100+ Free ICAB PL Corporate Laws and Practices Practice Questions

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2026 Statistics

Key Facts: ICAB PL Corporate Laws and Practices Exam

3.5 hours

Exam duration under Syllabus-2025

ICAB Syllabus-2025, Corporate Laws & Practices module

100 marks

Total marks

ICAB Syllabus-2025

30%

Weighting of Companies Act 1994 and secretarial practices

ICAB Syllabus-2025 specification grid

Tk. 2,500

Professional Level exam fee per paper

ICAB examination-fees page

7 papers

Professional Level papers including Corporate Laws & Practices

ICAB new-curriculum / Syllabus-2025 module list

ICAB PL Corporate Laws and Practices is a 100-mark, 3.5-hour written paper. The Syllabus-2025 grid weights Companies Act 1994 and secretarial practice at 30%, BSEC securities laws at 20%, FRA/FRC at 10%, Bank Company Act 1991 at 15%, Finance Company Act 2023 at 5%, Insurance Act 2010 at 10%, and Labour Act 2006/Rules 2015 at 10%. This bank is an English MCQ study aid, not the official written paper.

Sample ICAB PL Corporate Laws and Practices Practice Questions

Try these sample questions to test your ICAB PL Corporate Laws and Practices exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1Under section 2 of the Companies Act 1994 (Bangladesh), which combination of restrictions must appear in a private company's articles?

A.Restriction on transfer of shares, prohibition on inviting public subscription for shares or debentures, and a membership cap of 50 excluding persons in the company's employment

B.Restriction on transfer of shares, a membership cap of 200, and a requirement to list on a stock exchange within three years

C.Prohibition on issuing preference shares, a membership cap of 20, and mandatory conversion into a public company after five years

D.A requirement to obtain Bangladesh Bank approval before any share allotment, a membership cap of 100, and no limit on public invitations

Explanation: Section 2 of the Companies Act 1994 defines a private company as one whose articles restrict the right to transfer shares (if any), prohibit any invitation to the public to subscribe for shares or debentures, and limit membership to 50 excluding employees. Joint holders of a share count as one member for that cap.

2Under section 90 of the Companies Act 1994, what is the minimum number of directors?

A.Three for every public company and for a private company that is a subsidiary of a public company; two for every other private company; and only a natural person may be appointed director

B.Five for every listed company and one for every private company, and a body corporate may be appointed director

C.Seven for every public company and three for every private company, with no restriction on corporate directors

D.One director is sufficient for every company limited by shares

Explanation: Section 90(1) requires at least three directors in every public company and in every private company that is a subsidiary of a public company. Section 90(2) requires at least two directors in other private companies. Section 90(3) allows only a natural person to be appointed director.

3Section 96 of the Companies Act 1994 requires board meetings of every company to be held:

A.At least once in every three months and at least four times in every year

B.Only once in each financial year, immediately before the annual general meeting

C.At least monthly, with no annual minimum

D.Only when the managing director requisitions a meeting

Explanation: The official text of section 96 states that a meeting of the board of directors of every company shall be held at least once in every three months and at least four times in every year. ICSB BSS-1 on board meetings sits on top of this statutory floor.

4Under section 81 of the Companies Act 1994, what is the latest date for a newly incorporated company's first annual general meeting, and what is the maximum gap between later AGMs?

A.First AGM within 18 months of incorporation; thereafter the interval between one AGM and the next must not exceed 15 months

B.First AGM within 6 months of incorporation; thereafter every 12 months with no possible extension

C.First AGM within 24 months of the certificate of commencement; thereafter every 18 months

D.No first-AGM deadline; members may waive the AGM indefinitely by ordinary resolution

Explanation: Section 81(1) requires an AGM in each calendar year, identified as such in the notice, with not more than 15 months between one AGM and the next. A company may hold its first AGM within 18 months of incorporation; if it does so, it need not hold another AGM in the year of incorporation or the following year. The Registrar may extend a later AGM (not the first) by up to 90 days or until 31 December of that year, whichever is earlier, if the company applies within 30 days after the due date.

5Under section 83 of the Companies Act 1994, when must a company limited by shares (or a guarantee company with share capital) hold its statutory meeting, and how far in advance must the statutory report be sent?

A.After 30 days but within 180 days of becoming entitled to commence business, with the statutory report sent at least 21 days before the meeting

B.Within 18 months of incorporation, with the statutory report sent 7 days before the meeting

C.Within 90 days of the first board meeting, with no advance circulation of a report

D.Only if the company intends to list, and then within 12 months of listing

Explanation: Section 83(1) requires every company limited by shares, and every company limited by guarantee having a share capital, to hold a general meeting of members after 30 days but within 180 days from the date it is entitled to commence business — the statutory meeting. Section 83(2) requires the board to send the statutory report to every member at least 21 days before that meeting.

6Under section 110 of the Companies Act 1994, which statement about appointment of a managing director is correct?

A.A company may not appoint a person as managing director for more than five consecutive years, but may reappoint the same person for further terms of not more than five years each with the consent of the company in general meeting

B.A managing director may be appointed for life by a board resolution alone

C.A managing director's first term may be ten years if the articles allow it, with no need for a general-meeting consent on renewal

D.Only listed companies may appoint a managing director, and the term is fixed at three years by the BSEC Code

Explanation: Section 110(1) prohibits appointing any person as managing director for more than five consecutive years after commencement of the Act. Section 110(3) allows reappointment, reinstatement or extension for further terms not exceeding five years each, but not without the consent of the company in general meeting.

7Which document states a company's name, registered office, objects, limited-liability statement and authorised share capital, and is the company's constitution vis-à-vis outsiders?

A.The memorandum of association

B.The articles of association only

C.The statutory report under section 83

D.The annual return filed with the Registrar

Explanation: Sections 6–8 of the Companies Act 1994 prescribe the contents of the memorandum according to the type of company (limited by shares, limited by guarantee, or unlimited). The memorandum is the company's charter toward the outside world. Articles regulate internal management and, for a company limited by shares, Schedule I Table A applies to the extent the company does not exclude or modify it (section 18).

8How may a company limited by shares alter its articles of association under the Companies Act 1994?

A.By special resolution, subject to the Act and to any conditions in the memorandum

B.By a simple board resolution filed with Bangladesh Bank

C.Only by order of the High Court Division, with no member vote

D.By ordinary resolution of the audit committee

Explanation: Section 20 provides that a company may, by special resolution, alter its articles, subject to the provisions of the Act and to the conditions in the memorandum. A copy of the special resolution must be filed with the Registrar (section 88).

9The corporate veil of a company registered under the Companies Act 1994 may be lifted when, among other established grounds:

A.The company is a mere façade used to conceal the true facts, or statute expressly looks through the company (for example fraudulent trading or group-tax/employee-liability provisions)

B.A minority shareholder disagrees with dividend policy in a profitable year

C.The company has more than 50 employees

D.The company holds an annual general meeting one month later than usual

Explanation: Separate legal personality follows from incorporation (section 24). Courts lift the veil where the company is a sham or façade, or where a statute requires looking through the company (fraudulent trading, certain agency or enemy-character cases). Ordinary commercial disagreement, headcount, or a delayed AGM do not by themselves pierce the veil.

10Under section 58 of the Companies Act 1994, a company limited by shares is generally prohibited from:

A.Buying its own shares or giving financial assistance for the purchase of its own shares, except as the Act expressly permits

B.Declaring a dividend out of realised profits after providing for depreciation

C.Altering its articles by special resolution

D.Appointing a first auditor

Explanation: Section 58 restricts a company from buying its own shares or providing financial assistance for that purchase, which is the capital-maintenance core of the 1994 Act. Section 58(1) expressly cross-refers to the court-supervised reduction-of-capital procedure in sections 59 to 70 as the only permitted route to a consequent capital reduction. Permitted dividends, article changes, and auditor appointment are different regimes.

About the ICAB PL Corporate Laws and Practices Exam

ICAB CA Professional Level Corporate Laws and Practices tests the legal framework that Bangladesh chartered accountants apply in company secretarial work, listed-company compliance, financial-reporting oversight, banking and finance-company regulation, insurance, and employment law. The official Syllabus-2025 paper is a 100-mark, 3.5-hour written examination assessed on practical application of those statutes. This English-language MCQ bank is a study adaptation of that written paper, not a simulation of the official format or an official translation.

Assessment

ICAB Syllabus-2025 Professional Level Corporate Laws & Practices (100 marks, 3.5 hours). Specification grid: Companies Act 1994 and Secretarial Practices 30%; Securities and Exchange laws 20%; FRA 2015 and FRC (Auditor & Audit Firm Enrollment) Rules 2022 10%; Bank Company Act 1991 15%; Finance Company Act 2023 5%; Insurance Act 2010 10%; Bangladesh Labour Act 2006 and Labour Rules 2015 10%.

Time Limit

3.5 hours (210 minutes)

Passing Score

Not published as a percentage. ICAB reports subject-wise pass/fail results per sitting and does not publish a permanent public pass mark — confirm the current examination regulations on icab.org.bd.

Exam Fee

Professional Level examination fee Tk. 2,500 per paper (ICAB examination-fees page, revised by the ICAB circular of 28 April 2025; the older application-fees page still prints Tk. 3,300 — confirm the fee on the sitting circular at exam.icab.org.bd). (Institute of Chartered Accountants of Bangladesh (ICAB))

ICAB PL Corporate Laws and Practices Exam Content Outline

30%

The Companies Act 1994 and Secretarial Practices

Formation and incorporation, memorandum and articles, veil of incorporation, share capital and capital maintenance, prospectus, allotment, transfer and transmission, meetings and resolutions including Bangladesh Secretarial Standards, directors including managing directors, auditors, minority protection, charges, and winding up.

20%

Laws relating to the Securities and Exchange

Bangladesh Securities and Exchange Commission rules including the Securities and Exchange Rules 2020, Public Issue Rules 2015, Rights Issue Rules 2006, Private Placement of Debt Securities Rules 2012, Financial Reporting and Disclosure Notification 20 June 2018, Listing Regulations 2015, and the Corporate Governance Code 2018.

10%

Financial Reporting Act 2015 and FRC enrollment

Financial Reporting Act 2015 and the Financial Reporting Council (Auditor & Audit Firm Enrollment) Rules 2022, including FRC oversight of financial reporting and auditing standards and auditor/audit-firm enlistment.

15%

The Bank Company Act 1991

Licensing of bank companies, paid-up capital and reserves, appointment and removal of directors and chief executives, restrictions on loans and advances, accounts and audit, inspection, returns, and Bangladesh Bank directions.

The Finance Company Act 2023

Licensing of finance companies by Bangladesh Bank, reserve fund, dividends and accounts, business rules, minimum liquid assets, inspection, moratorium and reconstruction, offences and punishments, replacing the Financial Institutions Act 1993.

10%

The Insurance Act 2010

Classification of insurance business, registration and renewals, capital and deposits, insurable interest, accounts and actuarial reports, solvency margin, assignment and transfer of policies, and licensing of agents and surveyors under IDRA oversight.

10%

The Bangladesh Labour Act 2006 and Labour Rules 2015

Statutory definitions, employment and conditions of service, maternity benefit, welfare, working hours and leave, wages, compensation for injury, workers' participation in company profit, provident and gratuity funds, and misconduct, punishment and disciplinary proceedings.

How to Pass the ICAB PL Corporate Laws and Practices Exam

What You Need to Know

Passing score: Not published as a percentage. ICAB reports subject-wise pass/fail results per sitting and does not publish a permanent public pass mark — confirm the current examination regulations on icab.org.bd.
Assessment: ICAB Syllabus-2025 Professional Level Corporate Laws & Practices (100 marks, 3.5 hours). Specification grid: Companies Act 1994 and Secretarial Practices 30%; Securities and Exchange laws 20%; FRA 2015 and FRC (Auditor & Audit Firm Enrollment) Rules 2022 10%; Bank Company Act 1991 15%; Finance Company Act 2023 5%; Insurance Act 2010 10%; Bangladesh Labour Act 2006 and Labour Rules 2015 10%.
Time limit: 3.5 hours (210 minutes)
Exam fee: Professional Level examination fee Tk. 2,500 per paper (ICAB examination-fees page, revised by the ICAB circular of 28 April 2025; the older application-fees page still prints Tk. 3,300 — confirm the fee on the sitting circular at exam.icab.org.bd).

Keys to Passing

Work through all 100 available questions
Review every answer and explanation
Track weak areas and revisit them
Use our AI tutor for tough concepts

ICAB PL Corporate Laws and Practices Study Tips from Top Performers

1Learn the Companies Act 1994 from the official Laws of Bangladesh text: AGM timing (section 81), statutory meeting (section 83), special/extraordinary resolutions (section 87), minimum directors (section 90), board-meeting frequency (section 96), and managing-director tenure (section 110).

2Treat BSEC Corporate Governance Code 2018 as a listed-company overlay, not a substitute for the Companies Act: independent directors at least one-fifth of the board, Audit Committee and NRC composition, and Chairperson/MD duality rules.

3Do not mix Indian Companies Act 2013 numbering with Bangladesh Companies Act 1994. Section numbers and private-company member caps differ.

4For banking questions, start from Bank Company Act 1991 licensing (section 31), statutory reserve, related-party lending, and Bangladesh Bank inspection powers rather than Basel circular numbers unless the question names a circular.

5On labour items, use the Labour Act 2006 official sections for hours (Chapter IX), maternity benefit (section 46: 60 days before and 60 days after, with the two-surviving-children restriction), WPF (Chapter XV), and disciplinary procedure (sections 23–24).

6Practice written-style application even while using these MCQs: the official paper awards marks for applying the statute to a secretarial or compliance scenario, not for naming the Act alone.

Frequently Asked Questions

What is the examination structure of ICAB Professional Level Corporate Laws and Practices?

Under ICAB Syllabus-2025, Corporate Laws & Practices is a 3.5-hour, 100-mark traditional written examination assessed on practical application of the related laws and regulations. ICAB does not publish a fixed item count. This practice bank is an English-language multiple-choice study adaptation, not a simulation of the official written format.

What are the official topic weightings for this paper?

The ICAB Syllabus-2025 specification grid is: Companies Act 1994 and Secretarial Practices 30%; laws relating to the Securities and Exchange 20%; Financial Reporting Act 2015 and FRC (Auditor & Audit Firm Enrollment) Rules 2022 10%; Bank Company Act 1991 15%; Finance Company Act 2023 5%; Insurance Act 2010 10%; Bangladesh Labour Act 2006 and Labour Rules 2015 10%.

Is this the same paper as ICAB Certificate Level Business Law?

No. Certificate Level Business Law is a shorter foundation paper covering contract, partnership, negotiable instruments and an overview of company law. Professional Level Corporate Laws and Practices is a separate 100-mark written paper on company secretarial practice, BSEC securities regulation, FRC oversight, banking and finance-company statutes, insurance, and labour law.

What is the passing score and how is the paper graded?

ICAB does not publish a percentage pass mark for this paper. Results are reported subject by subject as pass or fail. The widely repeated 50% figure could not be confirmed in the Syllabus-2025 PDF, brochure, or examination-fees page. Prepare to the standard of the specification grid and confirm the current examination regulations on icab.org.bd.

Which syllabus applies to 2026 sittings?

ICAB published Revised CA Syllabus-2025. Under that syllabus this Professional Level paper runs for 3.5 hours and 100 marks. Older ICAB new-curriculum web pages still quote 3.0 hours. Confirm the sitting circular at exam.icab.org.bd. Statutes, rules and corporate-governance codes are examinable if they became effective at least three months before the month of the examination.

In what language is the official paper answered?

ICAB Professional and Advanced Level written papers are answered in English. This bank is an English-language MCQ study adaptation of the official written paper; it is not an official translation or a simulation of the written-answer environment.

How much is the examination fee?

ICAB's examination-fees page lists Professional Level papers, including Corporate Laws and Practices, at Tk. 2,500 per subject. An older application-fees page still prints Tk. 3,300. Confirm the fee on the circular for your sitting at exam.icab.org.bd.

Does the Finance Company Act 2023 replace the Financial Institutions Act 1993?

Yes. The Finance Company Act 2023 is the current statute for licensing and supervising finance companies (NBFIs) by Bangladesh Bank. The Syllabus-2025 specification grid weights that Act at 5%. The syllabus still mentions the Financial Institutions Act 1993 in one programme learning outcome, so candidates should know that the 2023 Act is the successor framework.