MCQS Chapter 4 Company Law 2017

Ch # 4.
Chief executive and other officers Page 215
1. Subsequent Chief Executive of a company is required to be appointed by the directors within

(a) 07 days of the election of Directors
(b) 14 days of the election of Directors
(c) 21 days of the election of Directors
(d) 30 days of the election of Directors
2. 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 reports to
(a) The chairman of the company
(b) The members of the company
(c) The board of directors of the company
(d) The company secretary of the company
3. Chief executive is entrusted:

(a) Whole powers of management
(b) Substantially the whole powers of management
(c) Both I) & ii)
(d) None of the above
4. Removal of chief executive is done by:

(a) Directors
(b) Owners
(c) Special resolution
(d) None
5. The appointment of the chief executive shall not be for a period exceeding _________ years from the
date of appointment:
(a) 5 years
(b) 3 years
(c) 4 years
(d) 9 years
6. The chief executive shall, if he is not already a director of the company, be deemed to be its __________
and be entitled to all rights and privileges, and subject to all the liabilities, of that office:
(a) Secretary
(b) Officer
(c) Director
(d) Both I) & iii)
7. The directors of accompany by resolution passed by not less than __________ of the total number of
directors for the time being or the company by a special resolution, may remove a chief executive
before the expiration of his term of office:
(a) 1/10
(b) 3/4
(c) ½
(d) None
Ch # 4. Chief executive and other officers Page 216
8. A chief executive of _________ company shall not directly or indirectly engage in any business which
is of same nature and directly completes with the business carried on by the company of which he
is chief executive or by a subsidiary of such a company:
(a) Holding company
(b) Subsidiary company
(c) Public company
(d) Private company
9. Which one of the following companies, is required to appoint share Registrar?
(a) Public Company
(b) Private Company
(c) Public Listed Company
(d) All of the Above
10. Which Company is required to appoint Company Secretary and he shall be _______ of the company.
(a) Public company, Director
(b) Public listed company CEO
(c) Public Company, Officer
(d) Private, CFO
11. Sole Sale agent can be appointed with the approval of __________
(a) Directors
(b) Members
(c) Registrar
(d) Commission
12. CEO of a __________ company shall not be engaged in the competing business of the company
(a) Public
(b) Private
(c) Single member
(d) Listed
13. CEO can be removed by ____________

(a) Members with Special Resolution
(b) Directors with ¾ majority
(c) Government, if it hold more than 75% shares
(d) All of the Above
14. Chairman can be appointed within _____________

(a) 30 days of AGM
(b) 15 days of board Meeting
(c) 14 Days of Board Election
(d) !4 days of AGM
15. CEO can be appointed within ___________

(a) 30 days of AGM
(b) 15 days of board Meeting
(c) 14 Days of Board Election
(d) !4 days of AGM
16. CEO/ Chairman can be appointed for maximum ____________

(a) 3 years
(b) 5 years
(c) 2 years
(d) 1 years
17. If a person who is not eligible to appoint as a Director, he will also become disqualified for _______
(a) CEO
(b) CFO
(c) Company Secretary
(d) Sale agent
18. Afridi, Bader, Dawood and Iffat owns 45%, 25%, 10% and 5% shares respectively of Splendid Mills
Limited (SML), a public unlisted company. They were elected as SML’s director in the last election
of directors as unopposed. The board appointed Anas as the chief executive of SML; however, due
to Anas’s unsatisfactory performance, the board has decided to remove him in the next board of
directors meeting. Anas will stand removed as chief executive if:
(a) directors having more than 50% shareholdings in SML’s share capital will vote against him
(b) directors having more than 75% shareholdings in SML’s share capital will vote against him
(c) any four directors will vote against him
(d) all the directors will vote against him
19. Subsequent Chief Executive of a company is required to be appointed by the directors within
(a) 07 days of the election of Directors
(b) 14 days of the election of Directors
(c) 21 days of the election of Directors
(d) 30 days of the election of Directors
20. Which of the following statements is correct regarding chairman of a listed company?
(a) Chairman must be from amongst the non-executive directors
(b) Chairman can only be removed by passing a special resolution
(c) Chairman must be from amongst the independent director
(d) Chairman is appointed by the shareholders within fourteen days from the date of election of
directors
21. Which of the following officers are mandatorily required to be appointed to manage the affairs of a
listed company under the provisions of the Companies Act, 2017?
(a) Chairman, chief executive, company secretary, sole purchase agent
(b) Chairman, chief executive, company secretary, share registrar
(c) Chairman, chief executive, company secretary, chief financial officer
(d) Chairman, chief executive, company secretary, chief financial officer, head of audit
22. Commission may specify the classes of companies for which the ______ and ________ shall not be the
same individual.
(a) Chief executive and Chief Financial Officer
(b) Chairman and Chief executive
(c) Chief Financial Officer and Company Secretary
(d) Chief executive and Company Secretary
23. The chief executive reports to:

(a) Members in general meeting
(b) Board of Directors
(c) The Registrar
(d) The Commission
(c) Commission
(d) It does not need approval in these circumstances.
31. A company is incorporated outside Pakistan and conducts major portion of its business outside
Pakistan. In order to appoint a sole purchase, sale or distribution agent, it shall be required to obtain
approval of :
(a) Special resolution
(b) Registrar
(c) Commission
(d) It does not need approval in these circumstances.
32. In case of a , a chief executive, his spouse and minor children are prohibited to engage in a business
which competes with the business of the company in which he is the chief executive or with the
business of any of its subsidiary company.
(a) company incorporated under the Companies Act, 2017
(b) public company incorporated under the Companies Act, 2017
(c) listed company incorporated under the Companies Act, 2017 only
(d) holding company incorporated in Pakistan
33. The Chief Executive Officer of a company shall be considered to be the of the company.
(a) Independent Director
(b) Executive Director
(c) Non-Executive Director
(d) Chairman
34. The board of Jicama Limited (JL) comprises of twelve directors. A meeting of the board was called
to consider removal of Adnan from the position of JL’s Chief Executive. In the said board meeting,
ten directors were present.
Considering the situation, the resolution to remove Adnan has to be passed by:
(a) not less than 9 directors
(b) not less than 8 directors
(c) not less than 7 directors
(d) not less than 5 directors
35. Which of the following statements is correct with regard to the roles and responsibilities of the
Chairman of the board of directors of a company?
(a) The roles and responsibilities shall be clearly mentioned in the articles of association
(b) The roles and responsibilities shall be clearly defined in the memorandum of association
(c) The roles and responsibilities shall be clearly mentioned in his contract of appointment
(d) The roles and responsibilities shall be clearly defined by the board
36. The Chief Executive Officer of a company shall be considered to be the of the company.
(a) Independent Director
(b) Executive Director
(c) Non-Executive Director
(d) Chairman
Sr. No. Answer Sr. No. Answer Sr. No. Answer

1 B 16 A 31 D
2 C 17 A 32 B
3 C 18 C 33 B
4 C 19 B 34 A
5 B 20 A 35 D
6 C 21 C 36 B
7 B 22 B
8 C 23 B
9 C 24 B
10 C 25 C
11 D 26 C
12 A 27 D
13 D 28 B
14 C 29 B
15 C 30 C
Sr. No. Answer Sr. No. Answer Sr. No. Answer

1 B 16 A 31 D
2 C 17 A 32 B
3 C 18 C 33 B
4 C 19 B 34 A
5 B 20 A 35 D
6 C 21 C 36 B
7 B 22 B
8 C 23 B
9 C 24 B
10 C 25 C
11 D 26 C
12 A 27 D
13 D 28 B
14 C 29 B
15 C 30 C

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Ch # 4.

Chief executive and other officers Page 215

1. Subsequent Chief Executive of a company is required to be appointed by the directors within

3. Chief executive is entrusted:

4. Removal of chief executive is done by:

13. CEO can be removed by ____________

14. Chairman can be appointed within _____________

15. CEO can be appointed within ___________

16. CEO/ Chairman can be appointed for maximum ____________

23. The chief executive reports to:

Sr. No. Answer Sr. No. Answer Sr. No. Answer

Sr. No. Answer Sr. No. Answer Sr. No. Answer

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