QUESTION NO: 1
a. A company, ABC limited as on 31.03.2023 had a paid-up capital of ₹. 1 lakh (10,000 equity
shares of ` 10 each). In June 2023, ABC limited had issued additional 10,000 equity shares of
₹.10 each which was fully subscribed. Out of 10,000 shares, 5,000 of these shares were
issued to XYZ private limited company. XYZ is a holding company of PQR private limited by
having control over the composition of its board of directors.
Now, PQR private limited claims the status of being a subsidiary of ABC limited as being a
subsidiary of its subsidiary i.e. XYZ private limited. Examine the validity of the claim of PQR
private limited.
State the relationship if any, between ABC limited & XYZ private limited as per the provisions
of the Companies Act, 2013. 6 Marks
b. Jagannath Oils Limited is a public company and having 220 members of which 25 members
were employee in the company during the period 1st April, 2006 to 28th June 2024. They
were allotted shares in Jagannath Oils Limited first time on 1st July, 2007 which were sold by
them Ist August, 2024. After some time, on Ist December, 2024, each of those 25 members
acquired shares in Jagannath Oils Limited which they are holding till date. On 16.03.2025
company wants to convert itself into a private company. State with reasons:
i) Whether Jagannath Oils Limited is required to reduce the number of members.
ii) Would your answer be different if above 25 members were the employee in Jagannath
Oils Limited for the period from 1st April, 2006 to 16th March, 2025 and continued to hold
the shares allotted by the company? 4 Marks
QUESTION NO: 2
a. What are the differences between equity shares and preference shares? 4 Marks
b. M and N holding 70% and 30% of the shares in the company. Both died in an accident.
Answer with reference to the provisions of the Companies Act, 2013, what will be the legal
effect on the company as both the members have died? 3 Marks
c. What is the legal effect of MOA and AOA? 3 Marks
QUESTION NO: 3
a. MTK Private Limited is a company registered under the Companies Act, 2013 on 5th January,
2022. The company has not started its business till now. On 7th March, 2025, a notice has
been received from ROC for non-filing of FORM No-INC-20A. Identify under which category
MTK Private Limited company is classified. Explain the definition of the category of the
company in detail. 4 Marks
b. Explain the concept of 'Corporate Veil'. Briefly state the circumstances when the corporate
veil can be lifted as per the provisions of the Companies Act, 2013. 6 Marks
QUESTION NO: 4
a. Ram wants to incorporate a company in which he will be the only member. According to
provisions of the Companies Act, 2013, what type of company can be incorporated? What
are the salient features of this type of company? 7 Marks
b. Define small company as per provisions of Companies Act 3 Marks
QUESTION NO: 5
a. A, B and C has decided to set up a new club with name of ABC club having objects to
promote welfare of Christian society. They planned to do charitable work or social activity
for promoting the art work of economically weaker section of Christian society. The
company obtained the status of section 8 company and started operating from 1st April,
2022 onwards.
However, on 30th September 2024, it was observed that ABC club was violating the objects
of its objective clause due to which it was granted the status of section 8 Company under
the Companies Act 2013.
Discuss what powers can be exercised by the central government against ABC club, in such a
case? 5 Marks
b. Sound Syndicate Ltd., a public company, its articles of association empowers the managing
agents to borrow both short and long term loans on behalf of the company, Mr. Liddle, the
director of the company, approached Easy Finance Ltd., a non-banking finance company for
a loan of Rs. 25,00,000 in name of the company.
The Lender agreed and provided the above said loan Later on, Sound Syndicate Ltd. refused
to repay the money borrowed on the pretext that no resolution authorizing such loan have
been actually passed by the company and the lender should have enquired about the same
prior providing such loan hence company not liable to pay such loan.
Analyse the above situation in terms of the provisions of Doctrine of Indoor Management
under the Companies Act, 2013 and examine whether the contention of Sound Syndicate
Ltd. is correct or not? 3 Marks
c. Define Foreign Company as per provisions of the Companies Act, 2013. 2 Marks