CSEET · Business Laws and Management · Elements of Company Law
Consider these statements about the characteristics of a company. I. A company can sue and be sued in its own name. II. Perpetual succession means a company is wound up when all its members die. III. A company can be a member of another company. Which are correct?
Only statements I and III are correct. A company can sue and be sued in its own name and can be a member of another company. Perpetual succession means the company continues despite death or change of members, so statement II is wrong.
- AI and II only
- BII and III only
- CI and III onlyCorrect
- DI, II and III
Explanation
A company, being a legal person, can sue and be sued, and can hold shares in another company, so I and III are correct. Perpetual succession means the company's existence is unaffected by the death or exit of members, so II is wrong.
Did you get it right without looking?
One question tells you little. A timed set on Elements of Company Law shows your real accuracy, how long you take and where you lose marks.
More Elements of Company Law questions
- Match the share capital action in List I with the condition or feature in List II. List I: (P) Consolidation and division of shares, (Q) Sub…
- Statement I: Equity share capital, for a company limited by shares, means all share capital which is not preference share capital. Statement…
- Which of the following is correct about the content required when an advertisement of a prospectus is published, under the Companies Act, 20…
- Consider these statements about a company's incorporation. (I) The Registrar allots a corporate identity number, a distinct identity for the…
- Which of the following is NOT required to be filed with the Registrar for registration of a company under section 7(1)?
- Consider these statements about equity share capital under Section 43. I. It may be with voting rights. II. It may be with differential righ…