Corporate and Other Laws - November 2020

(a) Mr. Raja along with his family members is running successfully a trading business. He is capable of developing his ideas and participating in the market place. To achieve this, Mr. Raja formed a single person economic entity in the form of One Person Company with his brother Mr. King as its nominee. On 4th May 2020, Mr. King withdrew his consent as Nominee of the One Person Company. Can he do so under the provisions of the Companies Act…

(a) The Authorized share capital of SSP Limited is ` 5 crore divided into 50 Lakhs equity shares of ` 10 each. The Company issued 30 Lakhs equity shares for subscription which was fully subscribed. The Company called so far ` 8 per share and it was paid up. Later on the Company proposed to reduce the Nominal Value of equity share from ` 10 each to ` 8 each and to carry out the following proposals: (i) Reduction in…

(a) Explain the following in brief with reference to Companies Act 2013: (i) National Financial Reporting Authority (NFRA) (ii) Corporate Social Responsibility (CSR) Committee (b) (i) (3 + 3 = 6 Marks) Mrs. K went to a Jewellary shop to purchase diamond ornaments. The owners of jewellary shop are notorious and indulging in smuggling activities. Mrs. K purchased diamond ornaments honestly without making proper enquiries. Was the purchase made in Good faith as per the provisions of the General Clauses…

(a) Viki Limited engaged in the business of consumer durables. It is managed by a team of professional managers. The Company has not made default in payment of statutory dues, and repayment of debenture/ Institutional loan with interest. The Company advertised a circular in the newspaper dated 20th September 2020 inviting the deposits from the members and public for the first time. The latest audited financial statement of the Company revealed the following data, as on 31.3.2020: Paid up share…

ABC Limited is a public company incorporated in New Delhi. The Board of Directors (BOD) of the company wants to bring a public issue of 100000 equity shares of ` 10 each. The BOD has appointed an underwriter for this issue for ensuring the minimum subscription of the issue. The underwriter advised the BOD that due to current economic situation of the Country it would be better if the company offers these shares at a discount of ` 1 per…