Monday, April 28, 2008

NCFM CORPORATE GOVERNANCE MODULE MOCK TEST QUESTIONS

CORPORATE GOVERNANCE MODULE

Q1
Cadbury Report came out in _____. [ 1 Mark ]

(a) 1993
(b) 1992
(c) 1991
(d) 1994
(e) I am not attempting the question

Q2
As per Clause 49 of the Listing Agreement, non-executive directors shall be required to disclose their shareholding: [ 1 Mark ]

(a) In the associate companies other than the listed company in which they are proposed to be
appointed
(b) In the group companies of the listed company in which they are proposed to be appointed
(c) In other companies other than the listed company in which they are proposed to be
appointed
(d) In the listed company in which they are proposed to be appointed as directors
(e) I am not attempting the question

Q3
There are 13 directors in Company A. What shall be the quorum at the Board meeting? [ 1 Mark ]

(a) 4
(b) 3
(c) 2
(d) 5
(e) I am not attempting the question

Q4
The term 'material unlisted Indian Subsidiary' mean an unlisted subsidiary incorporated in ________. [ 1 Mark ]

(a) Incorporation is not required
(b) US
(c) Europe
(d) India
(e) I am not attempting the question

Q5
A listed company is required to lay down procedures to inform board members about the risk assessment and minimization procedures. This information is given as per Clause _____ of the listing agreement. [ 1 Mark ]

(a) 49
(b) 36
(c) 51
(d) 12
(e) I am not attempting the question

Q6
Information regarding sale of material nature, of investments, subsidiaries, assets, which is not in normal course of business has to be placed before _________. [ 1 Mark ]

(a) Audit Committee
(b) Senior Management
(c) Board of Directors
(d) All of the above
(e) I am not attempting the question

Q7
Shareholder grievance committee shall be headed by a _________. [ 1 Mark ]

(a) Executive Director
(b) Chairman of the Board of Directors
(c) Non- Executive Director
(d) Functional head
(e) I am not attempting the question

Q8
As per Clause 49 of the Listing Agreement, a statement of funds utilized for purposes other than those stated in the offer document/prospectus/notice shall be certified by: [ 1 Mark ]

(a) Statutory auditors
(b) Internal auditors
(c) Audit Committee
(d) Practicing Company Secretary
(e) I am not attempting the question

Q9
State which of the following is false: As per Clause 49 of the Listing Agreement, the role of the Audit Committee shall include the following: [ 1 Mark ]

(a) Reviewing with the management the adequacy of internal control systems
(b) Reviewing with the management the adequacy of secretarial audit
(c) Reviewing with the management the adequacy of internal audit function
(d) None of the above
(e) I am not attempting the question

Q10
As per the sub-clause V of Clause 49 of the Listing Agreement, CFO includes _____. [ 1 Mark ]

(a) Chairman of the Audit Committee
(b) Head of Accounts department
(c) Whole time finance director
(d) Chairman
(e) I am not attempting the question

Q11
As per Sub-clause V of Clause 49 of the Listing Agreement, certification is required to be done by the: [ 1 Mark ]

(a) Executive Director of the company
(b) CEO and CFO of the company
(c) Independent Director of the company
(d) Company Secretary of the company
(e) I am not attempting the question

Q12
Board meetings should be held at ________ intervals. [ 1 Mark ]

(a) Bimonthly
(b) Annual
(c) Monthly
(d) Regular
(e) I am not attempting the question

Q13
Clause 49 was introduced in the Listing Agreement pursuant to the recommendations of the report of the Kumar Mangalam Birla Committee: [ 1 Mark ]

(a) FALSE
(b) False, only amendments were made to the Clause
(c) TRUE
(d) False, Clause 49 existed prior to the set up of the Committee
(e) I am not attempting the question

Q14
State which of the following is true: As per Section 292A of the Companies Act, 1956, the following shall have the right to vote in an Audit Committee meeting: [ 1 Mark ]

(a) The members of the audit committee
(b) The internal auditors
(c) The director in charge of finance
(d) The statutory auditors
(e) I am not attempting the question

Q15
The inclusion of an independent director in a Board brings ______. [ 1 Mark ]

(a) Independence in management
(b) A more practical approach to the decision making process
(c) Objective view
(d) A more knowledgeable view and a more professional view
(e) I am not attempting the question

Q16
As per Clause 49 of the Listing Agreement, the disclosures on remuneration shall be made in the Annual Report in the: [ 1 Mark ]

(a) Chairman's speech
(b) Disclosure section
(c) Remuneration section
(d) Corporate Governance section
(e) I am not attempting the question

Q17
Announcement in respect to the unaudited quarterly results should be made in the newspaper within _______. [ 1 Mark ]

(a) 72 hours from the closure of the Board meeting.
(b) 48 hours from the closure of the Board meeting
(c) 7 days from the date of the Board meeting
(d) 15 minutes of the closure of the Board meeting
(e) I am not attempting the question

Q18
Training programme of directors should include __________ [ 1 Mark ]

(a) Laws applicable to the company.
(b) Accounting Standards.
(c) Simulation
(d) Provisions of laws.
(e) I am not attempting the question

Q19
As per Clause 49 of the Listing Agreement, a statement in summary form of transactions with related parties in the ordinary course of business shall be placed before the relevant committee [ 1 Mark ]

(a) Monthly
(b) Annually
(c) Periodically
(d) Quarterly
(e) I am not attempting the question

Q20
The presence of independent directors would improve _______. [ 1 Mark ]

(a) Board effectiveness
(b) Board independence
(c) Board performance
(d) Corporate governance
(e) I am not attempting the question

Q21
While submitting the Compliance Certificate under Clause 49 (VII) of the Listing Agreement to the Stock Exchanges the certificate should be ______. [ 1 Mark ]

(a) Sent along with the Annual Report
(b) annexed to the Directors; Report
(c) Annexed to the Annual Report
(d) Annexed to the Corporate Governance Report
(e) I am not attempting the question

Q22
As per Clause 49 of the Listing Agreement to be denoted as an independent director, an individual should not be an executive of the company in the immediately preceding _______. [ 1 Mark ]

(a) 5 years
(b) 1 year
(c) 3 years
(d) 2 years
(e) I am not attempting the question

Q23
As regards, disclosure regarding changes in accounting policies in the CEO/CFO certificate, _________ [ 1 Mark ]

(a) No disclosure is required to be made.
(b) Significant changes should be disclosed only on directive of the SEBI.
(c) Significant changes should be disclosed.
(d) Changes in the accounting policies in the last two years should be made.
(e) I am not attempting the question

Q24
The credibility and effectiveness of a non executive director in the board room will depend on ________. [ 1 Mark ]

(a) Qualifications
(b) His ability to acquire governance as well as company specific knowledge and skills
(c) Adaptability
(d) Capability to align his objectives with the objectives of the company
(e) I am not attempting the question

Q25
As regards disclosure under item 'General Shareholder Information' rating of which organization shall be indicated in the Corporate Governance Report: [ 1 Mark ]

(a) ICRA
(b) CRISIL
(c) CARE
(d) SMERA
(e) I am not attempting the question

Q26
As per the Listing Agreement shareholding pattern should be intimated _______. [ 1 Mark ]

(a) Quarterly
(b) Annually
(c) Bi monthly
(d) Half yearly
(e) I am not attempting the question

Q27
Training requirements for non-executive and executive directors should _________. [ 1 Mark ]

(a) Vary or be same depending upon the size of the company
(b) Same for both the classes of directors
(c) Partly vary and partly be same for both the classes of directors
(d) Vary for both the classes of directors
(e) I am not attempting the question

Q28
A company can _________. [ 1 Mark ]

(a) Disclose price sensitive information to the stock exchange if the SEBI asks for that
(b) Not disclose the price sensitive information to the stock exchange
(c) Disclose price sensitive information to the stock exchange unless the Stock Exchange is
already aware of it.
(d) Disclose price sensitive information to the stock exchange
(e) I am not attempting the question

Q29
The maximum time gap between two audit committee meetings shall not be more than ______.
[ 1 Mark ]

(a) 2 months
(b) 6 months
(c) 4 months
(d) 3 months
(e) I am not attempting the question

Q30
As per provisions of the Listing Agreement, disclosure on materially significant related party transactions that has potential conflict with the interests of the company at large is to be mandatorily made in the Report on Corporate Governance: [ 1 Mark ]

(a) Disclosure on all related party transactions is to be mandatorily made in the Report on
Corporate Governance
(b) Listed companies are not required to comply with this.
(c) Listed companies may do this on the directive of SEBI/Stock Exchange.
(d) Listed companies may do so on the directive of Registrar of Companies/Ministry of Company
Affairs.
(e) I am not attempting the question

Q31
A listed company is required to keep the Stock Exchange informed of events such as strikes, lock-outs, closure on account of power cuts, etc in order to enable the shareholders to appraise the position of the company [ 1 Mark ]

(a) After the cessation of the event
(b) At the time of occurrence of the event
(c) Annually at the end of the year.
(d) Both at the time of occurrence of the event and after the cessation of the event
(e) I am not attempting the question

Q32
As per Sub-Clause VII of Clause 49 of the Listing Agreement, a listed company is required to obtain a certificate of compliance of conditions of corporate governance from: [ 1 Mark ]

(a) Internal Auditors
(b) Practicing Advocates
(c) Practicing Cost Accountants
(d) Practicing Company Secretaries
(e) I am not attempting the question

Q33
As per the definition given by clause 49, an Independent Director should not be a shareholder of the company i.e. owning ____ percent or more of the block of voting share. [ 1 Mark ]

(a) two
(b) one third
(c) three
(d) four
(e) I am not attempting the question

Q34
The Kumar Mangalam Birla Committee was constituted by ______. [ 1 Mark ]

(a) SEBI
(b) Ministry of Company Affairs
(c) Department of Company Affairs
(d) Controller of Capital Issues
(e) I am not attempting the question

Q35
The information about risk/returns should be provided to the shareholders so that it can be ensured about adequate [ 1 Mark ]

(a) Risk management systems
(b) Knowledge management systems
(c) Information systems
(d) All of the above
(e) I am not attempting the question

Q36
As per the Listing Agreement Annual Report should be submitted to the Stock Exchange ______. [ 1 Mark ]

(a) within 15 days from the end of the year
(b) within 5 minutes of its issuance
(c) within 30 days from the end of the financial year
(d) as soon as it is issued
(e) I am not attempting the question

Q37
C a shareholder of Company A requested for copies of the register under section 301 of the Companies Act 1956. His request was turned down stating that as the register contains details about interest of directors and contracts in which they are interested, it is confidential and copies cannot be given. Is the refusal valid? [ 1 Mark ]

(a) Yes, unless the Board approves such inspection.
(b) Yes, as he is not a director, he cannot inspect such confidential documents.
(c) No. Being a member he has a right to inspect the Register.
(d) Yes, unless the shareholders pass a resolution in favor of it.
(e) I am not attempting the question

Q38
Sub-Clause VII of Clause 49 of the Listing Agreement requires certification of compliance of conditions of corporate governance. This certificate is required to be sent annually to: [ 1 Mark ]

(a) Securities and Exchange Board of India
(b) Shareholders of the company
(c) Directors of the company
(d) Auditors of the company
(e) I am not attempting the question

Q39
The Audit Committee ________ [ 1 Mark ]

(a) Can obtain outside legal or other professional advice only if the Board approves.
(b) Can obtain outside legal or other professional advice only if the members decide by way of
resolution.
(c) Can not obtain outside legal or other professional advice.
(d) Can obtain outside legal or other professional advice.
(e) I am not attempting the question

Q40
The maximum time gap between two board meetings shall not be more than _______. [ 1 Mark ]

(a) four months
(b) six months
(c) three months
(d) two months
(e) I am not attempting the question

Q41
As per Clause 49 of the Listing Agreement, details of the following transactions which are not in the normal course of business shall be placed before the relevant committee: [ 1 Mark ]

(a) Transactions above Rs.5,000/- with related parties
(b) All transactions with related parties
(c) Significant transactions with related parties
(d) Material individual transactions with related parties
(e) I am not attempting the question

Q42
As per the Listing Agreement intimation of cash bonuses should be given to the Stock Exchange _____. [ 1 Mark ]

(a) As soon as the Board meeting is over
(b) Atleast 7 days prior to the Board meeting
(c) as soon as it is issued
(d) Atleast 5 days prior to the Board meeting
(e) I am not attempting the question

Q43
As per Clause 49 of the Listing Agreement, Management Discussion and Analysis Report should include discussion on matters relating to: [ 1 Mark ]

(a) Other industries
(b) Developments in general market
(c) Macroeconomic scenario in the country
(d) Industry structure and developments
(e) I am not attempting the question

Q44
As per the Revised Clause 49 of the listing agreement who may review the functioning of the Whistle Blower mechanism, in case it exists in the company? [ 1 Mark ]

(a) Audit Committee
(b) Concerned Department Heads
(c) Senior Officers
(d) Board of Directors
(e) I am not attempting the question

Q45
Training of Board members is a must under Clause 49. [ 1 Mark ]

(a) TRUE
(b) FALSE
(c) True, provided all the directors pass a unanimous resolution.
(d) False, training of the CEO, CFO and the Chairman of every committee is mandatory.
(e) I am not attempting the question

Q46
The Company shall obtain a certificate regarding compliance of conditions of corporate governance from ______. [ 1 Mark ]

(a) Auditors
(b) Practicing Company Secretary
(c) Either of the two
(d) Both
(e) I am not attempting the question

Q47
There are ______ general types of corporate ownerships. [ 1 Mark ]

(a) 1
(b) 2
(c) 3
(d) 4
(e) I am not attempting the question

Q48
The minimum number of non-executive directors on board should be _________. [ 1 Mark ]

(a) Not less than 50%
(b) Not less than 33%
(c) Not less than 60%
(d) Not less than 75%
(e) I am not attempting the question

Q49
As per Clause 49 of the Listing Agreement, Chairman of the Remuneration Committee should be: [ 1 Mark ]

(a) Chairman of the company
(b) Managing Director of the company
(c) Executive Director of the company
(d) Independent Director of the company
(e) I am not attempting the question

Q50
As per Section 297 of the Companies Act, 1956, certain contracts require the consent of: [ 1 Mark ]

(a) Audit Committee Meeting
(b) Managing Director of the Company
(c) Shareholders at a General Meeting
(d) Board of Directors
(e) I am not attempting the question

Q51
The OECD Principles of Corporate Governance provides insight into corporate governance framework at a _________. [ 1 Mark ]

(a) Micro level
(b) Working level
(c) Macro level
(d) Upper level
(e) I am not attempting the question

Q52
As per Clause 49 of the Listing Agreement, the format for quarterly compliance certificate is required to be made as per : [ 1 Mark ]

(a) Annexure IA of Clause 49
(b) Annexure IC of Clause 49
(c) Annexure IB of Clause 49
(d) Annexure ID of Clause 49
(e) I am not attempting the question

Q53
Annual Report of a listed company contains a brief statement on the company's philosophy on code of governance. The is conforming [ 1 Mark ]

(a) Clause 49 of the listing agreement
(b) Clause 38 of the listing agreement
(c) Clause 51 of the listing agreement
(d) Clause 41 of the listing agreement
(e) I am not attempting the question

Q54
Under Clause 49 of the Listing Agreement, the unaudited financial results should be furnished to the Stock Exchange within ___________. [ 1 Mark ]

(a) 1 month from the end of the half year
(b) 1 month from the end of the quarter.
(c) 2 months from the end of the half year.
(d) 2 months from the end of the quarter.
(e) I am not attempting the question

Q55
The filing under Clause 41 of the Listing Agreement should be made within _______. [ 1 Mark ]

(a) Within 15 days from the end of the quarter
(b) as soon as the meeting is over
(c) 15 minutes from the closure of the concerned meeting
(d) Within 30 days from the end of the half year
(e) I am not attempting the question

Q56
As per Section 292A of the Companies Act, 1956, an Audit Committee of the Board shall comprise of not less than: [ 1 Mark ]

(a) Four directors
(b) Two directors
(c) Three directors
(d) Five directors
(e) I am not attempting the question

Q57
X & Y, both directors of Company A are brothers who stay in the same apartment. Company A decided to do away with sending notice to X as Y promised to inform X about the meeting? Is the contention of Company A valid? [ 1 Mark ]

(a) Yes, if all directors agree
(b) yes, only if X agrees
(c) No
(d) Yes
(e) I am not attempting the question

Q58
Management Discussion and Analysis report should form part of the ______. [ 1 Mark ]

(a) Audit Report to Board
(b) Annual Report to Shareholders
(c) Compliance report to Stock Exchanges
(d) All of the above
(e) I am not attempting the question

Q59
State which of the following is true: As per Clause 49 of the Listing Agreement, reviewing with the management the annual financial statements before submission to the Board for approval includes [ 1 Mark ]

(a) Disclosures of material related & non-related party transactions
(b) Disclosure of any party transactions
(c) Disclosure of any related party transactions
(d) Disclosure of the list of relatives
(e) I am not attempting the question

Q60
As per the OECD Principles of Corporate Governance-2004, corporate governance framework should recognize the rights of stakeholders through _______________ agreements. [ 1 Mark ]

(a) mutual
(b) no
(c) tacit
(d) formal
(e) I am not attempting the question

Q61
State which of the following is false: As per Clause 49 of the Listing Agreement, the report of the Remuneration Committee should comprise of: [ 1 Mark ]

(a) Composition of the committee
(b) Remuneration policy
(c) Attendance during the year
(d) Location and time where the meetings were held
(e) I am not attempting the question

Q62
Report on Corporate Governance forms clause 49(__) of the listing agreement. [ 1 Mark ]

(a) VI
(b) IV
(c) VII
(d) V
(e) I am not attempting the question

Q63
Whistle blower is ____. [ 1 Mark ]

(a) An employee involved in marketing products
(b) An employee or ex-employee providing information on violations of law, financial
malpractice etc
(c) An ex-employee intimating instances of violations of law, malpractice etc
(d) An advertising agent
(e) I am not attempting the question

Q64
As per Clause 49 of the Listing Agreement, the Company is required to disclose in the Annual Report: [ 1 Mark ]

(a) The number of non-convertible instruments held by non-executive directors
(b) The number of shares and convertible instruments held by non-executive directors
(c) The number of shares and convertible instruments held by non-executive directors in other
companies
(d) None of the above
(e) I am not attempting the question

Q65
Interested directors can participate in discussions pertaining to the contract he is interested.
[ 1 Mark ]

(a) FALSE
(b) True, provided he does not vote
(c) TRUE
(d) True, provided the quorum is present
(e) I am not attempting the question

Q66
A separate _______ cell has to be set up by stock exchanges to monitor the compliance of revised clause 49 by the companies. [ 1 Mark ]

(a) Evaluating
(b) Monitoring
(c) Enforcing
(d) None of the above
(e) I am not attempting the question

Q67
Atleast _____ independent director on the board of Directors of the holding company shall be director on the board of directors of a material non listed Indian subsidiary company. [ 1 Mark ]

(a) 3
(b) 4
(c) 1
(d) 2
(e) I am not attempting the question

Q68
As per Clause 49 of the Listing Agreement, a statement in summary form of transactions with related parties in the ordinary course of business shall be placed before the : [ 1 Mark ]

(a) Shareholders committee
(b) Executive committee
(c) Remuneration committee
(d) Audit committee
(e) I am not attempting the question

Q69
If in respect of any item in the format laid down in Clause 41 of the Listing Agreement varies by ______________ from the respective unaudited results as determined after review by the auditors, the company shall explain the reasons thereof. [ 1 Mark ]

(a) 20%
(b) 20% or more
(c) 30% or more
(d) 30%
(e) I am not attempting the question

Q70
Commencement of Commercial Operations or Production has to be reported to Stock Exchange under clause ____. [ 1 Mark ]

(a) 50
(b) 43
(c) 36
(d) 41
(e) I am not attempting the question

Q71
For compliance of conditions of clause 49 of the listing agreement, the Board of Directors of a listed company is required to set up: [ 1 Mark ]

(a) Remuneration Committee
(b) Audit Committee
(c) Both Audit Committee and Remuneration Committee
(d) Audit Committee, Remuneration Committee and Investor's Grievance Committee
(e) I am not attempting the question

Q72
A director shall not be a member in more than ____ committees. [ 1 Mark ]

(a) 9
(b) 10
(c) 11
(d) 12
(e) I am not attempting the question

Q73
As per Clause 49 of the Listing Agreement, the following person shall act as the Secretary to the Audit Committee: [ 1 Mark ]

(a) Company Secretary
(b) Finance Director
(c) Chief Financial Officer
(d) Statutory Auditor
(e) I am not attempting the question

Q74
A listed company is required to _____________ a half-yearly declaration of financial performance to ____________. [ 1 Mark ]

(a) mandatorily; each shareholder
(b) mandatorily; each household of shareholders
(c) non-mandatorily; each shareholder
(d) non-mandatorily; each household of shareholders
(e) I am not attempting the question

Q75
State which of the following is false: As per Clause 49 of the Listing Agreement, the role of the Audit Committee shall include reviewing with the management: [ 1 Mark ]

(a) The qualifications in the final audit report
(b) The functioning of the Whistle Blower Mechanism
(c) The quarterly financial statements
(d) The annual financial statements
(e) I am not attempting the question

Q76
A is the Company Secretary of X Co. Ltd listed in the National Stock Exchange complying with Clause 49 of the Listing Agreement places the summary statement containing related party disclosures before the designated Committee at each of its meeting. D a director of X Co. Ltd. contended that the statement was required to be placed before the Committee every year and not at every meeting. Is the contention of D valid? [ 1 Mark ]

(a) No. The Clause says periodically
(b) No. The Clause says quarterly
(c) No. The Clause says monthly
(d) Yes.
(e) I am not attempting the question

Q77
The Annual Report of a company is required to be sent to the stock exchange along with:
[ 1 Mark ]

(a) Certificate from practicing company secretary regarding compliance of conditions of
Corporate Governance as per Clause 49
(b) Certificate from the Chief Executive Officer of the company regarding compliance of conditions of Corporate Governance as per Clause 49
(c) Certificate from the senior management regarding compliance of conditions of Corporate
Governance as per Clause 49
(d) None of the above
(e) I am not attempting the question

Q78
As per Clause 49 of the Listing Agreement the Board should comprise of _______. [ 1 Mark ]

(a) More than fifty percent but less than sixty percent non-executive directors
(b) Not less than fifty percent non-executive directors
(c) Less than fifty percent non-executive directors
(d) fifty percent non-executive directors
(e) I am not attempting the question

Q79
As per Clause 49 of the Listing Agreement the code of conduct should be displayed on the ______. [ 1 Mark ]

(a) Annual report of the company
(b) Notice board of the company
(c) Website of the company
(d) Press release
(e) I am not attempting the question

Q80
As per Clause 49 of the Listing Agreement, the Shareholder's Grievance Committee should comprise of: [ 1 Mark ]

(a) Four Directors
(b) Three Directors
(c) Two Directors
(d) None of the above
(e) I am not attempting the question

Q81
The revised clause 49 is not applicable to ________. [ 1 Mark ]

(a) Indian Banks
(b) Listed Development Financial Institutions
(c) Mutual Fund
(d) All of the above
(e) I am not attempting the question

Q82
State which of the following is false: As per Clause 49 of the Listing Agreement, the role of the Audit Committee shall include: [ 1 Mark ]

(a) Assisting the statutory auditor
(b) Recommending the appointment, re-appointment and replacement or removal of the
statutory auditor
(c) Approval of payment to statutory auditors
(d) None of the above
(e) I am not attempting the question

Q83
As per the OECD Principles of Corporate Governance-2004, corporate governance framework should promote [ 1 Mark ]

(a) Transparent and efficient markets
(b) Large and open markets
(c) Responsible & ernst investors
(d) None of the above
(e) I am not attempting the question

Q84
As per Clause 49 of the Listing Agreement, senior management means: [ 1 Mark ]

(a) Personnel of the company who are members of its core management team
(b) Personnel of the company who are members of the Executive Committee
(c) Personnel of the company who are members of the Audit Committee
(d) Personnel of the company who are members of the Board of Directors
(e) I am not attempting the question

Q85
As per Clause 49 of the Listing Agreement, non-executive directors are required to disclose their shareholding: [ 1 Mark ]

(a) Prior to their appointment
(b) On 1st April every year
(c) Immediately after appointment
(d) On 31st March every year
(e) I am not attempting the question

Q86
For the purpose of reckoning the limit of Chairmanship of Committees, _________. [ 1 Mark ]

(a) Only membership of Audit Committee and Shareholders Grievance Committee shall be
considered
(b) Chairmanship of any Committee may be considered in absence of Audit Committee/
Shareholders GrievanceCommittee.
(c) Only Chairmanship of Audit Committee and Shareholders Grievance Committee shall be
considered.
(d) Only Chairmanship of Remuneration Committee shall be considered in the absence of Audit
Committee.
(e) I am not attempting the question

Q87
As per Clause 49 of the Listing Agreement one of the areas of training for directors could be [ 1 Mark ]

(a) History and organisation structure
(b) Information systems being used by the company
(c) Industry statistics
(d) Business model of the company
(e) I am not attempting the question

Q88
The compliance report thus submitted should be signed by ______. [ 1 Mark ]

(a) Statutory Auditors
(b) Chairman of the Company
(c) Either Compliance officer or the CEO of the company
(d) Managing Director of the Company
(e) I am not attempting the question

Q89
A presentation made by the company to ____________ can either be hosted on company's website or stock exchange website. [ 1 Mark ]

(a) Institutional investors
(b) Institutional investors and analysts
(c) QIBs and analysts
(d) Analysts
(e) I am not attempting the question

Q90
An independent director should not be related to persons occupying positions [ 1 Mark ]

(a) In the senior management
(b) At the board level or at one level below the board
(c) Reporting to the senior management
(d) In the finance department
(e) I am not attempting the question

Q91
As per Clause 49 of the Listing Agreement, Quorum for Audit Committee meeting shall be:
[ 1 Mark ]

(a) Three members or one-third of the members of the Committee whichever is greater
(b) Four members or one-third of the members of the Committee whichever is greater
(c) Two members or one-third of the members of the committee whichever is greater
(d) None of the above
(e) I am not attempting the question

Q92
As per Clause 49 of the Listing Agreement, information on recruitment of which level of officers are required to be placed before the Board? [ 1 Mark ]

(a) Middle level
(b) Just below the board level
(c) Board level
(d) Upper level
(e) I am not attempting the question

Q93
The fees/compensation to the non-executive directors requires previous approval of ________. [ 1 Mark ]

(a) Board of Directors' in board meeting
(b) shareholders in general meeting
(c) Both of the above
(d) Approval from SEBI is required
(e) I am not attempting the question

Q94
As regards disclosure pertaining to Means of Communication in the Corporate Governance Report __________ results are to be made. [ 1 Mark ]

(a) Bi monthly
(b) Half yearly
(c) Quarterly
(d) Annually
(e) I am not attempting the question

Q95
Discussion on financial performance with respect to operational performance should form the part of _____. [ 1 Mark ]

(a) Director's Report
(b) Auditors Report
(c) Corporate Governance Report
(d) Management Discussion and Analysis
(e) I am not attempting the question

Q96
Preparation of annual report and accounts is a key element of _________ by the companies. [ 1 Mark ]

(a) Valuations
(b) Assessment
(c) Reporting
(d) Enquiring
(e) I am not attempting the question

Q97
As per Annexure I (d) of Clause 49 of the Listing Agreement, every listed company is __________ required to establish a whistle blower policy. [ 1 Mark ]

(a) Mandatorily
(b) Non-mandatorily, but where all the present employees give their consent is
(c) Mandatorily on directive of the CLB
(d) Non-mandatorily
(e) I am not attempting the question

Q98
Blue Ribbon Committee was sponsored by ______. [ 1 Mark ]

(a) NYSE and NYMEX
(b) NYSE and NASDAQ
(c) NYSE and NCDEX
(d) NYSE and NASD
(e) I am not attempting the question

Q99
The credibility and effectiveness of a non executive director in the board room will depend on [ 1 Mark ]

(a) His ability to acquire governance as well as company specific knowledge and skills
(b) Motives
(c) Adaptability to issues & concerns raised
(d) Qualifications that he has acquired
(e) I am not attempting the question

Q100
A holds 1.95% of the share capital of Company B. If he wishes to enter into a contract with Company B, is he required to comply with Section 299 of the Companies Act 1956? [ 1 Mark ]

(a) No. as holding is not 2 %
(b) Yes as holding more than 1% of the Share capital
(c) No. as holding is less than 2%
(d) Yes
(e) I am not attempting the question

2 comments:

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suresh said...

kindly provide answer keys for
NCFM NSDL - DEPOSITORY OPERATIONS MODULE MOCK TEST PAPERS which was posted on Monday, April 28, 2008

thanks/suresh