Corporate and Other Laws - December 2021

Chhavish, an Indian citizen and resident of India formed “Ekta Readymade Garments (OPC) Private Ltd.” as One Person Company on 1st April 2018 with his wife Mrs. Jyoti as nominee. The authorized and paid-up share capital of the company is ` 35 lakhs. He got in touch with a readymade garments buyer and was expecting to receive a substantial order by August 2020 where final delivery will be completed by December 2020. To expand the production capacity, the decided to…

(a) Explain the provisions of e-voting in an annual general meeting in the following cases as per the Companies Act, 2013: (i) ‘A’ and his wife ‘B’ has joint Demat Account in Alfa Investment Ltd. in such a case, who will cast the vote in e-voting system? PAPER – 2 : CORPORATE AND OTHER LAWS 7 (ii) AGM is gong to be held on 07-09-2020. Then what will be the e- voting period and the time of closing? (4 Marks)…

RD Ltd. issued a prospectus. All the statements contained therein were literally true. It also stated that company had paid dividends for a number of years but did not disclose the fact that the dividends were not paid out of trading profits but out of capital profits. An allotee of shares claims to avoid the contract on the ground that the prospectus was false in material particulars. Decide that the argument of shareholder, as per the provision of the Companies…

Diya Limited, incorporated under the provisions of the Companies Act, 2013, has two subsidiaries – Jai Limited and Vijay Limited. All the three companies have prepared their financial statements for the year ended 31 st March, 2021. Examining the provisions of the Companies Act, 2013, explain in what manner the subsidiaries– Jai Limited and Vijay Limited shall prepare their Balance Sheet and Statement of Profit & Loss? (3 Marks) (ii) The Companies Act, 2013 has prescribed an additional duty on…

(a) Examine that following offers of ABC Limited are in compliance with provisions of the Companies Act, 2013, related to private placement or should these offers be treated as public: (i) ABC limited wants to raise funds for its upcoming project. It has issued private placement offer letters to 55 persons in their individual name to issue its equity shares. Out of these four are qualified institutional buyers. (ii) If in case (i) before allotment under this offer letter company…