Solved Ans. LAW CA IPCC Nov. 2010
(c) By entering the ATM card and providing correct PIN customer by his conduct entered into acontract with bank.
3 x 1 = 3 marks ]
RSP Limited allotted 500 fully paid-up shares of Rs. 100 each to Z, a minor, in response to his application withoutknowing that he was a minor and entered his name in the Register of members. Later on, the company came to knowof this fact. The company cancelled the allotment and struck-off his name from the Register of members and alsoforfeited his entire share money. He filed a suit against the action of the company. Decide whether Z would be givenany relief by the court under the provisions of the Companies Act, 1956.
5 marks ]Ans:
As per Companies Act, 1956 fully paid up shares can be issued to the minor. In the instant case RSP Limitedallotted 500 fully paid-up shares of Rs. 100 each to Z, a minor, in response to his application without knowing that hewas a minor and entered his name in the ROM. Since, the shares are fully paid-up, it can be issued to minor.In this case company cannot remove the name of Z from the ROM.
State with reasons whether the following statements are correct or incorrect.(i)
A company should file its annual return within six months of the closing of the financial year.(ii)
If company does not receive the minimum subscription, it should refund money received fromapplicants within 120 days of issue of prospectus.
2 x 1 = 2 marks ]
Incorrect: The company shall prepare and file the annual return with the Registrar within 60 daysfrom the day of holding the annual general meeting. (Sec 159).
Correct: If the minimum Subscription not received within one hundred and twenty days(120) afterthe first issue of the prospectus, all moneys received from applicants for shares shall be forthwith repaid tothem without interest; and if any such money is not so repaid within one hundred and thirty days after theissue of the prospectus, the directors, of the company shall be jointly and severally liable to repay that moneywith interest at the rate of six per cent per annum from the expiry of the one hundred and thirtieth day.
Choose the correct answer from the following and give reasons :(i) An index of members must be maintained by a company when its membership exceeds :(a) 20(b) 50(c) 70(d) 80.(ii)
Unless the Articles provide for a large number, the quorum for a general meeting for a public limitedcompany is(a) 1/3
of the members(b) 5
members personally present(c) 2 members(d) 7 members.(iii) Sources of funds for buy back of shares are :(a) free reserves or securities premium account(b) the proceeds of any shares or other specified securities(c) and (b) both(d) none of the above.
[ 3 x 1 = 3 marks ]Ans (i) : (b)
As per section 151 of the Companies Act, 1956 every company having more than 50members shall maintain an index of members.
Ans(ii) : (b)
As per section 174 of the Companies Act quorum for general meeting of a public company is5 members personally present.
Ans (iii) : (c)
company may buy back its own shares or other specified securities from following
-(a) out of its free reserves ; or(b) out of the securities premium a/c; or(c) out of the proceeds of an earlier issue other than fresh issue of shares made specifically for buyback purposes.
Qn. 2. (a)
X was an employee of Universal Limited. He retired from the company on 31
March, 2010 and died afterfew months. Y, the heir of X, applied within the prescribed time to the company for payment of due bonus of X. The