TN Board 12th Commerce Important Questions Chapter 28 Company Secretary

Students get through the TN Board 12th Commerce Important Questions Chapter 28 Company Secretary which is useful for their exam preparation.

TN State Board 12th Commerce Important Questions Chapter 28 Company Secretary

Very short answer questions

Question 1.
Define secretary using Oxford dictionary.
Answer:
“A secretary is a person who is employed to conduct correspondence on behalf of an individual or a company and also to execute filing documentation and administrative functions” Oxford Dictionary.

Question 2.
Mention the statutory functions of a company secretary.
Answer:
According to the Companies Act,

1. Under the Income Tax Acts
2. Under the Indian Stamp Act
3. Under Other acts

Question 3.
State the other qualifications of a company secretary.
Answer:
The secretary must be smart, unbiased, and must have an IQ presence of mind and amiable personality. He should have a thorough knowledge of company law, labor law, mercantile law, accounting, and office management.

Question 4.
What is Quorum?
Answer:
There is another requirement of quorum. A single person does not contain a meeting. So it has to be seen that the required number of people are present. A requisite number of people at the meeting is called a quorum.

Question 5.
What are the acts applicable to the company?
Answer:

1. Foreign exchange regulation act
2. Industries development and regulation act.
3. Factories act
4. Industrial dispute act
5. Labor laws
6. Payment of wages act.

Question 6.
What is the qualification of a company secretary?
Answer:
Apart from the statutory qualifications, he should also have other qualifications as may be necessary to conduct the affairs of the company. Is statutory qualifications-company having a paid-up share capital of? 5 crore or more in the case of any other company (one or more).

Question 7.
Explain about the board meeting.
Answer:
Meetings of directors are called board meetings. Meetings of the directors provide a platform to discuss the business and take formal decisions.

Question 8.
State the kinds of resolution.
Answer:
There are broadly three types of resolutions namely,

1. Ordinary resolution
2. Special resolution
3. A resolution requiring special notice.

Short answer questions

Question 1.
Explain briefly the appointment of the company secretary.
Answer:

1. 204 of companies act 2013 the provisions regarding appointment of a company secretary are every listed company must have a full-time company secretary.
2. Every unlisted company and every private company having a paid-up capital of Rs. 5 crores or more must also have a full-time secretary.
3. Only an individual who is a member of the institute of company secretaries of India can be appointed as a company secretary.

Question 2.
Give a short note company secretary.
Answer:

1. The person who is responsible for the general performance of an organization is called the company secretary.
2. The Key Managerial Personnel (KMP) who run a company is called with different titles directors, managers or secretary.
3. The word secretary has originated, in Latin. The Latin word “secretaries” which means secret.
4. The person who steers the company holding the administrative, financial, and overall performance of the company is called the company secretary.

Question 3.
Discuss “voting”.
Answer:

1. The word “vote” originated in the Latin word votum indicating one’s wishes or desire.
2. By casting his vote one formally declaring his opinion or wish in favor of or against a proposal or a candidate to be elected for an office.
3. Every motion or proposal is subject to the approval of the majority of the members or shareholders can cast their votes only on the occasions in which they want to establish their rights according to section 47 of the company act 2013.

Long answer questions

Question 1.
Explain the powers and rights of the company secretary.
Answer:
A company secretary is a high-level officer. He enjoys certain rights and power as per the contract made with the company, which are as follows.

1. Supervision and control: As a head of the office a company secretary has the rights to supervise, direct and control all office activities of sub-ordinate officers.
2. Signing authority: Being a principal officer, a company secretary can sign contracts, files, and documents on behalf of the company.
3. Exercising power: He has the right to exercise powers as granted by the board of directors.
4. Issuing testimonial: A company secretary can issue testimonials to employees on behalf of the company.
5. Claiming salary and damages: As per the contract, he has the right to claim his salary and other allowances. He can also take legal action against the company if there is any breach of contract.
6. Attending meeting: He has the right to be physically present in the meetings of the shareholders and board of directors.
7. Preferential creditor: During the winding up of a company, the company secretary can claim his legal dues on a preferential basis.

Question 2.
In what situations company secretary can be removed?
Answer:
The company secretary may be terminated under the following situations:

1. When his term of appointment has expired.
2. When he is given proper notice of dismissal as per the terms of agreement of employment.
3. When he makes a secret profit.
4. When he misconducts himself
5. Where he is found to be guilty of moral turpitude, negligence, disobedience, incompetence.
6. Where he suffers from permanent mental and physical disabilities.

Multiple-choice questions

1. The Latin word “Secretarius” which means:
(a) Skill
(b) Knowledge
(c) Secret
(d) Personality
Answer:
(c) Secret

2. The first secretary of a company is appointed by the:
(a) Promoters
(b) Company act
(c) Board of directors
(d) None
Answer:
(a) Promoters

3. Who will make statutory books?
(a) Directors
(b) Secretary
(c) Shareholder
(d) All the above
Answer:
(b) Secretary

4. A company secretary acts under the full control of the:
(a) Board of directors
(b) Directors
(c) Both (a) and (b)
(d) None
Answer:
(c) Both (a) and (b)

5. ………… Should act as a link between the board of directors and the shareholders.
(a) Executive
(b) Chairman
(c) Secretary
(d) Vice-chairman
Answer:
(c) Secretary

6. Who has absolute discretion to remove a company secretary?
(a) The board of director
(b) The director
(c) Chairman
(d) Shareholders
Answer:
(a) The board of director

7. Every public company should hold a meeting of the shareholders within:
(a) Six months
(b) One year
(c) One month
(d) Three months
Answer:
(a) Six months

8. First meeting of directors should be convened within the date of incorporation of the company.
(a) 60 days
(b) 30 days
(c) 90 days
(d) 120 days
Answer:
(b) 30 days

9. …………. can be present at the meeting and he cannot vote.
(a) Proxy
(b) Poll
(c) Quorum
(d) None
Answer:
(a) Proxy

10. Company secretary should have a thorough knowledge of
(a) Company law
(b) Mercantile law
(c) Labour law
(d) All the above
Answer:
(d) All the above

11. ………… must ensure timely submission of tax revenue to the sales tax authority.
(a) Chairman
(b) Director
(c) Secretary
(d) None
Answer:
(c) Secretary

12. Secretary may be terminated under the following situations.
(a) Term of appointment has expired
(b) Misconducts himself
(c) He suffers from mental disabilities
(d) All the above
Answer:
(d) All the above

13. a Requisite number of the person at the meeting is called:
(a) Quorum
(b) Poll
(c) Proxy
(d) Financiers
Answer:
(a) Quorum

14. Voting has no secrecy is known as:
(a) Open procedure
(b) Secret procedure
(c) Postal ballot
(d) All the above
Answer:
(a) Open procedure

15. Voting method that could maintain the secrecy of the voter is known as:
(a) Secret procedure
(b) By voice
(c) Open procedure
(d) None
Answer:
(a) Secret procedure