Corporate and Other Laws - November 2022

The Board of Directors of SRD Limited, an unlisted public company, engaged in the business of manufacturing of two wheelers; intend to issue debentures in order to finance its project of electric scooter manufacturing. The company seeks your advice regarding the maximum amount of debentures it can issue to raise the desired funds. The company has provided the following abstracts from its financial statements ended on 31st March, 2022: Authorised Share Capital: 1,00,000 Nos. of Equity Shares of `100 each…

Share Capital of 10000 shares @ `10 each. The Company has received a requisition from Mr. A & Mr. B each holding 1500 equity shares to call an Extraordinary General Meeting to remove Managing Director of the company who has been found to be involved in some malpractices. The company failed to call the said meeting. The requisitionists desires to call the meeting by themselves to pass the resolution to remove the Managing Director. Explain the validity of such resolution…

(a) Referring the relevant provisions of the Companies Act, 2013, examine, whether following companies will be considered as listed company or unlisted company: 10 INTERMEDIATE EXAMINATION: NOVEMBER, 2022 (i) ABC Limited, a public company, has listed its non-convertible Debt securities issued on private placement basis in terms of SEBI (Issue and Listing of Debt Securities) Regulations, 2008. (ii) CHG Limited, a public company, has listed its non-convertible redeemable preference shares issued on private placement basis in terms of SEBI (Issue…

(a) Anika Limited has an Authorized Capital of 10,00,000 equity shares of the face value of `100 each. Some of the hides expressed their opinion in the Annual General Mee ting that it is very difficult for them to trade in the shares of the company in the mock m ade and requested the company to reduce the face value of each share to `10 and increase the number of shares to 1,00,00,000. Examine, whether the request of the shareholders…

(a) Aarna Ltd. was dealing in export of cotton fabric to specified foreign countries. The company was willing to purchase cotton fields in Punjab State. The prospectus issued by the company contained some important extracts of the expert report. The report was found untrue. Mr. Nick purchased the shares of Aarna Ltd. on the basis of the expert's report published in the prospectus. However, he did not suffer any loss due to purchase of such shares. Would Mr. Nick have…