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RollNo..........................
Timeallowed:3hours Maximummarks:100
Totalnumberofquestions:8 Totalnumberofprintedpages:4
NOTE: AnswerSIXquestionsincludingQuestionNo.1whichiscompulsory.
2. (a)Acompanydeclareddividendon31 stOctober,1996fortheyearended31stMarch,
1996.Outofthedividendsodeclared,asumofRs.2,17,290remainsunclaimedasat
31st March, 2004. As the secretary of the company, how will you deal with this
amount?
(b) AshaLtd.soughttorefuseregistrationofsharesinthenameofVibhaLtd.onthe
ostensiblegroundthatVibhaLtd.hasnotcompliedwiththerequirementsofsection
292oftheCompaniesAct,1956inmakingtheinvestment.IstheactionofAshaLtd.
valid?Justify.
(8markseach)
3. SadbhavanaLtd.hadarecordturnoverofRs.100croreandearnedanetprofitofRs.23
crorefortheyearended31 stMarch,2004whichwasits10 thyearofoperations.Preparethe
Boardofdirectorsreportfortheyear200304. Youmaymakenecessaryassumptions
aboutthefactsandfiguresasmaybenecessary.
(16marks)
(b) Discussthelawandprocedurerelatingtointercorporateloansandinvestments.
(8markseach)
5. In the light of provisions of the Companies Act, 1956, state with reasons whether the
followingstatementsaretrueorfalse.Attemptanyfour:
(i) Depositsreceivedbyapubliccompanyfromanotherpubliccompanyarereckonedas
depositsundertheCompanies(AcceptanceofDeposits)Rules,1975.
(ii) Unlessdepreciationisprovided,thereisnowaydividendscanbepaidbyacompany.
(iii) AllresolutionsthatarepassedatBoardmeetingsneedonlysimplemajority,asspecial
resolutionhasnothingtodowithBoardmeetings.
(iv) Aspecialresolutionrequirestwothirdsmajorityoftotalvotingpower.
(v) MinutesoftheBoardmeetingneedstobesignedbythechairmanwithin30daysof
themeeting.
(4markseach)
6. (a) Outlinethemeaningandsignificanceofacharge.Whatarethechargesthatneedto
beregistered?Whataretheconsequencesofnonfilingofacharge?
(6marks)
(b) Ajay,ashareholderofAdarshLtd.,wrotetothecompanyforsupplyofcopiesof100
foliosofregisterofmembers.Thecompanyinsistedthatbeforeaskingcopiesofthe
folios,Ajayoughttohavetakeninspectionandspecifiedtheparticularsofthefolios.
Withoutsuchinspection,copiesoffolioscannotbemadeavailable.AdviseAjay.
(5marks)
(c) Zahirwrotetothecompanytosupplyhimcopiesofauditedbalancesheetssince31 st
March,2001. Thecompanyrefusedtosupplyhimallthesebalancesheetsbutwas
willingtosupplythelastauditedbalancesheetofthecompanyforthefinancialyear
ended31stMarch,2004.AdviseZahir.
(5marks)
7. (a)TheChairmanandtheCompanySecretaryarechargedwiththeoffenceofviolation
of themandatoryprovisions of the Companies Act, 1956for having failed to file
necessaryreturnsaspertheAct. Theyfeelthattherecouldbepenalactionagainst
themonlyifthereisdeliberateviolationoflawandnotwhentherewereinadvertent
errors.Hence,intheiropinion,thereshouldnotbeanyprosecution.Advisethem.
(b) Holderofonlyoneshareofalargepubliccompanygavenoticeundersection284of
theCompaniesAct,1956forremovalofthewholetimedirectorwhoistheCEOof
thecompanyattheensuingAGM.Thecompanyhasbeenadvisednottoentertainthe
notice in view of noncompliance of requirements of section 188 in regard to
circulationofmembersresolution.Thematterhasbeenreferredtoyouforasecond
opinion.Advise.
(8markseach)
8. (a)AdvanceSolutionsPvt.Ltd.isacompanyengagedindevelopmentofsoftware.
Ajit,BaljitandCharanjitaretheonlyshareholdersanddirectorsofthecompany.Ajit
hasrecentlystartedhisownindependentsoftwaredevelopmentcompany.Baljitand
CharanjitareoftheviewthatcontinuationofAjitasdirectorandshareholderofthe
companywillbeagainsttheinterestsofthecompany.Therefore,theywanttoexpel
Ajitasamemberaswellasdirectorofthecompany.AdviseBaljitandCharanjit.
(b) SharesofAnandPvt.Ltd.areheldbyRamandShyamintheproportionof70:30.
RamtransfershisentireshareholdinginfavourofRamaInvestmentsLtd.AnandPvt.
Ltd.becameasubsidiaryofapubliccompanyandchangeditsstatusassuch.Statethe
implicationsofaboveandenumeratetheprocedure,ifany,requiredtobefollowedin
thisregard.
(8markseach)
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