Secretarial Practices

Important Questions

Q.2. Short notes

1. Features of Preference Shares

2. Rights of Debenture holders
3. Importance of SEBI
4. Importance of Report in company
5. Bonus Shares
6. Private Placement
7. Committee Report
8. Functions of Stock Exchange
9. Provisions regarding unpaid/ unclaimed dividend
10. Ploughing back of profits
11. Dividend
12. Repayment of deposits
13. Acceptance of deposits
14. Procedure of Report writing
15. Employee stock option scheme
16. Types of Preference shares
17. Contents of Minutes
18. Types of Report
19. Role of Stock Exchanges in capital market
20. External factors determining Dividend Policy
21. Transfer of Shares

Q.3. Distinguish between

1. Equity shares and Preference shares

2. Share and Stock
3. Shares and Debentures
4. Shareholders and Debentureholders
5. Dividend and Interest
6. Transfer of Shares and Transmission of Shares
7. Final dividend and Interim Dividend
8. Progress Report and Committee Report
9. Share Certificate and Share Warrant
10. Annual Report and Committee Report
11. Annual Report and Progress Report
12. Letter of Allotment and Letter of Regret
13. Call Letter and Letter of Forfeiture
14. Bull and Bear
15. Jobber and Broker
Q.4. State whether the following statements are TRUE or FALSE with reasons

1. There is not any procedure of Allotment of shares.

2. Debenture is a loan capital of the company.
3. A private company need not prepare a Register of Members.
4. There is no need of Depository system of trading in India.
5. All Reports are prepared by secretary.
6. Debentureholders are creditors of the company.
7. Risk of bad delivery arises due to depository.
8. Statutory Books are not compulsory for every company.
9. Regret Letter is often sent to members.
10. Bonus Shares are offered to general public.
11. Maintenance of ‘Register of Members’ is optional for a Company.
12. Dividend can be declared even if a company suffers a loss in that particular year.
13. A Committee Report is prepared by the experts.
14. Letter of Forfeiture gives information about allotment of shares.
15. As per Companies Act 1956, dividend can be paid any time out of the capital.
16. The Register of Members is only a Prima Facie evidence to which person are members of the
company.
17. Debentureholders is the owner of the company.
18. Equity Shareholders gets dividend every year.
19. A Share Certificate is a bearer document of title to the shares issued by the company.
20. Surrender of Shares is a voluntary action.
21. Equity Shareholders gets dividend at fixed rate.
22. The return on investment given to the shareholders of the company is called as Dividend.
23. Dividend is an expense to the company.
24. Handling Demat Shares is very time consuming.
25. There is no control on Stock Exchanges.
26. Transfer of shares is transfer of ownership by operation of law.
27. Right issue is offered only to depositors of the company.

Q.5. Write Short answers of the following

1. What are the essentials of good report writing?

2. State the circumstances under which a secretary is required to write a letter to the
Debentureholders.
3. State the circumstances under which a secretary is required to write a letter to its Members.
4. What are the provisions regarding payment of dividend to the shareholders of the company.
5. State the contents of Statutory Report.
6. State the contents of Minutes.
7. State the legal provisions regarding minutes.
8. State the importance of Depository from the view point of Investors.
9. State the importance of Minutes Books.
10. State the essentials of Good report.
11. State the points to be noted with respect to declaration of interim dividend.
12. What internal factors will you consider while framing Dividend Policy?
 13. Explain the provisions of a valid call?
14. What are the statutory provisions of transfer of shares.
15. What are the conditions of valid allotment?
16. What are equity shares? Explain features of equity shares?
17. Explain Private Placement?
18. What is surrender of shares?
19. What are the procedures involved in issue of share warrant?
20. Define Stock Exchange.

Q.6 & Q.7. Long Answers

1. What is Stock Exchange? Explain the functions of Stock Exchange?

2. What are Equity Shares? Explain the features of Equity Shares?
3. What are Preference Shares? Explain the types of Preference Shares?
4. Define Call on Shares. Explain secretarial duties relating to making call on shares.
5. Define the term Debentures and explain the procedure for issue of debentures.
6. What is Public Deposits? Explain the important provisions as per Companies Act regarding
public deposits.
7. Write a Notice of forfeiture of shares to a defaulting member of a company.
8. Draft Form No. 29, which is about consent to act as a Director of a Company and undertaking
to purchase qualification shares.
9. Write a letter to a shareholder for issue of Bonus Shares.
10. Define the term ‘Depository’ and explain the procedure of Depository.
11. Explain the Books of Accounts to be maintained by a company and the legal requirement
with respect to the same.
12. What is Dematerialisation? Explain the procedure for Dematerialisation.
13. As a Secretary of the ‘ABC Company Limited, Aurangabad’, draft a letter for Allotment of
Shares.
14. What is Capital? Explain the different sources of capital of a Joint Stock Company.
15. Explain the role of Company Secretary in maintaining Statutory Books, Filing Forms and
Returns.
16. What are the provisions of the Companies Act about maintenance of Register of Members?
17. Prepare a letter for payment of interest to the depositor.
18. Draft a letter of allotment of debentures.
19. Define Minutes. Give content of Minutes.
20. Draft a letter sanctioning the transfer.

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