, they do not become a member of the company.

Members & Shareholders - Question 4
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Which type of company can have members who are not shareholders?

Detailed Solution: Question 4

Companies limited by guarantee can have members who are not shareholders. These companies may not have share capital, but individuals can become members through other means, such as agreeing to contribute to the company's assets in case of winding up.

Members & Shareholders - Question 5
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According to the Companies Act, which of the following persons is automatically deemed to be a member of a company?

Detailed Solution: Question 5

Subscribers to the Memorandum of a company are automatically deemed to be members of the company, even if their names are not yet entered in the Register of Members. However, their names must be entered in the Register upon registration of the company.

Members & Shareholders - Question 6
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What is the ultimate authority in matters relating to the appointment and removal of directors, auditors, and other managerial personnel in a company?

Detailed Solution: Question 6

Shareholders hold the ultimate authority in matters related to the appointment and removal of directors, auditors, and other managerial personnel in a company. They collectively constitute the company as a corporate body and exercise control over its management.

Members & Shareholders - Question 7
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Which of the following rights are conferred upon members by the Companies Act and cannot be modified by the company's articles?

Detailed Solution: Question 7

The right to inspect the company's documents, including the register of members, annual returns, and other records, is conferred upon members by the Companies Act and cannot be modified by the company's articles.

Members & Shareholders - Question 8
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In the case of a company with unlimited liability, what is the extent of a member's liability?

Detailed Solution: Question 8

In a company with unlimited liability, every member is liable in full for all debts contracted by the company during the period they were a member.

Members & Shareholders - Question 9
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What is the difference between a member and a shareholder in a company limited by guarantee?

Detailed Solution: Question 9

In a company limited by guarantee, there is a distinction between a member and a shareholder. A shareholder has the right to transfer shares, while a member does not have this right. However, both terms are often used interchangeably.

Members & Shareholders - Question 10
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How can a person become a member of a company by "Membership by Qualification Shares"?

Detailed Solution: Question 10

A person can become a member of a company by "Membership by Qualification Shares" by agreeing to become a director of a company and taking a certain number of shares. This is a condition for appointment as a director, where a certain minimum number of shares must be held before the appointment.

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About this B Com Practice Test

This test contains 10 MCQs on Members & Shareholders 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 Members & Shareholders 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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  • MCQ Test: variety of questions as per the pattern of B Com exam
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