LL.B. (Three Years) Sem 3 Company Law Jun 2023 60/40 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. (1) What are Pre Incorporation contracts of Company?
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2. (2) Explain the term Authorized Dealer.
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3. (3) Which Companies have license to drop the word "limited" from its name?
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4. (4) Why object clause is important for the creditors of the Company?
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5. (5) What is Red Herring Prospectus?
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6. (6) What is Foreign Exchange?
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7. (7) What is share certificate?
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8. (8) What is underwriting Commission?
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9. (9) When Key Managerial Person are required
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10. (10) What are the minimum and maximum number of directors in OPC, Private Company and Public Company?
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2. Write short notes on (Any two) 12 Marks

1. (1) Appointment of Auditors
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2. (2) Reduction of Capital
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3. (3) Preference share capital
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4. (4) Independent directors
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3. Answer the following by giving reason (Any two) 12 Marks

1. (1) Mr. A and Mr. B want to incorporate private limited company. Advice them on following terms
   • (a) Restriction on number of members
   • (b) Issue of prospectus
   • (c) Conversion into public company
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2. (2) The directors of a company issued a prospectus inviting subscriptions for debentures stating the objects of the issue of debentures were to complete alterations in the buildings of the company and to develop trade of the company. Relying on the statement Mr. John advanced money. To save the company, Directors used the fund to pay off other liabilities of the Company.
   • (a) Whether Mr. John has right to file suit against Company? Why?
   • (b) Whether the utilization of fund for saving of company from liabilities amounts to fraud?
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3. (3) The articles of association of a company contained a clause to the effect that Mr. B should be a director and should not be removable till 2026. Mr. B was however removed in the year 2023. Mr. B brought an action to restrain the company from excluding him.
   • (a) Advice Company.
   • (b) Who is an outsider for the company?
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4. (4) Mr. Black was appointed as managing director of the FICO Company on the condition that "he shall not at any time while he shall hold the office of a managing director or afterwards, solicit or entice away the customers of the Company." His employment was determined under an agreement. Mr. White incorporates rival company in which Mr. Black is one of the Directors.
   • (a) Is there any remedy available to FICO Company?
   • (b) Can FICO Company file a suit against its rival Company?
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4. Answer the following (Any two) 24 Marks

1. (1) Explain requisites of valid meeting of shareholders.
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2. (2) Explain the rule in "Foss v Harbottle"
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3. (3) Explain the process of winding up of company.
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4. (4) State the characteristics of a company.
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