COMPANY LAW - M.COM 4TH SEMESTER FINAL EXAMINATION, 2019

    4 SEM (CBCS) MCOM 101            

2019

(June)

COMMERCE

Paper : 40101

(Company Law)

Full Marks : 60

Time : Three hours

The figures in the margin indicate full marks for the questions.

1. (a) " Promoters stand in fiduciary relationship with the company they promote" - explain. 15

or

(b)  (i) Elucidate the rules which must be observed in connection with the name of a Company.  7½

    (ii) "The power of altering the Articles is wide yet it is subject to large number of limitations" - Explain. 7½

2. (a)  (i) Explain the term 'invitation to public'. 7½

          (ii) What do you understand by the Golden rule as to the framing of prospectus? 7½

or

  (b) Briefly explain the extent of company's liability to shareholders for mis-statement in the prospectus. What are the defences available to liable persons for avoiding liability? 

9+6=15

3. (a) What is "Proxy"? Explain the provisions of the Companies Act, 2013 with regard to proxies. 

5+10=15 

or

  

    (b) Write short notes on the following: 

5×3=15

            (i) Modes of Voting

            (ii) Class Meeting

            (iii) Adjournment of Meeting.

4. (a) Discuss the provisions of Companies Act, 2013 relating to payment of dividends with particular reference to payment o f dividends out of reserve. 15

or

   (b) (i) Briefly explain the provisions of the Companies Act, 2013 with regard to Unpaid Dividend Account. 7½

       (ii) The Articles of Association of ABC Limited contained a clause that in case of insufficient profits, the company can pay dividends to its equity shareholders out of capital at a rate not exceeding 10% of the face value of shares. In view of the legal provisions, answer the following questions:         7½

                   (a) Is the clause valid?

                 (b) If acting upon the clause, directors recommend and pay the dividends, then what is their liability ?

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