Chartered Accountancy, Institute of Chartered Accountants of Pakistan (Scheme 2025) · Business Law Dynamics
ICAP CAF-4 Companies Act: management and administration: practice questions with answers
5 free exam-style questions on Companies Act: management and administration for ICAP CAF-4 Business Law Dynamics. Try each one, then open the answer to read the explanation. Fincora has 9 original questions on this syllabus area.
Question 1
Kaghan Fabrics Limited keeps the register of mortgages and charges required by section 112 of the Companies Act, 2017. Who may inspect this register free of charge?
- A Its members and its creditors
- B Its members only
- C Its members, its creditors and any other person
- D Only the registrar and the holders of charges
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Answer: A. Section 112 of the Companies Act, 2017: every company must maintain a register of the mortgages and charges that require registration under Part VI. The register is open to inspection by any member or creditor without fee, and by any other person on payment of the fee fixed by the company for each inspection. Refusal of inspection is an offence, and the registrar may order immediate inspection.
(Separately, s 107 requires a copy of every instrument creating a registrable charge to be kept at the registered office.)
Question 2
On 23 January 2027 Bhimber Motors Limited created a charge over its plant and machinery in favour of Kohistan Bank Limited to secure a loan of Rs 85,000,000. Under section 100 of the Companies Act, 2017, what is the last date for filing the particulars of the charge, with a copy of the instrument, with the registrar?
- A 21 February 2027
- B 7 February 2027
- C 22 February 2027
- D 23 February 2027
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Answer: C. Section 100(1) of the Companies Act, 2017: the particulars of a mortgage or charge, together with a copy of the instrument creating it, are filed with the registrar within a period of thirty days beginning with the day after the date of its creation.
Computation: day 1 = 24 January 2027. January 24 to 31 = 8 days; 22 more days in February reaches day 30 = 22 February 2027.
The company has the duty to file (s 105), though any interested person, such as the bank, may also register it and recover the fees from the company.
Question 3
On 16 November 2027 Kalat Logistics Limited repaid in full a loan secured by a registered charge in favour of Hingol Bank Limited. Under section 109 of the Companies Act, 2017, by when must the company report the satisfaction, and what does the registrar do if no no-objection certificate from the bank is attached?
- A By 16 December 2027; the registrar sends the bank a notice to show cause why satisfaction should not be recorded
- B By 16 December 2027; the registrar records the satisfaction at once without notice to the bank
- C By 1 December 2027; the registrar sends the bank a notice to show cause why satisfaction should not be recorded
- D No report is due; the bank must apply to the registrar to have the charge removed
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Answer: A. Section 109 of the Companies Act, 2017: the company must report the payment or satisfaction of a registered charge to the registrar within thirty days from the date of such payment or satisfaction (s 109(1)).
Step 1 (deadline): 16 November 2027 + 30 days = 16 December 2027.
Step 2 (registrar's action): the registrar sends the charge holder a notice calling on it to show cause, within a period not exceeding 14 days, why the payment or satisfaction should not be recorded. No notice is needed where the company attaches a no-objection certificate from the charge holder. If no cause is shown, the registrar records the satisfaction. (Under s 110 the registrar may also enter a satisfaction on evidence, without any report from the company.)
Question 4
Without any extension from the Commission, for how many days in total in a year may a company close its register of members under section 125 of the Companies Act, 2017?
- A 45 days
- B 15 days
- C 7 days
- D 30 days
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Answer: D. Section 125 of the Companies Act, 2017: a company may close its register of members (or the part for any class of shares) for any period or periods not exceeding thirty days in each year, on giving not less than seven days' previous notice. On the company's application the Commission may extend the period by a further fifteen days. A listed company must advertise the notice in an English and an Urdu newspaper.
Without an extension the limit is therefore 30 days in a year.
Question 5
Pishin Textiles Limited, which has a share capital, held its annual general meeting on 27 October 2027. Under section 130 of the Companies Act, 2017, within what period must it file its annual return with the registrar?
- A Within 30 days from the date of the annual general meeting
- B Within 30 days from the close of the financial year
- C Within 15 days from the date of the annual general meeting
- D Within 120 days from the close of the financial year
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Answer: A. Section 130 of the Companies Act, 2017: a company having a share capital files an annual return made up to the date of its annual general meeting within thirty days from the date of the annual general meeting held in the year. If no AGM is held or it is not concluded, the return is made up to, and the period runs from, the last day of the calendar year. For a listed company the registrar may extend the period by up to 15 days for special reasons.
Pishin's return is due by 26 November 2027.
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