LL.B. (Three Years) Sem 3 Company Law Dec 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 is Shelf Prospectus?
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2. (2) Explain the term Authorized Dealer.
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3. (3) What is a Small Company?
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4. (4) What is Special Resolution?
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5. (5) Which are different clauses of Memorandum of Association?
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6. (6) What is a Deposit?
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7. (7) Provide any two uses of Investor Education and Protection Fund?
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8. (8) State any two Directors Responsibility Statement?
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9. (9) When CSR Committee is required
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10. (10) When Internal Auditor is required to be appointed in a Private Company
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2. Write short notes on (Any two) 12 Marks

1. (1) Doctrine of Indoor Management and its exceptions
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2. (2) Buyback of Shares u/s 68 of the Companies Act, 2013
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3. (3) Explain the rule in "Foss v Harbottle"
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4. (4) Different types of directors discussed u/s 161 of the Companies Act, 2013
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3. Answer the following by giving reason (Any two) 12 Marks

1. (1) Mr. Ram is a 95% shareholder and Managing Director of Ayodhya Ltd. Company. He is also a Secured Debenture holder of Rs. 50,000/-. On winding up of the Company the Unsecured Creditors takes away available cash of Rs. 40,000/- against their debts of Rs. 80,000/- not giving any money Mr. Ram, since he is the Managing Director and 95% Shareholder of the Company.
   • (a) Advice Mr. Ram, whether he can claim any money from the Company
   • (b) What principle should be applied to solve the case
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2. (2) 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.
   • (a) What are the rights of Mr. Bhola Ram?
   • (b) What is the liability and who are liable for the mis-statements in the prospectus?
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3. (3) Peshwa Ltd. Company had total 10 members in the company. However, the due to COVID-19, five members died together in January 2023. It's now October 2023, and the Company continues to carry on the business of the company with five members, and Mr. Ranaji, a creditor files a case against the company claiming Rs. 5 Crores for non-payment of dues.
   • (a) Explain the action to be taken by the Company on death of five members due to COVID-19?
   • (b) Company doesn't have sufficient money to pay Mr. Ranaji, what course of action Mr. Ranaji can take to get his dues paid in full.
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4. (4) Shri Krishna Ltd. Company has a Paid-Up capital of Rs. 200 Lakhs, Free Reserves of Rs. 150 lakhs and Securities Premium of 50 lakhs. Company has loans of Rs. 40 lakhs.
   • (a) Explain up till what amount Shri Krishna Ltd. can make further investments in shares of ABC Ltd. Company
   • (b) In case Company has zero existing loans, how much loans can a company take from the Bank.
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4. Answer the following (Any two) 24 Marks

1. (1) Explain Audit Committee, Nomination and Remuneration Committee, Stakeholders Relationship Committee and Risk Management Committee.
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2. (2) Explain Lifting of Corporate Veil with case studies
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3. (3) Explain the process of winding up of company.
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4. (4) Explain Related Parties, Relatives and Related Party Transactions.
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3. Question set in the hall in place of item 4 of Q.3 12 Marks

1. (4) A company wants to call an Annual General Meeting.
   • (a) Who can call an AGM?
   • (b) What is the notice period required for an AGM?
   • (c) State the quorum required for an AGM.
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