QB1Listed company definition under Section 2(52) and holding-su
0 marks easy
Following are some of the securities, issued by different companies related with each other: Kleshrahit Ltd. has issued listed non-convertible redeemable preference shares on private placement basis in terms of relevant SEBI Regulations, and has the power to appoint 2/3rd directors in Indriyadaman Ltd. Indriyadaman Ltd. has issued listed non-convertible debt securities on private placement basis in terms of relevant SEBI Regulations, and holds 60% voting power in Sajagta (P) Ltd. Sajagta (P) Ltd. has issued listed non-convertible debt securities on private placement basis in terms of relevant SEBI Regulations, and holds 52% equity shares in Pratibodh Ltd. as an investment on behalf of another company in the capacity of a trustee. Equity shares issued by Kleshrahit Ltd. and Indriyadaman Ltd. are not listed on any recognised stock exchange.
QB10Negotiation of cheque by indorsement - delivery essential fo
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'Anjum' drew a cheque for Rs.20,000 payable to 'Babloo' and delivered it to him. 'Babloo' indorsed the cheque in favour of 'Rehansh' but kept it in his table drawer. Subsequently, 'Babloo' died, and the cheque was found by 'Rehansh' in 'Babloo's table drawer. 'Rehansh' filed the suit for the recovery of cheque. Whether 'Rehansh' can recover the cheque under the provisions of the Negotiable Instrument Act, 1881?
QB11Interpretation of 'may' as mandatory or directory under Gene
0 marks easy
Ayush and Vipul are good friends and pursuing CA course. While doing group studies for the paper of 'Corporate and Other Law', they are confused about the provisions of section 3 of the Companies Act 2013. Section 3 provides 'A company may be formed for any lawful purpose by…………….' Both Ayush and Vipul are in difficulty about the meaning of word 'may'. Whether it should be taken as mandatory or directory?
QB12Preamble as an aid to statutory interpretation
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When can the Preamble be used as an aid to interpretation of a statute?
QB2Special notice requirements for appointment of auditor other
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Abhiyogic Ltd. having 1,000 members with paid-up capital of Rs.1 crore, decided to hold its Annual General Meeting (AGM) on 21st August, 2022, and it received a notice on 2nd July, 2022, from its 60 members holding paid-up capital of Rs.7 lakhs, in aggregate, for a resolution to be passed at the AGM for appointing Vedya & Co., as its auditor from F.Y. 2022-23 onwards, instead of its existing auditor, Chepal & Co. which was originally appointed for 5 years term and had completed its 4 years term. Such a notice for resolution was forthwith sent by the company to Chepal & Co. which gave its representation in writing to the company along with a request for its notification to the members of the company, but it was received too late (3 days before the meeting) by the company.
QB3Non-convertible debentures listed on stock exchange as depos
0 marks easy
Vrinda Limited is a company manufacturing orange and strawberry candies for kids. Now, the company wants to expand its business and start the manufacturing of 10 more types of candies. The company has raised Rs.1 crore through the issue of non-convertible debentures not constituting a charge on the assets of the company and listed on a recognised stock exchange as per the applicable regulations made by the Securities and Exchange Board of India. Advise, whether the above amount of Rs.1 crore will be considered as deposit?
QB4Reports on financial information to be included in prospectu
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The Board of Directors of Plum Limited proposes to issue a prospectus inviting offers from the public for subscribing to the equity shares of the company. State the reports which shall be included in the prospectus for the purposes of providing financial information under the provisions of the Companies Act, 2013.
QB5Section 8 company - alteration of articles requires prior Ce
0 marks easy
One of the matters contained in the articles of Dhimaan Foundation, incorporated as a limited company under section 8 of the Companies Act, 2013, was altered by passing a special resolution in its general meeting and thereafter, intimation for the same was given to Registrar of Companies. However, such alteration in the articles was opposed by Dhwaj & Co., a partnership firm which is its member, on the ground that such alteration was not valid. Advise, as per the provisions of the Companies Act, 2013, whether the contention of Dhwaj & Co. was valid and whether it can be a member in such company?
QB6Promoter definition under Section 2(69) - professional capac
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Mr. Abhi is a Chartered Accountant and MBA by profession, has been appointed as an Executive Director on the Board of XYZ Limited. His job profile includes advising the Board of Directors of the company on various compliance matters, strategies, business plans, and risk matters relating to the company. Keeping in view of above position whether Mr. Abhi can be classified as the Promoter of XYZ Limited? Please examine the same under the provisions of the Companies Act, 2013.
QB7Charge registration - 30-day deadline and extension under Se
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Krish Limited created a charge on its assets on 2nd February, 2021. However, the company did not register the charge with the Registrar of companies till 15th March, 2021. Advise with reference to the relevant provisions of the Companies Act, 2013.
QB8Dividend declaration from free reserves in year of loss unde
0 marks easy
Vishal Limited has paid dividend consistently every year at the rate of 10% on its equity share capital in the last 5 years (2015-2016 to 2019-2020). The company has incurred loss in the current financial year (FY 2020-2021). It still wants to declare dividend for the FY 2020-2021. Whether the company can do so? Explain.
QB9Continuing guarantee revoked by death of surety under Sectio
0 marks easy
'Surendra' guarantees 'Virendra' for the transactions to be done between 'Virendra' & 'Jitendra' during the month of March, 2021. 'Virendra' supplied goods of Rs.30,000 on 01.03.2021 and of Rs.20,000 on 03.03.2021 to 'Jitendra'. On 05.03.2021, 'Surendra' died in a road accident. On 10.03.2021, being ignorant of the death of 'Surendra', 'Virendra' further supplied goods of Rs.40,000. On default in payment by 'Jitendra' on due date, 'Virendra' sued the legal heirs of 'Surendra' for recovery of Rs.90,000. Describe, whether legal heirs of 'Surendra' are liable to pay Rs.90,000 under the provisions of Indian Contract Act, 1872. What would be your answer, if the estate of 'Surendra' is worth of Rs.45,000 only?
Q2Notice period for closure of register of members under Compa
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Amber Limited is a manufacturer of glassware. Its paid up share capital is divided into 20,0000 shares of Rs.100 each. The company is maintaining its register of members as per the provisions of the Companies Act, 2013. The company wanted to close its register of members for declaring dividend. It may do so by giving minimum …….. days' notice.
(A) 7 days
(B) 10 days
(C) 15 days
(D) The register of members cannot be closed.
Q3Types of statutory interpretation - grammatical vs logical
0 marks easy
………………. interpretation concerns itself with 'what the law says' and ………. interpretation, seeks to ascertain 'what the law means'.
(A) Grammatical, Logical
(B) Legal, usual
(C) Usual, legal
(D) Logical, grammatical
Q4Pledge - identification of pawnor under Indian Contract Act
0 marks easy
Arvind lends money to Mamta against the security of jewellery deposited by Mamta with Arvind. Arvind gave this jewellery to his friend Vinayak who had a safe locker at his home. Who is the pawnor in the given case?
(A) Arvind
(B) Mamta
(C) Vinayak
(D) Both Arvind and Vinayak
Q5Deadline for delivery of share transfer instrument to compan
0 marks easy
Raman, the original allottee of 2000 equity shares in ABC Limited has transferred the same to Ruchi. The instrument of transfer dated 21st August, 2020, duly stamped and signed by Raman was handed over to Ruchi. Advise Ruchi regarding the latest date by which the instrument of transfer along with share certificates must be delivered to the company, to register the transfer in its register of members.
(A) 21st August, 2020.
(B) 20th September, 2020
(C) 20th October, 2020.
(D) 19th November, 2020
Q1.1Quorum requirements and consequences of shareholder walkout
0 marks hard
Case: Perfect Tyres and Rubbers Ltd. is a listed entity engaged in the business of manufacturing of tyres and tubes for Light and Heavy Commercial Vehicles. During FY 2019-20, the company declared interim dividend of 5% on equity shares in its Board meeting held on 17th October, 2019, out of profits earned during the first quarter of FY 2019-20. The Board again recommended second Interim Dividend @ 5% on 25th April, 2020. The Board approved the financial result for FY 2019-20 in its meeting held on 5th August, 2020, and recommended a final dividend of 15% (including interim dividends paid earlier). …
When the shareholders demanded for increase in the rate of dividend, but since the shareholders cannot increase the rate of dividend what the Board of Directors have recommended, some of them walked out of the meeting hall. What shall be the consequences of it:
(A) If, even after boycott, quorum is present, all the time during the course of general meeting and they have approved with majority, the rate recommended by the Board shall be treated as approved.
(B) Members present at the beginning of the meeting shall remain present all the time during the general meeting, to approve any agenda, else it will be treated as nullified.
(C) The approval of the dividend is an ordinary business resolution of the company, so if some of the members have boycotted the meeting, it will have no effect, even if the quorum is not present.
(D) The recommendation of the Board of Directors of the company relating to the rate of dividend shall stands withdrawn.
Q1.2Timeline for transfer of unpaid dividend to separate bank ac
0 marks hard
Case: Perfect Tyres and Rubbers Ltd. is a listed entity engaged in the business of manufacturing of tyres and tubes for Light and Heavy Commercial Vehicles. During FY 2019-20, the company declared interim dividend of 5% on equity shares in its Board meeting held on 17th October, 2019, out of profits earned during the first quarter of FY 2019-20. The Board again recommended second Interim Dividend @ 5% on 25th April, 2020. The Board approved the financial result for FY 2019-20 in its meeting held on 5th August, 2020, and recommended a final dividend of 15% (including interim dividends paid earlier). …
At which date, the unpaid dividend not claimed by the shareholders, shall be transferred to a separate bank account, in the above case:
(A) On 5th August, 2020 (the date of Meeting of Board)
(B) On 31st August, 2020 (the date of Meeting of Shareholders)
(C) On 30th September, 2020 (the date, after 30 days from the meeting of shareholders)
(D) Latest by 7th October, 2020 (within seven days from the date of expiry of 30 days)
Q1.3Interest rate on late transfer to unpaid dividend account un
0 marks hard
Case: Perfect Tyres and Rubbers Ltd. is a listed entity engaged in the business of manufacturing of tyres and tubes for Light and Heavy Commercial Vehicles. During FY 2019-20, the company declared interim dividend of 5% on equity shares in its Board meeting held on 17th October, 2019, out of profits earned during the first quarter of FY 2019-20. The Board again recommended second Interim Dividend @ 5% on 25th April, 2020. The Board approved the financial result for FY 2019-20 in its meeting held on 5th August, 2020, and recommended a final dividend of 15% (including interim dividends paid earlier). …
The company transferred the amount of unpaid dividend to a separate bank account on 15th October, 2020. What is the interest liability on the part of the company?
(A) No liability.
(B) Interest @ 10% p.a. on so much of the amount as has not been transferred to the Unpaid Dividend Account.
(C) Interest @ 12% p.a. on so much of the amount as has not been transferred to the Unpaid Dividend Account.
(D) Interest @ 15% p.a. on so much of the amount as has not been transferred to the Unpaid Dividend Account.
Q1.4Transfer of unclaimed dividend to IEPF after 7 years
0 marks hard
Case: Perfect Tyres and Rubbers Ltd. is a listed entity engaged in the business of manufacturing of tyres and tubes for Light and Heavy Commercial Vehicles. During FY 2019-20, the company declared interim dividend of 5% on equity shares in its Board meeting held on 17th October, 2019, out of profits earned during the first quarter of FY 2019-20. The Board again recommended second Interim Dividend @ 5% on 25th April, 2020. The Board approved the financial result for FY 2019-20 in its meeting held on 5th August, 2020, and recommended a final dividend of 15% (including interim dividends paid earlier). …
In the given case, when and how much amount, the company shall transfer the funds to the Investor Education and Protection Fund:
(A) Four years after 01.09.2016; Rs.45.15 lakh
(B) Five years after 07.09.2015; Rs.35.26 lakh
(C) Six years after 05.05.2014; Rs.15.10 lakh
(D) Seven years after 08.07.2013: Rs.07.25 lakh