AIBE Company Law PYQs: Most Repeated Questions

What is Company Law in AIBE 21 2026?

Company Law carries approximately 2 questions out of 100 in the AIBE 21 Exam 2026 and is a relatively easy section to prepare. Questions are generally based on fundamental concepts and important provisions of the Companies Act.

Company Law is the branch of law that regulates the creation, operation, management, and winding up of companies. In the AIBE 2026 Syllabus, candidates are expected to understand core topics such as types of companies, incorporation, Memorandum and Articles of Association, directors, shareholders, company meetings, and corporate governance. Since most questions are straightforward and concept-based, Company Law offers an opportunity to secure quick marks with focused AIBE 21 2026 preparation.

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 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.

Why Company Law Matters in AIBE 21?

• Contributes Around 2 Marks: Company Law accounts for approximately 2 questions out of 100 in the AIBE 21 Exam 2026, making it a small but important scoring section.

• Frequently Asked Concepts: Questions are commonly based on company incorporation, MOA, AOA, directors, shareholders, company meetings, and corporate governance. Students can also check Top 10 Repeated Topics in AIBE Question Papers.

• Straightforward and Concept-Based: Most Company Law questions test basic legal principles and provisions of the Companies Act, 2013, making them relatively easy to answer.

• Important for Corporate Legal Practice: A sound understanding of Company Law is essential for advocates dealing with corporate, commercial, and business-related matters.

• Helps Secure Easy Marks: By practising AIBE Company Law PYQs, candidates can quickly master recurring topics and improve their overall score in the examination.

• Foundation of Corporate Law: Company Law introduces candidates to key concepts governing the formation, management, and regulation of companies, which are frequently encountered in legal practice.