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Past papers › Corp Laws › May 2016

CA Inter Corp Laws — Suggested Answers — May 2016

This page contains all 27 questions from the CA Inter Corporate & Other Laws Suggested Answers for the May 2016 attempt cycle, sourced from VSI Jaipur.

Q1Negotiable Instruments Act, 1881 - Section 138 - Liability o
5 marks medium
Mr. Bean is a promoter who has taken a loan on behalf of company but he is neither a director nor a person-in-charge of the company. He sent a cheque from the company's account to discharge its legal liability. Subsequently, the cheque was dishonoured and a complaint was lodged against him. Can he be held liable for an offence under Section 138 of the Negotiable Instruments Act, 1881?
Q1Companies Act - Memorandum of Association - Amendment of obj
5 marks medium
Rishi Pharmacy Ltd. decided to take up the business of food processing because of the downward trend in pharmacy business. There is no provision in the object clause of the Memorandum of Association to enable the company to carry on such business. State whether its object clause can be amended? Mention briefly the procedure to be adopted for change in the object clause.
Q1Business Ethics and Communication - Sustainable Development
5 marks medium
"A nation or society should satisfy its requirements without jeopardizing the interest of future generations." Comment with reference to Sustainable Development.
Q1Indemnity Bond - Definition and drafting
5 marks medium
What is an indemnity bond? Mr. Ajay Sinha has not received a dividend warrant of ₹ 1500 for 150 shares of XYZ Ltd. Draft an indemnity bond, to be given to the company, for seeking release of dividend.
Q2(a)Restraint of Trade - Indian Contract Act, 1872
4 marks hard
'X' agreed to become an assistant for 2 years to 'Y' who was practicing chartered accountant at Jodhpur. It was also agreed that during the term of agreement 'X' will not practice as a chartered accountant on his own account within 20 kms. of the office of 'Y' at Jodhpur. At the end of one year, 'X' left the assistantship of 'Y' and started practice on his own account within the said area of 20 kms. Referring to the provisions of the Indian Contract Act, 1872, decide whether 'X' could be restrained from doing so?
Q2(b)Payment of Bonus Act, 1965
4 marks hard
Akshay is an employee in a company. The amount of bonus payable to him during the year 2014-15 is ₹ 1,25,000. The company deducted a sum of ₹ 25,000 against the 'Diwali Bonus' already paid to him during the said year and paid the remaining amount. Akshay files a suit against the company for recovery of the deducted amount. Decide whether Akshay would be given relief by the Court on adjustment of already paid interim bonus on Diwali under the Payment of Bonus Act, 1965?
Q2(d)Press Release Guidelines
4 marks medium
The Press Release should be written in a journalistic style. Comment on the statement highlighting guidelines for drafting a Press Release.
Q3(a)Deposits - Companies Act, 2013
8 marks very hard
Atul Ltd. has passed a resolution in its general meeting regarding accepting deposits from its members. Can this company accept deposits from its members under the Companies Act, 2013? If yes, state the conditions to be fulfilled regarding this.
Q3(b)Agency Law - Fiduciary Duty
4 marks hard
Mr. A of Alwar engaged Mr. S as his agent to buy a house. Mr. S bought a house for ₹ 40 lakhs in the name of a nominee and then purchased it himself for ₹ 44 lakhs. He then sold the same house to Mr. A for ₹ 46 lakhs. Mr. A later comes to know about the mischief of Mr. S and tries to recover the excess amount paid to Mr. S. Is he entitled to recover any amount from Mr. S? If so, how much? Explain.
Q3(c)Iron Law of Responsibility - Business Ethics
4 marks medium
What do you mean by the "Iron Law of Responsibility"? Mention the resulting benefits which may be acquired by achieving the long term objectives through the business activities.
Q4Payment of Gratuity Act, 1972
4 marks hard
Mr. Y was working in ABC Limited for the last seven years as an Accounts Executive. He resigned from the services of the Company on 30th April, 2015. His resignation was not accepted by the Company. However, after serving for the notice period, he stopped coming to the Company. After some time he applied for his gratuity. The company refused on the ground that his resignation was not accepted. Discuss the legal position about this in the light of the Payment of Gratuity Act, 1972.
Q4Companies Act, 2013 - Dormant Company
4 marks medium
Explain the concept of "Dormant Company" as envisaged in the Companies Act, 2013.
Q4Professional safeguards and ethics
4 marks medium
What are the safeguards created by the profession, legislation or regulation about accounting and finance which may eliminate or reduce the threats relating to unethical behaviour?
Q5Negotiable Instruments and Company Law
6 marks medium
State, giving reasons, whether the following statements are correct or incorrect
Q5One Person Company registration
6 marks medium
State the documents and information for registration of One Person Company (OPC) required to be filed with the Registrar of Companies.
Q5Annual General Meeting notice
4 marks medium
PQR Ltd. wants to hold its Annual General Meeting on 15th September, 2016. Draft a notice for calling Annual General Meeting of its shareholders to discuss the matters relating to ordinary business.
Q6Ethics and whistle-blowing
4 marks medium
State in brief the guidelines for managing ethics and to prevent the need for whistle-blowing in the work place.
Q6Employees' Provident Funds Act applicability
4 marks hard
Swad Papad Udyog is a co-operative society registered under the Co-operative Societies Act, 1912, employing 40 persons and working without the aid of power. With reference to the provisions of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952, state whether the provisions of this Act are applicable on it?
Q6cCompany Law
4 marks medium
Briefly explain the law relating to "Resolutions requiring Special Notice" under the Companies Act, 2013. Mention the resolutions that require "Special Notice" under the Act.
Q7bCompany Law - Prospectus and Liability
4 marks hard
P Ltd. issued and published its prospectus to invite the 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 from the Stock Exchange. Subsequently, the company was wound up and the name of Mr. X was included in the list of contributories.
Q8cConsumer Protection and Competition Law
4 marks medium
Objectives of the Central Consumer Protection Council in India are to promote and protect the rights of consumers. Elucidate the rights of consumers in relation to Competition Law in India.