CAF-4 · Chapter 20 · Question 1 of 15
How is a 'share' legally characterized under the Companies Act?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) As a transferable moveable property carrying rights and obligations.
Explanation
A share means a share in the share capital of a company and is a form of transferable moveable property carrying rights and obligations as per the articles of association.
More Share capital and commencement of business MCQs
- Q3When a company decides to alter its share capital clause in the memorandum, such as sub-dividing its shares, within what time frame must…
- Q4JKL Limited sub-divides its shares from a par value of Rs. 100 to Rs. 10 each to increase marketability. What happens to the overall…
- Q5In a company limited by shares, the share capital represents capital introduced into the company by the:
- Q6What is another legally recognized term used for 'Ordinary shares'?
- Q7Normally, what voting rights do standard ordinary shareholders hold at the general meetings of a company?