Corporate and Other Laws - November 2023

(a) ABC Limited issued equity shares worth ` 1,00,000 (10,000 shares of ` 10 each) on 1st April, 2023 which has been fully subscribed, whereby XYZ Limited holds 3,500 equity shares and PQR Limited holds 2,500 equity shares. Prior to the issue of equity shares, ABC Limited already hold 20% of the equity shares of MNP Limited. Further, XYZ Limited holds 10% of MNP Limited's equity shares as a trustee. MNP Limited controls the composition of the Board of Directors…

Wills Private Limited convened its Annual General Meeting (AGM) with the intention of presenting financial statements for approval by the shareholders. However, due to the absence of the required quorum, the meeting had to be cancelled. Subsequently, the company's directors forgot to submit the annual return to the RoC. The directors held the @ The Institute of Chartered Accountants of India PAPER – 2 : CORPORATE AND OTHER LAWS 7 belief that the 60 days time frame for filing return…

(a) A group of enthusiastic women is planning to establish the Nursing Medicare Association, a limited liability company with the objective of providing comprehensive theory and practical training to aspiring nurses. The association aims to operate under the provisions of section 8 of the Companies Act, 2013, with a core objective of education. The intended duration for the association's operation is set at ten years, after which a dissolution will be initiated. In the event of dissolution, any remaining assets…

(a) RNL Ltd. issued a post-dated cheque of ` 5.50 Lakh to Mr. YR Gupta on account of full and final settlement of its liability for shares purchased of a renowned company. Company draws the cheque on 21.8.2023 and mentioned the cheque to be paid on 26.9.2023. Further, Company instructed the bank, on which cheque was drawn to stop the payment of cheque, if at the time of presentment, Bank account has insufficient fu nds to make payment. Mr. YR…

The Board of Directors of 'A Limited' made a private placement offer to a group of 150 persons to subscribe for 100 equity shares @ ` 100 each on 1stApril, 2022 after passing a special resolution in this regard. The company received application money from the members on 15 thApril, 2022 but did not make an allotment of shares till 31 stJuly, 2022. Instead, during this interim period, the company opted to utilize the application money for the payment of…