Corporate and Other Laws - May 2022

(a) MNP Limited is a registered public company having the following: i Directors and their Relatives 18 Employees 26 Ex-Employees (Shares were allotted during employment) 15 Members holding shares jointly (7 x 2) 14 v Other Members 137 The Board of Directors of MNP Limited proposes to convert the company into a private limited company. Referring the provisions of the Companies Act, 2013, advise: i. Whether the company can be converted into a private company? ii. Whether existing number of…

Beauty Limited obtained a working capital loan from a Nationalized Bank against the hypothecation of Stocks & Accounts receivable of the Company. An instrument creating the charge was duly signed by the Company and the Bank. The Company is not willing to register the charges with the Registrar of Companies. In the light of the provisions, if the Companies Act, 2013, discuss: (1) Is there any provision empowering the Nationalized Bank (charge holder) to get the charges registered? (2) When…

(a) As per the financial statement as at 31.03.2021, the Authorized and Issued share capital of Manorama Travels Private Limited (the Company) is of ` 100 Lakh divided into 10 Lakh equity shares of ` 10 each. The subscribed and paid-up share capital on that date is ` 80 Lakh divided into 8 Lakh equity shares of ` 10 each. The Company has reduced its share capital by cancelling 2 Lakh issued but unsubscribed equity shares during the financial year…

ABC Private Ltd. has two wholly owned subsidiary companies, D Private Limited and E Private Limited. Examine, whether, D Private Limited and E Private Limited will be treated as related party as per the provisions of the Companies Act, 2013? (ii) Sapphire Private Limited has registered its articles along with memorandum as on 1st July 2021. The directors of the company seeks your advice regarding the effect of registration of the company on the company itself and on its members.…

Software Private Limited is engaged in the business of providing software services. The company appointed its statutory auditors. The engagement letter was signed with a clause that fee to be mutually decided. However, the remuneration was not finalized. Directors of the company seeks your advice for, provisions related to remuneration of directors1 as per the provisions of the Companies Act, 2013. 1 To be read as ‘auditors’ PAPER – 2 : CORPORATE AND OTHER LAWS 15 ABC & Co., Chartered…