CA Inter Corporate and Other Laws Important Questions For May 2019

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CA Inter Corporate and Other Laws Important Questions For May 2019. In the previous articles, we have given CA Inter Accounting and Taxation chapter wise important questions for May 2019 attempt. Today we are providing CA Inter law most important questions for May 2019 attempt (सीए इंटर कॉरपोरेट लॉ इम्पोर्टेन्ट प्रश्न). With only a few days left for the CA Inter exam May 2019, students have very less time to cement their learnings and get well prepared to write the perfect exams. During these days before the exams, students should avoid studying anything new. They must focus on practising and revising what they have studied until now.

Moreover, they must go through the important topics and practice the questions related to those topics. This will help to fine-tune your preparations for the board exams. It’s very essential that students pick reliable study material and practice manual, which provide only important and meaningful stuff so that students are able to make an effective preparation for the exam.

CA Inter Corporate and Other Laws Important Questions May 2019 (Theory)

Here we have provided all the theory important question of CA Inter Group -I Corporate and Other Laws important guess questions. People who are preparing for the CA Inter May 2019 Law exam can follow these questions for their exams preparation. If you don’t have time, here we have given all 4 marks important questions, 8 marks important questions and 16 marks important questions. So prepare all these short answers questions and long answers questions. Please have a look!

PRELIMINARY

  1. What do you understand by “Separate Legal Entity” of the Company?
  2. Explain clearly the meaning of Lifting the Corporate Veil, as applicable in case of companies incorporated under the Companies Act, 2013. Linder what circumstances the veil of a company can be lifted by the court.

CLASSES OF COMPANIES

  1. Write a short note on Small Company.
  2. Explain the concept of One Person Company
  3. Explain (1) Government company (2) Foreign Company (3) Nidhi Company
  4. Write about the Dormant Company.

PROMOTION & INCORPORATION OF COMPANY

  1. Who shall be considered as a promoter? Explain.
  2. Explain the Procedure / Mode for Incorporation of Company [Sec.7]?
  3. Explain the procedure for the Reservation of the name of the company?
  4. Can a “Non-profit organization be registered as a company under the Companies Act? If so, what procedure does it have to adopt? [Sec.8].
  5. Explain Provisions relating to Revocation of License granted U/s 8.
  6. A company wants to get registered with the Registrar of companies. As a Chartered Accountant advises as to how it can get itself incorporated as per the Simplified Procedure for Incorporation of a Company Electronically under the provisions of the Companies Act, 2013.

MEMORANDUM AND ARTICLES OF ASSOCIATION

  1. Explain the procedure for shifting of registered Registrar within the same state.
  2. Explain the procedure for shifting of registered from one state to another state.
  3. Explain the provisions of law and processor of Law relating to “Alteration of Objects clause” of MOA of a company under the Companies Act, 2013.
  4. Explain the procedure for the alteration of Articles of Association.
  5. Explain the Binding Effects of Memorandum and Articles of a company.

PROSPECTUS 

  1. What is the procedure for variation in terms of contract or objects in prospectus and requirement that needs to be complied with?
  2. What is meant by “Abridged Prospectus”?
  3. A document containing an offer of securities for sale to be deemed prospectus Comment [Sec 25]
  4. What is meant by ‘Red-herring prospects? State the circumstances under such prospectus are required to be filed with the ROC. What is the requirement relating to the filling of the final prospectus in such cases?
  5. Explain the Criminal liabilities for Misstatements in Prospectus?
  6. Explain the Civil Liabilities for Misstatements in Prospectus.
  7. Who is an Expert? When is he liable for any Mis – Statement in the prospectus?
  8. What are the statutory requirements relating to the issue of the Prospectus?

ALLOTMENT Of SECURITIES & UNDERWRITING

  1. What are the requisites of a valid allotment of securities by the Company? When the Company is liable to refund the application money? Can share application money be deposited in any bank?
  2. When is an Allotment of Shares treated as irregular allotment? State the effects of an irregular allotment.
  3. Define the term underwriting and state the circumstances in which underwriting commission can be paid as per provisions of sec 40 of Companies Act 2013.

SHARE CAPITAL

  1. What are the conditions that need to be satisfied for the issue of Equity shares with differential voting rights?
  2. State the purposes for which the share premium a/c can be used under the provisions of the Companies Act, 2013.
  3. Write the provisions regarding the “Issue of shares at a discount” under the companies Act, 2013. (Sec 53).
  4. Explain the provisions of the Companies Act, 2013 relating to sweat equity shares. (Sec 54).
  5. What are Provisions regulating the further issue of shares under the Companies Act 2013 (or) Pre-emptive right?
  6. Describe the formalities to have compiled while a company reduce its share capital.
  7. State the sources of funds that can be utilized by the company for purchasing its own shares.
  8. What are the requirements to be complied with before and after the shares are so purchased?
  9. State the provisions relating to requirements to be complied with after buy back.
  10. Can a company purchase its own capital?
  11. What is the share certificate? Write the form, contents etc. of share certificate?
  12. What is the law and procedure for “Issuing a duplicate share certificate” under the provisions of the Companies Act, 2013 in case the original share certificate is lost or destroyed?
  13. When a company give loan or financial assistance to purchase its own shares?

CALLS & FORFEITURE Of SHARES

  1. Write the provisions of Payment of calls in advance?
  2. Difference between Lien and Forfeiture.

TRANSFER & TRANSMISSION OF SHARES

  1. State the procedure for transfer of shares.
  2. Discuss the provisions relating to Refusal for rectification of register of members on the transfer of securities by a Company and the remedial measures to the aggrieved shareholder.
  3. Examine the validity of transfer and transmission of shares in favour of a minor under the provisions of the Companies Act, 2013.
  4. Write about the nomination facility in respect of shares [Sec 72]?

MEMBERSHIP

  1. Define the term “Membership” under the Companies Act, 2013?
  2. Explain the position of a minor in relation to obtaining membership in a Company.
  3. Can a Public limited Company become a member of another public limited Company? Comment?
  4. Explain the Register of Members under the Companies Act, 2013?
  5. Discuss the provisions of the Companies Act, 2013 relating to the closure of its register of members and related rules made there under.
  6. What are the obligations of the Company, the beneficial owner and the registered holder under the companies Act, 2013 in case of Benami shareholding? What is the law in such a case according to the Companies Act, 2013?
  7. Discuss the provisions relating to joint holders under the Companies Act, 2013.

REGISTRATION Of CHARGES

  1. What is crystallization of floating charge? And state the circumstances under which floating charge becomes a fixed charge.
  2. Explain the procedure as to registration of charges?
  3. Explain briefly the provisions relating to “Modification of charge”.
  4. Explain briefly the provisions relating to “Satisfaction of charge”.
  5. Write about a) Second Charge b) Pari Passu.

DEBENTURES

  1. Discuss the manner in which a Company may issue Debentures according to the provisions of the Companies Act, 2013.
  2. Elaborately discuss the provisions relating to Debenture trustee under the Companies Act, 2013?
  3. Write the rules relating to the duty of the Company to create Debenture redemption reserve [DRR].
  4. Explain the meaning and significance of the ‘Pari Passu’ clause in a Debenture.

DEPOSITS

  1. Acceptance of deposits from the director or his relative under the Companies Act, 2013.
  2. Explain the provisions relating to acceptance of deposits from Members as per the Companies Act, 2013? (Sec 73)
  3. What is the prohibition on accepting deposits from the public under the Companies Act, 2013? (Sec 73)
  4. Discuss the provisions of the Companies Act, 2013 with respect to the acceptance of deposits from public by certain companies (i.e. Eligible Public Companies) having high net worth or high turnover as may be prescribed [Sec 76]
  5. What are ceilings on deposits under Companies (Acceptance of Deposits) Rules, 2014?

MANAGEMENT & ADMINISTRATION -1

  1. Explain the provisions of the Act, with regard to holding of an Annual General Meeting (AGM) by a Company.
  2. What is the effect of failure to convene the AGM?
  3. Discuss the rules relating to calling of EGM by requisition.
  4. What are the statutory provisions relating to the length of Notice?
  5. What are the types of Business which may be transacted at an AGM?
  6. When is an explanatory statement required to be annexed to the notice calling the GM of a Company? Also, discuss the provisions relating to the explanatory statement.
  7. What are the provisions of the Companies Act, 2013 relating to service of notice of a meeting?
  8. What are the rules relating to service of notice in electronic mode?

MANAGEMENT & ADMINISTRATION – II

  1. Explain the provisions of Companies Act, 2013 relating to Chairman of meeting [Section 104]
  2. Write about “Resolution requiring special notice”. Discuss the rules relating to serving of special notice to the Company by members.
  3. What are the statutory provisions as regards to a quorum for calling general meetings?
  4. What is the meaning of ‘Proxy’? Discuss the law related to the proxy in brief.
  5. Write about the Restriction on voting rights.
  6. What is the procedure for voting through electronic means as per provisions of the Companies Act, 2013 and related rules?
  7. What is the poll? What are the provisions relating to voting by poll?
  8. What is a postal ballot? Discuss the provisions of the Companies Act, 2013 relating to the postal ballot.
  9. Discuss the rules/procedure relating to the passing of the resolution by postal ballot.
  10. Discuss the Contents of Minutes of the proceedings of meetings under the Companies Act, 2013 and rules made thereunder.
  11. What are the provisions of the Companies Act, 2013 relating to ‘inspection’ of minute-books of a General Meeting?
  12. Resolutions passed at the adjourned meeting [Section 116].
  13. What is the significance of Casting vote of the Chairman in meetings?
  14. Distinguish between ‘Motion’ and ‘Resolution?

ACCOUNTS Of COMPANIES

  1. State any four contents of a Directors Responsibility Statement as required under Section 134 of the Companies Act, 2013.
  2. Rera Ltd. a Company incorporated under the Companies Act, 2013 having a turnover of Rs. 100 crore, net profit Rs. 3 crore, accumulated loss of Rs. 50 crore and securities premium Rs. 300 crore as per the audited accounts of the Company for the Financial Year 2016-17.

The CFO of the Company informed the directors of the Company that the Corporate Social Responsibility (CSR) committee is required to be constituted as per the Companies Act, 2013. The directors seek your advice as a professional regarding the criteria required to constitute the CSR committee and whether it is applicable to Rera Ltd. or not.

  1. The directors of Element Ltd. want to voluntary revise the Financial Statements of the company. They have approached you to state to them the provisions of the Companies Act, 2013 regarding voluntary revision of financial statements.
  2. Explain the provisions of Companies Act, 2013 relating to “Books of Accounts”.
  3. What are the provisions of Companies Act, 2013 relating to Inspection of books of accounts (sec.128)?
  4. How long the books of accounts have to be preserved under the Companies Act, 2013 [Section 128(5)]
  5. Write a short note on responsibility for maintaining books of accounts.
  6. Write a short note on the re-opening of accounts on court’s or tribunal orders (Section 130).
  7. When Financial Statements or Board’s Report can be revised (SECTION 131).
  8. Discuss the provisions of Companies Act, 2013 relating to Corporate Social Responsibility [Section 135].
  9. Explain the provisions of Companies Act, 2013 relating to Filing ofTbnancial statements [Section 137(1)]
  10. Which companies are required to conduct an Internal Audit (Section 138)?

AUDIT AND AUDITORS

  1. What are the Disqualifications of a Company’s Auditor?
  2. State the services which an auditor of a company is prohibited to render to the client being audited as per Sec 144 of the Companies Act 2013?
  3. Explain the provisions related to of Audit Committee?
  4. Explain the procedure for appointment of the first auditor of a company?
  5. Write a short note on Appointment of the Subsequent Auditor of a company with reference to Companies act, 2013?
  6. Discuss the procedure for filling of a casual vacancy of company auditor and duties of an auditor in case of Resignation.
  1. Briefly explain the concept of Removal of Auditor before Expiry of Term.
  2. Explain Procedure for appointment of an auditor other than the Retiring Auditor.
  3. Write about the ceiling on the number of Audits that can be accepted by an auditor.
  4. write short notes on the following: i) Duty to sign the audit report. ii) Duty to make a report. iii) Duty to comply with Standards on auditing.iv) Duty to attend General meeting.
  5. Write about the Duties of Companies Auditor to Report on Fraud as per Sec. 143(12) of the Companies Act 2013?

MISCELLANEOUS MATTERS IN COMPANY LAW

  1. Discuss the provisions of Companies Act, 2013 relating to the service of documents.
  2. What is “Annual Return”? Discuss the provisions of the Companies Act, 2013 relating to the same.
  3. Discuss the provisions of the Companies Act, 2013 relating to the place of keeping and inspection of registers, returns etc. and its related matters.

Other Laws ( Theory Questions)

BAILMENT PLEDGE

  1. Examine whether the following constitute a contract of ‘Bailment’ under the provisions of the Indian Contract Act, 1872: i) V parks his car at a parking lot, locks it, and keeps the keys with himself. ii) Seizure of goods by customs authorities.
  2. Briefly state the Duties of Bailor?
  3. Briefly states the rights of Bailor
  4. Mr Dhannaseth delivers a rough blue sapphire to a jeweller, to be cut and polished. The jeweller carries out the job accordingly. However, now Mr Dhannaseth refuses to make the payment and wants his blue sapphire back. The jeweller denies the delivery of goods without payment. Examine whether the jeweller can hold blue sapphire. Give your answer as per the provisions of the Contract Act, 1872.
  5. State the provisions relating to Pledge by Mercantile Agents?
  6. Distinguish between Bailment and Pledge.

INDEMNITY AND GUARANTEE

  1. Contract of Indemnity Vs. Contract of Guarantee.
  2. Point out the circumstances in which a surety is discharged from liability by the conduct of the creditor.

CONTRACT Of AGENCY

  1. Difference between a SUB-AGENT and a SUBSTITUTED AGENT.
  2. What is meant by Agency by Ratification? State some rules for valid ratification. (Or) The relationship of Principal and Agent may be constituted by subsequent ratification by the Principal. (Sec.196).
  3. What is an Irrevocable Agency? When such an agency is created?
  4. Agents Liability to Third Parties.
  5. Meaning and provisions relating to the substituted agent.

NEGOTIABLE INSTRUMENTS ACT. 1881

  1. What are the essentials of a valid Promissory Note?
  2. What are the Essentials of a valid Bill of Exchange?
  3. Distinguish between a ‘Bill of Exchange’ and a ‘Promissory Note’ with reference to the provisions of the Nl Act, 1881.
  4. Write down the provisions relating to maturity and days of grace with examples for negotiable instruments under the Nl, Act, 1881?
  5. Examine the Differences and Similarities between ‘Cheque’ and a ‘Bill of Exchange’ under the provisions of the Nl Act, 1881.
  6. What is meaning, the purpose of crossing and types of the crossing of cheque? Also, explain the provisions relating to the crossing of a cheque after issue?
  7. Write about the Privileges of a holder in due course?
  8. The distinction between a ‘Holder’ and a ‘Holder in Due Course’.
  9. Write about different types/kinds of endorsement?
  10. Write about the conversion of endorsement in blank to endorsement in full?
  11. Define material alteration under the Negotiable Instruments Act, 1881 and give examples.
  1. Explain the following: i) Drawee in case of need. ii) Acceptor for the honour.
  2. State, in brief, the grounds/circumstances on the basis of which a banker can dishonour a cheque under the provisions of the Nl Act, 1881.
  3. State the liability of a banker for wrongful dishonour of a cheque?
  4. What are the consequences of a cheque being dishonoured for insufficiency of funds in the account?
  5. Discuss the ‘Capacity’ and ‘Authority’ of a person to be a party to a negotiable instrument.

THE GENERAL CLAUSES ACT. 1897

  1. What is the object or purpose of the General Clauses Act?
  2. General rules of Construction: [SECTION 5 to SECTION 13]
  3. Power and Functionaries {Section 14 to Section 19}?
  4. Provisions of orders, etc., issued under enactments {section 20 to section 24}?

INTERPRETATION Of STATUES. DEEDS AND DOCUMENTS

  1. Explain the Rule of Reasonable Construction.
  2. Rule of Harmonious Construction.
  3. Write a short note on the interpretation of the words “may” and “shall”.
  4. What is meant by Interpretation and the Significance of Interpretation?
  5. Explain the principles of “Grammatical Interpretation” and “Logical Interpretation” of a Statute. What are the duties of a court in this regard?
  6. Rule of beneficial construction or Heydon’s rule or purposive construction

CA Inter Corporate and Other Laws Important Questions May 2019 (Practical)

Here we have provided all the practical important question of CA Inter Group -I Corporate and Other Laws important guess questions. People who are preparing for the CA Inter May 2019 Law exam can follow these questions for their exams preparation. If you don’t have time, here we have given all 4 marks important questions, 8 marks important questions and 16 marks important questions. So prepare all these short answers questions and long answers questions. Please have a look!

PRELIMINARY

  1. Some of the creditors of M/s Get Rich Quick Ltd. have complained that the company was formed by the promoters only to defraud the creditors and circumvent the compliance of legal provisions of the Companies Act, 2013. In this context, they seek your advice as to the meaning of the corporate veil and when the promoters can be made personally liable for the debts of the company.
  2. F, an assessee, was a wealthy man earning huge income by way of dividend and interest. He formed 3 private companies and agreed with each to hold a block of investment as an agent for them. The dividend and interest income received by the companies was handed back to F as a pretended loan. This way, F divided his income into three parts in a bid to reduce his tax liability.

Decide, for what purpose the three companies were established? Whether the legal personality of all the 3 companies may be disregarded or not?

  1. ABC Pvt. Ltd. is a Private Company having five members only. All the members of the company were going by car to Mumbai in relation to some business. An accident took place and all of them died. Answer with reasons, under the Companies Act, 2013 whether the existence of the corr®any has also come to the end?

CLASSES Of Companies

  1. The paid-up Share Capital of AVS Private Limited is Rs 1 crore, consisting of 8 lacs Equity Shares of Rs 10 each, fully paid-up and 2 lacs Cumulative Preference Shares of Rs 10 each, fully paid-up. XYZ Private Limited and BCL Private Limited are holding 3 lacs Equity Shares and 1,50,000 Equity Shares respectively in AVS Private Limited. XYZ Private Limited and BCL Private Limited are the subsidiaries of TSR Private Limited.

With reference to the provisions of the Companies Act, 2013, examine whether AVS Private Limited is a subsidiary of TSR Private Limited? Would your answer be different if TSR Private Limited has 8 out of a total of 10 directors on the Board of Directors of AVS Private Limited?

  1. ABC Ltd is a company incorporated under the Companies Act, 2013. The paid up share capital of the company is held as under.

Government Company of India -20%

Government Company of Andhra Pradesh -10%

Government Company of Tamil Nadu -10 %

Government Company of Maharashtra -10%

Explain the provisions of the Companies Act, 2013, state whether the said company be called a ‘Government Company and also state whether the employees of a Government company can claim their salaries from the Government of India.

PROMOTION & INCORPORATION OF COMPANY

  1. XYZ Co. Ltd. was in the process of incorporation. Promoters of the Company signed an agreement for the purchase of certain furniture for the Company and payment was to be made to the suppliers of furniture by the Company after incorporation. The Company was incorporated and the furniture was used by it. Shortly after incorporation, the Company went into liquidation and the debt could not be paid by the Company for the purchase of the above furniture. As a result, suppliers sued the promoters of the Company for the recovery of money. Examine whether promoters can be held liable for payment in the following cases:
  2. When the company has already adopted the contract after incorporation?
  3. When the Company makes a fresh contract with the suppliers in terms of the pre-incorporation contract?
  4. An association of 120 persons has been formed with the object of acquisition of gain. Now, due to internal mismanagement, the said association has applied for being wound up under the provisions of the Companies Act, 2013. Advice.

The MOA of a Company was presented to the Registrar of companies for registration and the Registrar issued the certificate of incorporation. After complying with all the legal formalities a company started a business according to the object clause, which was clearly an illegal business. The company contends that the nature of the business cannot be looked into as the certificate of incorporation is conclusive. Answer the question of whether the company’s contention is correct or not.

MEMORANDUM OF ARTICLES ASSOCIATION

  1. Advise “Asiatic Government Security Life insurance Companies Ltd” whether it can seek an injunction against ‘The New Asiatic Insurance Companies Ltd.’ Which was subsequently formed restraining it from having in its name the word ‘Asiatic’ on the ground that it has caused confusion and can deceive the public.
  2. XY Ltd. has its registered office at Mumbai in the State of Maharashtra. For better administrative conveniences the company wants to shift its registered office from Mumbai to Pune (State of Maharashtra). What formalities the company has to comply with under the provisions of the Companies Act, 2013 for shifting its registered office as stated above? Explain.
  3. The object clause of the MOA of LSR Private Ltd, Lucknow authorised it to do trading in fruits and vegetables. The company, however, entered into a Partnership with Mr J and traded in steel and incurred liabilities to Mr J. The Company, subsequently, refused to admit the liability to J on the ground that the deal was ‘Ultra Vires’ the Company. Examine the validity of the company’s refusal to admit the liability to J. Give reasons in support of your answer.
  4. A Company issued a bond under its common seal signed by 2 Directors. The Articles provided that the directors might borrow on bond such sums as they should be authorized by an “OR” of the Company. No such resolution was passed. Is the Company liable on the bond?

The Secretary of a Company issued a share certificate to ‘A’ under the Company’s seal with his own signature and the signature of a Director forged by him. ‘A’ Borrowed money from B’ on the strength of this certificate.

‘B’ wanted to realise the security and requested the company to register him as a holder of the shares. Explain whether ‘B’ will succeed in getting the share registered in his name.

  1. The AOA of a Public Company clearly stated that Mr A will be the solicitor of the company in its GM of the shareholders resolved unanimously to appoint B in place of A as the solicitor of the company by altering the AOA. Examine, whether the company can do so? State the reasons clearly.
  2. RSP Limited, with the limited liability of its members by the guarantee of Rs.10 lakh to each member. The company increases the liability of the members from Rs.10 to 15 lakh by an alteration made in the liability clause of the MOA. Referring to the provisions of the Companies Act, 2013 decide, whether the members of the company are liable for the increased liability.
  3. Decide, under the Companies Act, 2013 whether Mr Prabhu can incorporate a new company using the phrase “Electoral Trust” with the name of the company.
  4. Under the Articles of Association of Sunshine Ltd. Company directors had the power to borrow up to Rs. 10,000 without the consent of the general meeting. The directors themselves lent Rs. 35,000 to the company without such consent and took debentures of the Company. Decide under the provisions of the Companies Act, whether the company is liable? If so, what is the extent of liability of the company in this case?
  5. The XYZ Traders Association was constituted by four joint Hindu families consisting of 60 major and 10 minors members. The Association was carrying on the business of trading as retailers with the object for the acquisition of gains. The Association was not registered as a company under the Companies Act, 2013 or any other law.

State whether the XYZ Traders Association is having any legal status? Will there be any change in the status of this Association if the members of the XYZ Traders Association subsequently were reduced to 40?

PROSPECTS

  1. Modern Furniture limited was willing to purchase teakwood estate in Chhattisgarh State. Its prospectus contained some important extracts from an expert report giving the number of teakwood trees and other relevant information in the estate in Chhattisgarh State. The report was found inaccurate. Mr. ‘X’ purchased the shares of Modern Furnitures Limited on the basis of the above statement in the prospectus. Will Mr. ‘X’ have any remedy against the Company? When will an expert not be liable? State the provisions of the Companies Act, 2013 in this respect.
  2. A Company issued a prospectus. All statements in a prospectus issued by X & Co. Ltd. were literally true, but it failed to disclose that the dividends stated in it as paid were not paid out of revenue profits, but out of realised capital profits. The statement that the Company had paid dividends for a number of years was true. But the Company had incurred losses for all those years, however, no disclosure of this was made in the prospectus. An allottee of shares wanted to avoid the allotment on the ground that the prospectus did not disclose this fact which, in his opinion, was very material. Would he succeed?
  3. With a view to issuing shares to the general public a prospectus containing some false information was issued by a Company. Mr X received a copy of the prospectus from the Company but did not apply for allotment of any shares. The allotment of shares to the general public was completed by the Company within the stipulated period. A few months later, Mr X bought 2000 shares through the stock exchange at a higher price which later on fell sharply, X sold these shares at a heavy loss. Mr X claims damages from the Company for the loss suffered on the ground the prospectus issued by the Company contained a false statement. Referring to the provisions of the Companies Act, 2013 examine whether X’s claim for damages is justified.
  4. Peek Ltd. The company issued and published its prospectus to invite investors to purchase its shares. The said prospectus contained a false statement. Mr X purchased some partly paid shares of the company in good faith on the stock exchange. Subsequently, the Company was wound up and the name of Mr X was in the list of contributors. Decide:
    1. Whether Mr X is liable to pay the unpaid amount?
    2. Can Mr X sue the directors of the Company to recover damages?

    5. Mr Hitesh has made multiple applications to Useful Ltd. in different names for acquiring securities. State the provisions of the Companies Act, 2013 in relation to punishment for Personation for Acquisition, etc., of Securities.

    6. An advertisement in Newspaper read as ‘Some shares are still available for sale according to the terms of the prospectus of the Company which can be obtained on application’, Is advertisement published in newspaper prospectus?

ALLOTMENT OF SECURITIES UNDER WRITING

  1. After receiving 80% of the minimum subscription as stated in the prospectus, a Company allotted 100 equity shares in favour of ‘X’. The Company deposited the said amount in the bank but withdrew 50% of the amount, before finalization of the allotment, for the purchase of certain Assets. X refuses to accept the allotment of shares on the ground that the allotment is violative of the provision of the Companies Act, 2013. Comment.
  2. The BOD of a Company reissued securities which were forfeited for non-payment of calls. As a Company secretary, state whether Return of Allotment is required to be filled or not under the Companies Act, 2013?
  3. A public limited Company which went in for the public issue of shares had applied for listing of shares in three Recognized Stock Exchanges and out of it onwly two had given permission for listing. Can the Company proceed for allotment of shares?
  4. The BOD of a Company decides to pay 5% of issue price as underwriting commission to the underwriters. The Articles of Association of the Company permit only 3% commission. The BOD further decides to pay the commission out of the proceeds of the share capital. Are the decisions taken by the BOD valid under the Companies Act, 2013?
  5. Teji Pvt. Ltd., received a cheque of Rs. 10 lakhs towards the share application money from Vinod on 31st March 2005. On the same day, the Board of directors allotted the shares, filed necessary returns and issued the share certificate. The cheque was subsequently deposited with the bank which bounced. Advise the Company.

SHARE CAPITAL

  1. J held 100 partly paid-up shares of LKM Limited. The company asked him to pay the final call money on the shares. Due to some unavoidable circumstances, he was unable to pay the amount of call money to the company. At a general meeting of the shareholders, the chairman disallowed him to cast his vote on the ground that the articles do not permit a shareholder to vote if he has not paid the calls on the shares held by him. J contested the decision of the Chairman. Referring to the provisions of the Companies Act, 2013 decide whether the contention of J is valid.
  2. VRS Company Ltd. is holding 45% of the total equity shares in SV Company Ltd. The BOD of SV Company Ltd. (incorporated on January 1, 2014) decided to raise the share capital by issuing further Equity shares. The BOD resolved not to offer any shares to VRS Company Ltd., on the ground that it was already holding a high % of the total number of shares already issued, in SV Company Ltd. The Articles of Association of SV Company Ltd. provides that the new shares be offered to the existing shareholders of the company. On March 1, 2014, new shares were offered to all the shareholders except VRS Company Ltd. Referring to the provisions of the Co-Act, 2013 examine the validity of the decision of the BOD of SV Company Limited of not offering any further shares to VRS Company Limited.
  3. Apex Metals Limited wants to provide financial assistance to its employees, to enable them to subscribe for a certain number of fully paid shares. Considering the provision of the Companies Act, 2013, what advice would you give to the company in this regard?
  4. The BOD of XYZ Private Limited, a subsidiary of SRN Limited, deckles to grant a loan of Rs 2.00 lac to P, the Finance

Manager of the company getting the salary of Rs.30,000 per month, to buy 400 partly paid-up equity shares of Rs.1,000 each of XYZ Limited. Examine the validity of Boards decision with reference to the provisions of the Companies Act, 2013.

Shyam Diary Ltd., a dairy product manufacturing Company wants to set-up a new processing unit at Jaipur. Due to paucity of funds, the existing share hold^r|\at^e not willing to fund for expansion. Hence, the Company approached XYZ Ltd. For subscribing to the shares of the Company for expansion purposes. Can Shyam Dairy Ltd. issue share only to XYZ Ltd. Under the provisions of the Companies Act, 2013? If so. State the conditions.

CALLS & FORFEITURE Of SHARES

  1. Moon star Ltd” is authorised by its articles to accept the whole or any part of the amount of remaining unpaid calls from any member although no part of that amount has been called up. Mr. ‘A’, a shareholder of the Moon star Ltd., deposits in advance the remaining amount due on his shares without any calls made by “Moon star Ltd”. Referring to the provisions of the Companies Act, 2013, state the rights and liabilities of Mr A, which will arise on the payment of calls made in advance.
  2. Gold limited invited applications for 5,00,000 equity shares of Rs. 10 each through a public issue. As per the prospectus, applicants were required to pay only Rs. 2 on application. ‘A’ applies for 500 shares and deposits Rs. 5,000 to the Company because he did not properly go through the offer. Later, he applies to the Company seeking a refund of the excess amount paid by him. Refreshing provisions of the Companies Act, 2013, decide whether the Company is bound to pay excess money to A?

TRANSFER & TRANSMISSION OF SHARES

  1. X, a registered shareholder of Y Limited left his share certificates with his broker. The broker forged the transfer deed in favour of Z and lodged the transfer deed along with the share certificates with the Company for registration. The Company Secretary, who had certain doubts, wrote to X informing him of the proposed transfer and in the absence of a reply from him (X), within the stipulated time, registered the transfer of shares in the name of Z. Subsequently, Z sold the shares to J and J’s name was placed in the register of shareholders. Later on, X discovered that forgery has taken place.

Referring to the provisions of the Companies Act, 2013, state the remedy available to X and Z in the given case. Explain.

  1. X, a minor purchased 500 equity shares of 10 each of a company on which 5 per share were paid from the Mumbai stock exchange and submitted an application to the company for the transfer of these shares in his name. Decide whether these shares can be transferred to X?

MEMBERSHIP

  1. X had applied for the allotment of 1,000 shares in a Company. No allotment of Shares was made to him by the Company. Later on, without any further application from X, the Company transferred 1,000 partly-paid shares to him and placed his name in the Register of members. X, knowing that his name was placed in the Register of Members, took no steps to get his name removed from the Register of Members. The Company, later on, made the final call. X refuses to pay for this call. Examine whether his (X’s) refusal to pay for the call is tenable and whether he can escape himself from the liability as a member of the Company.
  2. RSP Limited allotted 500 fully paid-up shares of Rs.100 each to Z, a minor, in response to his application without knowing that he was a minor and entered his name in the Register of Members. Later on, the Company came to know of this fact. The Company cancelled the allotment and struck-off his name from the Register of Members and also forfeited his entire share money. Z filed a suit against the action of the Company. Decide whether Z would be given any relief by the court under the provisions of the Companies Act, 2013.
  3. and Mr Taneja recently got married and jointly purchased the shares of New Hopes India Private Limited on 14th August 2016. Mr Taneja intimated the Company that only the name of his wife should appear in the records of the Company, for the shares purchased by them. The secretary of the Company is not sure whether this is possible, given that the shares are held in the names of both the persons.
  4. Himanshu is the director of Road Less Travelled Limited and has been appointed as a nominee director of the Company. On 6th December 2016, he expressed his interest to inspect the register of members of the Company. The Company secretary refused to show him the register. In respect of the provisions of the Companies Act, 2013, do you think that the Company secretary was right in refusing Himanshu for not showing the register of members of the Company?
  5. N Ltd. has a paid up share-capital of 80 crores. M Ltd. holds a total of 50 crores of N Ltd. Now, N Ltd. is making huge profits and wants to expand its business and is aiming at investing in M Ltd. N Ltd. has approached you to analyse whether as per the provisions of the Companies Act, 2013, they can hold l/10th of the share capital of M Ltd.
  1. M/s. Tulip Ltd. maintains its Register of Members at its registered office in Mumbai. A group of members residing in Kolkata want to keep the register of members at Kolkata. i) Explain with provisions of Companies Act, 2013, whether the company can keep the Registers and Returns at Kolkata. ii) Does Mr Rich, holding 400 shares of total worth Rs. 4000 only, has the right to inspect the Register of Members?

REGISTRATION Of CHARGES

  1. Antriksh entered into an agreement for purchasing a commercial property in Delhi belonging to NRT Ltd. At the time of registration, Mr Antriksh comes to know that the title deed of the Company is not free and the Company expresses its inability to get the title deed transferred in the name of Mr Antriksh saying that he ought to have had the knowledge of charge created on the property of the Company. Explain with the help of ‘Notice of a charge’. Whether the contention of NRT Ltd. is correct?
  2. ABC Limited realised on 2nd May 2017 that particulars of charge created on 12th March 2017 in favour of a Bank were not filed with the ROC for Registration, what the procedure should the Company follow to get the charge registered with the ROC? Would the procedure be different if the charge was created on 12th Feb 2017 instead of 12th March 2017? Explain with reference to the relevant provisions of the companies Act, 2013.
  1. While sanctioning working capital limit, the rate of interest fixed by at a specified percentage above the bank rate as notified by RBI. There was a change in the interest rate due to the RBI notification issued later. The bank insisted on filing a return of modification of charges. Is the stand the bank correct? Discuss with reasons?

DEBENTURES

  1. Issue of debentures with voting rights is not permissible.
  2. Whether the following can be appointed as ‘Debenture Trustee’: A) A shareholder who has no beneficial interest. B) A creditor to whom the Company owes Rs 499 only. C) A person who has given a guarantee for repayment of the number of debentures issued by the Company.

DEPOSITS

Referring to the provisions of the Companies Act, 2013, examine the validity of the following:

  1. ABC Limited having a Net worth of Rs. 120 crore rupees wants to accept deposit from its members. They have approached you to advise them regarding that if they fall within the category of eligible Company, what special care has to be taken while accepting such deposit from members.
  2. ABC Ltd. having a net worth of Rs. 80 crores and turnover of Rs. 30 crores wants to accept deposits from public other than its members. Referring to the provisions of the Companies Act, 2013, state the conditions and the procedures to be followed by ABC Ltd. for accepting deposits from public other than its members.

MANAGEMENT & ADMINISTRATION -1

  1. The paid-up share capital of ABC Limited is Rs. 5 lakhs consisting of 50,000 equity shares of Rs.10 each fully paid- up. Certain members of the Company holding the acquisition of the following share an EGM on 1.2.2017: A – 2,250 shares, B – 2,000 shares including 500 bonus shares C – l,000<kp^e“) including 500 rights shares. The directors have failed to call the meeting on the contention that the acquisition not permitted the same. What is the course of Action open to the aforesaid members?
  2. Examine the validity of the following:
  • The BOD of a Company refuses to convene the EGM of the members on the ground that the requisitionists have not given reasons for the resolution proposed to be passed at the meeting.
  • The BOD refuse to convene the EGM on the ground that the requisitions have not been signed by the joint holder named first in the register in respect of the shares held by the joint shareholders.
  • Adjournment of EGM called upon the requisition of members on the ground that the quorum was not present at the meeting.
  1. To remove the MD, 40% of members of Global Ltd. submitted a requisition for holding EGM. The Company failed to call the said meeting and hence the requisitionists held the meeting. Since the MD did not allow the holding of meeting at the registered office of the Company, the said meeting was held at some other place and a resolution for removal of the MD was passed. Examine the validity of the said meeting and resolution passed therein in the light of the Companies Act, 2013.

  2. Dinesh, a director in a Company, gave in writing to the Company that notice for any GM and the BOD Meeting be sent to him at his address in India only by Registered Mail and for which he paid sufficient money. The Company sent 2 notices to him, of such meetings, by ordinary mail, under the certificate of posting. Dinesh did not receive the said notices and could not attend the meetings and the proceedings thereof on the ground of improper notice. Decide in the light of the provisions of the Companies Act, 2013:

  3. Whether the contention of Dinesh is valid?

  4. Would you answer be still the same in case Dinesh remained outside India for 2 months (when such notices were given and meetings held)?

  5. H. Company Limited served a notice of GM upon its shareholders. The notice stated that the issue of sweat equity shares would be considered at such meeting. Mr. ‘A’, a shareholder of the M.H. Company Limited complains that the issue of sweat equity shares was not specified fully in the notice. Is the notice issued by M.H. Company Limited regarding the issue of sweat equity shares valid under the provisions of Companies Act, 2013? Explain in detail.

  6. Mr Abeer filed a complaint against the Company, Elixir Private Limited since it did not serve the notice to him for attending the annual general meeting. The Company, in turn, provided the proof that they had sent the notice, by way of an email to Mr Abeer, inviting him to attend the annual general meeting of the Company. Abeer alleges that he never received the email. State whether the Company is liable as guilty for contravening the provisions of section 101 of the Companies Act, 2013 read with rules.

MANAGEMENT & ADMINISTRATION – II

  1. AT GM of a company a matter to be passed by an ‘SR’. Out of 40 members of the Company 20 voted in favour of resolution 5 votes against it and 5 votes are cancelled. The remaining 10 members abstained from Is the decision valid?
  2. The AOA of M/s. QPR Private Limited that 5 members present in person constitute the quorum. The total number of members of the Company is also 5. A GM of the Company was held on 25th Jan 2017 and it was attended by 4 members as the 5th member had expired sometime earlier. In the said meeting a resolution was passed by a majority of 3 to 1 removing one Mr Doubtful as a director for indulging in Anti-Company Activities. Mr Doubtful challenges the validity of the resolution on the ground of lack of quorum in terms of the AOA. Discuss with reference to the relevant provisions of Companies Act whether the contention of Mr Doubtful is correct?
  3. The AOA of X Ltd., require the personal presence of six members to constitute of GM. The following persons were present at the time of commencement of an EGM to consider the appointment of ‘MD’.
  • G. the representative of Governor of Gujarat.
  • A and Mr B shareholders of Preference shares.
  • L representing M Ltd N Ltd and X Ltd,
  • P, Mr Q, Mr R and Mr S who were proxies of shareholders
  • Can it be said that quorum was present? Discuss.
  1. The fifth AGM of Happy Homes Ltd to be held on 15th Oct at 4.00 P.M. As per the Notice, the Members who are unable to attend the meeting in person can appoint a Proxy and the Proxy forms duly filled should be sent so as to reach, at least 48 hours before the meeting.

  2. A, a Member of the Company appoints Mr P as his proxy and the proxy form dated 10th Oct was deposited by Mr P with the Company at its registered office on 11th Oct. However, A changes his mind and on 12th Oct gives another Proxy to Q and it was deposited on the same day with the Company.

  3. Similarly, another Member B also gives two separate Proxies to 2 Individuals named R and S. In the case of Mr R, the proxy dated 12th Oct was deposited with the Company on the same day and the proxy in favour of S was deposited on 14th Oct.

  1. All the proxies viz., Mr P, Q, R and S were present in the Meeting. State with reasons the persons who would be allowed to represent as Proxies for Mr A and Mr B respectively.
  2. The Chairman of the Meeting of a Company received a Proxy, 54 hours before the time fixed for the start of the meeting. He refused to accept the Proxy on the ground that the Articles of the Company provided that a proxy must be filed 60 hours before the start of the meeting. Decide, under the provisions of the Companies Act, 2013 whether the Proxy holder can compel the Chairman to admit the Proxy?
  3. AGM of MGR Limited is convened on 28th Dec 2016. Mr J, who is a member of the Company, approaches the Company on 28th Dec 2016 and demands inspection of proxies lodged with the Company. Explain the legal position as stated under the Companies Act, 2013 in this regard.
  4. Golden Private Limited in its AOA provides a format of ‘proxy form’ different from the one prescribed under the Companies (Management and Administration) Rules, 2014, Mr S, a shareholder submits an instrument appointing proxy to the Company in the form as prescribed under the Companies (Management and Administration) Rules, 2014. Does the Company reject the proxy on the ground that it is not in the form as prescribed in AOA of the Company is this rejection valid under the provisions of companies act,2013? Decide giving reasons.
  5. Examine the validity of the following decisions of the BOD with reference of the provisions of the Companies Act, 2013 i)In an AGM of a Company having a share capital, 80 members present in person or by proxy holding more than l/10th of the total voting power, demanded the poll. The chairman of the meeting rejected the request on the ground that only the members present in person can demand the poll. ii) In an AGM, during the process of the poll, the members who earlier demanded poll want to withdraw it. The chairman of the meeting rejected the request on the ground that once poll started, it cannot be withdrawn.
  6. The Minutes of the Meeting must contain a fair and correct summary of the proceedings thereat. Can the chairman direct exclusion of any matter from the Minutes? Some of the shareholders insist on the inclusion of certain matters which are regarded as defamatory of a director of the Company. The Chairman declines to do so. State how the matter can be resolved.
  7. In the annual general meeting of Black Mango Limited, the notice contained the agenda for 8 special businesses to be transacted. The Chairman decided to move all the resolutions at one time in order to save the time of the members present at the meeting. Discuss whether two or more resolutions can be moved together as per the provisions of the Companies Act, 2013.
  8. PQR Ltd. is an unlisted Company and has 400 shareholders in all. The shareholders of the Company propose voting by electronic mode. Chairman of the Company rejected the shareholders’ proposal. Explaining the provisions of the Companies Act, 2013, examines the validity of rejection of the shareholders’ proposal by the chairman.
  9. Sekhar, a shareholder, gives a notice for inspecting proxies, five days before the meeting is scheduled and approaches the Company two days before the scheduled meeting for inspecting the same. What is the legal position relating to his actions (as per the provisions of the Companies Act,2013?
  10. There are 5400 members of Dicey Private Limited. The Company held its annual general meeting on 1st July 2017 at 2.00 p.m. and 28 members were present till 2.45 p.m. The Chairman of the meeting proceeded to initiate the meeting and passed the resolutions as discussed in the meeting. Comment whether the meeting took place as per the provisions of Companies Act, 2013.

DECLARATION AND PAYMENT Of DIVIDENDS

  1. Alpha Ltd., A Section 8 Company is planning to declare a dividend in the Annual General Meeting for the Financial Year ended 31-03-2018. Mr Chopra is holding 800 equity shares as on date. State whether the act of the Company is according to the provisions of the Companies Act, 2013
  2. WL Limited is facing loss in business during the current financial year 2015-16. In the immediate preceding three financial years, the Company had declared a dividend at the rate of 8%, 10% and 12% respectively. To maintain the goodwill of the Company, the Board of Directors has decided to declare 12% interim dividend for the current financial year. Examine the applicable provisions of the Companies Act, 2013 and state whether the Board of Directors can do so?
  3. Star Ltd. declared and paid the dividend in time to all its equity holders for the financial year 2015-16, except in the following two cases:
    1. Sheela, holding 250 shares had mandated the Company to directly deposit the dividend amount in her bank account. The Company accordingly remitted the dividend but the bank returned the payment on the ground that there was a difference in the surname of the payee in the bank records. The Company, however, did not inform Mrs Sheela about this discrepancy.
    2. The dividend amount of Rs. 50,000 was not paid to Mr Mohan, deceased, in view of a court order restraining the payment due to family dispute about succession.

    You are required to analyze these cases with reference to provisions of the Companies Act, 2013 regarding failure to distribute dividends.

  4. The directors of Som Limited proposed dividend at 12% on equity shares for the financial year 2015-16. The same was approved in the AGM of the Company held on 20th September 2016. The directors declared the approved dividends. They seek your opinion on the following matters: a) Ms Nini was the holder of 1,000 equity shares on 31St March 2016, but she has transferred the shares to Mr Raj, whose name has been registered on 20th May 2016. Who will be entitled to the above dividend
  5. WL Limited is facing loss in business during the current financial year 2017-18. In the immediate preceding three financial years, the Company had declared a dividend at the rate of 8%, 10% and 12% respectively. To maintain the goodwill of the Company, the Board of Directors has decided ®to declare 12% interim dividend for the current financial year. Examine the applicable provisions of the Companies Act, 2013 and state whether the Board of Directors can do so?

    6. Brix Limited has earned a profit of Rs.1,000 crores for the financial year 2016-17. It has proposed a dividend @ 8.75%. However, it does not intend to transfer any amount to the reserves of the Company out of the profits earned. Can Brix Limited do so?

    7. X & Co. Ltd. made a loss of Rs. 20 lakhs after providing for depreciation for the year ended 31st March 2014 and as a result, the Company was not in a position to declare any dividend for the said year out of profits. However, the Board of directors of the Company announced the declaration of dividend of 15% on the equity shares payable out of free reserves. The paid up share capital of the Company and its free reserves as on 31st March 2014 are Rs. 2 crores and Rs.10 crores respectively. The average dividend declared by the Company in the last three years is 25%. Examine the validity of the declaration of dividend.

    8.

    The Director of Som Limited proposed dividend at 12% on equity shares for the financial year 2015-16. The same was approved in the annual general meeting of the Company held on 20th September 2016. The Directors declared the approved dividends. Mr Ninja was the holder of 1,000 equity shares on 31st March 2016, but he has transferred the shares to Mr Raj, whose name has been registered on 20th May 2016. Who will be entitled to the above dividend?

    9.

  6. The AGM of ABC Limited declared a dividend at the rate of 30 per cent payable on paid-up equity share capital of the Company as recommended by the Board of Directors on 30th April 2017. But the Company was unable to post the dividend warrant to Mr Ranjan, an equity shareholder of the Company, up to 30th June 2017. Mr Ranjan filed a suit against the Company for the payment of dividend along with interest at the rate of 20 per cent per annum for the default period. Decide to the state the director’s liability in this regard under the Act.
  7. The Board of Directors of XYZ Company Limited at its meeting declared a dividend on its paid-up equity share capital which was later on approved by the Company’s Annual General Meeting. In the meantime, the directors at another meeting of the Board decided by passing a resolution to divert the total dividend to be paid to shareholders for purchase of investments for the Company. As a result, the dividend was paid to shareholders after 45 days. Examining the provisions of the Companies Act, 2013, state:A) Whether the act of directors is in violation of the provisions of the Act and also the consequences that shall follow for the above act of directors B) What would be your answer in case the amount of dividend to a shareholder is adjusted by the Company against certain dues to the Company from the shareholder?

ACCOUNTS AND AUDITS

  1. The Board of directors of Bharat Ltd. has a practical orab^Ti- The registered office the Company is situated in a classified backward area of Maharashtra. The BoaTdwv^pts to keep its books of account at its corporate office in Mumbai which is conveniently located. The BqgftxSeeks your advice about the feasibility of maintaining the accounting records at a place other than the<rejg§ttered office of the Company. Advise.
  2. Bhagvath recently acquired 76% of/mteL^quity shares of M/s Renowned Company Ltd., in the hope of earning good dividend income. Unfortunately, the existing Board of Directors has been avoiding a declaration of dividend due to alleged inadequacy of profits. Unconvinced, Mr Bhagvath seeks the permission of the Company to allow him to examine the Books of Accounts, which is summarily rejected by the Company. Examine and advise the provisions relating to inspection of Books of Accounts and remedy available.

Super Real Estate Limited, a listed Company has made the following profits; the profits reflect eligible profits under the relevant section of the Companies Act, 2013.

Financial yearAmount
2011-1220
2012-1340
2013-1430
2014-1570
2015-1650

Calculate the amount that the Company has to spend on CSR.

Give the composition of the CSR committee of a listed and unlisted Company.

Will the Company suffer penalties if they fail to provide for or incur expenditure for CSR?

List only two activities that are expressly prohibited from being considered as CSR activities.

  1. Mary Ltd. is a listed company having a turnover of Rs 1200 crores during the financial Year 2016 – 17. The CSR Committee of the Board formulated and recommended a CSR project which was approved by the Board. The Company finalised the project under its CSR initiatives which require funds @ 5% of average net profit of the

company for the last three financial years. Will such Excess expense be counted in subsequent financial years as a part of CSR expenditure? Advise the Company.

Mr White is working as Chief Accountant in White Metal Limited. The Board of Directors of the said Company propose to charge him with the duty of ensuring compliance with the provisions of the Companies Act, 2013 so that books of account can be properly maintained and Balance Sheet and Profit and Loss Account can be prepared as per the provisions of law. Point out the consequences in case of default.

The Board of Directors of ABC Ltd. wants to circulate unaudited accounts before the Annual General Meeting of the shareholders of the Company. Whether such an act of ABC Ltd. is tenable?

The Board of Directors of Vishwakarma Electronics Limited consists of Mr Ghanshyam, Mr Hyder (Directors) and Mr Indersen (Managing Director). The Company has also employed a full-time Secretary. The Profit and Loss Account and Balance Sheet of the Company were signed by Mr Ghanshyam and Mr Hyder. Examine whether the authentication of financial statements of the Company was in accordance with the provisions of the Companies Act, 2013?

ABC Limited has on its Board, four Directors viz. W, X, Y and Z. In addition, the Company has Mr D as the Managing Director. The Company also has a full-time Company Secretary, Mr Wise, on its rolls. The financial statements of the Company for the year ended 31st March 2015 were authenticated by two of the directors, Mr X and Y under their signatures. Referring to the provisions of the Companies Act, 2013:

  1. Examine the validity of the authentication of the Balance Sheet and Statement of Profit & Loss and the Board’s Report.
  2. What would be your answer in case the Company is a One Person Company (OPC) and has only one Director, who has authenticated the Balance Sheet and Statement of Profit & Loss and the Board’s Report?

X Ltd. has a subsidiary Company called Y Ltd. The financial year of the holding Company is 31st March, whereas that of the subsidiary Company ends on 30th June every ®ar. The management of the holding Company decides that the financial year of the subsidiary Company for the year 1.7.2013 to 30.6.2014 should be extended up to 31.03.2015 so that the financial years of the holding and subsidiary companies end on 31st March every year. Advise the management about the steps to be taken under the Companies Act, 2013 to achieve the purpose.

  1. XYZ Ltd is a listed Company having a turnover of Rs 1200 crores during the financial year 2015-16. The CSR committee of the Board formulated and recommended a CSR project which was approved by the Board. The company finalised the project under it CSR initiatives which require funds @ 5 % of average net profit of the Company for the last three financial years. Will such excess expense be counted in subsequent financial years as a part of CSR expenditure? Advise.
  2. The Annual General Meeting of Robertson Ltd., for laying the Annual Accounts thereat for the year ended 31st March 2014 was not held, as the accounts were not ready. In this context:

Advise the Company regarding compliance of the provisions of section 137 of the Companies Act, 2013 for filing of copies of financial statements with the Registrar of Companies.

Will it make any difference in case the Annual Accounts were duly laid before the Annual General Meeting held on 27th September 2014 but the same was not adopted by the shareholders?

  1. ABC Ltd is an unlisted public Company engaged in Pharma sector and has paid up capital of rupees 10 crores and achieved a turnover of rupees 200 crores during the financial year 2015 -16. Is it necessary for ABC Ltd to file its financial statement in XBRL mode? The following class of companies shall file their financial statement in XBRL (extensible Business Reporting Language) mode and by using the XBRL taxonomy.

AUDIT AND AUDITORS

  1. Managing director of PQR Ltd. himself wants to appoint Shri Ganapati, a Practicing Chartered Accountant, as first auditor of the company. Comment on the proposed action of the managing director.
  2. A vacancy arose in the office of an auditor of XYZ Ltd due to death of the Auditor Mr Z and the managing director of the company filled that vacancy. Comment.
  3. Managing director of PQR Ltd. himself wants to appoint Shri Ganapati, a Practicing Chartered Accountant, as first auditor of the company. Comment on the proposed action of the managing director.
  4. The Board of directors of a company has filed a complaint with the Institute of chartered accountants of India against their statutory auditors for their failure to attend the annual general meeting of the shareholders in which audited accounts were considered.
  5. Mr X, a director of M/S KP Private Ltd, is also a director of another company viz., M/s GP Private ltd., which has not filed the financial statements and annual return for last three years 2013-14 to 2015-16. Mr X is of the opinion that he is not disqualified u/s 164(2) of the companies act, 2013, and the auditor should not mention disqualification remark in his audit report.
  6. Mrs Sita, wife of CA. ‘Arjun’ the statutory auditor of the Stellar Builders Limited, acquired shares in the company for a face value of Rs. 75,000/- on 15th March 2018. CA. ‘Arjun’, issued his audit report on 25th April 2018. Examine the validity of this transaction under the Companies Act, 2013. Would your answer be different if the face value of the shares has been Rs? l,50,000/-(Market Value Rs. 95,000/-)?
  7. DON Limited appointed an individual firm Nat & Company, Chartered Accountants, as Auditors of the Company at the Annual General Meeting held on 30th September 2017. Mrs Kat, wife of Mr Nat, invested in the equity shares face value of Rs. 1 lakh of DON Limited on 15th October 2017. But Nat & Company continues to function as statutory auditors of the Company.

We hope with the help of this article, now you know the what are the important topics in CA Inter corporate and other laws for May 2019 (सीए इंटर कॉरपोरेट लॉ इम्पोर्टेन्ट प्रश्न) attempt. People who are searching for the CA Inter law important questions for CA exam can utilize these questions for their exam preparation. Students should understand that it is not recommended to skip some topics and read only a few important ones. Try to cover entire CA Inter syllabus and that’s what ICAI expects from you and even CA Inter question papers are based on that. These important questions are for those students who don’t prepare well for the exam and try to get at least 40 marks. So don’t depend on these questions if you have so much time for the exams. If you have any doubts the comment below. We will try to help you. And don’t forget to share this article with your friends who are going to write CA Inter exams in May 2019.

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