CAIIB · Banking Regulations & Business Laws · Module D — Commercial & Other Laws with Reference to Banking Operations
CAIIB BRBL Unit 28 — The Companies Act, 2013 (Units 28A–28G): Free MCQs with Explanations
By Swarnakshi Jha (ex-banker) · Updated 29 October 2026 · Paper IV of the December 2026 cycle (Sunday 20 December 2026)
This is the free practice page for CAIIB BRBL Unit 28 — The Companies Act, 2013 (Units 28A–28G) (Module D — Commercial & Other Laws with Reference to Banking Operations). The CAIIB Mock Centre holds 280 questions on this unit alone, every one with a why-right / why-wrong explanation; below are the facts examiners keep returning to, five practice questions with explanations, and the traps that cost marks.
BRBL · Module D280 MCQs in the Mock Centre5 free belowPaper on 20 December
Key facts examiners test from this unit
Nature of a company — a company is an artificial legal person, separate from its members, with perpetual succession and, usually, limited liability; it differs from a firm on almost every point.
Types of companies — companies are statutory or registered; limited by shares, by guarantee or unlimited; private or public; with special kinds: government, foreign, OPC and small.
Memorandum and articles — the memorandum is the charter that fixes what the company is and may do; the articles are its internal rules; both bind the company and its members.
Changed since the textbook
Small company limits raised (1 Dec 2025). The Companies (Specification of Definition Details) Amendment Rules, 2025 (G.S.R. 880(E), 1 December 2025) raised the small company limits to paid-up capital of up to ₹10 crore and turnover of up to ₹100 crore (earlier ₹4 crore and ₹40 crore). Both conditions must be met; public companies, holding and subsidiary companies, Section 8 companies and companies under a special Act cannot be small companies. Source: Taxmann
One Person Company rules relaxed (1 Apr 2021). From 1 April 2021 the Companies (Incorporation) Rules no longer force an OPC to convert when its paid-up capital exceeds ₹50 lakh or turnover exceeds ₹2 crore; an OPC may convert into a private or public company at any time; non-resident Indian citizens may form OPCs; and the residency needed by an Indian citizen member fell from 182 to 120 days. Source: The News Minute
5 free practice questions — tap an option
Five practice questions from this unit. Answers lock on the first tap, exactly as in the exam, and an explanation opens underneath. The Mock Centre has all 280 questions on this unit, from easy to tough, with caselets and key-in numericals, why every other option is wrong and the exam tip — and tracks your score and revision dates.
Question 1 of 5
A company must have a registered office within how many days of incorporation?
Why (b): Section 12: a registered office within 30 days of incorporation. (a) is wrong: 180 days is the s. 10A declaration period. (c) is wrong: Seven days is far too short. (d) is wrong: A registered office is required.
Question 2 of 5
Under the doctrine of constructive notice, an outsider dealing with a company is deemed to know the contents of its:
Why (b): The memorandum and articles are public documents, so anyone dealing with the company is deemed to know their contents. (a) is wrong: Board minutes are internal, not public. (c) is wrong: Loan agreements are not public documents. (d) is wrong: Employee lists are not public documents.
Question 3 of 5
The doctrine of constructive notice operates to protect:
Why (a): Constructive notice prevents an outsider from pleading ignorance of the company's public documents, so it protects the company. (b) is wrong: It works against outsiders, not for them. (c) is wrong: The Registrar is not a party. (d) is wrong: Auditors are not concerned.
Question 4 of 5
On ₹10 shares, ₹10 paid up, a member's further liability on winding up is:
Why (d): In a company limited by shares, liability is limited to the amount unpaid; on fully paid shares nothing remains unpaid. (a) is wrong: Nothing remains unpaid on the shares. (b) is wrong: The full value has already been paid. (c) is wrong: Liability is limited by shares.
Question 5 of 5
In a public company, what share of the total directors must be liable to retire by rotation?
Why (a): Section 152(6) requires at least two-thirds of a public company's directors, excluding independent directors, to be liable to retire by rotation, unless the articles provide for all to retire. (b) is wrong: Half is below the minimum, and independent directors are excluded. (c) is wrong: The test is a two-thirds share, not non-executive status. (d) is wrong: The Act sets a two-thirds minimum, not the whole board each year.
0 of 5 answered.
Traps in this unit
Treating members as liable for company debts.
Thinking the seal is still compulsory.
Using the old small company or OPC limits.
Practise all 280 questions on Unit 28. The free CAIIB demo opens Units 1–2 of every paper with full explanations; the BRBL Online Mock Centre unlocks all 5,800+ BRBL questions, the full-length papers with caselets and key-ins, module mocks and Smart Revision for 18 months (₹1,499).
Independent study aid — not affiliated with, endorsed by, or sponsored by the Indian Institute of Banking & Finance (IIBF). Exam pattern, dates, fees and passing criteria are set by IIBF — always confirm the current rules at iibf.org.in. CAIIB content follows rules and developments up to IIBF's cut-off of 30 June 2026 (where a rule changed later, the update box says so); verify from official sources before relying on them in practice.