Professional Documents
Culture Documents
Companies Act
Companies Act
Employees 12
Ex-employees 08
Others 140
DEBT CAPITAL
Q 1 SAHARA investment limited issued a debenture on private placement basis amount
if Rs 100 crore on which 5% issued to the promoter i.e. subrata roy sahara with a
specific rights of voting in general meeting, one of the shareholder objected that such
type of issue against the law, company contended that objection is valid if such type of
issue made to outsider, explain the validity of objection [hint : no company shall issue
any debentures carrying any voting rights]
Q 2 Alok, the Managing Director of Yellow Ltd., borrowed a large sum of money and
misappropriated the same. Later, when the lender demanded his money, the company
refused to repay, contending that the money borrowed by Managing Director was
misappropriated by him and the company is not liable for repayment. Decide, giving
reasons, whether the lender would succeed in recovering the money from the company
Q 3 Board of directors of Joy Ltd., by a resolution passed at its meeting, decide to
provide a loan of 50 crore to Happy Ltd. The paid-up share capital of Joy Ltd. on the
date of resolution was 100 crore and the aggregate balance in the free reserves and
securities premium account stood at 40 crore. Examining the provisions of the
Companies Act, 2013, decide whether the Board’s resolution to provide a loan of 50
crore to Happy Ltd. is valid [hint: valid ]
Q 4 Board of directors of Prince Ltd. decides to go for the issue of secured debentures
of Rs100 each, to the extent of Rs 10 crore. Further, as the company is going for the
issue of secured debentures, it is required to create a debenture redemption reserve.
The Board seeks your advice on the conditions to be fulfilled and compliance of the
provisions of the Companies Act, 2013. Advise the Board
Q 5 Manohar Motors Ltd. has a paid-up share capital of Rs 10 crore and free reserves
of Rs 5 crore. The Board of directors want to borrow a sum of Rs 20 crore for its long-
term capital requirements from the market.
Discuss whether they can do so and if yes, what are the requirements under the
Companies Act, 2013 which they have to comply with
Q 6 Board of directors of sultan Ltd., by a resolution passed at its meeting, decide to
provide a loan of 50 crore to jayshree Ltd. Information in regards of sultan limited are as
under for the year ended 31 march 2017