LL.B. (Three Years) Sem 3 Company Law Jan 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 a Small Company.
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2. (b) Explain application of premiums received on issue of shares.
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3. (c) State the time period for acceptance of Deposits.
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4. (d) Quorum for Shareholders meetings.
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5. (e) When Independent Directors are required?
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6. (f) When Audit Committee is required?
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7. (g) State the limits of loans and investments by a company.
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8. (h) When is Secretarial Audit required?
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2. Write short notes on (Any two) 12 marks

1. (a) Memorandum and Articles of Association
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2. (b) Annual General Meeting
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3. (c) Explain contributions to Charitable Funds, Political Party and National Defence Fund
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4. (d) Private Placement
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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
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2. (b) The 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?
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3. (c) Capital Money Ltd. (CML) had a wholly owned subsidiary Mount Wealth Ltd. which incurred huge losses. This would affect the balance sheet of CML. Mr. Suryaa Joy, MD of CML shared this UPSI to his wife, who accordingly sold off all her and her mother-in-law's holdings in CML, including all other shares held by them in other group companies, before this UPSI became public. After the disclosure of financial statements, there was fall in share price of CML, due to which general investors incurred losses.
   • (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
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4. (d) Mrs. Moonlit Robert, is CEO and Managing Director of Great Indian Bank. In 2022 a loan was extended by Great Indian Bank to Fraud Money Group, which had business links to her husband's company. Mrs. Robert did not disclose her interest at the time loan approval to the Board of Directors.
   • (i) Explain Corporate Governance
   • (ii) What are the consequences of non-disclosures by Mrs. Moonlit Robert
   • (iii) State the case law.
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4. Answer the following (Any three) 39 marks

1. (a) Explain different kinds of share capital, Issue and Redemption of Preference Shares and Debentures
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2. (b) Explain Internal Audit, what are the Disqualifications of a Statutory Auditor and provide the procedure relating to Removal of Statutory Auditors
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3. (c) Explain duties of directors, their appointment and the disqualifications of a director
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4. (d) Explain Class Action Suit and Powers of Tribunal in cases of Oppression and Mismanagement
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5. (e) Explain in detail about Corporate Social Responsibility and History of Corporate Governance
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