1. Under which section of the Companies Act are the Registrars of Companies (ROC) appointed?
A. Section 2
B. Section 609
C. Section 432
D. Section 128
Registrars of Companies (ROC) are appointed under Section 609 of the Companies Act. They are responsible for registering companies and LLPs and ensuring compliance with statutory requirements.
2. What is the primary duty of the Registrars of Companies (ROC)?
A. Collecting taxes from companies
B. Registering companies and LLPs and ensuring compliance with statutory requirements
C. Conducting audits of all companies
D. Managing mergers and acquisitions
The primary duty of the Registrars of Companies (ROC) is to register companies and LLPs and ensure compliance with statutory requirements under the Act.
3. What type of records do the offices of the Registrars of Companies (ROC) maintain?
A. Tax records of companies
B. Employment records of companies
C. Records relating to companies registered with them
D. Shareholding patterns of companies
The offices of the Registrars of Companies (ROC) function as a registry of records relating to the companies registered with them, which are available for public inspection upon payment of a prescribed fee.
4. How long do companies have to register the charge of financing institutions with the ROC?
A. 15 days
B. 30 days
C. 45 days
D. 60 days
Companies are required to register the charge of financing institutions on their assets with the ROC within 30 days from the date of creation of the charge.
5. What happens if the charge is not registered with the ROC within the stipulated 30 days?
A. The charge will automatically be void
B. The company can register the charge by paying an additional fee as a penalty
C. The company will be fined and the charge cannot be registered
D. The company must get a court order to register the charge
If the charge is not registered with the ROC within the stipulated 30 days, the charge can still be registered by paying an additional fee as a penalty.
6. A startup named "Tech Innovators Pvt. Ltd." secured a loan from a bank. However, the company failed to register the charge on its assets with the ROC within the 30-day period. What should the company do to ensure the charge is legally registered?
A. Ignore the registration as it's no longer required
B. Register the charge by paying an additional fee as a penalty
C. Appeal to the court for an exemption
D. Apply for a waiver of registration from the ROC
The company can register the charge by paying an additional fee as a penalty if the registration is not completed within the initial 30-day period.
7. "Green Earth LLP" is a company registered with the ROC in Delhi. They need to inspect the records related to their company. What should they do?
A. Submit a request to the court
B. Pay the prescribed fee to the ROC for inspection of records
C. Contact the Ministry of Corporate Affairs directly
D. File a public interest litigation (PIL)
"Green Earth LLP" can inspect their company's records by paying the prescribed fee to the ROC.
8. A company named "Blue Waves Pvt. Ltd." is planning to create a charge on its assets to secure financing from a financial institution. What must "Blue Waves Pvt. Ltd." do after creating the charge?
A. Inform the board of directors only
B. Register the charge with the ROC within 30 days
C. Get approval from shareholders
D. File a petition to the Ministry of Finance
"Blue Waves Pvt. Ltd." must register the charge with the ROC within 30 days after creating it to secure their financing legally.
9. "Sunshine Foods Pvt. Ltd." wants to check if a specific charge on its assets has been properly registered with the ROC. How can they verify this?
A. Review their internal financial statements
B. Access the records maintained by the ROC by paying the prescribed fee
C. File an RTI application
D. Contact the financial institution directly
"Sunshine Foods Pvt. Ltd." can verify if a charge on its assets has been registered by accessing the records maintained by the ROC, available upon payment of the prescribed fee.
10. A company named "Alpha Builders Ltd." missed the 30-day deadline to register a charge on its newly acquired property. What is the consequence if the charge is not registered within this period, and what can the company do?
A. The charge will automatically be void
B. The company can register the charge by paying an additional fee
C. The company will be fined and the charge cannot be registered
D. The company must get a court order to register the charge
If "Alpha Builders Ltd." misses the 30-day deadline, they can still register the charge by paying an additional fee as a penalty. Failure to register the charge could lead to issues in securing their financial interests.
11. What is the main objective of CERSAI in relation to equitable mortgages?
A. To oversee the issuance of corporate bonds
B. To prevent frauds in lending by maintaining a centralized data bank
C. To regulate the stock market transactions
D. To manage and audit insurance claims
CERSAI’s main objective is to prevent frauds in lending against equitable mortgages by maintaining a centralized data bank of such mortgages.
12. Which provision of the SARFAESI Act, 2002 governs the filing of particulars of charges with CERSAI?
A. Section 20
B. Section 23
C. Section 28
D. Section 32
The particulars of any charge creating security interest over property are required to be filed with CERSAI under Section 23 of the SARFAESI Act, 2002.
13. What change regarding the timeline for filing charges with CERSAI was made effective from 24.01.2020?
A. Extension of the filing period to 60 days
B. Removal of the 30-day timeline requirement
C. Introduction of a 15-day filing period
D. Requirement for filing charges within 45 days
Effective from 24.01.2020, the 30-day timeline for filing particulars of charges with CERSAI was removed, meaning there is no specific timeline required now.
14. What information does CERSAI provide about equitable mortgages?
A. Information on stock prices
B. Details about the equitable mortgage, financial institution, and borrower
C. Records of insurance policies
D. Details about corporate governance
CERSAI provides information about the equitable mortgage, including details of the financial institution that extended the loan and the borrower.
15. Why was CERSAI established as a central online registry in India?
A. To monitor international trade
B. To prevent frauds related to lending against the same asset from multiple banks
C. To oversee the implementation of monetary policies
D. To regulate foreign exchange transactions
CERSAI was established to prevent frauds in lending against the same asset from multiple banks, by providing a centralized online registry.
16. "XYZ Ltd." has secured a loan from Bank A using their commercial property as collateral. What action should "XYZ Ltd." take to prevent any future conflicts with other lenders?
A. Only notify Bank A about the collateral
B. Register the mortgage with CERSAI
C. Publish the details in a local newspaper
D. Avoid taking additional loans
"XYZ Ltd." should register the mortgage with CERSAI to prevent future conflicts with other lenders by ensuring the collateral is recorded centrally.
17. "ABC Construction Co." is about to take out a loan from Bank B against their new office building. What should the company do to comply with CERSAI regulations?
A. Submit the loan agreement to the local registrar
B. Register the charge with CERSAI
C. Notify the building’s insurance provider
D. Wait for a confirmation letter from Bank B
"ABC Construction Co." should register the charge with CERSAI to comply with regulations and ensure the mortgage is recorded centrally.
18. After registering a mortgage with CERSAI, "Tech Innovations Pvt. Ltd." later realizes the charge was mistakenly registered with incorrect details. What should they do to correct this?
A. Ignore the mistake if it doesn't affect their finances
B. File a correction request with CERSAI
C. Contact the media to rectify the mistake
D. Change the property details with the local authorities
"Tech Innovations Pvt. Ltd." should file a correction request with CERSAI to rectify any mistakes in the registered details of the mortgage.
19. A financial institution discovers that a property listed as collateral for a loan has multiple mortgages registered against it. What can they do to ensure their loan is properly secured?
A. Disburse the loan without further action
B. Verify all registered mortgages with CERSAI and ensure priority of their charge
C. Ask the borrower to clear other mortgages
D. Contact local authorities for further investigation
The financial institution should verify all registered mortgages with CERSAI to ensure the priority and security of their loan against the property.
20. "Global Enterprises" has a property with an existing charge registered with CERSAI. They wish to take an additional loan using the same property. What should they do?
A. Apply for the loan without any further registration
B. Register the new charge with CERSAI as a subsequent charge
C. Notify the new lender verbally
D. Use a different property for the new loan
"Global Enterprises" should register the new charge with CERSAI as a subsequent charge to ensure proper documentation and priority for the additional loan.
