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Corporate Economic Law
TOP 50 Questions
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Corporate Economic Law
Top 50 Questions
Q-1 Mr. Kishore is a director of AB Limited and PQ Limited. AB Limited was regular in filing the
annual returns but did not file annual accounts for the years ended 31st March, 2016, 2017 and
2018. AB Limited did not pay interest on loans taken from a public financial institution from 1st
April, 2017 and also failed to repay matured deposits taken from public on due dates from 1st
April, 2017 and the default continues.
Answer the following in the light of relevant provisions of the Companies Act, 2013:
(i) Whether Mr. Kishore is disqualified under section 164 of the Companies Act, 2013?
(ii) Whether Mr. Kishore can continue as a director in AB Limited and PQ Limited?
(iii) Whether Mr. Kishore can seek reappointment when he retires by rotation at the Annual
General Meeting of AB Limited to be held in September, 2018?
(iv) Mr. Kishore is proposed to be appointed as additional director of XY Limited in June,
2018. Is he eligible to be appointed a additional director in XY Limited?
Q-2 Ms. Jal Shvitha is a qualified Chartered Accountant and is known for her In-depth
knowledge of Corporate and Economic Laws. She is a Woman Director in PQR Ltd. Due to her
tight pre-occupation; she could not attend any Board Meetings of the Company held for a
period of 12 months though she has taken leave of absence. Despite the fact that though under
Section 167(1)(b) of the Companies Act, 2013 her office of directorship gets vacated,
nevertheless, due to her professional competency:
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,(i) The Board of PQR Ltd. wants to keep Ms. Jai Shvitha's Directorship in the Company and
hence proposes to waive the event of absence and/or condone her absence from
attending Board meetings.
(ii) Ms. Jai Shvitha also wants to keep the Directorship in PQR Ltd.
In the light of the relevant provisions of the Companies Act, 2013, analyze the above situations
and advice the Board on the course of action that they can adopt.
Q-3 Annual general meeting of Hero Ltd. has been scheduled In compliance with the
requirements of the Companies Act, 2013. In this connection, it has some directors who are
rotational and out of which some have been appointed long back, some have been appointed
on the same day.
Decide in this connection,
(i) Which of the directors shall be retiring by rotation and be eligible for re-election?
(ii) In case two directors were appointed on the same day, how would you decide their
retirement by rotation?
(iii) In case the meeting could not decide how the vacancies caused by retirement to be
dealt with, what shall be consequences?
(iv) What will be your answer, assuming that the matter could not be decided even at the
adjourned meeting?
Q-4 Seafood united company was incorporated on 1st April, 2015. The company has conducted
four Board meeting during the financial year 2015-16 i.e. on 6th April, 2015, 28th August, 2015,
30th September, 2015 and 30th March, 2016.
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, i) Has the company contravened the provisions of the Companies Act, 2013 in respect of the
conduct of the meetings?
ii) Will your answer differ if the company was incorporated under Section 8 of the Companies
Act, 2013?
Q-5 Moonlight Limited, held Its Board meeting through video conferencing. Due to technical
Problems, the video recording done was done, could not be retrieved. The company seeks your
advice for the preparation and recording of the minutes of the Board meeting in the above
situation, under the provisions of the Companies Act, 2013 and Rules made thereunder.
Q-6 You are the CFO and in-charge of compliances of a listed entity. The Company is
professionally managed and has earned a niche in the market for its robust management
practices. Mr. Edward, an eminent American businessman, currently living in Germany, joined
the Company as an Executive Director. On assuming his mantle, he being a foreign director
residing abroad, approached you to specifically understand the relevant provisions of the
Companies Act, 2013 relating to participation of directors in Board Meetings conducted
through Video Conferencing in respect of the following matters:
i) What shall be the venue of Board Meeting through video conference?
ii) How the statutory registers placed at the scheduled venue of the meeting shall deemed to
have been signed by the directors participating through electronic mode?
iii) Whether meetings can be convened through audio/teleconferencing i.e. without video
facility?
You are required to provide correct legal-position to the above queries after examining and
evaluating the provisions of the Companies Act, 2013.
GMTESTSERIES.COM®
Corporate Economic Law
TOP 50 Questions
Online Test Series for CA, CS & CMA Exams
Served more than 2 Lakh Students since 2014
GMTESTSERIES.COM®
, CA Final New Course
Corporate Economic Law
Top 50 Questions
Q-1 Mr. Kishore is a director of AB Limited and PQ Limited. AB Limited was regular in filing the
annual returns but did not file annual accounts for the years ended 31st March, 2016, 2017 and
2018. AB Limited did not pay interest on loans taken from a public financial institution from 1st
April, 2017 and also failed to repay matured deposits taken from public on due dates from 1st
April, 2017 and the default continues.
Answer the following in the light of relevant provisions of the Companies Act, 2013:
(i) Whether Mr. Kishore is disqualified under section 164 of the Companies Act, 2013?
(ii) Whether Mr. Kishore can continue as a director in AB Limited and PQ Limited?
(iii) Whether Mr. Kishore can seek reappointment when he retires by rotation at the Annual
General Meeting of AB Limited to be held in September, 2018?
(iv) Mr. Kishore is proposed to be appointed as additional director of XY Limited in June,
2018. Is he eligible to be appointed a additional director in XY Limited?
Q-2 Ms. Jal Shvitha is a qualified Chartered Accountant and is known for her In-depth
knowledge of Corporate and Economic Laws. She is a Woman Director in PQR Ltd. Due to her
tight pre-occupation; she could not attend any Board Meetings of the Company held for a
period of 12 months though she has taken leave of absence. Despite the fact that though under
Section 167(1)(b) of the Companies Act, 2013 her office of directorship gets vacated,
nevertheless, due to her professional competency:
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,(i) The Board of PQR Ltd. wants to keep Ms. Jai Shvitha's Directorship in the Company and
hence proposes to waive the event of absence and/or condone her absence from
attending Board meetings.
(ii) Ms. Jai Shvitha also wants to keep the Directorship in PQR Ltd.
In the light of the relevant provisions of the Companies Act, 2013, analyze the above situations
and advice the Board on the course of action that they can adopt.
Q-3 Annual general meeting of Hero Ltd. has been scheduled In compliance with the
requirements of the Companies Act, 2013. In this connection, it has some directors who are
rotational and out of which some have been appointed long back, some have been appointed
on the same day.
Decide in this connection,
(i) Which of the directors shall be retiring by rotation and be eligible for re-election?
(ii) In case two directors were appointed on the same day, how would you decide their
retirement by rotation?
(iii) In case the meeting could not decide how the vacancies caused by retirement to be
dealt with, what shall be consequences?
(iv) What will be your answer, assuming that the matter could not be decided even at the
adjourned meeting?
Q-4 Seafood united company was incorporated on 1st April, 2015. The company has conducted
four Board meeting during the financial year 2015-16 i.e. on 6th April, 2015, 28th August, 2015,
30th September, 2015 and 30th March, 2016.
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, i) Has the company contravened the provisions of the Companies Act, 2013 in respect of the
conduct of the meetings?
ii) Will your answer differ if the company was incorporated under Section 8 of the Companies
Act, 2013?
Q-5 Moonlight Limited, held Its Board meeting through video conferencing. Due to technical
Problems, the video recording done was done, could not be retrieved. The company seeks your
advice for the preparation and recording of the minutes of the Board meeting in the above
situation, under the provisions of the Companies Act, 2013 and Rules made thereunder.
Q-6 You are the CFO and in-charge of compliances of a listed entity. The Company is
professionally managed and has earned a niche in the market for its robust management
practices. Mr. Edward, an eminent American businessman, currently living in Germany, joined
the Company as an Executive Director. On assuming his mantle, he being a foreign director
residing abroad, approached you to specifically understand the relevant provisions of the
Companies Act, 2013 relating to participation of directors in Board Meetings conducted
through Video Conferencing in respect of the following matters:
i) What shall be the venue of Board Meeting through video conference?
ii) How the statutory registers placed at the scheduled venue of the meeting shall deemed to
have been signed by the directors participating through electronic mode?
iii) Whether meetings can be convened through audio/teleconferencing i.e. without video
facility?
You are required to provide correct legal-position to the above queries after examining and
evaluating the provisions of the Companies Act, 2013.
GMTESTSERIES.COM®
