CORPORATE GOVERNANCE, BUSINESS LAWS & ETHICS (MCQs)

Q1: Every officer of a company shall endeavor to prevent the commission of any fraud, offences of
money laundering with respect to affairs of the company and shall take adequate measures for this
purpose. If a person fails to comply with it, he shall be liable with fine which may extend to .

a) Rs. 50 million. b) Rs. 10 million.

c) Rs. 25 million. d) Rs. 100 million.

Q2: Under section 79 of the companies Act, 2017, who among the following persons cannot be
nominated by a member of a company to protect the interest of his legal heirs in the shares held by
him in the event of his death.

a) His brother and sister. b) His spouse.

c) His father and mother. d) His step son and daughter.

(3) The person to be nominated under this section shall not be a person
other than the relatives of the member, namely, a spouse, father, mother, brother,
sister and son or daughter.

Q3: Under section 19 of the companies Act, 2017, a public company shall not start its operations or
exercise any borrowing powers unless (select the wrong option).

a) shares held subject to payment of the whole amount thereof in cash have been allotted to an amount
not less in the whole than the minimum subscription and the money has been received by the company.

b) every director of the company has paid to the company full amount on each of the shares taken or
contracted to be taken by him and for which he is liable to pay in cash.

c) in the case of a company which has not issued a prospectus inviting the public to subscribe for its
shares, there has been filed with the registrar a statement in lieu of prospectus as per the third
schedule annexed to this act.

d) no money is or may become liable to be repaid to applicants for any shares which have been offered
for public subscription.
in the case of a company which has not issued a prospectus inviting
the public to subscribe for its shares, there has been filed with the
registrar a statement in lieu of prospectus as per the Second
Schedule annexed to this Act.

Q4: In which of the following ways, documents or information may be served on a company.

a) through electronic means.

b) by post or courier service.

c) documents or information may be served on a company in all of the following stated ways.
d) At the registered office of the company against an acknowledgement.
Service of documents on a company.—A document or information may be served on the company or any of its officers at the registered
office of the company against an acknowledgement or by post or courier service or through electronic means or in any other manner as may be
specified.

Q5: In accordance with the section 83 of the companies act 2017, issue of further shares to increase
share capital of a company shall be offered to existing members. The letter of offer shall limit a time
not being less than and not exceeding from the date of the offer within which
the offer, shall be deemed to have been declined.

a) fifteen days, twenty-five days.

b) fifteen days, thirty days.

c) ten days, twenty five days.

d) ten days, thirty days.

Further issue of capital.—(1) Where the directors decide to increase share capital of the company by issue of further share capital, such
shares shall be offered:
(a) to persons who, at the date of the offer, are members of the company in proportion to the existing shares held by sending a letter of offer
subject to the following conditions, namely—
(i) the shares so offered shall be strictly in proportion to the shares already held in respective kinds and classes;
(ii) the letter of offer shall state the number of shares offered and limiting a time not being less than fifteen days and not exceeding thirty days
from the date of the offer within which the offer, if not accepted, shall be deemed to have been declined;

Q6: In accordance with the regulation 11 of the companies (incorporation) regulations 2017, in case
any discrepancies and deficiencies are observed in the documents submitted for registration of a
company, the applicant shall remove the discrepancies and provide requisite information within
days of written communication from the registrar.

a) fifteen days.

b) seven days.

c) ten days.

d) fourteen days.

Q7: In accordance with section 47 of the Companies Act 2017, a private company may be converted
into a single member company by fulfilling certain conditions which include all of the following
except:

a) compliance with all other requirements as may be specified.

b) amendment in its memorandum and articles of association, in such a manner that they include the
provisions relating to a single-member company in the articles.

c) passing an ordinary resolution in this behalf by the private company.

d) prior approval of the commission in writing.

A private company may be converted into a single-member company with prior approval of the Commission in writing by passing a special
resolution in this behalf by the private company amending its memorandum and articles of association, in such a manner that they include the
provisions relating to a single-member company in the articles and complying with all the requirements as may be specified.

Q8: According to section 27 of the listed companies (code of corporate governance) regulations 2019,
who may be member(s) of audit committee.

a) an independent director.

b) both chief executive officer and the chief financial officer.

c) chief executive officer.

d) chief financial officer.

the Board shall establish an audit committee of at least three members comprising of non-executive directors and at least one independent
director;
Q9: As per section 73 of the companies Act 2017, if a company for any reasonable cause is unable to
issue duplicate certificate, it shall notify the fact, along with the reasons within from the
date of application, to the applicant.

a) twenty days.

b) seven days.

c) thirty days.

d) forty five days.

Q10: As per section 82 of the companies Act 2017, which one of the following statements in relation
to issue of shares in the company at a discount is not correct?

a) issue of shares at a discount shall be deemed to be reduction of capital.

b) every prospectus relating to the issue of shares, and every statement of financial position issued by
the company subsequent to the issue of shares, shall contain particulars of the discount allowed on the
issue of shares.

c) the issue of shares at a discount must be authorized by special resolution passed in the general
meeting of the company.

d) any violation of the section shall be an offence liable to penalty of level 3 on the standard scale.

Q1: Under section 19 of the listed companies (code of corporate governance) regulations, 2019, it is
encouraged that by June 30, 2020 at least of the directors on the Boards have acquired the
prescribed certification that meet the criteria specified by the commission and approved by it.

a) half.

b) one third.
c) three fourth.

d) one fourth.

Q2: The expression “variation” under section 59 of the companies Act, 2017, does not include.

a) revocation.

b) enhancement.

c) abrogation.

d) none of these.

Q3: For the purpose of winding up of the companies by court, the commission shall maintain a panel
of persons from whom the court shall appoint a provisional manager or official liquidator of a
company ordered to be wound up. Which one of the following statements is not correct in this regard.

a) while passing a winding up order, the court may appoint a provisional manager.

b) A person shall not be appointed as provisional manager or official liquidator of more than three
companies at one point of time.

c) The court may determine whether any, and what, security is to be given by an official liquidator on his
appointment.

d) The panel shall consist of persons having at least 15 years of experience in the field of accounting,
finance or law.

Q4: As per section 33 of the listed companies (code of corporate governance) regulations 2019, all
listed companies other than those in the financial sector shall change audit firm every years if
audit firm is sole proprietorship.

a) five.

b) ten.

c) seven.

d) three.

Q5: In accordance with section 19, of the listed companies (code of corporate governance) regulations
2019, companies are also encouraged to arrange training for, at least one every year under
the directors training program, from July 2022.

a) head of department.
b) female executive.

c) male executive.

d) all of these.
at least one female executive – from July 2020;
and
at least one head of department – from July
2022.

Q6: As per section 31 of the Listed companies (Code of corporate governance) Regulations, 2019,
which one of the following statements, is not correct with respect to the internal audit function.

a) The internal audit function, wholly or partially, may be outsourced by a company to a professional
services firm.

b) While outsourcing the function, a company shall not appoint its existing external auditors.

c) A company shall not outsource the function to any of its associated company.

d) The internal audit function shall not be performed by the internal audit staff of the holding
company of a company.

Q7: In the light of section 33 of the Listed companies (code of corporate governance) regulations 2019,
it is mandatory that all listed companies other than those in the financial sector shall, at the
minimum, rotate the engagement partner after every .

a) four years.

b) three years.

c) five years.

d) two years.

Q8: As per section 76 of the companies Act 2017, in case of a private company, on receipt of a notice
from a member of desirous of selling any shares held by him, the board shall, with in a

period of offer those shares for sale to the members in proportion to their existing
shareholders.

a) twenty one days.

b) fourteen days.

c) ten days.

d) seven days.
Q9: As per Regulation 17A of non banking finance companies and notified entities regulations 2008, a
deposit taking NBFC shall be required to maintain capital adequacy ratio (CAR) of eight percent for

the from coming into force of these regulations.

a) first five years.

b) first three years.

c) first two years.

d) first year.

Q10: Under section 14 of the Modaraba companies and modaraba (floatation and control) ordinance
1980, how many copies of the annual accounts, reports, etc. shall be sent to the registrar?

a) four.

b) two.

c) five.

d) three.

Q1: According to non banking finance companies and notified entities regulations 2008, “poor person”
means an individual who has meager means of subsistence and whose total business income
excluding expenses during a year is less than or equal to .

a) Rs. 800,000.

b) Rs. 500,000.

c) Rs. 1000,000.

d) Rs. 600,000.

Q2: Under section 13 of listed companies (Buy back of shares) regulations, 2019, the treasury shares
shall not be sold, transferred or otherwise disposed off by the purchasing company within a period

Of from the closure of purchase period.

a) three months.

b) six months.

c) one month.
d) one year.

Q3: As per regulation 10 of the listed companies (buy back of shares) regulations, 2019, the purchasing
company shall, submit to a copy of special resolution authorizing the purchasing company to
purchase.

a) the commission.

b) CDC.

c) the securities exchange.

d) All of these.

Q4: As per regulation 8 of the listed companies (buy back of shares) regulations, 2019, purchase
through securities exchange shall be made at the .

a) preceding ten trading days weighted average price.

b) spot/current share price.

c) price as recommended by the board of directors.

d) intrinsic value of the stock.

Q5: As per regulation 3 of the listed companies (buy back of shares) regulations, 2019, a company
shall be eligible to purchase (buy back its own shares) if it fulfills the following conditions, except:

a) after the purchase, the purchasing company is capable of meeting its obligations on time during the
period up to the end of the immediately succeeding twelve months.

b) it is listed on the securities exchange for a period of not less than two years.

c) before expiry of six months from the date of an earlier general meeting in which the purchase was
disapproved by the members.

d) the purchasing company should not be on the defaulter counter.

Q6: means the shares purchased and held by the purchasing company in its own name in
accordance with section 88 of the Act.

a) preference shares.

b) right shares.

c) bonus shares.
d) treasury shares.

Q7: As per section 132 of the companies Act, 2017, every company, shall hold, an annual general
meeting once in every calendar year within a period of following the close of its financial
year.

a) ninety days.

b) one hundred and fifty days.

c) one hundred and twenty days.

d) sixty days.

Q8: Under section 132(3) of the companies Act 2017, the notice of an annual general meeting shall be
sent to the members and every other entitled persons at least days before the date fixed for
the meeting.

a) twenty one.

b) twenty five.

c) twenty three.

d) twenty seven.

Q9: In accordance with the section 150 of the companies Act 2017, every special resolution passed by
a company shall be filled with the duly authenticated by a of the company.

a) registrar, director or secretary.

b) commission, director or secretary.

c) registrar, director and secretary.

d) commission, director or secretary.

Q10: As per section 152 of the companies Act 2017, any member shall at any time after seven days
from the meetings be furnished within after he has made a request in the behalf to the
company, with a certified copy of the minutes of any general meeting.

a) fourteen days.

b) fifteen days.

c) ten days.
d) seven days.

Q1: Under section 120 of the companies Act 2017, every company having more than members
shall keep an index of the names of the members of the company.

a) 100.

b) 50.

c) 25.

d) 500.

Q2: Where a company changes its name it shall, for the period of days from the date of
issue of a certificate by the registrar, continue to mention its former name along with its new name on
the outside of every office or place in which its business is carried on and in every document.

a) thirty.

b) one hundred and twenty.

c) ninety.

d) sixty.

Q3: As per section 55 of the companies Act, 2017 regarding service of notice on a member, in case of
joint-holders of a share, a notice must be given by the company to:

a) all joint holders of share.

b) any two of the joint holders of share.

c) any one of the joint holders of share.

d) the joint holder named first in the register in respect of the share.

Q4: As per section 26 of the companies Act, 2017, any change in the principle line of business shall be
reported to the register within from the date of change.

a) sixty days.

b) fifteen days.

c) thirty days.

d) forty five days.

Q5: As per section 32 of the Listed Companies (Code of Corporate Governance) regulations, 2019, it is
mandatory that every campus requires the external auditors to furnish a management letter to its
Board within of the date of audit report.

a) 60 days.

b) 45 days.

c) 30 days.

d) 50 days.

Q6: “Voting rights” means the right of a member of a company to vote on any matter in a meeting of
the company either present in person or through which of the following manners?

a) by postal ballot.

b) video link.

c) by proxy.

d) all of these.

Q7: In how many days a company is required to issue certificates of shares or other securities after the
allotment of any of its shares or other securities?

a) 75 days.

b) 30 days.

c) 60 days.

d) 45 days.

Q8: As per companies Act 2017, “Authorized capital” means such capital as is authorized

by of company to be the maximum amount of share capital of the company.

a) chief executive.

b) memorandum.

c) board of directors.

d) articles.
Q9: Under section 70 of the companies Act 2017, in the case of shares allotted as paid up in cash, the
company shall file with the registrar along with the return of allotment, a report from its auditor with
certain information. In case, the appointment of auditor is not mandatory by a company, the report
for this purpose, shall be obtained from .

a) a practicing cost and management accountant only.

b) the head of the internal audit department.

c) a practicing chartered accountant only.

d) practicing chartered accountant or cost and management accountant.

Q10: In pursuant to section 175 of the companies Act, 2017, if a person who is not qualified to be a
director, describes or represents himself or acts as a director or allows or causes himself to be
described as such, shall be liable to a penalty of on the standard scale.

a) level 3.

b) level 2.

c) level 1.

d) none of these.

Q1: Under section 120 of the companies Act 2017, every company having more than members
shall keep an index of the names of the members of the company.

a) 100.

b) 50.

c) 25.

d) 500.

Q2: Where a company changes its name it shall, for the period of days from the date of
issue of a certificate by the registrar, continue to mention its former name along with its new name on
the outside of every office or place in which its business is carried on and in every document.

a) thirty.

b) one hundred and twenty.

c) ninety.

d) sixty.
Q3: As per section 55 of the companies Act, 2017 regarding service of notice on a member, in case of
joint-holders of a share, a notice must be given by the company to:

a) all joint holders of share.

b) any two of the joint holders of share.

c) any one of the joint holders of share.

d) the joint holder named first in the register in respect of the share.

Q4: As per section 26 of the companies Act, 2017, any change in the principle line of business shall be
reported to the register within from the date of change.

a) sixty days.

b) fifteen days.

c) thirty days.

d) forty five days.

Q5: As per section 32 of the Listed Companies (Code of Corporate Governance) regulations, 2019, it is
mandatory that every campus requires the external auditors to furnish a management letter to its
Board within of the date of audit report.

a) 60 days.

b) 45 days.

c) 30 days.

d) 50 days.

Q6: “Voting rights” means the right of a member of a company to vote on any matter in a meeting of
the company either present in person or through which of the following manners?

a) by postal ballot.

b) video link.

c) by proxy.

d) all of these.

Q7: In how many days a company is required to issue certificates of shares or other securities after the
allotment of any of its shares or other securities?

a) 75 days.
b) 30 days.

c) 60 days.

d) 45 days.

Q8: As per companies Act 2017, “Authorized capital” means such capital as is authorized

by of company to be the maximum amount of share capital of the company.

a) chief executive.

b) memorandum.

c) board of directors.

d) articles.

Q9: Under section 70 of the companies Act 2017, in the case of shares allotted as paid up in cash, the
company shall file with the registrar along with the return of allotment, a report from its auditor with
certain information. In case, the appointment of auditor is not mandatory by a company, the report
for this purpose, shall be obtained from .

a) a practicing cost and management accountant only.

b) the head of the internal audit department.

c) a practicing chartered accountant only.

d) practicing chartered accountant or cost and management accountant.

Q10: In pursuant to section 175 of the companies Act, 2017, if a person who is not qualified to be a
director, describes or represents himself or acts as a director or allows or causes himself to be
described as such, shall be liable to a penalty of on the standard scale.

a) level 3.

b) level 2.

c) level 1.

d) none of these.

Q1: Under the Non-banking Finance Companies (Establishment and Regulation) Rules, 2003, “major
shareholder” means a person who, individually or in concert with his family or as part of a group,

holds percent or more shares having voting rights of the paid-up capital of the company.
a) fifteen.

b) twelve.

c) twenty.

d) ten.

Q2: As per code of ethics of ICMA Pakistan, members of the Institute shall not:

a) indulge in bribery or unfair and illegal inducement of any other sort.

b) adopt any illegal means in the performance of their duties.

c) issue untrue, misleading, deceptive, or fraudulent statements regarding the institute, its activities and
affairs, or any Member.

d) all of these.

Q3: As per the Anti-money Laundering Act, 2010, a “financial institution” does not trade in:

a) commodity futures trading.

b) non-transferable securities.

c) money market instruments.

d) foreign exchange.

Q4: Under Anti-money Laundering Act, 2010 which one of the following activities is not carried on by a
financial institution:

a) Insurance business transactions.

b) Operating leasing.

c) Acceptance of deposits and other repayable funds from public.

d) Money and currency changing.

Q5: As per section 11 of the Public Offering Regulations, 2017, for the purpose of allocation of shares
to retail investors, the issuer itself or its consultant to the issue, shall publish supplement to the
prospectus within working days of the closing of the Bidding period.

a) three.

b) ten.

c) five
d) fourteen.

Q6: National Executive committee to combat money laundering constituted under the Anti-money
laundering constituted under the Anti-money Laundering Act, 2010, shall be chaired by:

a) Minister of Foreign Affairs.

b) Governor SBP.

c) Minister of Finance.

d) Chairman SECP.

Q7: According to section 137 of the companies Act, 2017, the proxies must be lodged with the
company not later than before the time for holding a meeting.

a) thirty six hours.

b) seventy two hours.

c) forty eight hours.

d) twenty four hours.

Q8: According to section 135 of the Companies Act 2017, in the case of a company not having share
capital, if within half an hour from the time appointed for the meeting, the quorum is not present, the
meeting, other than called upon requisition of members, shall stand adjourned to the at the
same time and place.

a) next day.

b) same day after two week.

c) next working day in the next month.

d) same day in the next week.

Q9: In accordance with section 132 of the companies Act 2017, in the case of a listed company,

the and in any other case the may for any special reason extend the time within
which any annual general meeting, shall be held.

a) commission, registrar.

b) commission, commission.

c) registrar, registrar.
d) registrar, commission.

Q10: As per the companies Act, 2017, “Notification” means a notification published in:

a) an Urdu newspaper.

b) the official Gazette.

c) an English Newspaper.

d) All of these.

Q1: According to section 145 of the Companies Act 2017, a poll demanded on any question other than
the election of a chairman or on a question of adjournment, shall be taken at any time not more

than from the day on which it is demanded.

a) twenty one days.

b) seven days.

c) thirty days.

d) fourteen days.

Q2: As per the Listed Companies (Code of Corporate Governance) Regulations 2019, it is mandatory
that each listed company shall have at least two or of the Board, whichever is higher as
independent directors .

a) two thirds members.

b) three fourth members.

c) one fifth members.

d) one third members.

Q3: “Special Resolution” requires a notice of not less than specifying the intention to
propose the resolution as a special resolution.

a) twenty one days.

b) twenty days.

c) fourteen days.

d) twenty eight days.

Q4: Under section 9(1) of the Companies Act, 2017, no association, partnership or entity consisting of
one more than persons shall be formed for the purpose of carrying on any business that has
for its object the acquisition of gain unless it is registered as a company under the Act.

a) ten.

b) twenty.

c) fifteen.

d) five.

Q5: Under section 70 of the Companies Act, 2017, in the case of shares allotted as paid up in cash, the
company shall file with the registrar along with the return of allotment, a report from its auditor with
certain information. In case, the appointment of auditor is not mandatory by a company, the report
for this purpose, shall be obtained from .

a) A practicing cost and management accountant only.

b) The head of the internal audit department.

c) Practicing chartered accountant or a cost and management accountant.

d) A practicing Chartered accountant only.

Q6: Under the Listed Companies (Code of Corporate Governance) Regulations, 2019, who may be
removed only upon recommendation of the audit committee?

a) chief financial officer.

b) company secretary.

c) head of internal audit.

d) none of these.

Q7: Under the section 183 of the Companies Act, 2017, which of the following powers, the Board shall
not be able to exercise on behalf of the company by means of a resolution passed at their meeting?

a) to invest the funds of the company.

b) to sell or otherwise dispose of the subsidiary of the company.

c) to issue shares.

d) to borrow money otherwise than on debentures.

Q8: In the case of a listed company, the Commission, and in any other case, the registrar, may for any
special reason extend the time within which any annual general meeting, shall be held by a period not
exceeding:

a) forty five days.

b) twenty five days.

c) sixty days.

d) thirty days.

Q9: Which of the following statements is not correct about the Memorandum of a company limited by
guarantee?

a) It shall state that the ability of the members is unlimited.

b) It shall state the name of the company with the parenthesis and words “(Guarantee) Limited” as last
words of its name.

c) It shall state the Province or the part of Pakistan not forming part of a Province, as the case may be, in
which the registered office of the company is to be situate.

d) It shall state the principal line of business.

Q10: “Voting right” means the right of a member of a company to vote on any matter in a meeting of
a company either present in person or through which of the following manners?

a) be proxy.

b) video link.

c) by postal ballot.

d) All of these.

Q1: In accordance with section 47 of the Companies Act, 2017, a private company may be converted into
single member company by full filling certain conditions which include all of the following, except:

a) passing an ordinary resolution in this behalf by private company.

b) amendment in its memorandum and articles of association, in such a manner that they include the
provisions relating to a single member company in the articles.

c) prior approval of the commission in writing.

d) compliance with all other requirements as may be specified.

Q2: Which of the following orders may the Court pass on a petition of winding up received under section
304 of companies Act 2017.

a) it may make an interim order as it thinks fit.

b) it may appoint a provisional manager of the company till the making up of a winding up order.

c) it may dismiss it with or without costs.

d) All of these.

Q3: There are certain restrictions on declaration of dividend by a company. Which one of the following
statements is not true in this regard.

a) Provided that no dividend shall be declared or paid out of unrealized gain on investment property credited
to profit or loss account.

b) Any dividend may be paid by a company either in cash or in kind only out of its profits.

c) The company in general meeting may declare dividends but no dividend shall exceed the amount
recommended by the board.

d) The payment of dividend in kind shall only be in the form of shares of an unlisted company held by the
distributing company.

Q4: The provisions of the companies Act 2017, relating to creation, issue, increase or decrease of the
capital shall apply to the capital.

a) Both paid up capital and redeemable capital.

b) Paid up.

c) Redeemable.

d) None of these.

Q5: “Book of account” include records maintained in respect of:

a) all assets and liabilities of the company.

b) all sales and purchases of goods and services by the company.

c) all sums of money received and expanded by a company and matters in relation to which the receipts and
expenditure takes place.

d) All of these.
Q6: According to section 67 of the Companies Act, 2017, which one of the following statements is not true
as regards application for and allotment of shares and debentures.

a) All certificates, statements and declarations made by the applicant shall be binding on him.

b) A application for shares in or debentures of a company which is made in pursuance of a prospectus shall
be irrevocable.

c) No application shall be made for shares or debentures of less than such nominal amount as the
commission may specify either generally or in a particular case.

d) Whosoever makes an incorrect statement, declaration or verification in the application for allotment of
shares, shall be liable to a penalty of level 1 on the standard scale.

Q7: Under section 176 of the companies Act 2017, the Board of a public limited company shall meet at
least:

a) twice in each quarter of a year.

b) once in a year.

c) once in each quarter of a year.

d) twice in a year.

Q8: As per sub-section 1 of section 137 of the Companies Act 2017, a member of a company entitled to
attend and vote at a meeting of the company may appoint another person as his proxy to exercise all or
any of his rights to attend, speak and vote at a meeting. Select the wrong option:

a) A member shall not be entitled to appoint more than one proxy to attend any one meeting.

b) A proxy must be a member unless the articles of the company permit appointment of a non member as
proxy.

c) If any member appoints more than one proxy for any one meeting and more than one instruments of
proxy are deposited with the company, all such instruments of proxy shall be rendered invalid.

d) This sub section apply to all companies whether having share capital or not having share capital.

Q9: As per section 152 of the companies Act 2017, the books containing the minutes of proceedings of the
general meeting shall be open to inspection by members and not less than in each day are allowed
for inspection.

a) three hours.

b) four hours.

c) two hours.

d) five hours.
Q10: Under section 10(1) of the companies Act 2017, no company shall be registered by a name which
contains such word or expression, as may be notified by the commission or the opinion of the registrar is:

a) undesirable.

b) inappropriate.

c) designed to exploit or offend religious susceptibilities of the people.

d) suggesting the patronage of any past or Pakistani or foreign head of state.

Q1: As per section 16 of the Companies Act 2017, if registration of the memorandum is refused by the
registrar, the subscribers of the memorandum or any one of them authorized by them in writing

may, of the order of refusal, prefer an appeal to the commission.

a) within thirty days.

b) within sixty days.

c) within fifty days.

d) within forty days.

Q2: According to section 31 of the Companies Act 2017, which one of the following is not true
regarding the memorandum of association?

a) it shall be divided into paragraphs numbered consecutively.

b) it shall be dated.

c) it shall be printed in the manner generally acceptable.

d) it shall be signed by at least one subscriber.

Q3: As per section 67 of the Companies Act 2017, the may specify the form of an application
for subscription to shares in or debentures of a company.

a) issuing company.

b) registrar.

c) commission.

d) stock exchange.
Q4: As per section 15B of the Non Banking Finance Companise and Notified Entitise Regulations 2008,
if the credit rating of an NBFC is “BBB+”, then maximum limit of its contingent liability shall be .

a) 0.5 times of equity.

b) 1.5 times of equity.

c) 2.5 times of equity.

d) 2 times of equity.

Q5: As per the Non-Banking Finance Companies (Establishment and Regulations) Rules, 2003 a
“connected person” means any person or trust beneficially owning, directly or indirectly

, percent or more of capital of the NBFC or the notified entity.

a) twenty five.

b) five.

c) fifteen.

d) ten

Q6: As per the Non-Banking Finance Companies (Establishment and Regulations) Rules, 2003 “asset
management services” does not include:

a) issue of debentures.

b) the services provided for management of open-ended schemes.

c) the services provided for management of closed end schemes.

d) offering of investment schemes under trust deeds.

Q7: In accordance with Regulation 11 of the Listed Companies (Buy Back of shares) Regulations 2019,
the purchasing company shall not make a purchase before the expiry of from the last date of
subscription by shareholders in respect of any further issue of capital.

a) six months.

b) twelve months.

c) nine months.

d) three months.

Q8: Which one of the following statements about punishment for committing money laundering
under section 4 of the Anti-money laundering Act, 2010, is not correct?
a) If a company is found guilty under this section, the fine may extend to ten million rupees in case of
a company.

b) Whoever commits the offence of money laundering shall be punishable with rigorous imprisonment
for a term which shall not be less than one year but may extend to ten years,

c) Every director, officer or employee of company, found guilty under this section, shall also be
punishable under this section.

d) In addition to rigorous imprisonment and fine, a person shall also be liable to forfeiture of property
involved in money laundering or property of corresponding value.

Q9: As per section 133 of the companies Act, 2017, extra-ordinary general meeting shall be held

within from the date of the deposit of the requisition made by the members.

a) ninety days.

b) thirty days.

c) forty-five days.

d) sixty days.

Q10: Any contravention or default in complying with requirements of section 134 of the Companies
Act, 2017, regarding meetings and votes, shall be an offence liable:

a) in case of listed company, to a penalty of level 1 on the standard scale.

b) in case of listed company, to a penalty of level 2 on the standard scale.

c) in case of listed company, to a penalty of level 3 on the standard scale.

d) in case of any other company, to a penalty of level 1 on the standard scale.

Q1: Under section 19 of the companies Act 2017, a public company shall not start its operations or
exercise any borrowing powers unless (select the wrong option).

a) shares held subject to payment of the whole amount thereof in cash have been allotted to an amount
not less in the whole than the minimum subscription and the money has been received by the company.

b) every director of the company has paid to the company full amount on each of the shares taken or
contracted to be taken by him for which he is liable to pay in cash.

c) in the case of a company which has not issued a prospectus inviting the public to subscribe for its
shares, there has been filed with the registrar a statement in lieu of prospectus as per the third
schedule annexed to the act.
d) no money is or may become liable to be repaid to applicants for any shares which have been offered
for public subscription.

Q2: As per regulation 17A of the Non Banking Finance Companies and Notified Entities Regulations,
2008, a deposit taking NBFC shall be required to maintain Capital Adequacy Ratio (CAR) of eight
percent for the from coming into force of these regulations.

a) first five years.

b) first three years.

c) first two years.

d) first year.

Q3: According to section 14 of Modaraba Companies and Modaraba (Floatation and control)
Ordinance, 1980, how many copies of the annual accounts, reports, etc. shall be sent to the registrar?

a) Four.

b) Two.

c) Five.

d) Three.

Q4: means the shares purchased and held by the purchasing company in its own name in
accordance with section 88 of the Act.

a) preference shares.

b) right shares.

c) bonus shares.

d) treasury shares.

Q5: In pursuant to section 171 of the companies Act 2017, a director shall ipso facto cease to hold
office if he absents himself from meetings of board without seeking leave of absence.

a) four consecutive.

b) two consecutive.

c) three consecutive.

d) five consecutive.
Q6: In which of the following situation a member renders himself liable to expulsion or suspension by
the board? (Select the wrong option).

a) He is held by the Committee of the company to have been guilty of any act discreditable to a member
of the company.

b) He infringes any of the regulations of the articles.

c) He is acting or is threatening to act in a manner prejudice to the objects, interest or functioning of

the company or any other institute, body corporate, society, association or institution in which the
company has an interest or no interest.

d) He refuses or neglects to give effect to any decision of the board.

Q7: Under section 154 of the companies Act, 2017, a listed company shall have not less

than directors.

a) seven.

b) three.

c) two.

d) one.

Q8: As per the Companies Act, 2017, “promoter” means a person: (select the wrong option).

a) who has been named as such in a prospectus.

b) who act in accordance with the advice, directions or instructions of the board of the company.

c) who has control over affairs of the company, directly or indirectly.

d) who is named as a subscriber to the memorandum of association of a company.

Q9: Under section 177 of the Companies Act, 2017, if any person being undischarged insolvent acts as
a chief executive or director of a company, he shall be liable to imprisonment for a term not

exceeding or to a fine not exceeding rupees, or to both.

a) two years, one hundred thousand.

b) one year, one hundred thousand.

c) two years, three hundred thousand.

d) two years, two hundred thousand.

Q10: Under section 13 of the Modaraba companies and Modaraba (Floatation and control) Ordinance
1980, if the minimum amount stated in the prospectus to be the amount which must be raised, has
not been received by the date specified in the prospectus, all moneys received from the applicants sal
be refunded to them of the said date.

a) within thirty days.

b) within ten days.

c) within twenty days.

d) within fifteen days.

Q1: According to section 23 of the Listed Companies (Code of Corporate Governance) Regulations 2019,
“body of professional accountants” means body of professional accountants which: (Tick wrong option).

a) is established under a special enactment in Pakistan or abroad.

b) is established in Pakistan, is a self-regulatory organization.

c) is established in Pakistan is managed by a representative National Council.

d) is established in Pakistan, is a member of the International Federation of Accountants.

Q2: As per section 27 of the Listed Companies (Code of Corporate Governance) Regulations 2019, which
one of the following statements regarding an audit committee is correct?

a) An audit committee shall consist of non-executive directors and at least one independent director.

b) Chairman of the committee shall be an independent director, who may be the chairman of the board.

c) an audit committee shall have at least two members.

d) All members of the audit committee shall be “financial literate”.

Q3: Under the Listed Companies (Code of Corporate Governance) Regulations 2019, the Board shall have
when it is reconstituted after the expiry of its current term.

a) at least one fourth female directors.

b) at least one third female directors.

c) at least two female director.

d) at least one female director.

Q4: Under the Companies Act, 2017, a “financial institution” does not include:

a) State Bank of Pakistan.

b) a company which transacts the business of banking.

c) a business associated or ancillary to banking.

d) a government savings bank.

Q5: Which one of the following sub-sections of section 317 of the Companies Act, 2017, in respect of
remuneration of official liquidator is not true?

a) An official liquidator, shall also be entitled to such remuneration by way of percentage of the amount
realized by him by disposal of assets as may be fixed by the court.

b) The remuneration fixed as aforesaid shall not be reduced subsequently but may be enhanced by the Court
at any time.

c) The terms and conditions of appointment of a provisional manager or official liquidator and the fee
payable to him shall be fixed by the court.

d) If the official liquidator resigned, is removed from office or otherwise ceases to hold office before
conclusion of the winding up proceedings, the remuneration already received by him, if any, shall be
refunded by him to the company.

Q6: Under section 122 of the Companies Act, 2017, which one of the following statements is true?

a) Every public company shall keep a register of its debenture-holders.

b) a person guilty of an offence under this section shall be liable to a penalty of level 2 on the standard scale.

c) The section shall also apply with respect to debentures which, ex facie, are payable to the bearer thereof.

d) none of these.

Q7: A document which lays down the fundamental condition, upon which the company is allowed to form
is called:

a) Prospectus.

b) Memorandum of Association.

c) Certificate of Incorporation.

d) Articles of association.
Q8: The chairman shall be appointed by the board of a listed company shall within 14 days from the date
of election of directors from among directors.

a) the executive.

b) the non-executive.

c) other than executive or non-executive.

d) the executive or non-executive.

Q9: Who is qualified for appointment as receiver or manager of a company’s property.

a) a body corporate.

b) a person disqualified by a court from being concerned with or taking part in the management of the
company in any other way.

c) An undischarged insolvent who has been granted leave by the court by which he has been adjudged as
insolvent.

d) a director of the company.

Q10: According to section 38 of the Companies Act, 2017, subject to the provisions of the Act and to the
conditions contained in its memorandum, a company may, by alter its articles and a copy of the
articles of association as altered, shall be filed by the company with the registrar, within from the
date of passing of the resolution.

a) ordinary resolution ; thirty days.

b) special resolution ; twenty one days.

c) special resolution ; thirty days.

d) ordinary resolution ; twenty one days.

Q1: As per the Companies Act, 2017, “public sector company” means a company in which of the
voting securities or voting power of which are held by the Government.

a) not less than fifty one percent.

b) more than fifty one percent.

c) at least seventy five percent.

d) at least two third

Q2: In how many days, a company is required to issue certificates of shares or other securities, after
the allotment of any of its shares or other securities.

a) 75 days.

b) 45 days.

c) 60 days.

d) 30 days.

Q3: As per section 5 of the companies Act, 2017, there shall be, in each High court, one or more
benches on permanent basis, each to be known as the Company Bench and there shall be a registrar
to be known as the .

a) Registrar.

b) Bench Registrar.

c) Registrar of the Bench.

d) Registrar of the Company Bench.

Q4: under section 51 of the Company Act, 2017, an unlimited company having a share capital by its
resolution for registration as a limited company in pursuance of this Act may:

(i) Increase the nominal amount of its share capital by increasing the nominal amount of each of its
shares.

(ii) Call up any part of the amount by which its capital is so increased whenever it desires.

(iii) Call up any part of the amount by which its capital is so increased in the event and for the purpose
of the company being wound up.

a) Option (i) and (ii) are correct.

b) Option (i) only.

c) Option (i), (ii) and (iii) are correct.

d) Option (i) and (iii) are correct.

Q5: Under companies Act, 2017, “rules” mean rules made by the .

a) Registrar.

b) Commission.

c) Federal Government.
d) Provincial Government.

Q6: As per section 23 of the Listed Companies (Code of Corporate Governance) Regulations 2019, a
Certified Internal auditor requires of relevant experience in audit or finance or
compliance function to be appointed as the head of internal audit.

a) seven years.

b) three years.

c) ten years.

d) five years.

Q7: Under section 84 of the companies Act, 2017, where a company accepts or invites, or allows or
causes any other person to accept or invite on its behalf, any deposit, every officer of the company
which is in default shall be punishable with imprisonment for a term which may extend to and

Shall also be liable to fine which may extend to .

a) two years, five million rupees.

b) five years, two million rupees.

c) five years, five million rupees.

d) two years, ten million rupees.

Q8: Under section 32 of the Companies Act, 2017, which one of the following shall not require
confirmation by the commission.

a) Adoption of any business activity or any change therein which is subject to license, registration,
permission or approval under any law.

b) Change of principle line of business.

c) Change of the place of registered office from one Province to another Province or Islamabad Capital
Territory and vice versa.

d) Change of the place of registered office from one province or Islamabad Capital Territory to a part of
Pakistan not forming part of a Province and vice versa.

Q9: As per section 75 of the Companies Act , 2017, in case Board refuses transfer of any shares or
securities due to any defect in or invalidity of the transfer deed, the company shall within or
where the transferee is a central depository, within from the date on which the instrument
of transfer was lodged with it, notify the defect or invalidity to the transferee.
a) fifteen days, five days.

b) fifteen days, ten days.

c) ten days, fifteen days.

d) ten days, five days.

Q10: As per the companies Act, 2017, a “body corporate” or “corporation” does not include:

a) a company incorporated under this Act or company law.

b) a statutory body declared as body corporate in the relevant statute.

c) a company incorporated outside Pakistan.

d) a co-operative society registered under any law relating to cooperative societies.

Q1: Which of the following companies are required to have at least two or one third members of the
Board, whichever is higher, as independent directors?

a) Private companies.

b) Public companies.

c) Listed companies.

d) All of these.

Q2: As per section 318 of the companies Act, 2017, the official liquidator shall be described by the
style of of the particular company in respect of which he acts.

a) The official liquidator.

b) The company’s liquidator.

c) The liquidator.

d) He shall be described by his individual name.

Q3: As per Securities Act, 2015, the “majority shareholder” means a shareholder who holds, owns or
controls, directly or indirectly, percent of the shares having voting rights in a company.

a) not less than seventy five.

b) at least fifty.

c) not less than sixty seven.

d) more than fifty.

Q4: As per section 70 of the Companies Act, 2017, a return as to allotments of shares is not required in
which one of the following cases?

a) for issue of shares at a discount.

b) for bonus shares.

c) for the shares taken by the subscribers to the memorandum on the formation of the company.

d) All of these.

Q5: Under section 9 of the Companies Act, 2017, there are certain associations, partnerships that are
required to be registered as companies under this Act. A person guilty of an offence under this section
shall be liable to a penalty not exceeding of on the standard scale and also be personally
liable for all the liabilities for all the liabilities incurred in such business.

a) level 1.

b) level 2.

c) level 3.

d) No penalty.

Q6: Shah ji Under section 100 of the Companies Act, 2017, a company that creates a mortgage or
charge, must file the specified particulars of the mortgage or charge, with the registrar within a period
of after the date of its creation.

a) 15.

b) 30.

c) 10.

d) 45.

Q7: As per the Listed Companies (Code of Corporate Governance) Regulations, 2019, it is mandatory
that no person shall be elected or nominated or hold office as a director of a listed company including
as an alternate director of more than listed companies simultaneously.

a) ten.

b) five.

c) seven.
d) six.

Q8: As per section 19 of the Securities Act, 2015, the Commission or a securities exchange may
suspend the trading of any listed securities for a period not exceeding .

a) seventy five days.

b) sixty days.

c) forty five days.

d) ninety days.

Q9: As per Securities Act 2015, “Securities” in the case of listed instruments includes all of the
following except:

a) modaraba certificates, participation term certificates, and term finance certificates.

b) bills of exchange, promissory notes and certificates of deposit.

c) loan, stock, bond, sukuk and other instruments creating or acknowledging indebtedness.

d) shares and stock of a company (shares).

Q10: The notice of the statutory meeting shall be sent to the members along with a copy of statutory
report, which (in case of listed company) shall be certified by all of the following, except:

a) the chief financial expert.

b) the chief executive.

c) at least one director of the company.

d) internal auditor.

Q1: According to section 83 of the companies Act 2017, a member of which of the following
companies may exercise the right to renounce the shares offered to him in favor of any other person?

a) holding company.

b) associate company.

c) listed company.

d) public company.
Q2: In accordance with companies Act 2017, a private company is a company which, by its articles,
limits the number of its members to not including persons who are in the employment of the
company.

a) one hundred.

b) seventy five.

c) ten.

d) fifty.

Q3: As per section 73 of the companies Act 2017, if a company with intend to defraud, issues a
duplicate certificate of shares, or other securities, every officer of the company who is in default shall
be punishable with imprisonment for a term which may extend or with fine which may
extend to fifty thousand rupees, or with both.

a) one hundred and eighty days.

b) nine months.

c) ninety days.

d) one year.

Q4: According to section 23 of the Listed Companies (Code of Corporate Governance) Regulations 2019, a
graduate, can be internal auditor of a listed company provided that he has at least years of
managerial experience in fields of audit or accounting or in managing financial or corporate affairs
functions of a company.

a) five.

b) seven.

c) ten.

d) four.

Q5: Company law means the:

a) Companies Act, 2017.

b) repealed companies Act, 1913.

c) repealed companies Act, 1984.

d) All of these.
Q6: As per section 43 of the Companies Act, 2017, on revocation of license by the commission, of a
company formed under section 42 with charitable and not for profit objects:

a) all the assets of the company after satisfaction of all debts and liabilities shall, be transferred to
another company licensed under section 42.

b) the company may solicit or receive donations from any source.

c) the company shall stop all its activities except the recovery of money owed to it, if any.

d) a reasonable amount to meet the expenses of voluntary winding may be retained by the company.

Q7: The board by resolution passed by not less than of the total number of directors for the
time being may remove a chief executive before the expiration of his term of office.

a) 3/4

b) 2/3

c) 1/2

d) 3/5

Q8: As per the companies (Incorporation) Regulations, 2017, the applicant for reservation of name
shall propose names for the company in the order of priority, out of which, any one may be
approved by the registrar.

a) four.

b) three.

c) five.

d) two.

Q9: According to section 282L of the companies ordinance 1984, NBFCs may be amalgamated with
each other provided that it is approved by a resolution passed by a majority in value of the
shareholders of each of the said NBFCs.

a) three fifth.

b) two third.

c) three fourth

d) simple
Q10: Under the Non Banking finance companies (Establishment and Regulation) Rules, 2003, leasing
means the business of providing finance on .

a) ijarah basis.

b) operating lease.

c) finance lease.

d) all of these.

Q1: As per section 39 of the Companies Act 2017, each company shall send to every member, at his
request and within thereof, a copy of the memorandum and the articles.

a) fourteen days.

b) seven days.

c) thirty days.

d) forty five days.

Q2: As per section 19 of the Listed Companies (Code of Corporate Governance) Regulations, 2019, a
director having a minimum of 14 years of education and of experience on the Board of a
listed company, local and/or foreign, shall be exempt from the directors training program.

a) 12 years.

b) 10 years.

c) 15 years.

d) 5 years.

Q3: As per Companies Act, 2017, which one of the following statements best defines “alter” or
“alteration”?

a) “Alter” or “alteration” includes making of additions without substituting or destroying main scheme of
the document.

b) “Alter” or “alteration” includes making of additions or omissions without substituting or destroying

main scheme of the document.

c) “Alter” or “alteration” includes making of omissions without substituting or destroying main scheme
of the document.

d) None of these.
Q4: As per section 44 of the Companies Act, 2017, where an association with charitable and not for
profit objects was permitted by the Commission to be registered as a public limited company, makes
default in complying with the rules or regulations or the terms or conditions to which the license is
subject, it shall without prejudice to any other action be punishable by a penalty not exceeding

of on the standard scale.

a) Level 1.

b) Level 2.

c) Level 3.

d) No penalty.

Q5: None of the following persons shall be appointed as auditor of a company under the Companies
Act, 2017, except:

a) a body corporate.

b) a person who is indebted to the company in the ordinary course of business of such entities.

c) the spouse of a director of the company.

d) a person who is, or at any time during the preceding three years was, a director, other officer or
employee of the company.

Q6: In pursuant to section 308 of the Companies Act, 2017, the court shall make an order on receipt of
a petition for winding up under section 304 of the Act within days from the date of
presentation of the petition.

a) thirty.

b) ninety.

c) sixty.

d) forty five.

Q7: Under section 120 of the Companies Act 2017 every company having more than, members
shall keep an index of the names of the members of the company.

a) 25.

b) 500.

c) 50.

d) 100.
Q8: Which one of the following is not true regarding Quorum of general meeting?

a) in the case of a company not having share capital, as provided in the articles.

b) in the case of any other company having share capital, unless the articles provide for a larger number,
two members present personally, or through video-link who represent not less than twenty five percent
of the total voting power, either of their own account or as proxies.

c) in the case of a public listed company , unless the articles provide for a larger number, not less than
ten members present personally, or through video-link who represent not less than twenty five percent
of the total voting power, either of their own account or as proxies.

d) None of these.

Q9: The modaraba company shall prepare and circulate annual accounts, reports etc. to the holders of
modaraba certificates within from the close of the accounting year of the modaraba.

a) three months.

b) six months.

c) four months.

d) five months.

Q10: Under section 7 of the Non Banking Finance Companies (Establishment and Regulation) Rules,
2003, a NBFC, shall appoint and individual having three years experience as financial or chief
accounting officer who is a: (Select wrong option).

a) chartered accountant.

b) cost and management accounting.

c) person having master’s degree.

d) member of a recognized foreign accountancy organization.

Q1: Where, on issuing shares, a company has transferred a sum to the share premium account, it shall
not be used for which of the following purposes?

a) To write off the preliminary expenses of the company.

b) Write off the expenses of, or the commission paid or discount allowed on, any shares of shares of the
company.

c) To write off revaluation loss.

d) For issue of bonus shares to its members.

Q2: Which of the following things shall the board do only with the consent of the general meeting
either specifically or by the way of an authorization? (Select wrong option).

a) Remit, give any relief or give extension of time for the repayment of any debt outstanding against a
director of the company or of its holding company or to any of his relatives.

b) Sell or otherwise dispose of the subsidiary of the company.

c) To borrow moneys otherwise than on debentures.

d) Sell, lease or otherwise dispose of the understanding or a sizeable part thereof.

Q3: Section 57 of the companies Act, 2017 states that:

“No prospectus shall be issued by or on behalf of a company unless on or before the data of its
publication, a copy thereof signed by every person who is named therein as a director or proposed
director of the company has been filed with the registrar”.

In case of any contravention of this section, the company and any person who is a party to the issue,
publication or circulation of the prospectus shall be liable to the penalty not exceeding on the
standard scale.

a) level 3.

b) level 2.

c) level 1.

d) No penalty.

Q4: In case of a listed company, any dividend payable in cash shall be paid through .

a) electronic mode directly into the bank account designated by the entitled shareholders.

b) check or warrant only.

c) cheque or warrant or electronic mode directly into the bank account.

d) none of these.

Q5: represents redeemable investment in certificates of equal nominal value representing

undivided shares in ownership of tangible assets of a particular project or specific investment activity,
usufruct and services.

a) Debenture.
b) Musharika certificate.

c) participation term certificate.

d) sukuk

Q6: Under the Anti Money Laundering Act, 2010, “CTR” means exceeding such amount as
may be specified by the National Executive Committee by notification in the official Gazette.

a) Currency transfer report.

b) Current account transaction report.

c) Currency transactions report.

d) None of these.

Q7: Under the Anti money laundering Act, 2010, which one of the followings is not an investigating or
prosecuting bureau/agency?

a) Federal Investigating Agency (FIA)

b) National Accountability Bureau (NAB)

c) Anti Narcotics Force (ANF)

d) Intelligence Bureau (IB)

Q8: According to Anti-money laundering Act, 2010, the offence of money laundering shall be
punishable with rigorous imprisonment for a term which shall not be less than .

a) five years.

b) one year.

c) three years.

d) two years.

Q9: Section 131 of the companies Act, 2017, regarding statutory meeting of a company, shall not
apply to a public company which converts itself from a private company after of
incorporation.

a) two years.

b) five years.
c) one year.

d) six months.

Q10: Under section 133 of the Companies Act, 2017, the board shall, at the requisition made by the
members in case of a company having share capital, representing not less than of the total
voting power as on the date of deposit of requisition forthwith proceed to call an extraordinary
general meeting.

a) one fifth.

b) one tenth.

c) one twelfth.

d) one fifteenth.

Q1: In accordance with section 70, of the companies Act, 2017 whenever a company having a share
capital makes any allotment of its shares, the company shall, within days, thereafter file with
registrar, a return of the allotment of shares.

a) twenty five.

b) thirty.

c) forty five.

d) sixty.

Q2: no company shall appoint or engage any person for Shariah compliance, Shariah advisory, or
Shariah audit unless that person meets the fit and proper criteria and fulfills such terms and
conditions as may be specified. If a person has already been appointed in above positions he will have
to meet the fit and proper criteria and fulfill such terms and conditions as may be specified in .

a) 120 days.

b) 90 days.

c) 60 days.

d) 180 days.

Q3: As per section 317 of the companies Act, 2017, in addition to a fixed remuneration, the court may
permit a monthly allowance to the official liquidator for meeting the expenses of the winding up for a
period not exceeding months from the date of the winding up order.
a) twelve.

b) fifteen.

c) six.

d) nine.

Q4: Appointment of subsequent chief executive shall be made within from the date of election
of directors under section 159 or the office of the chief executive falling vacant, as the case may be

a) 10 days.

b) 30 days.

c) 15 days.

d) 14 days.

Q5: Which one of the following is not the content of the Memorandum of Association?

a) Name clause.

b) Board of directors clause.

c) Registered office clause.

d) Objects clause.

Q6: Under the Companies Act, 2017, the expression “related party” includes:

a) a director or his relative.

b) a key management personnel or his relative.

c) a firm, in which a director, manager or his relative is a partner.

d) All of these.

Q7: Under section 17 of the Non-banking Finance Companies and Notified Entities Regulations, 2008,
the total outstanding exposure (fund based and non-fund based) by an NBFC to any group shall not
exceed of the equity of an NBFC.

a) twenty per cent.

b) ten per cent.

c) twenty five per cent.

d) thirty five per cent.

Q8: As per Regulation 17C of the Non Banking Finance Corporation and Notified Entities Regulations,
2008, what is the maximum limit of an NBFC’s aggregate exposure in listed equity securities and
spread transactions?

a) ten percent of its equity.

b) fifty percent of its equity.

c) seventy five percent of its equity.

d) twenty five percent of its equity.

Q9: As per section 7 of the Companies (Further issue of shares) Regulations, 2020, relating to issue of
Employees stock option scheme, which one of the following statements is not true?

a) An employee shall not have the right to receive any dividend or shares issued to such employee on
exercise of option.

b) There shall be a minimum period of one year between the grant of option and vesting of option.

c) In case of failure to exercise the option, the lapsed options may be granted to other employees
within a period of sixty days from the date of lapse.

d) An option granted to an employee shall not be pledged, hypothecated, mortgaged or otherwise

alienated in any other matter.

Q10: “Initial Public Offering IPO” means first time offer of securities to .

a) a company as defined in the Companies Act, 2017.

b) a financial institution.

c) an insurance company established under the insurance Ordinance, 2000.

d) the general public.

Q1: Which of the following statements regarding a “private company” is (are) true?

i. It restricts the right to transfer its shares.

ii. It limits the number of its members to fifty including persons who are in the employment of the
company.

iii. It prohibits any invitation to the public to subscribe for the shares, if any, or debentures or
redeemable capital of the company.

iv. Where two or more persons hold one or more shares in a private company.
a) (i), (ii) and (iii).

b) (i), (ii) , (iii) and (iv).

c) (i), (iii) and (iv).

d) (iii) and (iv).

Q2: Under section 158, of the Companies Act, 2017, the retired directors shall report any impediment
in holding of election of directors to the registrar within before the due date of the annual
general meeting/ extra ordinary general meeting in which elections are to be held.

a) sixty days. b) forty five days.

c) thirty days. d) seventy five days.

Q3: According to section 31, of the Listed Companies (Code of Corporate Governance) Regulations,
2019, which one of the following statements, is not correct?

a) The performance appraisal of the head of internal audit, shall be done only by the Chairman of the
audit committee.

b) The head of internal audit shall functionally report to the audit committee.

c) The performance appraisal of the head of internal audit, shall be done jointly by the Chairman of the
audit committee and the chief executive officer.

d) The head of internal audit shall administratively report to the chief executive officer.

Q4: Under section 73 of the Companies Act, 2017, if a company with intent to defraud, issues a
duplicate certificate of shares, or other securities, shall be punishable with fine which
may extend to one hundred thousand rupees.

a) the company.

b) CEO of the company.

c) every officer of the company who is in default.

d) None of these.

Q5: In accordance with section 19 of the Listed Companies (Code of Corporate Governance)
Regulations, 2019, a newly appointed director on the Board may require, the directors training
program certification within a period of from the date of appointment as a director on the
Board.
a) six months. b) three years.

c) two years. d) one year.

Q6: Under section 27 of the Listed Companies (Code of Corporate Governance) Regulations, 2019, in
addition to mandatory meetings, a meeting of the audit committee shall also be held , if requested by
the .

a) chairman of the audit committee. b) external auditors.

c) head of internal auditor. d) All of these.

Q7: As per section 24 of the Modaraba Companies and Modaraba (Floatation and Control) Ordinance,
1980, a Tribunal constituted by the Federal Government shall consist of a person who is, or has been,
or is qualified to be a judge of of Pakistan.

a) Supreme court. b) High court.

c) Civil court. d) Federal shariat court.

Q8: According to Regulation 9 of the Listed Companies (Buy Back of Shares) Regulations, 2019, where
the purchasing company has different classes of shares, the treasury shares for any class of shares not
exceed of total issued at any time and paid up shares of such class of shares.

a) twenty percent. b) ten percent.

c) fifteen percent. d) twenty five percent.

Q9:The form of memorandum and articles of association of a company limited by guarantee and
having a share capital shall be in accordance with the form set out in in the First Schedule.

a) Table D. b) Table E.

c) Table B. d) Table C.

Q10: Ordinary resolution means a resolution passed by a majority of such members of the
company entitled to vote as are present in person or by proxy or exercise the option to vote through
postal ballot, as provided in the articles or as may be specified, at a general meeting.

a) three fourth. b) Simple.

c) Two third. d) None of these.

Q1: The first auditor or auditors of a company shall be appointed by the board within days
of the date of incorporation of the company.

a) 120.

b) 90.

c) 60.

d) 30.

Q2: Under section 3, of the Listed Companies (Buy back of shares) Regulations, 2019, a company shall
be eligible to purchase its own shares it is listed on the securities exchange for a period of not less

than years. (Tick the most appropriate option).

a) one.

b) four.

c) three.

d) five.

Q3: Under section 3 of Anti-money Laundering Act, 2010, a person shall be guilty of offence of money
laundering, if the person knowing or having reason to believe that such property is proceeds of crime.

a) holds or processes on behalf of any other person any such property.

b) acquires, converts, possesses, uses or transfers such property.

c) conceals or disguises the true nature, origin, location, disposition, movement or ownership of such
property.

d) All of these.

Q4: Which one of the following is not a required professional qualification of a company secretary?

a) Member of Pakistan Institute of Public Finance Accountants.

b) Member of the institute of Chartered Accountants of Pakistan.

c) Member of Institute of Cost and Management Accountants of Pakistan.

d) Member of Institute of Corporate Secretaries of Pakistan.

Q5: Under section 136 of the Companies Act, 2017, the Court may, on a petition, by members having
not less than of the voting powers in the company, declare proceedings of a general meeting
or part thereof invalid.
a) ten percent.

b) twenty percent.

c) five percent.

d) fifteen percent.

Q6: Section 132 of the Companies Act, 2017, regarding an annual general meeting does not apply to a:

a) single member company.

b) public company.

c) listed company.

d) none of these.

Q7: In accordance with section 134, of the Companies Act, 2017, on a poll, votes may be given in all of
the following ways except:

a) through video link. b) through online voting.

c) through postal ballot. d) personally or by proxy.

Q8: As per sub-section 2 of section 27 of the Listed Companies (Code of Corporate Governance)
Regulations, 2019, which one of following statement is wrong?

a) At least once a year, the audit committee shall meet the external auditors without the chief
financial officer and the head of internal audit being present.

b) At least once a year, the audit committee shall meet the head of internal audit and other members of
the internal audit function without the chief financial officer and the external auditors being present.

c) The audit committee of the company shall meet at least once every quarter of the financial year.

d) Quarterly meeting shall be held prior to the approval of interim results of the company by its Board
and completion of external audit.

Q9: As per section 301 of the Companies Act, 2017, a company may be wound up by Court if the
company has made a default in filing with the registrar its financial statements or annual returns for
immediately preceding consecutive financial years.

a) four.

b) three.
c) five.

d) two.

Q10: As per section 21 of the Listed Companies (Code of Corporate Governance) Regulations, 2019, an
existing chief financial officer of a listed company having at least of experience on the same
position in a listed company shall be exempted from qualification criteria required by this section.

a) fifteen years.

b) twenty years.

c) ten years.

d) five years.

Q1: As per section 153 of the Companies Act, 2017, there are certain persons who cannot become
director of the company. Who among the following is only eligible to become a director of a listed
company?

a) A person who has been convicted by a court of law for an offence involving moral turpitude.

b) A person who has been debarred from holding such office under any provision of this Act.

c) A person who has been declared by a court of competent jurisdiction as defaulter in repayment of
loan to a financial institution.

d) An undischarged insolvent.

Q2: Which one of the following statements for a single member company is not true?

a) Share certificates shall be issued under the seal of the company and shall be signed by the member
director or the non member director.

b) the company shall not register any share(s) in the name of two or more persons to hold one or more
shares jointly.

c) it shall not invite the public to subscribe for any shares of the company.

d) The company shall not alter its share capital.

Q3: Under section 10 of the Companies (Incorporation) Regulation, 2017, which one of the following
statements is correct?

a) In case of electronic or physical submission of documents for incorporation of a company, a witness is

not required.
b) In case of physical submission of documents for incorporation of a company, a witness is not
required.

c) In case of electronic or physical submission of documents for incorporation of a company, a witness is

required.

d) In case of electronic submission of documents for incorporation of a company, a witness is not

required.

Q4: Special resolution is passed by a majority of not less than of such members of the
company entitled to vote as are present in person or by proxy or vote through postal ballot at a
general meeting.

a) ¾.

b) ½.

c) 2/3.

d) 3/5.

Q5: Notice of any change in situation of the registered office of a company shall be given to the
registrar within a period of after the date of change.

a) fifteen days.

b) twenty days.

c) ten days.

d) thirty days.

Q6: Under section 15B of Non-Banking Finance Companies and Notified Entities Regulations, 2008,
aggregate liabilities, excluding contingent liabilities and security deposits, of a non-deposit taking
NBFC shall not exceed of its equity.

a) ten times.

b) twenty five times.

c) fifteen times.

d) twenty times.
Q7: According to regulation 4 of the Listed Companies (Buy back of shares) Regulations, 2019, the
purchasing company shall make a public announcement within working days, of passing of
special resolution with respect to buy back of its shares.

a) two.

b) four.

c) three.

d) five.

Q8: As per Regulation 7 of the Listed Companies (Buy-back of shares) Resolutions, 2019, the purchase
period for purchase through securities shall close within from the date of special resolution
wherein members have given approval of the purchase or till such date that the purchase is
completed, whenever is earlier.

a) forty five days.

b) ninety days.

c) thirty days.

d) sixty days.

Q9: According to Regulation 10 of the Listed Companies (Buy back of shares) Regulations, 2019, where
the purchase is made for the purpose of cancellation, the purchasing company shall cancel the shares
within of the closing of the purchase period.

a) ten

b) twenty

c) thirty

d) fourteen days.

Q10: As per section 7 of the public offering Regulations, 2017, which one of the following is not a
condition for offer of shares through book building.

a) The company whose shares are issued through book building may be provisionally listed.

b) The offer size is not less than twenty five million shares and two hundred fifty million rupees or such
higher number of shares and amount as may be specified by the commission from time to time.

c) Book building portion shall be credit underwritten by one or more book runners.
d) Maximum seventy five percent of the offer size is allocated to book building portion and the
remaining minimum twenty five percent to the retail investors.

Q1: Public interest company means company which falls under the criteria as laid down in the to
the companies Act, 2017.

a) Third Schedule.

b) Second Schedule.

c) Sixth Schedule.

d) First Schedule.

Q2: Under the companies Act, 2017, a Government includes .

a) Federal and local governments.

b) Federal and provincial governments.

c) Provincial and local governments.

d) All of these.

Q3: Where a dividend has been declared by a company but is not paid within the period specified
under section 242 of the companies Act, 2017, the chief executive of the company shall be punishable
with imprisonment for a term which may extend to two years and with fine which may extend to

a) Rs. 1 million.

b) Rs. 10 million.

c) Rs. 15 million.

d) Rs. 5 million.

Q4: As per section 59 of the Companies Act, 2017, not less than ten percent of the class of
shareholders who are aggrieved by the variation of their rights may apply to the Court for an order
cancelling the resolution within of the date of the resolution varying their rights.

a) forty five days.

b) fifteen days.

c) thirty days.

d) sixty days.

Q5: As per section 73 of the Companies Act, 2017, if a company with intent to defraud, issues a
duplicate certificate of shares, of other securities, every officer of the company who is in default shall
be punishable with imprisonment for a term which may extend to or with fine which may
extend to fifty thousand rupees, or with both.
a) one hundred and eighty days.

b) ninety days.

c) one year.

d) nine months.

Q6: Under the Public Offering Regulations, 2017, offer size means the total number of securities
offered to sale excluding:

a) Pre-IPO placement. b) allocation of the book building portion.

c) allocation to the retail portion. d) All of these.

Q7: Section 11 of the Listed Companies (Buyback of shares) Regulations, 2019, imposes certain
restrictions on the purchasing company that it shall not: (Tick the wrong option).

a) make a new purchase before the expiry of at least one year from the date of submission of the final
report of the previous purchase, to the commission.

b) apply for voluntary delisting or voluntary winding up with in a period of none months of the close
of the purchase period.

c) make a purchase before the expiry of six months from the last date of subscription by shareholders in
respect of any further issue of capital.

d) engage in the sale of the already held treasury shares through the securities exchange during the
purchase period and during six months after the closing of the purchase period.

Q8: shall act as Secretary of the National Executive committee constituted under Anti-
money Laundering.

a) director general Financial Monitoring Unit (FMU). b) Chairman SECP.

c) Ministry of Interior. d) Governor SBP.

Q9: As per section 135 of the Companies Act, 2017, regarding quorum of general meeting, any
contravention or default in complying with requirement of this section shall be an offence liable in
case of a listed company to a penalty of:

a) level 1 on the standard scale. b) level 1 or level 2 on the standard scale.

c) level 3 on the standard scale. d) level 2 on the standard scale.

Q10: Which of the following are not non-secretarial functions of a company secretary?

a) Liaison functions. b) Organizational functions.

c) Managerial functions. d) None of these.

Q1: As per section 14, of the Listed Companies (Code of Corporate Governance) Regulation, 2019, the
chief executive officer of the company shall place significant issues for the of the Board of its
committee.

a) decision.

b) consideration.

c) information.

d) All of these.

Q2:Under section 19 of the Listed Companies (Code of Corporate Governance) Regulations, 2019, it is
encouraged that by June 30, 2021 of the directors on Board have acquired the prescribed
certification under any director training program offered by an institution that meet the criteria
specified and approved by the Commission.

a) All.

b) At least 50%.

c) At least 75%.

d) None of these.

Q3: In which of the following circumstances a company may not be wound up by court?

a) if default is made in holding any annual general meetings.

b) if the company has, by special resolution, resolved that the company should be wound up by court or,

c) if the company is unable to pay its debts.

d) if default is made in delivering the statutory report to the registrar or in holding the statutory
meeting.

Q4: Under section 24 of the Listed companies (Code of corporate Governance) Regulations, 2019,
which one of the following statements is correct?

a) The same person shall not simultaneously hold office of chief financial officer and the company
secretary of a public company.

b) The same person shall not simultaneously hold office of chief financial officer and the company
secretary of a listed company.

c) The same person may simultaneously hold office of chief financial officer and the company secretary
of a listed company.
d) None of these.

Q5: Every public company having a share capital shall, within a period of days from the date
at which the company is entitled to commence business or within nine months from the days of its
incorporation which ever is earlier, hold a general meeting of the members of the company to be
called the statutory meeting.

a) 90.

b) 180.

c) 120.

d) 60.

Q6: In accordance with section 159 of companies Act, 2017, which one of the following statements in
respect of elections of the directors of a company having a share capital is true?

a) A member may divide his votes between more than one of the candidates in such manner as he
may choose.

b) A member must give all his votes to a single candidate.

c) A member must equally divide his votes between more than one of the candidates of his choice.

d) None of these.

Q7: According to section 34,of the Listed Companies (Code of Corporate Governance) Regulations,
2019, the director’s report includes the following composition except:

a) male directors.

b) non executive directors.

c) executive directors.

d) independent directors.

Q8: How many persons associated for any lawful purposes may, by subscribing their names to a
memorandum of association and complying with the requirements of the Act in respect of
registration, from a public company.

a) At least four or more.

b) One or more.

c) Three or more.
d) Two or more.

Q9: Under section 17 of the Non Banking Finance Companies and Notified Entities Regulations, 2008,
the total outstanding exposure (fund based and non fund based) by an NBFC to a person shall not at
any time exceed of the equity of an NBFC.

a) fifteen per cent.

b) twenty per cent.

c) ten per cent.

d) twenty five per cent.

Q10: As per section 134 of the Companies Act, 2017, in case of an annual general meeting, which one
of the following is a special business?

a) The election and appointment of directors in place of those retiring.

b) The declaration of any dividend.

c) The consideration of financial statements and the reports of the board of auditors.

d) None of these.

Q1: In accordance with section 19 of the Listed Companies (Code of corporate governance)
Regulations, 2019, companies are also encouraged to arrange training for at least one female
executive every year under the Director’s Training Program from year .

a) July 2021.

b) January 2022.

c) January 2021.

d) July 2020.

Q2: As per section 155 of the Companies Act, 2017, a person holding the position of director in more
than seven companies on the commencement of this Act shall ensure the compliance of this section
within of such commencement.

a) five years.

b) four years.

c) one year.
d) two years.

Q3: Under section 22 of the Listed Companies (Code of corporate governance) Regulations, 2019, a
person may be appointed as the chief financial officer of a company if the said person has at least five
years of managerial experience in the field of accounting and has a from a university in
Pakistan.

a) postgraduate degree in finance.

b) graduate degree in finance.

c) graduate degree in any discipline.

d) post graduate degree in any discipline.

Q4: How many persons associated for any lawful purpose may, by subscribing their names to a
memorandum of association and complying with the requirements of this Act in respect of
registration, from a public company?

a) two or more.

b) at least four or more.

c) one or more.

d) three or more.

Q5: According to section 9 of the Non-Banking Finance Companies and Notified Entities Regulations,
2008, NBFC’s shall not make payments or receive amounts in cash exceeding to prevent their
involvement in illegal trades.

a) Rs. 100,000.

b) Rs. 50,000.

c) Rs. 500,000.

d) Rs. 1000,000.

Q6: Under Regulation 12 of the Listed Companies (Buy-Back of shares) Regulations, 2019, which one
of the following statements is correct?

a) The recommendation for the purchase may be withdrawn if purchase was not approved by the
members in the general meeting.
b) The recommendations for the purchase may be withdrawn whether the purchase was approved or
not approved by the members in the general meeting.

c) The recommendations for the purpose shall not be withdrawn.

d) None of these.

Q7: Where any record has been seized under section 14 or 15 of the Anti-money laundering Act, 2010,
the investigating officer may retain such records for a period not exceeding days from the
time the record was seized.

a) 60.

b) 180.

c) 90.

d) 120.

Q8: Under section 5 of the Public Offering Regulations, 2017, as regards conditions for public offer of
shares, the sponsors of the issuer shall retain not less than percent of the paid up capital of
the company for not less than financial years from the last date for the public subscription.

a) fifteen and five respectively.

b) twenty and two respectively.

c) twenty five and three respectively.

d) ten and one respectively.

Q9: As per section 4 of the public offering regulations, 2017, which one of the following is not a
method for public offer of shares.

a) variable price method.

b) book building method.

c) fixed price method.

d) none of these.

Q10: In accordance with section 136 of the companies Act, 2017, the Court may, on a petition, by
members, declare proceedings or part thereof invalid and direct holding of a fresh general meeting
provided that the petition shall be made of the impugned meeting.

a) with forty five days.

b) within ten days.

c) within thirty days.

d) within fifteen days.

Q1: Under Regulation 4 of the Listed Companies (Buy Back of shares) Regulations, 2019, the general
meeting in which the special resolution is to be passed shall be held not later than of the date
of the meeting of the board of directors in which the purchase is recommended.

a) fifteen days.

b) thirty days.

c) ten days.

d) forty five days.

Q2: As per regulation 18 of the companies (Further issue of shares) Regulations, 2020, a company with
in from the date of issue of shares shall submit a report to the commission clearly indicating
the shares issued to or taken up by certain persons.

a) 30 days.

b) 10 days.

c) 14 days.

d) 45 days.

Q3: According to section 145 of the Companies Act, 2017, a poll demanded on any question other than
the election of a chairman or on a question of adjournment, shall be taken at any time not more

than from the day on which it is deemed.

a) fourteen days.

b) seven days.

c) thirty days.

d) twenty one days.

Q4: As per section 73 of the companies Act, 2017, relating to issue of duplicate certificates of shares,
or other securities, which one of the following statement is correct?
a) if the company for any reasonable cause is unable to issue duplicate certificate. It shall notify this fact,
along with the reasons within thirty days from the date of the application to the applicant.

b) Any violation of this section shall be an offence liable to a penalty of level 1 on the standard scale.

c) The defaced or mutilated or torn certificate may or may not be surrendered to the company.

d) A duplicate of a certificate of shares, or other securities, shall be issued by the company within fifteen
days from the date of application.

Q5: Under section 12 of the Listed companies (Code of Corporate Governance) Regulations, 2019,
where the company secretary fails to append the dissenting note to the minutes of meeting of the
board, the director may file an obligation with the commission in the form of a statement to that
effect within, of the date of confirmation of the minutes of the meeting.

a) 45 days.

b) 40 days.

c) 30 days.

d) 20 days.

Q6: Section 84 of the Companies Act, 2017, prohibits companies (excluding a banking company and
such other companies as the commission may notify in this behalf) from accepting deposits from
public. For the purposes of this section, “deposit” includes:

a) a loan obtained from a banking company or financial institution.

b) an advance against sale of goods or provision of services in the ordinary course of business.

c) a loan raised by issue of debentures.

d) any amount borrowed by a company.

Q7: A company shall have a registered office to which all communications and notices shall be
addressed. A company shall notify to the registrar about it within of its incorporation.

a) 60 days.

b) 45 days.

c) 30 days.

d) 15 days.
Q8: According to the Listed Companies (Code of Corporate Governance) Regulations, 2019, which of
the following is/are financial sector company/companies.

a) modaraba company.

b) takaful insurance company.

c) insurance company.

d) All of these.

Q9: Under section 282F of the companies Ordinance, 1984, the commission, for reason to be recorded
in writing, by order, supersedes the board of directors of a NBFC for a period that does not exceed:

a) one year.

b) two tears.

c) three years.

d) five years.

Q10: As per section 9 of the Public Offering Regulations, 2017, in case of institutional investors, the
book runner may accept bid applications with in minimum margin money.

a) 25%

b) 35%

c) 30%

d) 10%

NEW MCQs

CGBLE

Q1: As per section 82, of the companies Act 2017, approval of commission shall not be required by a
listed company for issuing shares at a discount if the discounted price is not less than of the
par value.

a) ninety percent.

b) eighty percent.

c) seventy percent.
d) sixty percent.

Q2: Every company shall supply within a period of 14 days, a copy of the memorandum and articles of
the company, upon the request and payment of a prescribed amount, to its:

a) Member.

b) Creditor.

c) Director.

d) Auditor.

Q3: A company or body corporate which exercises or controls more than one-half of the voting
securities of any other company or controls the composition of the board of such other company is
known as:

a) Listed company.

b) Holding company.

c) Co-operative company.

d) Subsidiary company.

Q4: If the shares issued by a company remain unclaimed for a period of from the date it is
due the company shall give ninety days notices to the shareholders to file a claim.

a) 2 years.

b) 5 years.

c) 4 years.

d) 3 years.

Q5: Every officer of a company shall endeavor to prevent the commission of any fraud, offences of the
money laundering with respect to the affairs of the company and shall take adequate measures for
this purpose. If a person fails to comply with it, he shall be liable with fine which may extend to
.

a) Rs. 100 million.

b) Rs. 25 million.

c) Rs. 50 million.
d) Rs. 10 million.

Q6: In accordance with section 15 of the Modaraba Companies and Modaraba (Floatation and control)
Ordinance, 1980, a member of is allowed to audit the accounts of a modaraba.

a) The institute of Cost and Management Accountants of Pakistan (ICMA Pakistan).

b) The Institute of Chartered Accountants of Pakistan (ICAP).

c) Pakistan Institute of Public Finance Accountants (PIPFA).

d) All of these.

Q7: Under the public offering regulations, 2017, any person licensed by the commission to act as a
consultant to the issue is known as:

a) Consultants to the issue.

b) Lead manager.

c) Advisor.

d) All of these.

Q8: As per Regulation 13 of the Companies (Further issue of shares) Regulations, 2020, relating to
issue of Employees stock option scheme, which one of the following statements is not true?

a) An employee shall not have the right to receive any dividend or shares issued to such employee on
exercise of option.

b) There shall be a minimum period of one year between the grant of option and vesting of option.

c) In case of failure to exercise the option, the lapsed options may be granted to other employees
within a period of sixty days from the date of lapse.

d) An option granted to an employee shall not be pledged, hypothecated, mortgaged or otherwise

alienated in any other matter.

Q9: The contravention of any regulation of the companies (Further issue of shares) Regulations, 2020,
shall be punishable with a penalty which may extend to rupees.

a) five million.

b) two million.

c) ten million.
d) one million.

Q10: According to section 135 of the Companies Act 2017, in the case of a company not having share
capital, if within half from the time appointed for the meeting, the quorum is not present,
the meeting, other than called upon requisition of members, shall be dissolved.

a) two hours.

b) half an hour.

c) an hour

d) one and a half hours.

Q11: A company is incorporated outside Pakistan and conducts major portion of its business in
Pakistan. In order to appoint a sole purchase, sale or distribution agent, it shall be required to obtain
approval of:

a) Commission.

b) Registrar.

c) It does not need approval in these circumstances.

d) Special resolution.

Q12: Who is responsible in case of default regarding payment of dividend to member?

a) Director finance.

b) Chairman of the company.

c) BOD of the company.

d) CEO of the company.

Q13: A director shall be treated to have vacated the office of director if he absents himself from:

a) Meeting held in the last 120 days.

b) Three consecutive meetings of the board of directors.

c) Meeting held in the last three months.

d) Three consecutive meetings of the members.

Q14: In accordance with section 71 of the companies Act 2017, if a company fails to issue certificates
of the shares or other securities within of days after the allotment of any of its shares or other
securities, it shall be an offence liable to a penalty of on the standard scale.

a) 30 days; Level 1.

b) 21 days; Level 2.

c) 14 days; Level 1.

d) 45 days; Level 3.

Q15: A prospectus shall not contain a statement purporting to be made by an expert unless the expert
is a person:

a) Who is engaged or interested in the promotion of the company.

b) Who is engaged or interested in the management of the company.

c) Who is not or has not been engaged or interested in the formation of the company.

d) Who is or has been engaged or interested in the formation of the company.

Q16: Directors of every company shall make out and attach to the accounts, a report containing
following particulars.

a) Particulars of any amount recommended as dividend.

b) Particulars of any amount transferred or proposed to be transferred to any reserve account.

c) Statements regarding the state of the affairs of the company.

d) All of these.

Q17: The provisions of PART VII A – Non Banking Finance Companies of the Companies Ordinance,
1984, and the rules and regulations made thereunder, not withstanding anything in the Ordinance,
shall not apply to which of the following NBFCs?

a) Any NBFC whose license or registration has been cancelled or suspended.

b) Any NBFC whose license has expired.

c) Any existing company or entity, which has not applied for a fresh license or registration.

d) None of these.
Q18: In accordance with Regulation 10 of the companies (Further Issue of Shares) Regulations, 2020,
after issue of right shares, the listed entity shall submit to the commission progress report on
utilization of the proceeds of the right issue on basis.

a) monthly.

b) half-yearly.

c) quarterly.

d) yearly.

Q19: In accordance with the Companies (Further Issue of Shares) Regulations, 2020, the decision of
board of listed company for issue of shares other than right to increase its capital shall be
communicated to the commission and securities exchange of the decision.

a) within 10 days.

b) on the same day.

c) on next day.

d) within one week.

Q20: As per section 8 of the public offering Regulations, 2017 regarding public offer of shares through
book building, which one of the following statements is not true?

a) The issuer shall publish the prospectus at least one day before the commencement of registration of
bidders by the book runner.

b) The registration of bidders by the book runner shall commence at least one week before the start of
the bidding period.

c) The prospectus and abridged prospectus as approved by the commission shall be published in at least
one English and one Urdu Newspaper.

d) The bidding shall remain open for at least one working day.

Q21: In relation to a company’s articles of association, which one of the following is incorrect?

a) Articles of association may be changed by ordinary resolution.

b) The articles of association form a contract between the members and the company and the members
among themselves.

c) Promotors may or may not submit their own form of articles when submitting the forms necessary to
form a company limited by shares.
d) The articles of association set down the internal regulations of a company.

Q22: If a required quorum is not present at the meeting within half an hour from the time appointed
for the meeting it shall be:

a) adjourned in any case.

b) held in any case.

c) dissolved in any case.

d) dissolved, if called upon the requisition of members.

Q23: According to section 22 of the Listed Companies (Code of Corporate Governance) Regulations 2019, a
person, can be appointed as chief financial officer of a listed company provided that he has

at least of managerial experience in fields of audit and is a member of ICMA Pakistan.

a) five years.

b) three years.

c) ten years.

d) four years.

Q23: Once issued and securities allotted under a prospectus:

a) it shall be sent to the securities exchange.

b) it shall be sent to the registrar.

c) its existence will end.

d) its existence will continue till the next AGM.

Q24: A supplement to the prospectus invites the general public for subscription of earlier offered
security(ies). The supplement to the prospectus contains:

a) none of these.

b) new prospectus.

c) updated disclosures.

d) shelf prospectus.
Q25: The concept of limited liability applies to:

a) To the creditors of the company.

b) To the owners (shareholders) of the company.

c) The directors of the company.

d) To the bankers of the company.

Q26: “Further issue of shares” does not include all of the following except:

a) Initial public offer.

b) offer for sale of shares by any person holding shares in listed company.

c) further issue of shares pursuant to any schemes of arrangement including merger, demerger,
amalgamation etc.

d) employee stock option schemes.

Q27: Under the anti money laundering Act, 2010, “foreign serious offence” means an offence against
the law of a foreign state stated in a certificate issued by (tick the most appropriate option):

a) on or behalf of the government of that foreign state.

b) on or behalf of the government of that foreign state or government of Pakistan.

c) or on behalf of the government of Pakistan.

d) the Financial Monitoring Unit (FMU).

Q28: Under the public offering regulation 2017, which one of the following statements is not correct
about sponsor?

a) A person or group of persons who has indirect control of the issuing company.

b) A person who has the right to appoint one director on the board of the issuing company.

c) A person who has contributed initial capital in the issuing company.

d) A person or group of persons who has direct control of the issuing company.

Q29: As per section 134 of the Companies Act 2017, which one of the following statements is not
correct?

a) At the time of voting, fractional votes shall not be taken into account.
b) A member holding shares or other securities carrying voting rights may be debarred from casting
his vote.

c) In case of a company limited by guarantee and having no share capital, every member therefore shall
have one vote.

d) In case of a company having share capital, every member shall have votes proportionate to the paid-
up value of the shares.

Q30: XYZ (Private) Limited has paid up capital of Rs. 2 million only. When of the following is correct if
there is no change in particulars of annual returns last filled with the registrar.

a) it need not file annual return or any other form.

b)it should file the annual return as usual repeating the same particulars.

c) it need not file annual return but must inform the registrar that there is no change in particulars in
specified manner (Form C).

d) it should file the annual return as usual repeating the same particulars and additionally intimate the
registrar that there is no change in the particulars.

Q31: As per section 70 of the companies Act 2017, whenever a company having share capital makes any
allotment of bonus shares, it shall file with the registrar a return with certain information and
documents. Any violation of this section shall be an offence liable to a penalty of on the standard
scale.

a) level 3.

b) level 2.

c) level 1.

d) No penalty.

Q32: A chief executive shall be a person who is vested with whole or substantially the whole, of the
powers of the management of the affairs of the company. Being a member of the board of directors, he
report to:

a) The board of directors of the company.

b) The company secretary of the company.

c) The chairman of the company.

d) The members of the company.

Q33: The directors of a public company shall meet at least once in:

a) Every month.

b) A year.

c) Each quarter of a year.

d) None of these.

Q34: Directors report and the statements of compliance must be approved by the board and signed by
the:

a) CEO and CFO of the company.

b) CEO and a director of the company.

c) CEO.

d) Director of the company.

Q35: If a limited company is unable to pay its debts, it may be forced into liquidations. The assets of the
company will then be used to pay some of its unpaid liabilities and:

a) The directors will be required to pay personally remaining unpaid debts of the company.

b) The shareholders will be required to pay personally remaining unpaid debts of the company.

c) The shareholders will not be required to pay personally remaining unpaid debts of the company.

d) The debentures holders will be required to pay personally remaining unpaid debts of the company.

Q36: What type of resolution is required to alter the capital clause of memorandum of association:

a) Ordinary resolution of 30 days notice.

b) Ordinary resolution.

c) Special resolution.

d) Special resolution of 30 days nature.

Q37: The chief executive report to:

a) Members in general meeting.

b) The commission.
c) The registrar.

d) Board of directors.

Q38: A company is incorporated outside Pakistan and conducts major portion of its business in Pakistan.
In order to appoint a sole purchase, sale or distribution agent, it shall be required to obtain approval of:

a) Special resolution.

b) It does not need approval in these circumstances.

c) Commission.

d) Registrar.

Q39: As per regulation 4 of the companies (further issue of shares) regulations, 2020, which one of the
following is not correct condition for bonus issue?

a) In case of a listed company, the resolution of board approving to issue bonus shares is communicated
to the commission and the securities exchange on the next day of the decision.

b) The decision of the board to issue bonus shares, once announced, shall not be varied, postponed,
withdrawn or cancelled.

c) The issue of bonus shares is to be approved by the board.

d) None of these.

Q40: In accordance with the regulation 7 of the companies (further issue of shares) regulations, 2020, a
separate special resolution shall be required for grant of option to identified employees, during any one
year, equal to or exceeding of the issued capital (excluding outstanding conversions) of the
company at the time of grant of option.

a) ten per cent.

b) one per cent.

c) six per cent.

d) five per cent.

Q41: As per section 132 of the companies Act, 2017, an annual general meeting shall, in case of a

be held in the town in which the registered office of the company is salute.

a) private company.
b) public company.

c) listed company.

d) All of these.

Q42: As per section 151 of the companies Act, 2017, every company shall keep records of resolutions
and meetings from the date of the resolution, meeting or decision in electronic form and it shall be
preserved in this form.

a) permanently.

b) for fifty years.

c) for twenty years.

d) for ten years.

Q43: Members of a private company or a public unlisted company, may pass a resolution by circulation
signed by all members except:

a) For ordinary business of statutory meeting.

b) For ordinary business of AGM.

c) For special business of statutory meeting.

d) For special business of AGM.

Q44:

a)

b)

c)

d)

Q45:

a)

b)

c)

d)
Q46:

a)

b)

c)

d)

Q47:

a)

b)

c)

d)

Q48:

a)

b)

c)

d)

Q49:

a)

b)

c)

d)

Q50:

a)

b)

c)
d)

Q51:

a)

b)

c)

d)

Q52:

a)

b)

c)

d)

Q53:

a)

b)

c)

d)

Q54:

a)

b)

c)

d)

Q55:

a)

b)
c)

d)

Q56:

a)

b)

c)

d)

Q57:

a)

b)

c)

d)

Q58:

a)

b)

c)

d)