Questions set at CA Intermediate Examination - The paper is 'Corporate & Other Laws'. It covers various other laws besides company law - sections 1 to 145.

C.A. INTER – GROUP 1 - November – 2002

Q 1 and Q 2 are compulsory. Answer any 5 questions from the rest.

Q 1. (a) The separate entity of a company can be ignored under the doctrine of “lifting of corporate veil”. Comment. (b) What do you understand by ‘holder’ and ‘holder in due course’? State the difference between ‘holder’ and ‘holder in due course’. [12+8 = 20 marks]

Q. 2. Explain any three of the following: (a) Societies which may be registered under the Cooperative Societies Act, 1912. (b) Filing of suits by or against societies registered under the Societies Registration Act, 1860. (c) “Establishments” to which the Payment of Gratuity Act, 1972 is applicable. (d) Meaning of ‘employee’ under the Employees Provident Funds and Miscellaneous Provisions Act, 1952. (e) Bonus linked with productivity. [5+5+5 = 15 marks]

Q. 3. (a) M/s XYZ Ltd., a company having its Registered Office at Mumbai (Maharashtra State) desires to shift its Registered Office to Pune (Maharashtra State). Briefly explain the procedure applicable in this relation under the Companies Act, 1956.(b) What do you understand by “promoter” of a company? What are the liabilities of a promoter under the Companies Act, 1956? [7+6 =  13 marks]

Q 4. (a) What do you understand by “Issuing House” and “Deemed Prospectus”? When is the issuing of prospectus not mandatory? (b) Shyam fraudulently encashed the cheque obtained from Kamal, crossed “Not negotiable” at a bank other than the drawee bank. Is the drawee bank liable for conversion? [7+6 = 13 marks]

Q 5. (a) When is the banker justifies in dishonouring a Cheque? Can the holder of a cheque initiate prosecution against the payer under the Negotiable Instruments Act, 1881, on the ground of dishonour of the cheque for the second time, however, he (the holder) did not do so when the said cheque was dishonoured first time? (b) Explain the principle of “set on and set off” of allocable surplus under the Payment of Bonus Act, 1965. [7+6 = 13 marks]

Q. 6. (a) Describe the provisions relating to appointment and powers of “Inspector” under the payment of Bonus Act, 1965. (b) How is a Liquidator appointed in case of dissolution of a Society registered under the Cooperative Societies Act, 1912? Describe the powers of such Liquidator. [7+6 = 13 marks]

Q. 7. (a) Can a company buy back its own shares under the Companies Act, 1956? If yes, what are the conditions applicable to such cases? (b) Explain the features of “Employees Deposit-linked Insurance Scheme” constituted under the Employees Provident Funds and Miscellaneous Provisions Act, 1952. [7+6 = 13 marks]

Q. 8. (a) State the circumstances whereunder shares of a company can be issued at discount. What is the liability of directors for improper issue of shares at discount? (b) When does the gratuity, under the Payment of Gratuity Act, 1972 become payable? Who is entitled to get the amount of gratuity? [7+6 = 13 marks]

Q. 9. (a) What do you mean by “debenture”? How is a convertible debenture different from partly convertible debenture? (b) What are the grounds on the basis of which the Registrar can get a society dissolved under the Societies Registration Act, 1860? How is the surplus of a dissolved society disposed of? [7+6 = 13 marks]

Q. 10. (a) What do you understand by “charge” under the Companies Act, 1956? State the circumstances whereunder a floating charge crystallizes. (b) Describe the presumptions applicable in relation to a “Bill of Exchange” under the Negotiable Instruments Act, 1881. [7+6 = 13 marks]

C.A. INTER – GROUP 1 - MAY – 2002

Q 1 (a) Explain fully the doctrine of Ultra Vires and state its implication. (b) Define a Bill of Exchange as per the Negotiable Instrument Act, 1881 and explain its salient features. [12+8 = 20 marks]

Q 2 Explain any three of the following: (a) Amendment of the bye-laws of a registered society under the Cooperative Societies Act, 1912. (b) Liability of a member to be sued as stranger under the Societies Registration Act, 1860. (c) Recovery of Gratuity under the Payment of Gratuity Act, 1972. (d) Establishments to which the Employees’ Provident Fund and Miscellaneous Provisions Act, 1952, applies. (e) Meaning of “Salary or Wage” under the Payment of Bonus Act, 1965. [5+5+5 = 15 marks]

Q 3 (a) Explain the meaning of “Shelf Prospectus’. Which organizations are required to issue and file such a prospectus? (b) A company refuses to register transfer of shares made by X to Y. The company does not even send a notice of refusal to X or Y within the prescribed period. Has the aggrieved party any right(s) against the company for such a refusal? Advise. [7+6 = 13 marks]

Q 4 (a) When is an Allotment of Shares treated as an irregular allotment? State the effects of an irregular allotment. (b) When is an alteration of an instrument treated as a material alteration under the Negotiable Instruments Act, 1881? What is the effect of such an alteration? [7+6 = 13 marks]

Q 5 (a) What is meant by ‘Negotiation’? Distinguish between ‘Negotiability’ v/s ‘Assignability’ of an instrument. (b) Specify any six kinds of establishments, which are not covered under the Payment of Bonus Act, 1965? [7+6 = 13 marks]

Q 6 (a) Who is entitled to bonus under the Payment of Bonus Act, 1965? Does this Act prescribe any disqualifications also for claiming bonus? Explain (b) State and explain the circumstances under which the Registrar of Cooperative Societies may cancel the registration of a cooperative society under the provisions of the Cooperative Societies Act, 1912. [7+6 = 13 marks]

Q 7 (a) Can a non-profit organization be registered as a company under the Companies Act? If so, what procedure does it have to adopt. (b) Explain the provisions of the Employees’ Provident fund and Miscellaneous Provisions Act, 1952, authorisiing certain employers to maintain a Provident Fund Account. [7+6 = 13 marks]

Q 8 (a) Explain the meaning of ‘Sweat Equity Shares’ and state the conditions a company has to fulfill for issuing such shares. (b) How are Inspectors appointed under the Payment of Gratuity Act, 1972? [7+6 = 13 marks]

Q 9 (a) Explain the term ‘Share Warrant’. How does it differ from ‘Share Certificate’? (b) You want to set up an educational institution to be managed by a Society registered under the Societies Registration Act, 1860. What procedure do you have to follow for getting such a Society registered? [7+6 = 13 marks]

Q 10 (a) Name any five charges which are required to be registered under the Companies Act, 1956. What is the effect of non-registration of a charge under Companies Act, 1956? (b) when is presentment of an instrument not necessary under the Negotiable Instruments Act? [7+6 = 13 marks]

CA Inter November 2001

Q1 (a) Explain clearly the doctrine of ‘Indoor Management’ as applicable in cases of companies registered under the Companies Act, 1956. Explain the circumstances in which an outsider dealing with the company cannot claim any relief on the ground of ‘Indoor Management’. (b) Explain clearly the meaning of the term ‘Promissory Note’ as provided in the Negotiable Instruments Act, 1881. In what way does a ‘Promissory Note’ differ from a ‘Bill of Exchange’?. [12+8 = 20 marks]

Q2 Explain any three of the following: (a) Provisions relating to Audit of a Co-operative Society under the Co-operative Societies Act, 1912. (b) Provisions relating to Enforcement of Judgement against the Society under the Societies Registration Act, 1860. (c) Meaning of ; “Employer” under the Payment of Gratuity Act, 1972. (d) Meaning of ; “Appropriate Government” and “Factory” under the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952. (e) Meaning of “Allocable Surplus” and “Establishment in Public Sector” under the Payment of Bonus Act, 1965. [15 marks]

Q3 (a) State the remedies available against a company to a subscriber for allotment of ; shares on the faith of a misleading prospectus. What conditions must be satisfied by such a subscriber before opting for the remedies? (b) XYZ Co. Ltd. was in the process of incorporation. Promoters of the company signed an agreement for the purchase of certain furniture for the company and payment was to be made to the suppliers of furniture by the company after ; ; ; ; ; ; ; ; ; ; ; incorporation. The company was incorporated and the furniture was used by it. Shortly after incorporation, the company went into liquidation and the debt could not be paid by the company for the purchase of above furniture. As a result suppliers sued the promoters of the company for the recovery of money. - - Examine whether promoters can be held liable for payment under the following ; situations: (i) When the company has already adopted the contract after incorporation ? (ii) When the company makes a fresh contract with the suppliers in terms of pre-incorporation contract ?

Q4. (a) A Private Company has become a deemed Public Company on 3.1.2000 under Section 43A(i) of the Company Act, 1956 as thirty per cent of its paid-up share capital is held by a Public Company. Explain the procedure to be followed under the Companies Act for its conversion into a Private Company, assuming that its Articles of Association have not been altered after it has become a Deemed Public Company. What will be the position, if the company has accepted and continues to accept deposits from public either after issuing an advertisement inviting deposits or without issuing an advertisement inviting deposits? (b) What is a ‘Sans Recours’ indorsement ? A bill of exchange is drawn payable to X or order. X indorses it to Y, Y to Z, Z to A, A to B and B to X. State with reasons whether X can recover the amount of the bill from Y, Z, A and B, if he has originally indorsed the bill to Y by adding the words ‘Sans Recours’. [7+6 = 13 marks]

Q5 (a) Explain the meaning of the term ‘Holder’ under Negotiable Instruments Act, 1881. State the privileges of a ‘Holder in due course’. (b) In what way does the Payment of Bonus Act, 1965 regulate the payment of ‘Minimum” and ‘Maximum’ Bonus payable to an employee under the Act ? [7+6 = 13 marks]

Q6 (a) What deductions are allowed from the Gross Profit under the Payment of Bonus Act, 1965 as Prior charges? Also state the allowable deductions in case the employer is a company registered under the Companies Act, 1956, other than a banking company, as provided in Schedule III of the Act. (b) Explain the provisions of Co-operative Societies Act, 1912 with regards to inquiry by the Registrar into the affairs of a society and inspection of books of an indebted society. [7+6 = 13 marks]

Q7 (a) M Company Limited issued 2,00,000 equity shares of Rs. 10 each. You are allotted 100 shares. Explain any ten rights you have as a member of the company. (b) Explain the provisions of the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 relating to ; (i) Transfer of accounts of an employee in case of his leaving the employment and taking up employment in another establishment. (ii) Liability of a transferee employer in case of transfer of establishment by an employer. [7+6 = 13 marks]

Q8 (a) Can a Public Limited Company reduce its Share Capital? If so, when and how? Also state the procedure it has to follow for doing so. (b) What is meant by ‘Continuous Service’ under the payment of Gratuity Act, 1972? [7+6 = 13 marks]

Q9 (a) What conditions as required under the Companies Act, 1956 must be satisfied by a company for the forfeiture of shares of a member, who has defaulted the payment of calls? What are the consequences of such forfeiture? (b) The Societies Registration Act, 1860 has specified certain types of societies, which can be registered under the Act. List out the names of such societies. [7+6 = 13 marks]

Q10 (a) What is a Debenture Certificate? When and within what time it should be issued? Is there any penalty for the delay or default in the issue of such certificate? (b) Under the provisions of Negotiable Instruments Act, 1881 state as to when shall an alteration made in a negotiable instrument be called ‘Material alteration’. What alterations in such an instrument are permitted under the Act? What is the effect of such alteration? ; [7+6 = 13 marks]

CA Inter May, 2001 - Q 1 and 2 are compulsory. Answer any five from the rest.

Q 1(a) Explain the circumstances in which a company can alter its ‘Objects’ as stated in the Memorandum of Association. What procedure shall such a company follow to give effect to the alteration? [12 marks]

Q 3 (a) State the procedure to be followed for converting a Private Limited Company into a Public Limited Company under the Companies Act, 1956. (b) DJA Company Limited is holding 40% of total equity shares in MR Company Limited (incorporated on 1.1.1998) decided to raise the paid-up Equity Share Capital by issuing further shares and also decided not to offer any shares to DJA Company Limited on the ground that it was already holding a high percentage of shares in MR Company Limited. Articles of MR Company Limited provides that the new shares be offered to the existing shareholders of the company. On 1.3.2001 new shares were offered to all the shareholders excepting DJA Company Limited. Referring to the provisions of the Companies Act, 1956 examine the validity of decision of Board of Directors of MR Company Limited of not offering any further shares to DJA Company Limited. [7+6 = 13 marks]

Q 4 (a) With reference to the provisions of the Companies Act, 1956 explain the circumstances under which a subsidiary company can become a member of its holding company. Examine the position of the following with regard to membership in a company (i) An Insolvent (ii) Partnership Firm [ 7 marks]

Q 7 (a) Explain the following with reference to transfer of shares in a company registered under the Companies Act, 1956 : (i) Blank Transfers (ii) Forged Transfers. [7 marks]

Q 8 (a) In what way does the Companies Act, 1956 regulate and restrict the following in respect of a company going for public issue of shares : (i) Minimum Subscription; and (ii) Application Money payable on shares being issued ? [7 marks]

Q 9 (a) ABC Limited realised on 2^nd May, 2001 that particulars of charge created 12th march, 2001 in favour of a Bank were not filed with the Registrar of Companies for Registration. What procedure should the Company follow to get the charge registered with the Registrar of Companies ? Would the procedure be different if the charge was created on 12^th February, 2001 instead of 12^th March 2001? Explain with reference to the relevant provisions of the Companies Act, 1956 . [7 marks]

Q 10 (a) Explain the manner of the term ‘Underwriting’ and ‘Underwriting Commission’. In what way does the Companies Act, 1956 regulate payment of such Commission ? Explain. [7 marks]

CA Inter November, 2000 - Q 1 and 2 are compulsory. Answer any five from the rest.

Q 1(a) ‘A company is a person separate from its members.’ Explain. Examine the circumstances under which the Courts may disregard the Company’s Corporate Personality.(12 marks)

Q 3 (a) In what ways does the Companies Act, 1956 regulate the issue of shares at a ‘Premium’? State the purposes for which share premium so charged can be utilised. To what extent it is possible for a company to issue shares at a premium for consideration other than cash? (b) DJA Private Limited incorporated on 1st January, 2000, is holding 49 per cent of the paid up Share Capital of MR Limited from 4th January, 2000. Referring to the provisions of the Companies Act, 1956, examine whether DJA Private Limited has become a ‘Deemed Public Company’. - . - What would be your answer in case DJA Private Limited does not hold shares in any other company including MR Limited, but 40 per cent of its paid-up Shares Capital (i.e. of DJA Private Limited) is held by a banking company as a trustee. [7+6 = 13 marks]

Q 4. (a) Explain clearly the meaning of ‘Certification of Transfer’ as provided in the Companies Act, 1956. When is a company liable for such certification? [7 marks]

Q 7. (a) Define a Private Company. Explain the procedure for conversion of a Public Company into a Private Company. [7marks]

Q 8. (a) What do you understand by the term ‘charge’? State the list of charges, which are required to be filed for Registration with the Registrar of Companies. [7marks]

Q 9. (a) Examine the defenses available to a Director, who is held liable for issue of a Prospectus containing an ‘Untrue’ statement, in a suit filed against him by an aggrieved Party. [7 marks]

Q 10. (a) When can a Public Company offer the new shares (further issue of shares) to persons other than the existing shareholders of the Company ? Can these shares be offered to the Preference shareholders? [7 marks]

CA Inter May, 2000

Q-1 (a) A public company proposes to purchase its own shares. State the source of funds that can be utilised by the company for purchasing its own shares and the requirements to be complied with by the company under the Companies Act before and after the shares are so purchased. (b) State briefly the rules laid down under the Negotiable Instruments Act for determining the date of maturity of a bill of exchange. Ascertain the date of maturity of a bill payable hundred days after sight and which is presented for sight on 4th May, 2000. [12+8 = 20 marks]

Q-2 Explain any three of the following : (a) restriction on transfer of share or interest of member in a cooperative society registered with unlimited liability and a cooperative society registered with liability limited by shares. (b) Liability of members of a society under the Societies Registration Act, 1860. (c) Compulsory insurance of employer's liability under the Payment of Gratuity Act, 1972 (d) Establishments to which the Employees Provident Funds and Miscellaneous Provisions Act, 1952, does not apply. (e) "Accounting year" of different types of establishments under the Payment of Bonus Act, 1965. [5 x 3 = 15 marks]

Q-3 (a) Explain the consequences and remedy, if any in respect of the following situations : (i) A private company has contravened the provisions of Section 3(i)(iii) (re-definition of a private company) of the Companies Act, 1956. (ii) The number of members of a company registered as a public company is reduced to five. (b) the paid up share capital of Advanced Castings Private Ltd., is Rs. one crore consisting of 8,00,000 equity shares of Rs. 10 each fully paid up and 2,00,000 cumulative preference shares of rs 10 each fully paid up. Quality Forgings Pvt. Ltd. and Supreme Engineering Pvt. Ltd. are holding 3,00,000 equity shares and 1,50,000 equity shares respectively in Advanced Castings Private Ltd. Quality Forgings Pvt. Ltd. and Supreme Engineering Pvt.Ltd. are the subsidiaries of Unique Machineries Pvt. Ltd. Examine with reference to the provisions of the Companies Act whether Advanced Castings Private Ltd. is a subsidiary of Unique Machineries Pvt.Ltd. Will your answer be different, if Unique Machineries Pvt. Ltd. controls the composition of Board of Directors of Advanced Castings Private Ltd ?

Q-4 (a) Explain the importance of registered office of a company. State the legal requirements under the Companies Act, 1956, for transfer of registered office of a company from one State to another State. (b) A finance company after having issued a cheque in favour of a depositor informs the depositor not to present the cheque as well as informs the bank to stop payment. Examine with reference to the provisions of the Negotiable Instruments Act whether it is an offence under the Act. [7+6 = 13 marks]

Q-5 (a) Distinguish between inland and foreign bills. (b) What are the days on which an employee shall be deemed to have worked for the purpose of computation of bonus payable to him ? State with reasons whether such computation of number of working days on which an employee has worked is required in an establishment paying minimum bonus to its employees where none of the employees earned less than Rs. 2,400 in an accounting year. [7+6 = 13 marks]

Q-6 (a) Explain with reference to the provisions of the Payment of Bonus Act the possibility of a non-banking company relying on its Balance Sheet and Profit and Loss Account in the case of a dispute with its employees relating to bonus payable under the Act and the limitations, if any, in this regard. (b) Are there any restrictions on a society registered under the Cooperative Societies Act with regard to distribution of profits among members and contributions to charitable purpose ? [7+6 = 13 marks]

Q-7 (a) What is meant by `sweat equity shares'? What are the conditions to be fulfilled by a company proposing to issue `sweet equity shares' under the Companies Act, 1956. (b) Who determines the moneys due from an employer under the Employees Provident Fund and Miscellaneous Provisions Act, 1952 ? State the factors considered by the authorities at the time of determining the amount. [7+6 = 13 marks]

Q-8 (a) State the procedure to be followed by a person nominated by a shareholder to get the shares registered in his name or transfer the shares in the event of death of the nominator. Are there any restrictions on the nominee receiving dividends and exercising voting rights in respect of such shares in the event of death of the nominator ? (b) Explain the rules relating to computation of gratuity payable to monthly rated employees, piece-rated employees, employees employed in seasonal establishment ; and disabled employees. [7+6 = 13 marks]

Q-9 (a) How far can a minor become a member of a company under the Companies Act, 1956 ? (b) What are the circumstances under which a Court can interfere in the internal management of the affairs of a society registered under the Societies Registration Act, 1860. [7+6 = 13 marks]

Q-10 (a) Explain the meaning and significance of the `Pari Passu' clause in a debenture. State the particulars to be filled with the Registrar of Companies in case of such debentures secured by a charge on certain assets of the company. (b) X, a major, and M, a minor, executed a promissory note in favour of P. Examine with reference to the provisions of the Negotiable Instruments Act, the validity of the promissory note and whether it is binding on X and M. [7=6 = 13 marks]

CA Inter November 1999

Q. 1 (a) In what respects does the "Memorandum of Association" differ from the "Articles of Association" ? How far shall the provisions of these documents have a binding authority upon the contractual relations between different parties on registration of a company ? [12 marks]

Q. 3 (a) Who is an expert ? Ascertain the liability of an expert for untrue statements given by him in the prospectus of a company. Under what circumstances is an expert not liable for such untrue statements in the prospectus ? (b) "Sunrise Ltd." is authorised by its articles to accept the whole or any part of the amount of remaining unpaid calls from any member although no part of that amount has been called up. ‘X’, a shareholder of the Sunrise Ltd., deposits in advance the remaining amount due on his shares without any calls made by "Sunrise Ltd." Referring to the provisions of the Companies Act, 1956, decide the rights and liabilities of Mr. X, which will arise on the payment of calls made in advance. [7+6 = 13 marks]

Q. 4 (a) What is meant by redemption of debentures ? State the types of remedies available to debenture holders : (i) when the debentures are not secured by any mortgage or charge, and (ii) when the debentures are secured by a mortgage or charge. [7 marks]

Q. 7 (a) (i) Comment : Every shareholder of a company is also known as a member, while every member may not be known as a shareholder. (ii) Explain, very briefly, the various ways by which membership of a company may be acquired. [7 marks]

Q. 8 (a) When may shares be forfeited ? Explain the procedure relating to forfeiture of shares. [7 marks]

Q. 9 (a) Explain the meaning of the term "Allotment of shares." What are the consequences of an irregular allotment of shares made by a company ? [7 marks]

Q. 10 (a) What is the meaning of ‘Certificate of Incorporation’ ? When may a public company commence business after issuing a prospectus to subscribe its shares ? [7 marks]

CA Inter, May 1999

Q-1 (a) What is meant by "deemed public company" ? Under what circumstances may a private company be treated by the law as "deemed public company" ? What are the special privileges and exemptions enjoyed by such companies as compared to other public companies under the Companies Act, 1956 ? [12 marks]

Q-3 (a) State the meaning of the "doctrine of indoor management". Under what circumstances is the doctrine of indoor management not applicable ? [7 marks]

Q-4 (a) How is membership of a company terminated ? In what respect may a member be differentiated from a shareholder ? [7 marks]

Q-7 (a) Explain the provisions of the Companies Act,1956 regarding the issue of shares at a discount. State the liability of the directors in respect of improper issue of shares at a discount. [7 marks]

Q-8 (a) What is meant by a ‘floating charge’ ? State the characteristics of a floating charge and distinguish it from a ‘fixed charge’. [7 marks]

Q-9 (a) What is the meaning of preference share capital of a company ? Explain very briefly the various kinds of preference shares a company is allowed to issue under the provisions of the Companies Act, 1956. [7 marks]

Q-10 (a) When and in what manner may a company be permitted to furnish an abridged form of prospectus ? Under what circumstances such abridged prospectus is not required to be accompanied with the share application form ? [ 7 marks]

CA Inter November 1998

Q. 1 (a) State and explain the meaning of the term ‘Articles of Association.’ Which type of companies must register Articles of Association with the Registrar of Companies ? State the procedure and limitations as regards to the alteration of the Articles of Association. (12 marks)

Q. 3 (a) Explain the meaning of ‘Pre-Incorporation Contracts.’ Is the company bound by such contracts ? How do such contracts differ from ‘provisional contracts’ ? (7 marks) (b) Explain the meaning of ‘Corporate Veil.’ Under what circumstances it can be lifted ? (6 marks)

Q. 4 (a) When an allotment of shares should be treated as irregular allotment ? State the effects of an irregular allotment of shares. (7 marks)

Q. 7 (a) Explain the term "Underwriting Commission." What are the conditions to be fulfilled by a company for the payment of such commission ? (7 marks)

Q. 8 (a) Explain the meaning of the term ‘Debentures’ under the Companies Act, 1956. When a debenture certificate is required to be issued ? Are there any penal provisions in the Act for not issuing the certificate within the stipulated period ? (7 marks)

Q. 9 (a) Under what circumstances can a company reduce its share capital ? Describe the formalities to be complied with and the procedure to be followed in this respect. (7 marks)

Q. 10 (a) What is meant by "Share Warrant" ? Explain the statutory provisions of the Companies Act relating to the issue of share warrants. In what respects does a share warrant differ from a share certificate ? (7 marks)

CA Inter May 1998

Q. 1 (a) State the procedure for converting a Public Ltd. Co. into a Pvt. Ltd. Co. and a Pvt. Ltd. Co. into a Public Ltd. Co. (12 marks)

Q. 3 (a) State the consequences when a Public Ltd. Co. fails to repay matured deposits which it has accepted from the public. Can such a company continue to invite or accept deposits from the public ? (7 marks) (b) A company desirous of issuing shares at a premium seeks your advice on the following matters : (i) Purpose for which money received as share-premium may be applied by the company; (ii) Whether the company can issue such shares at a premium for consideration other than Cash ? Referring to the provisions of the Companies Act, 1956, advice the company. ( 6 marks)

Q. 4 (a) When a director of a company is not liable to an aggrieved party for the issue of a prospectus containing a ‘Mis-statement’ ? In what manner he can defend himself for non-compliance of the provisions of Section 56 of the Companies Act ? (7 marks)

Q. 7 (a) Explain the law relating to service of documents by a company on members residing in India and members residing abroad. When is service deemed to be effective in case the documents are sent by post ? (7 marks)

Q. 8 (a) A Public Ltd. Co. wants to increase its subscribed share capital by offering the new shares to the persons who are not the members of the company. Referring to the provisions of the Companies Act, 1956, advice the company about the procedure the company has to adopt to give effect to the above proposal. (7 marks)

Q. 9 (a) Who is a Member of a Public Ltd. Co. ? How membership of a Public Ltd. Co. is acquired ? Can a Public Ltd. Co. be a member of another Public Ltd. Co. ? (7 marks)

Q. 10 (a) What is the meaning of ‘Charge’ ? State the types of charges to be registered with the Registrar of Cos. and explain the consequences of non-registration of such charges. (7 marks)