Corporate and Other Laws - May 2024

(a) MNO limited has the following equity share capital – Class-1: Equity Share Capital – 3,00,000 equity shares of ` 10 each. ` 30,00,000 (1 voting right for every 1 share) Class-2: Equity share Capital – 50,000 equity shares of ` 10 each. ` 5,00,000 (1 voting right for every 5 shares) At the time of issue, the company had fulfilled all the conditions related to the issue of equity share capital. The company wants to vary the voting rights…

(a) Referring to the provisions of the Companies Act, 2013, answer the following queries: (i) What is the type of resolution to be passed and maximum number of persons to whom an offer by private placement in a financial year be made? (ii) Explain the consequences of non-allotment of shares within the stipulated timeline. (iii) In case the shares were allotted within the requisite allowed time, when can the company start utilizing the funds received by it from such private…

(a) "A Bonus share is a distribution of capitalized undivided profit having an identity and value capable of being bought and sold." in reference to the above line elaborate the pre-requisites for issue of bonus shares as enlisted in the Companies Act, 2013. (5 Marks) (b) Q L Ltd. is a public limited company incorporated in Surat, Gujarat with 1200 members. On 10.12.2023 a general meeting was convened in which 14 members were present in person. Mr. Mohan was acting…

Long Boots Ltd. a listed company is engaged in the manufacturing of shoes and related accessories. The Business is set on a recovery mode by the induction of the new Production Manager, Mr. A. The Board of Directors of the company has recommended the declaration of a dividend of ` 50 lakh after a gap of eight years during which profits were inadequate to distribute the same. 45 INTERMEDIATE EXAMINATION: MAY 2024 The dividend thus proposed is to be met…

(a) Stallworth Ltd., a listed company having a paid up share capital of ` 11 crore with a turnover of ` 100 crore had appointed an Audit Committee which recommended M/s ANC & Associates, a firm of Chartered Accountants having such qualifications and experience as is required for appointment as the auditor of the company. The next Annual General Meeting (the AGM) was due on 30.09.2023. The Board disagreed with the said recommendation of the committee and refer back to…

(a) LKJ Ltd. is a company having paid up share capital of ` 12.50 crore with total number of members being 3500. The board of directors have called a general meeting (the meeting) to be conducted on 06.05.2023 at 2.00 pm. On the date of the meeting the required quorum was not present within half an hour and hence was adjourned to the next week on 13.05.2023 on 52 CORPORATE AND OTHER LAWS same day at same venue. In reference…