LL.B. (Three Years) Sem 3 Company Law Apr 2024 75/25 Question Paper - Mumbai University | munotes

Questions asked in this paper

• N.B: 1. All the questions are compulsory 2. Figures to the right indicate full marks

1. Answer the following in not more than two sentences (Any Six) 12 marks

1. (a) Explain Associate Company.
   Read the model answer
2. (b) What does 'Ratification of pre incorporation Contract' mean?
   Read the model answer
3. (c) What is constructive notice of memorandum and articles of association?
   Read the model answer
4. (d) What is prospectus?
   Read the model answer
5. (e) How much CSR contribution is mandatory?
   Read the model answer
6. (f) When sweat equity shares are issued by the company?
   Read the model answer
7. (g) What are the sources of payment of dividends?
   Read the model answer
8. (h) What is Trading Plan?
   Read the model answer

2. Write short notes on (Any two) 12 marks

1. (a) Red Herring Prospectus
   Read the model answer
2. (b) Doctrine of Indoor Management
   Read the model answer
3. (c) Debentures
   Read the model answer
4. (d) Voluntary Winding Up
   Read the model answer

3. Answer the following by giving reason (Any two) 12 marks

1. (a) Mr. Ram, Mr. Shyam, Mr. Madhav and Mr. Shri are friends were owning an Amusement Park together which they transferred to ABC Exciting Park Ltd. Co. and claimed exemptions from ad valorem duty on transfer of property to the Company.
   • (i) Can they claim exemption since transfer of property is in the company which belongs to them only
   • (ii) Explain the principle applicable to decide the matter.
   • (iii) State the case law for the same
   Read the model answer
2. (b) Chinpak Holdings Ltd. Company issued a prospectus stating all the details of the company, including its share capital, pre- incorporated contracts. All the statements were signed by the two Directors, Auditor and the CFO. Mr. Bhola Ram subscribed for securities of a company acting on the above statements. However, it was proved that the prospectus was issued with the intention to defraud the applicants.
   • (i) What are the rights of Mr. Bhola Ram?
   • (ii) What is the liability and who are liable for the mis-statements in the prospectus?
   Read the model answer
3. (c) Mr. Amar Shah, MD, Krish Industries Ltd., signed a deal with Ferrari NV, a Italian business, who agreed to purchase 51% shares of Krish Industries Ltd. Mr. Shah sold a significant portion of his Krish Industries ownership, which he owned through his brother-in-law, Mr. Aditya Raj. SEBI considered Mr. Raj to be well connected individual, and accordingly held that Mr. Shah was guilty of insider trading.
   • (i) Who is an Insider
   • (ii) Did Insider Trading happen in the given case and state the case law.
   • (iii) What is the penalty for Insider Trading
   Read the model answer
4. (d) Mr. Lodi, a prominent cloth merchant, was involved in obtaining fraudulent Letters of Undertaking (LoUs) worth approximately $2 billion along with the officials of Uttar Rashtriya Bank. Mr. Lodi fled the country, in this scenario is he responsible and liable for actions carried out by him with Bank officials.
   • (i) Explain Corporate Governance
   • (ii) What are the consequences of obtaining fraudulent Letters of Undertaking by Mr. Lodi
   • (iii) State the case law.
   Read the model answer

4. Answer the following (Any three) 39 marks

1. (a) Explain Memorandum and Articles of Association and the alteration of these two documents with illustrations
   Read the model answer
2. (b) Explain in detail Appointment, Qualifications and Powers of Statutory Auditor
   Read the model answer
3. (c) Explain different methods of voting at the Annual General Meeting and Passing of Resolution by Circulation for directors
   Read the model answer
4. (d) Explain Class Action Suit and Powers of Tribunal in cases of Oppression and Mismanagement
   Read the model answer
5. (e) Explain in detail about Corporate Social Responsibility activities that can be carried out by the Company and different theories that provide the basis of evolution of Corporate Governance with examples.
   Read the model answer

Read from the scan above, so a character or two may differ. The scan is the original.