Company law chp1,2

May 18 rtp

1)1. The paid-up share capital of Saras Private Limited is ` 1 crore, consisting of 8 lacs Equity
Shares of ` 10 each, fully paid-up and 2 lacs Cumulative Preference Shares of `10 each,
fully paid-up. Jeevan (JVN) Private Limited and Sudhir Private Limited are holding 3 lacs
Equity Shares and 50,000 Equity Shares respectively in Saras Private Limited. Jeevan
Private Limited and Sudhir Private Limited are the subsidiaries of Piyush Private Limited.
With reference to the provisions of the Companies Act, 2013 examine whether Saras
Private Limited is a subsidiary of Piyush Private Limited? Would your answer be differe nt
if Piyush Private Limited has 8 out of 9 Directors on the Board of Saras Private Limited?

2) (a) A company issued a prospectus. All the statements contained therein were literally
true. It also stated that the company had paid dividends for a number of years, but
did not disclose the fact that the dividends were not paid out of trading profits, but out
of capital profits. An allottee of shares wants to avoid the contract on the ground that
the prospectus was false in material particulars. Discuss can he do so?

Nov 2018

1)Prakhar Ltd. intends to raise share capital by issuing Equity Shares in different stages over
a certain period of time. However, the company does not wish to issue prospectus each
and every time of issue of shares. Considering the provisions of the Companies Act, 2013,
discuss what formalities Prakhar Ltd. should follow to avoid repeated issuance of
prospectus?

2)The Board of Directors of Sindhu Limited wants to make some changes and to alter some
Clauses of the Articles of Association which are to be urgently carried out, which include
the increase in Authorized Capital of the company, issue of shares, increase in borrowing
limits and increase in the number of directors.
Discuss about the provisions of the Companies Act, 2013 to be followed for alteration of
Articles of Association.

Rtp may19

1)MNO a One Person company (OPC) was incorporated during the year 2015-16 with an
authorised capital of ` 45 lakhs (4.5 lakhs shares of ` 10 each). The capital was fully subscribed
and paid up. Turnover of the company during 2015-16 and 2016-17 was ` 2
crores and ` 2.5 crores respectively. Promoter of the company seeks your advice in the
following circumstances, whether MNO (OPC) can convert into any other kind of company
during 2017-18. Please, advise with reference to relevant provisions of the Companies Act,
2013 in the below mentioned circumstances:
(i) If promoter increases the paid up capital of the company by ` 10 lakhs during 2017-18
(ii) If turnover of the company during 2017-18 was ` 3 crores.
2. The paid-up share capital of Altar Private Limited is ` 1 crore, consisting of 8 lacs Equity
Shares of ` 10 each, fully paid-up and 2 lacs Cumulative Preference Shares of `10 each,
fully paid-up. New Private Limited and Ultra Private Limited are holding 3 lacs Equity
Shares and 50,000 Equity Shares respectively in Altar Private Limited. New Private Limited
and Ultra Private Limited are the subsidiaries of PQR Private Limited. With reference to
the provisions of the Companies Act, 2013 examine whether Altar Private Limited is a
subsidiary of PQR Private Limited? Would your answer be different if PQR Private Limited
has 8 out of 9 Directors on the Board of Altar Private Limited?

Mtp

1) 3. (a) Alfa school started imparting education on 1.4.2010, with the sole objective of
providing
education to children of weaker society either free of cost or at a very nominal fee
depending
upon the financial condition of their parents. However, on 30th March 2018, it came to
the
knowledge of the Central Government that the said school was operating by violating the
objects
of its objective clause due to which it was granted the status of a section 8 company
under the Companies Act, 2013. Describe what powers can be exercised by the Central
Government
against the Alfa School, in such a case?
2) 4. (a) What is meant by “Abridged Prospectus”? Under what circumstances an abridged
prospectus need
not accompany the detailed information regarding prospectus along with the application
form?
What are the penalties in case of default in complying with the provisions related to issue
of
abridged prospectus?