AIBE Company Law PYQs: Most Repeated Questions

What is Company Law in AIBE 22 2026?

Company Law comprises around 2 questions in 100 in the AIBE 22 Examination 2026 and is a moderately simple area of study. The questions usually revolve around basic principles and provisions under the Companies Act.

Company Law is the area of law that deals with the formation, functioning, management, and winding up of companies. As per the AIBE 22 2026 Syllabus, the candidates are required to know some basic areas like types of companies, incorporation, Memorandum and Articles of Association, directors, shareholders, meetings of the company and corporate governance. The nature of the questions being concept-oriented makes Company Law a simple subject to score quickly.

Most Repeated AIBE Company Law PYQs

Given below are the most frequently asked Company Law Previous Year Questions (PYQs) based on past AIBE exam trends and important topics for AIBE 22 exam.

1. Which legislation primarily governs companies in India?

(a) Partnership Act, 1932
(b) Companies Act, 2013
(c) Contract Act, 1872
(d) Limited Liability Partnership Act, 2008

Answer: (b) Companies Act, 2013

Solution: The Companies Act, 2013 is the principal legislation governing the incorporation, management, regulation, and winding up of companies in India. It replaced most provisions of the Companies Act, 1956 and introduced modern corporate governance norms.

2. A company acquires a separate legal entity upon:

(a) Signing of a partnership deed
(b) Issue of shares
(c) Incorporation and registration
(d) Appointment of directors

Answer: (c) Incorporation and registration

Solution: Upon incorporation, a company becomes a separate legal person distinct from its members. This principle was established in the landmark case of Salomon v. Salomon & Co. Ltd., forming the basis of modern company law.

3. The Memorandum of Association (MOA) primarily defines:

(a) Internal management of the company
(b) External scope and objectives of the company
(c) Salary of directors
(d) Share transfer procedures

Answer: (b) External scope and objectives of the company

Solution: The MOA is the charter document of a company. It defines the company's name, registered office, objects, liability, and capital structure, thereby determining the extent of its powers and activities.

4. The Articles of Association (AOA) mainly contain:

(a) Constitutional provisions
(b) Internal rules and regulations of the company
(c) Criminal liabilities of directors
(d) Income tax provisions

Answer: (b) Internal rules and regulations of the company

Solution: The AOA governs the internal management of the company, including procedures relating to meetings, voting, appointment of directors, and share transfers. It operates subject to the Companies Act and the MOA.

5. Which of the following is a characteristic feature of a company?

(a) Unlimited life dependent on members
(b) Separate legal entity
(c) Absence of legal personality
(d) Oral formation only

Answer: (b) Separate legal entity

Solution: A company has its own legal identity separate from its shareholders and directors. It can own property, enter contracts, sue, and be sued in its own name independently of its members.

6. The doctrine that prevents a company from acting beyond its stated objects is known as:

(a) Indoor Management
(b) Constructive Notice
(c) Ultra Vires
(d) Estoppel

Answer: (c) Ultra Vires

Solution: The doctrine of ultra vires provides that acts beyond the objects specified in the MOA are void and cannot be ratified by shareholders. This doctrine protects shareholders and creditors from unauthorized activities.

7. The minimum number of directors required in a private company is:

(a) One
(b) Two
(c) Three
(d) Five

Answer: (b) Two

Solution: Under the Companies Act, 2013, a private company must have at least two directors. This requirement ensures proper management and governance of the company.

8. Who are the real owners of a company?

(a) Directors
(b) Auditors
(c) Shareholders
(d) Company Secretary

Answer: (c) Shareholders

Solution: Shareholders contribute capital and hold ownership interests in the company through shares. Although directors manage the company, ownership ultimately rests with the shareholders.

9. A company limited by shares means:

(a) Members have unlimited liability
(b) Liability of members is limited to unpaid share capital
(c) Company cannot issue shares
(d) Directors are personally liable for all debts

Answer: (b) Liability of members is limited to unpaid share capital

Solution: In a company limited by shares, members are liable only up to the amount unpaid on the shares held by them. Their personal assets are generally protected from company debts.

10. Which meeting is required to be held every year by a company?

(a) Board Meeting
(b) Extraordinary General Meeting
(c) Annual General Meeting (AGM)
(d) Creditors' Meeting

Answer: (c) Annual General Meeting (AGM)

Solution: The AGM is a mandatory yearly meeting where shareholders review financial statements, appoint auditors, discuss company affairs, and exercise important ownership rights.

Importance of Company Law in AIBE 22

• Contributes Approximately 2 Marks: Company Law constitutes roughly 2 questions out of 100 in the AIBE 22 Examination in 2026, which constitutes an important scoring topic.

• Questions Asked from Following Concepts: Generally, Company Law questions include issues of company formation, MOA, AOA, directors, shareholders, company meetings, and corporate governance. Candidates can refer to top 10 most repeated topics in the AIBE question papers.

• Basic and Conceptual: Generally, all Company Law questions include basic principles of law, provisions of the Companies Act, 2013 which make them easy.

• Important in the Field of Corporate Practice: Company Law is very much important for advocates who practice in fields related to corporate, commerce, and business.

• Easy Way to Score Good Marks: With the help of solving PYQs of AIBE Company Law, students will be able to learn about repeating topics and secure marks in examinations.

• Foundation of Corporate Law: With the study of Company Law, students will come to know about various concepts of corporate law which they encounter during practice.