QB3(a)Section 8 company – dissolution and distribution of surplus
5 marks medium
A group of individuals intend to form a club namely 'Budding Pilots Flying Club' as limited liability company to impart class room teaching and aircraft flight training to trainee pilots. It was decided to form a limited liability company for charitable purpose under Section 8 of the Companies Act, 2013 for a period of ten years and thereafter the club will be dissolved and the surplus of assets over the liabilities, if any, will be distributed amongst the members as a usual procedure allowed under the Companies Act, 2013. Examine the feasibility of the proposal and advise the promoters considering the provisions of the Companies Act, 2013.
QB3(b)Re-opening of accounts – application to NCLT by Income Tax a
5 marks medium
The Income Tax Authorities in the current financial year 2019-20 observed, during the assessment proceedings, a need to re-open the accounts of Chetan Ltd. for the financial year 2008-09 and, therefore, filed an application before the National Company Law Tribunal (NCLT) to issue the order to Chetan Ltd. for re-opening of its accounts and recasting the financial statements for the financial year 2008-09. Examine the validity of the application filed by the Income Tax Authorities to NCLT.
QB3(c)Bill drawn in fictitious name – liability of acceptor to hol
4 marks medium
X draws a bill on Y but signs it in the fictitious name of Z. The bill is payable to the order of Z. The bill is duly accepted by Y. M obtains the bill from X thus, becoming its holder in due course. Can Y avoid payment of the bill? Decide in the light of the provisions of the Negotiable Instruments Act, 1881.
QB3(d)Statutory interpretation – effect of usage or practice
3 marks medium
At the time of interpreting a statute what will be the effect of 'Usage' or 'Practice'?
QB4(a)Definition and criteria for small company
6 marks medium
MNP Private Ltd. is a company registered under the Companies Act, 2013 with a Paid up Share Capital of ₹45 lakh and turnover of ₹3 crores. Explain the meaning of the 'Small Company' and examine the following in accordance with the provisions of the Companies Act, 2013:
QB4(b)Annual return filing obligation when AGM cancelled for want
4 marks medium
Bazaar Limited called its AGM in order to lay down the financial statements for Shareholders' approval. Due to want of Quorum, the meeting was cancelled. The directors did not file the annual returns with the Registrar. The directors were of the idea that the time for filing of returns within 60 days from the date of AGM would not apply, as AGM was cancelled. Has the company contravened the provisions of Companies Act, 2013? If the company has contravened the provisions of the Act, how will it be penalized?
QB4(c)Whole-time KMP appointment in multiple subsidiaries – Genera
4 marks medium
As per the provisions of the Companies Act, 2013, a whole time Key Managerial Personnel (KMP) shall not hold office in more than one company except its subsidiary company at the same time. Referring to the Section 13 of the General Clauses Act, 1897, examine whether a whole time KMP can be appointed in more than one subsidiary company?
QB4(d)Mischief rule of statutory interpretation
3 marks medium
Explain 'Mischief Rule' for interpretation of statute. Also, give four matters it considers in construing an Act.
QB5(a)Conversion of One-Person Company (OPC) into other company ty
5 marks medium
XYZ a One-Person Company (OPC) was incorporated during the year 2017-18 with an authorized capital of ₹45.00 lakhs (4.5 lakh shares of ₹10 each). The capital was fully subscribed and paid up. Turnover of the company during 2017-18 and 2018-19 was ₹2.00 crores and ₹2.5 crores respectively. Promoter of the company seeks your advice in following circumstances, whether XYZ (OPC) can convert into any other kind of company during 2019-20. Please advise with reference to relevant provisions of the Companies Act, 2013 in the below mentioned circumstances:
QB5(b)Registration of modification of charge
5 marks medium
ABC Limited created a charge in favour of Z Bank. The charge was duly registered. Later, the Bank enhanced the facility by another ₹20 crores. Due to inadvertence, this modification in the original charge was not registered. Advise the company as to the course of action to be pursued in this regard.
QB5(c)Co-surety liability and right of contribution
4 marks medium
Mr. D was in urgent need of money amounting to ₹5,00,000. He asked Mr. K for the money. Mr. K lent the money on the sureties of A, B and N without any contract between them in case of default in repayment of money by D to K. D makes default in payment. B refused to contribute, examine whether B can escape liability under the Indian Contract Act, 1872?
QB5(d)Repeal vs deletion of statutory provision – General Clauses
3 marks medium
'Repeal' of provision is different from 'deletion' of provision. Explain as per the General Clauses Act, 1897.