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CMA Intermediate · June 2026 · Paper 5

CMA Intermediate Business Laws and Ethics June 2026: paper analysis

Our own analysis of the official paper, as of 12 October 2026. The questions and answers belong to ICMAI; read them on ICMAI's website.

Chapter-wise marks

Where the marks were in this paper (out of 100; internal-choice alternatives not double counted).

What each question tested

In our words, by question number. Open the official paper for the full question.

QMarksTestsChapter
2(a)7Discharge of a contract by performance and by mutual agreementIndian Contracts Act, 1872
2(b)7Bailment: meaning, essential elements and distinction from pledgeSpecial Contracts - Indemnity and Guarantee; Bailment and Pledge; Laws of Agency
3(a)7Legal procedure for converting a private limited company into a limited liability partnershipLimited Liability Partnership Act, 2008
3(b)7Negotiable instruments involving foreign elements: governing law provisions under the ActNegotiable Instruments Act, 1881
4(a)7Items specifically excluded from the definition of wages under the wage codeThe Code on Wages, 2019
4(b)7Nomination for gratuity: filing requirements and points to notePayment of Gratuity Act, 1972
5(a)7Resolutions and agreements that must be filed with the Registrar within the prescribed timeOperational and Financial Control
5(b)7Matters a statutory auditor is required to inquire into under company lawInternal Financial Control for Financial Reporting
6(a)7Director's fees for professional services and whether they count towards the overall managerial remuneration ceilingDirectors - Role, Responsibilities, Qualification, Appointment, Removal, Remuneration and Powers
6(b)7Statutory rights available to shareholders of a companyRights of Shareholders
7(a)7Meaning of ethics and how ethics relates to lawBusiness Ethics and Emotional Intelligence
7(b)7Value chain concept and emerging challenges in designing management accounting systemsBusiness Ethics and Emotional Intelligence
8(a)7Agent's duty of reasonable care, liability for loss from imprudent investment and right to remunerationSpecial Contracts - Indemnity and Guarantee; Bailment and Pledge; Laws of Agency
8(b)7Matters to be stated in the statutory auditor's report under company lawInternal Financial Control for Financial Reporting

What stood out

  • Section B gave a choice of five out of seven 14-mark questions, each split into two 7-mark parts, so 14 written parts were on offer.
  • Company law dominated the written section with five parts (filings, auditor duties, director remuneration, shareholder rights, audit report), making it the safest area to prepare deeply.
  • Labour laws were tested through short theory parts on the wage code and gratuity nomination, while the Factories Act appeared only as an MCQ.
  • Only two parts were case-based (director remuneration and an agent's duty of care); the rest were explain-or-list theory questions.
  • The MCQ section leaned on the introduction to law and the legal system (3 of 15), with one question each from most contract, partnership and company chapters.

Practise the chapters that carried the marks

Special Contracts - Indemnity and Guarantee; Bailment and Pledge; Laws of Agency, Business Ethics and Emotional Intelligence, Internal Financial Control for Financial Reporting: study guides and practice questions in the CMA Intermediate format.