Q1Financial statements under section 2(40) — applicability to
0 marks easy
Geeta Private Limited is a start-up company. Mr. Prabodh has been appointed as Accounts Manager of Geeta Private Limited. The Board meeting for approval of accounts is to be held on 01.08.2022 and he has to prepare the financial statements for approval by the Board. Referring to section 2(40) of the Companies Act, 2013, advise Mr. Prabodh about the statements that are required to be prepared.
Q2Eligibility of nominee for One Person Company — natural pers
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Mr. Aditya had incorporated a one person company on 07.07.2021. Mr. Yash was named as a nominee in the memorandum of the said one person company. Now, Mr. Aditya, considering the perpetual nature of company form of business, desires to appoint ABC Private Limited as a nominee instead of Mr. Yash. Examine with reference to the Companies Act, 2013, whether the proposal of Mr. Aditya to appoint ABC Private Limited as a nominee is valid?
Q3Interpretation of statutes — non-obstante clause
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A clause that begins with the words 'Notwithstanding anything contained' is called:
(A) An obstacle clause
(B) A non-obstante clause
(C) An objectionable clause
(D) A superior clause
Q3Voting rights of joint shareholders — order of seniority
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'A' and his wife 'B' has joint Demat Account in Vrinda Limited. The company's Annual General Meeting is to be held on 28.08.2022. In such a case, who will cast the vote in the Annual General Meeting? Give your answer as per the provisions of the Companies Act, 2013.
Q4Variation of shareholders' rights — Companies Act, 2013
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Where a share capital of the company is divided into different classes of shares, the rights attached to the shares of any class may be varied with the consent in writing of the holders of not less than __________ of the issued shares of that class or by means of a special resolution passed at a separate meeting of the holders of the issued shares of that class:
(A) One-fourth
(B) 50%
(C) Three-fourths
(D) 75%
Q4Remote e-voting period and closing time under Companies Act,
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Prabhas Limited is a company having its shares listed on a recognised stock exchange. The company has 5,000 members. The Annual General Meeting of the company is to be held on 07-09-2022. As per the provisions of the Companies Act, 2013, advise the company, the remote e-voting period and the time of closing of remote e-voting.
Q5Minimum number of persons to form a public company
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A Public company may be formed by:
(A) Only two persons
(B) Not more than three persons
(C) Not more than Seven Persons
(D) Seven or more Persons
Q5Consolidation of unaudited foreign subsidiary financial stat
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Dhiman Limited, is a company incorporated in India. Dhiman Limited is a leading manufacturer of sports shoes. It has many subsidiaries, one of them being Best Shoes Limited which is based in Morocco. Dhiman Limited is in the process of finalization of the consolidated financial statements of the company for the year ended 31 March 2022. The accounts section of Dhiman Limited has requested the management of Best Shoes Limited to provide its standalone financial statements to Dhiman Limited. The subsidiary company prepares its financial statements in the local language of the country and the same is provided to the Indian parent company. Further, audit of financial statement is not required by the Best Shoes Limited under the Moroccan laws. Advise, how would Dhiman Limited deal with the consolidation of such financial statements.
Q6Disqualifications for appointment as Debenture Trustee — sec
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What are provisions of the Companies Act, 2013, relating to the appointment of 'Debenture Trustee' by a company? Whether the following can be appointed as 'Debenture Trustee'?
Q7Persons responsible for maintenance of books of accounts — s
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State the persons responsible for complying with the provisions regarding maintenance of Books of Accounts of a company. Support with the help of relevant provisions of the Companies Act, 2013.
Q8Auditor rotation — ineligibility of firm with common partner
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Mr. Govind Ram is a partner and in-charge (and certifies financial statements) of P & Associates. The firm is appointed as an auditor firm of Kanha Limited (listed company). Mr. Govind Ram retires from P & Associates and after some time joins Gupta & Gupta firm as a partner, on 20/05/22. In the general meeting of Kanha Limited held on 15/06/22, the company appointed Gupta & Gupta firm as next auditor of the company. Advise Kanha Limited, whether the company has adhered to the provision of the Company Act, 2013, by appointing Gupta & Gupta as auditor for the company?
Q9Bailee mixing goods without consent — remedy of bailor under
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Vishal bailed 50 kg of high quality sugar to Naresh, who owned a kirana shop, promising to give Rs. 200 at the time of taking back the bailed goods. When Naresh was not at shop, his employee, unaware of bailed sugar of Vishal, mixed the 50 kg of sugar belonging to Vishal with the sugar in the shop and packaged it for sale. This came to light only when Vishal came asking for the sugar he had bailed with Naresh, as the price of the specific quality of sugar had trebled. What is the remedy available to Vishal as per the provisions of the Indian Contract Act, 1872?
Q10Holder in due course — liability of acceptor — Negotiable In
0 marks easy
Mr. Zahid accepted a bill of exchange and gave it to Mr. Kamil for the purpose of getting it discounted and handing over the proceeds to Mr. Zahid. Mr. Kamil couldn't get the bill discounted and returned the bill to Mr. Zahid. Mr. Zahid cut the bill in two pieces for the purpose to cancel it and he threw the pieces on the street. Mr. Kamil picked up the pieces and joined those pieces in such manner that the bill seemed to have been folded for safe custody, rather than cancelled. Mr. Kamil put it into circulation and it finally reached to Mr. Salim, who took it in good faith and for value. Explain in the light of the provisions of the Negotiable Instruments Act, 1881, whether Mr. Zahid is liable to pay the bill to Mr. Salim?
Q1.1Notice period for AGM under Companies Act, 2013
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Case: Shree Tyres Ltd. is an unlisted public limited company. The company's accounts for the financial year ending on 31st March, 2022 were finalised and audited by the Statutory Auditor. The meeting of the Board of Directors was convened and approved the financial accounts of the company and proposed to convene the Annual General Meeting of the shareholders on Thursday, the 25th August, 2022 at 10 am. The total number of members is 3500. The Article of the company provides that the quorum for the general meeting of the shareholders shall be at least fifty members. On the day of the meeting only 10 …
In the light of the given facts, the General Meeting of the shareholders was decided to be scheduled. Determine by which date the notices to the shareholder should have been given to the members:
(A) 1st August, 2022
(B) 2nd August, 2022
(C) 3rd August, 2022
(D) 4th August, 2022
Q11Section 8 General Clauses Act — reference to repealed enactm
0 marks easy
Section 2(18)(aa) of the Income Tax Act, 1961, provides that a company is said to be a company in which the public are substantially interested, if it is a company which is registered under section 25 of the Companies Act, 1956. After the advent of Companies Act, 2013, the corresponding change has not been made in section 2(18) of the Income Tax Act, 1961. Explain, with reference to the provisions of the General Clauses Act 1897, how will the provisions of section 2(18)(aa) of the Income Tax Act, 1961, will be considered after the enactment of the Companies Act 2013?
Q1.2Adjournment of general meeting for want of quorum
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Case: Shree Tyres Ltd. is an unlisted public limited company. The company's accounts for the financial year ending on 31st March, 2022 were finalised and audited by the Statutory Auditor. The meeting of the Board of Directors was convened and approved the financial accounts of the company and proposed to convene the Annual General Meeting of the shareholders on Thursday, the 25th August, 2022 at 10 am. The total number of members is 3500. The Article of the company provides that the quorum for the general meeting of the shareholders shall be at least fifty members. On the day of the meeting only 10 …
Whether adjournment of the general meeting of shareholders of Shree Tyres Ltd. for want of quorum, was justified as per the requirement of the Companies Act, 2013:
(A) Yes, it was justified, since the quorum was not present within 30 minutes from the time appointed for holding the meeting
(B) No, it was not justified since the waiting time for the arrival of the requisite quorum is 30 minutes as per the provisions of the Companies Act, 2013, whereas the decision of the adjournment of the meeting was just taken after 15 minutes.
(C) Yes, if the quorum is not present at the given time (sharp) of meeting, the meeting stands to be adjourned, and there is no requirement of waiting time.
(D) Yes, it was justified, since the quorum was not present within 45 minutes (as per statutory requirement) from the time appointed for holding the meeting.
Q12Interpretation of statutes — restrictive vs. extensive defin
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How will you interpret the definitions in a statute, if the following words are used in a statute? Give one illustration for each of the above from statutes you are familiar with.
Q1.3Quorum requirement for general meeting based on member stren
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Case: Shree Tyres Ltd. is an unlisted public limited company. The company's accounts for the financial year ending on 31st March, 2022 were finalised and audited by the Statutory Auditor. The meeting of the Board of Directors was convened and approved the financial accounts of the company and proposed to convene the Annual General Meeting of the shareholders on Thursday, the 25th August, 2022 at 10 am. The total number of members is 3500. The Article of the company provides that the quorum for the general meeting of the shareholders shall be at least fifty members. On the day of the meeting only 10 …
What shall be the quorum for the General Meeting of the Shareholders, where the number of members is 3500:
(A) Five
(B) Fifteen
(C) Thirty
(D) Fifty
Q1.4Continuance of quorum during general meeting proceedings
0 marks hard
Case: Shree Tyres Ltd. is an unlisted public limited company. The company's accounts for the financial year ending on 31st March, 2022 were finalised and audited by the Statutory Auditor. The meeting of the Board of Directors was convened and approved the financial accounts of the company and proposed to convene the Annual General Meeting of the shareholders on Thursday, the 25th August, 2022 at 10 am. The total number of members is 3500. The Article of the company provides that the quorum for the general meeting of the shareholders shall be at least fifty members. On the day of the meeting only 10 …
As some members left the meeting, the quorum was not present all the time during the Annual General Meeting. The agendas for special business transactions remained un-approved. What is your opinion:
(A) The quorum once present in the beginning of the meeting is enough.
(B) The quorum should be present all the time when the meeting is in progress. Any items which could not be approved by members for want of quorum, shall be treated as NIL.
(C) When the quorum is present in the beginning of the meeting, it may be assumed that all the resolutions have been approved, until and unless objected later on by the members present therein.
(D) The Board may seek special written consent from all the members later on.
Q2.1Right of pledgee to retain goods — Indian Contract Act
0 marks hard
Case: Yukti has opened a showroom of electronic goods, viz: Air-Conditioner, Colour TV, Refrigerator, Washing Machines etc. which are commonly used for house-hold purposes. She also has a godown, in which the white goods are stored. Since the electric items are costly and require heavy investment, so she availed a working capital finance from OKEY Bank Ltd. (the Bank), by pledging the white goods lying in her godown, with the Bank. The Bank put its lock, on the godown and whole of white goods were now in possession of the Bank. The Bank granted a working capital finance of Rs. 100 lakhs to Yukti by …
In the light of the given facts, state which statement is correct as regards the right of the Bank on retaining of the goods lying in the godown:
(A) When the outstanding amount taken for working capital, has been paid, the Bank cannot retain the goods
(B) The Bank can retain the goods till all the charges, including the interest, insurance and other charges are paid by Yukti
(C) The Bank can retain only a portion of the goods to cover its dues and may release the rest of the goods.
(D) The Bank may first release the goods and then for recovery of its dues file suit against Yukti.
Q2.2Pledgee's right of retention — scope limited to debt secured
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Case: Yukti has opened a showroom of electronic goods, viz: Air-Conditioner, Colour TV, Refrigerator, Washing Machines etc. which are commonly used for house-hold purposes. She also has a godown, in which the white goods are stored. Since the electric items are costly and require heavy investment, so she availed a working capital finance from OKEY Bank Ltd. (the Bank), by pledging the white goods lying in her godown, with the Bank. The Bank put its lock, on the godown and whole of white goods were now in possession of the Bank. The Bank granted a working capital finance of Rs. 100 lakhs to Yukti by …
If in the given case, Yukti pays all the expenses (including the disputed insurance premium) but the Bank insist to clear the personal loan account also, then only it will release the goods. Determine whether the Bank is entitled to do so:
(A) Yes, the Bank can do so
(B) The Bank can sale the part amount of the goods lying in the godown in order to liquidate the personal loan account of Yukti
(C) The Bank can ask the Shekhar to give guarantee for the personal loan taken by the Yukti
(D) No, the Bank has no right to retain the goods pledged with it, since the personal loan was not taken on the security of such goods
Q2.3Pledgee's right to recover expenses incurred for preservatio
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Case: Yukti has opened a showroom of electronic goods, viz: Air-Conditioner, Colour TV, Refrigerator, Washing Machines etc. which are commonly used for house-hold purposes. She also has a godown, in which the white goods are stored. Since the electric items are costly and require heavy investment, so she availed a working capital finance from OKEY Bank Ltd. (the Bank), by pledging the white goods lying in her godown, with the Bank. The Bank put its lock, on the godown and whole of white goods were now in possession of the Bank. The Bank granted a working capital finance of Rs. 100 lakhs to Yukti by …
Yukti disputed the amount demanded by the Bank towards the insurance premium paid by the Bank. Yukti emphasised that there was no need to take the insurance policy on the goods pledged, because it is an extra burden on the part of the borrower. Identify the correct statement:
(A) Yes, it is an extra financial burden on the part of the borrower and is dependent on the will of the borrower.
(B) Every bank has a policy to get the security insured on which it grants loan, so in this case also, the Bank for the purpose of protection of the goods took the insurance policy and paid the premium, so demand of the Bank is justified.
(C) The godown is just near by the Police Station, hence there should not be the fear of theft. No need of taking insurance policy.
(D) Happening of the Earthquake and Flood are the remote possibility, so the expenses on the insurance premium could have been avoided as it is not a mandatory requirement.
Q2.4Distinction between bailment and pledge
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Case: Yukti has opened a showroom of electronic goods, viz: Air-Conditioner, Colour TV, Refrigerator, Washing Machines etc. which are commonly used for house-hold purposes. She also has a godown, in which the white goods are stored. Since the electric items are costly and require heavy investment, so she availed a working capital finance from OKEY Bank Ltd. (the Bank), by pledging the white goods lying in her godown, with the Bank. The Bank put its lock, on the godown and whole of white goods were now in possession of the Bank. The Bank granted a working capital finance of Rs. 100 lakhs to Yukti by …
When Yukti is availing the working capital finance from the Bank on the security of the white goods, by submitting these goods in the custody of the Bank, said course of transaction can be termed as:
(A) Bailment of goods
(B) Pledge of goods
(C) Safe keeping of goods
(D) Lessor and Lessee relationship