Q1AGM notice validity and insolvent member provisions
0 marks hard
Case: Modern Limited is a company limited by shares that manufactures furniture items apart from material used in modular kitchens. Modern Limited is an unlisted company with a registered office in Mumbai, Maharashtra. It has a corporate office in Delhi and branch offices throughout the country. Following are facts regarding the 18th annual general meeting (AGM) of Modern Limited.
Modern Limited is the lead sponsor of the furniture trade event India Furniture EXPO 2022 and a member of the Association of Furniture Manufacturers and Traders. Modern Limited, on behalf of the Association, booked the Ex…
Regarding the notice of meeting given by Modern Limited, you are required to pick the correct option in light of provisions of the Companies Act, 2013 and rules notified thereunder.
I. Modern Limited observe the length of notice, as required.
II. Notice shall be given to member irrespective he is solvent, adjudged or declared insolvent, or discharged insolvent; Modern Limited committed default
III. Notice shall be given to assignee of insolvent member, Modern Limited correctly did so
IV. Wilful omission in giving notice will invalidate the proceeding of the meeting in case of Modern Limited
(A) Only I, II and IV are correct
(B) Only III and IV are correct
(C) Only I is correct
(D) Only IV is correct
Q2Place of AGM under Companies Act 2013
0 marks hard
Case: Modern Limited is a company limited by shares that manufactures furniture items apart from material used in modular kitchens. Modern Limited is an unlisted company with a registered office in Mumbai, Maharashtra. It has a corporate office in Delhi and branch offices throughout the country. Following are facts regarding the 18th annual general meeting (AGM) of Modern Limited.
Modern Limited is the lead sponsor of the furniture trade event India Furniture EXPO 2022 and a member of the Association of Furniture Manufacturers and Traders. Modern Limited, on behalf of the Association, booked the Ex…
Regarding the place of 18th AGM of Modern Limited, decide whether applicable provisions violated or not; in light of provisions of the Companies Act, 2013 and rules notified thereunder.
(A) Violation, because Modern Limited shall convene and conduct AGM only at its registered office
(B) Violation, because AGM shall be held either at the registered office of the company or at some other place within the city, town or village in which the registered office of the company is situate
(C) No violation, because AGM shall be held either at the register or corporate office of the company or even at some other place within the city, town or village in which the registered or corporate office of the company is situate
(D) No violation, because AGM of the said company may be held at any place in India
Q3Proxy voting rights at company meetings
0 marks hard
Case: Modern Limited is a company limited by shares that manufactures furniture items apart from material used in modular kitchens. Modern Limited is an unlisted company with a registered office in Mumbai, Maharashtra. It has a corporate office in Delhi and branch offices throughout the country. Following are facts regarding the 18th annual general meeting (AGM) of Modern Limited.
Modern Limited is the lead sponsor of the furniture trade event India Furniture EXPO 2022 and a member of the Association of Furniture Manufacturers and Traders. Modern Limited, on behalf of the Association, booked the Ex…
Regarding vote casted by Ms Varnika, which of following statements hold truth; in light of provisions of the Companies Act, 2013 and rules notified thereunder.
(A) Being proxy Ms. Varnika is not allowed to cast vote on a poll, while she can cast vote by show of hand
(B) Being proxy Ms. Varnika is not allowed to cast vote by show of hand, while she can cast vote on a poll
(C) Despite being non-member Ms. Varnika can be proxy, but can't cast vote either by show of hand or on a poll
(D) Ms. Varnika can cast vote in both the cases; by show of hand as well as on a poll
Q4Minutes of meeting - chairman's discretion to exclude defama
0 marks hard
Case: Modern Limited is a company limited by shares that manufactures furniture items apart from material used in modular kitchens. Modern Limited is an unlisted company with a registered office in Mumbai, Maharashtra. It has a corporate office in Delhi and branch offices throughout the country. Following are facts regarding the 18th annual general meeting (AGM) of Modern Limited.
Modern Limited is the lead sponsor of the furniture trade event India Furniture EXPO 2022 and a member of the Association of Furniture Manufacturers and Traders. Modern Limited, on behalf of the Association, booked the Ex…
Regarding the inclusion/exclusion of the remarks by Mr. Manohar, advice the company secretary; which of the following statement hold truth, in light of provisions of the Companies Act 2013 and rules notified thereunder.
(A) Mr. Manohar's remark shall be included in minutes because minutes shall contain fair summary of the proceedings.
(B) Mr. Manohar's remark shall be excluded from minutes because remarks are made with intent to defame chairman, the chairman's opinion of inclusion and exclusion is immaterial in such case.
(C) Mr. Manohar's remark shall be excluded from minutes because chairman has absolute discretion to exclude any matter which is defamatory in his opinion
(D) Mr. Manohar's remark shall be included in minutes because many members challenge the chairman's opinion and feels remarks were not defamatory.
Q5Rules of statutory interpretation
0 marks easy
______________ is the cardinal rule of construction that words, sentences and phrases of a statute should be read in their ordinary, natural and grammatical meaning so that they may have effect in their widest amplitude.
(A) Rule of Literal Construction
(B) Rule of Harmonious Construction
(C) Rule of Beneficial Construction
(D) Rule of Exceptional Construction
Q6Reopening of books of accounts - time limit for SEBI applica
0 marks easy
ABC Limited has its shares listed on a recognized stock exchange in India. During the current financial year ending on 31st March 2023, the Securities and Exchange Board of India (SEBI) has found some irregularities in the filings made by the company. Accordingly, SEBI proposes to make an application to the Tribunal for reopening of the books of accounts of the Company. You, as an expert, are called upon by SEBI to advise with which last financial year for reopening of books of accounts an application can be made?
(A) 2018-2019
(B) 2016-2017
(C) 2013-2014
(D) 2014-2015
Q7Investor Education and Protection Fund - permissible utilisa
0 marks easy
The amount accumulated in the Investor Education and Protection Fund shall not be used for:
(A) refunds in respect of unclaimed dividends, matured deposits, matured debentures, application money due for refund and interest thereon.
(B) reimbursement of legal expenses incurred in pursuing class action suits under section 37 and 245.
(C) grants or donation to the Central Government for the purpose of investor's education and training.
(D) distribution of any disgorged amount among eligible and identifiable applicants who have suffered losses.
Q8Foreign instrument definition under NI Act 1881
0 marks easy
Which among the following will not be considered as a "Foreign Instrument" under the provisions of the Negotiable Instruments Act, 1881?
(A) A bill drawn on a person residing outside India but payable in India or outside India
(B) A bill drawn on a person resident outside India but payable outside India
(C) A bill drawn on a person residing outside India but payable in India
(D) A bill drawn on a person resident in India but payable outside India
Q9Inspection of register of charges - who pays fees
0 marks easy
Who cannot inspect the register of charges and instrument of charges, during business hours, without paying any fees:
(A) Any member of the company
(B) The Creditor of the company
(C) Persons other than member and creditor of the company
(D) No person is allowed to inspect the register of charges
Q10Minimum and maximum period for acceptance of public deposits
0 marks easy
As per the provisions of the Companies Act, 2013 and relevant rules thereunder, an eligible company is not permitted to accept from public or renew the same deposits (whether secured or unsecured) which is repayable on demand or in less than ______________ months. Further, the maximum period of acceptance of deposit cannot exceed ________________ months. But, for the purpose of meeting any of its short-term requirements of funds, a company may accept or renew deposits for repayment earlier than ______________ months subject to certain conditions.
(A) six, thirty six, six
(B) three, twenty four, three
(C) six, sixty, six
(D) three, sixty, six
Q11Cash flow statement exemption - OPC/small/dormant/private co
0 marks easy
Hastprat Ltd. is an unlisted public company, having five directors in its board which includes two independent directors. Sankul (P) Ltd., is subsidiary company of Hastprat Ltd., actively carrying on its business, having paid up capital of ₹ 1.5 crore with 40 members and turnover of ₹ 18 crore, respectively and the said company is not a start-up company.
In the context of aforesaid case-scenario, please answer to the following question(s): Whether Sankul (P) Ltd. is mandatorily required to prepare cash flow statement for the financial year as a part of its financial statements?
Provide your answer by analyzing Sankul (P) Ltd. into following category of companies: (i) One person company, (ii) Small company, (iii) Dormant company and (iv) Private company, respectively.
Q12Change of company name - registered trademark conflict and t
0 marks easy
Aman an engineer has started a new company with the name of Nuts and Bolts Private Limited. He got registered a company with the same name. However, Nuts and Bolts is a registered trademark. After 5 years when the owner of trademark came to know about the same, it filed an application with relevant authority. Can the company be compelled to change its name by the owner of trademark? Can the owner of registered trademark request the company and then company change its name at its discretion?
Q13Periodical financial results for unlisted companies - Sectio
0 marks easy
Yellow Ltd. received a communication from Central Government for preparation of periodical financial results and complete audit or limited review of such periodical financial results. The Board of Directors have raised an objection on the ground that as it is an unlisted company, periodical financial results need not to be prepared. Examine, referring the provisions of the Companies Act, 2013, in this regard.
Q14Nidhi company AGM notice requirements - threshold for indivi
0 marks easy
Upkaar Nidhi Ltd., was about to hold an AGM on 25th August, 2022, for which the notice of AGM along with relevant documents, as prescribed, was sent to all its members including the following:
1. A member individually holding shares with face value of ₹ 800 which amounted to 0.16% of the total paid-up share capital.
2. Two members jointly holding shares with face value of ₹ 1,600 which amounted to 0.32% of the total paid-up share capital.
3. Forty-two members each holding individually shares with face value of ₹ 600 which amounted to holding 0.12% of the total paid-up share capital for each such member.
4. All the remaining members holding individually more than 1.2% of the total paid-up share capital of the company.
In the AGM held on 25th August, 2022, the members were not provided with the facility to vote by electronic means.
In the context of aforesaid case-scenario, please answer whether Upkaar Nidhi Ltd. was required to send the notice of AGM along with relevant documents to all its members as aforesaid?
Q15Acceptance of deposits - bank loan exclusion and government
0 marks easy
Answer the following citing relevant provisions of the Companies Act, 2013:
Q16CSR obligation and minimum CSR expenditure computation - Sec
0 marks easy
Red Limited (the Company) was incorporated on 01.04.2020. The balances extracted from its audited financial statement are as given below:
FY 2020-21: Net Profit before tax ₹ 5.00 crore; Net Profit after tax ₹ 3.75 crore
FY 2021-22: Net Profit before tax ₹ 7.00 crore; Net Profit after tax ₹ 5.25 crore
The Company proposes to allocate the minimum required amount for CSR Activities to be undertaken during FY 2022-23, if it is mandatory. You are requested to advice the Company in this regard and compute the minimum amount to be allocated, if so required, taking into account the relevant provisions of the Companies Act, 2013.
Q17Surety's co-extensive liability and right to claim refund -
0 marks easy
Mr. Salil purchased furniture of worth ₹ 1,00,000 from Mr. Pooran on credit. Mr. Raman entered in contract with Mr. Pooran for the guarantee of the payment by Mr. Salil. On due date, Mr. Salil could not make the payment due to his financial crisis. Mr. Pooran filed the suit against Mr. Raman for payment. Meanwhile father of Mr. Salil paid ₹ 20,000 to Mr. Pooran on behalf of his son. Mr. Raman, in ignorance of above payment, paid ₹ 1,00,000 to Mr. Pooran as surety. Afterwards, when Mr. Raman knew the facts, he asked Mr. Pooran for refund of ₹ 20,000. Mr. Pooran denied for refund with the words, that's only Mr. Salil who can claim the amount of ₹ 20,000. Explain, with reference to Indian Contract Act 1872, whether Mr. Raman (surety) can claim the refund of ₹ 20,000 from Mr. Pooran?
Q18Negotiation back and sans recourse endorsement under NI Act
0 marks easy
A bill of exchange is drawn payable to 'Amir' or order. 'Amir' endorses it to 'Rani', 'Rani' to 'Kajol', 'Kajol' to 'Sharukh', 'Sharukh' to 'Madhuri' and 'Madhuri' to 'Amir'. State with reasons under the provisions of the Negotiable Instrument Act, 1881 whether 'Amir' can recover the amount of the bill from 'Rani', 'Kajol', 'Sharukh' and 'Madhuri', if he has originally endorsed the bill to 'Rani' by adding the words 'Sans Recourse'.
Q19Definition of immovable property under Section 3(26) General
0 marks easy
M owned a land with fifty tamarind trees. He sold his land and the timber (obtained after cutting the fifty trees) to N. M wants to know whether the sale of timber tantamount to sale of immovable property. Advise him with reference to provisions of the General Clauses Act, 1897.
Q20Preamble as aid to statutory interpretation
0 marks easy
When can the Preamble be used as an aid to interpretation of a statute?