100+ Free CS Executive Company Law Practice Questions

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2026 Statistics

Key Facts: CS Executive Company Law Exam

100

Total Marks

ICSI Executive Programme Syllabus

3 hrs

Exam Duration

ICSI Examination Policy

~20%

Objective/MCQ Marks

ICSI Question Paper Pattern

40% / 50%

Paper / Module Pass

ICSI Examination Policy

2013

Governing Companies Act

ICSI Study Material

Module 1

Paper 2 Placement

ICSI New Syllabus 2022

The ICSI CS Executive Company Law and Practice paper (Module 1 Paper 2, new syllabus 2022) is a 3-hour, 100-mark offline pen-and-paper exam with about 20% objective/MCQ marks and 80% descriptive and case-based marks, and no negative marking. It covers the entire Companies Act 2013: incorporation and types of companies, memorandum and articles, share capital and debentures, members and deposits, registration of charges, management and administration, directors and KMP, board and general meetings, dividends, accounts and audit, CSR, producer companies, and e-governance. A candidate needs at least 40% in the paper and 50% aggregate in the module to pass.

Sample CS Executive Company Law Practice Questions

Try these sample questions to test your CS Executive Company Law exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1Under the Companies Act, 2013, a 'one person company' (OPC) can be incorporated by which of the following?

A.Any natural person who is an Indian citizen and resident in India in the previous calendar year

B.Any company or body corporate

C.Any two or more natural persons jointly

D.Any natural person who is an Indian citizen, whether resident or not

Explanation: After the Companies (Incorporation) Second Amendment Rules, 2021 (effective 1 April 2021), an OPC may be incorporated by any natural person who is an Indian citizen, whether resident in India or not — NRIs are now permitted. The test for being 'resident in India' was also reduced to 120 days. The member and nominee must still be Indian citizens, and a body corporate cannot form an OPC.

2The doctrine that protects an outsider dealing in good faith with a company by allowing them to assume that the internal procedures of the company have been duly complied with is known as:

A.Doctrine of constructive notice

B.Doctrine of indoor management

C.Doctrine of lifting the corporate veil

D.Doctrine of ultra vires

Explanation: The doctrine of indoor management (the rule in Royal British Bank v. Turquand) protects outsiders dealing in good faith, allowing them to presume that the company's internal procedures and formalities have been properly followed. It is the counterbalance to the doctrine of constructive notice, which binds outsiders to the public documents only.

3Under Section 4 of the Companies Act, 2013, a company name reserved by the Registrar through the RUN or SPICe+ facility is valid for how many days for a new company?

A.60 days

B.10 days

C.20 days

D.30 days

Explanation: Under Section 4(5) read with the Companies (Incorporation) Rules, a name reserved for a proposed new company is valid for 20 days from the date of approval. For an existing company changing its name, the reservation is valid for 60 days. The earlier 60-day period for new companies was reduced to 20 days by amendment.

4Which clause of the memorandum of association states the State in which the registered office of the company is to be situated?

A.The object clause

B.The liability clause

C.The name clause

D.The situation (registered office) clause

Explanation: Under Section 4(1)(b), the memorandum must state the State in which the registered office of the company is to be situated. This is the situation clause. Altering it to shift the registered office from one State to another requires a special resolution and confirmation by the Central Government (Regional Director).

5An act of a company that is beyond the objects stated in its memorandum of association is:

A.Voidable at the option of the company

B.Void ab initio and cannot be ratified even by unanimous consent of members

C.Valid if ratified by an ordinary resolution

D.Valid if ratified by a special resolution

Explanation: An act ultra vires the memorandum is void ab initio and cannot be ratified, even by the unanimous consent of all the shareholders, because the memorandum defines the company's capacity. This rule was established in Ashbury Railway Carriage v. Riche. Only acts within the objects clause bind the company.

6The articles of association of a company may contain entrenchment provisions. Such provisions can be altered only by:

A.An ordinary resolution

B.A special resolution

C.A condition more restrictive than a special resolution, as specified in the articles

D.Approval of the Registrar of Companies

Explanation: Under Section 5(3), entrenchment provisions in the articles can specify that certain provisions may be altered only if conditions more restrictive than a special resolution are met. This gives protection to certain matters. The company must give notice of entrenchment provisions to the Registrar in the prescribed manner.

7Under the Companies Act, 2013, the maximum number of members in a private company (excluding employee and ex-employee members) is:

A.Unlimited

B.50

C.100

D.200

Explanation: Section 2(68) defines a private company as one that, by its articles, limits the number of members to 200, excluding present and past employees who became members during employment. Under the previous Companies Act 1956, the cap was 50. A public company has no upper limit on members.

8A company registered under Section 8 of the Companies Act, 2013 is a company formed for:

A.Promotion of commerce, art, science, sports, education, charity or similar objects, applying profits in promoting its objects

B.Producing, harvesting and marketing of agricultural produce of its members

C.Carrying on banking business with a licence from the RBI

D.Acting as a holding company for a group of subsidiaries

Explanation: A Section 8 company is formed for promoting commerce, art, science, sports, education, research, social welfare, religion, charity, protection of environment or similar objects, and intends to apply its profits in promoting those objects, prohibiting payment of dividends to members. It enjoys certain exemptions and requires a licence from the Central Government.

9The integrated web-based form used for incorporation of a company, allotment of DIN, PAN, TAN, EPFO, ESIC, GSTIN and bank account is:

A.Form RUN

B.Form INC-22

C.SPICe+ (INC-32)

D.Form DIR-12

Explanation: SPICe+ (Simplified Proforma for Incorporating Company Electronically Plus), filed in Form INC-32, is the integrated incorporation form offering multiple services including company incorporation, DIN allotment, PAN, TAN, EPFO, ESIC, GSTIN registration, and bank account opening through a single application on the MCA21 portal.

10Under Section 10A of the Companies Act, 2013, a company having share capital cannot commence business unless it files a declaration that subscribers have paid the value of shares within:

A.30 days of incorporation

B.60 days of incorporation

C.120 days of incorporation

D.180 days of incorporation

Explanation: Section 10A requires a company having a share capital to file a declaration (Form INC-20A) within 180 days of incorporation, confirming that every subscriber has paid the value of shares agreed to be taken. Until this declaration of commencement of business is filed, the company cannot commence business or exercise borrowing powers.

About the CS Executive Company Law Exam

Company Law and Practice is Paper 2 of Module 1 of the ICSI CS Executive Programme (new syllabus 2022). It tests the Companies Act 2013 across incorporation, share capital, members, charges, management, directors, KMP, board and general meetings, dividends, accounts and audit, CSR, producer companies, and e-governance through MCA21.

Assessment

Question count not published by the exam provider

Time Limit

3 hours

Passing Score

Minimum 40% in the paper and 50% aggregate in the module

Exam Fee

Bundled into the ICSI Module 1 examination fee; ICSI does not publish a standalone Paper 2 fee (Institute of Company Secretaries of India (ICSI))

CS Executive Company Law Exam Content Outline

12-16%

Introduction, Incorporation and Types of Companies

Sources of company law, doctrines, incorporation procedure, SPICe+, types of companies including OPC, small, private, public, Section 8, dormant, holding, subsidiary, and associate companies.

8-10%

Memorandum and Articles of Association

Clauses of the memorandum, doctrine of ultra vires, alteration of memorandum and articles, entrenchment, doctrines of constructive notice and indoor management, and change of name.

14-18%

Share Capital and Debentures

Kinds of share capital, further issue and rights issue, securities premium, sweat equity, ESOP, buy-back, reduction of capital, debentures, charges, and debenture redemption.

10-12%

Members, Shareholders and Deposits

Membership, register of members, transfer and transmission, beneficial interest, significant beneficial owners, voting rights, oppression and mismanagement, and acceptance of deposits.

6-8%

Registration of Charges

Creation, modification, and satisfaction of charges, registration timelines, charge-holder application, rectification by the Central Government, and the register of charges.

10-12%

Management, Administration and E-Governance

Annual return, registered office, MCA21, e-filing, XBRL, DSC, STP forms, compromise and arrangement, and strike-off of companies.

14-18%

Directors, KMP and Board Powers

Appointment, qualification, disqualification, removal of directors, DIN, independent directors, KMP, number of directorships, board committees, related party transactions, and managerial remuneration.

12-15%

Meetings: Board and General

Board meetings, quorum, resolution by circulation, general meetings, AGM and EGM, notice, proxy, voting, e-voting, postal ballot, resolutions, and minutes.

10-12%

Dividends, Accounts and Audit

Declaration and payment of dividend, unpaid dividend account, IEPF, books of account, financial statements, board report, appointment and rotation of auditors, and types of audit.

6-8%

CSR and Producer Companies

CSR applicability, committee, spending, unspent CSR account, Schedule VII activities, and producer companies under Chapter XXIA including board, capital, and objects.

How to Pass the CS Executive Company Law Exam

What You Need to Know

Passing score: Minimum 40% in the paper and 50% aggregate in the module
Assessment: Question count not published by the exam provider
Time limit: 3 hours
Exam fee: Bundled into the ICSI Module 1 examination fee; ICSI does not publish a standalone Paper 2 fee

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

CS Executive Company Law Study Tips from Top Performers

1Anchor your study to the bare sections of the Companies Act 2013, then layer the relevant rules and e-forms onto each topic.

2Memorise procedural timelines and thresholds (such as 30 days for charge registration and 180 days for commencement of business) because they are frequent MCQ targets.

3Practise board and general meeting procedure side by side so you do not confuse quorum, notice periods, and resolution thresholds.

4Use ICSI study material and previous question papers to learn how case-based questions are framed.

5Maintain a chart of forms (SPICe+, INC-20A, MGT-7, AOC-4, CHG-1, DIR-12) mapped to their sections and due dates.

6Revise CSR, dividends, and IEPF rules close to the exam because numeric thresholds are easy to mix up.

Frequently Asked Questions

What is the exam format of CS Executive Company Law (Paper 2)?

It is an offline pen-and-paper examination of 3 hours for 100 marks. About 20% of the marks are objective/MCQ questions and roughly 80% are descriptive and case-based questions. There is no negative marking in this paper.

What is the passing requirement for CS Executive Company Law?

Under ICSI policy, a candidate must score at least 40% in the individual paper and a minimum of 50% in the aggregate of the module to pass. Clearing a paper can be carried forward under ICSI exemption rules.

Which Act does CS Executive Company Law mainly cover?

The paper is built almost entirely on the Companies Act 2013, along with its rules, schedules, notifications, and circulars. It also covers MCA21 e-governance and producer companies under Chapter XXIA of the Act.

How much of CS Executive Company Law is MCQ-based?

ICSI structures the paper so that about 20 marks come from objective/MCQ questions, with the remaining 80 marks from descriptive and case-based answers. Practising MCQs is an efficient way to lock in sections, timelines, and thresholds.

Is there negative marking in CS Executive Company Law?

No. ICSI does not apply negative marking in the CS Executive Company Law paper, so candidates should attempt every objective question even when unsure of the answer.

Which chapters carry the most weight in CS Executive Company Law?

Share capital and debentures, directors and KMP, and meetings tend to carry the heaviest weight, followed by incorporation, members and deposits, and accounts, audit and dividends. Charges, CSR, and producer companies are smaller but high-yield scoring areas.

How long should I study for CS Executive Company Law?

Most candidates spend about 120 to 180 hours on this paper because of the volume of sections, rules, forms, and procedural timelines. Spreading study over 10 to 14 weeks with regular revision works well.