BUSINESS LAW

Time allowed: 1:45 hours

Total marks: 50

[N.B.– The figures in the margin indicate full marks. Questions must be answered in English. Examiner will take
account of the quality of language and the way in which the answers are presented. Different parts, if any, of
the same question must be answered in one place in order of sequence.]
Marks

1. Answer the following questions giving appropriate argument and/or specific reference of the
law in favor of your answer:
a) Mr. Talukder was appointed as the Managing Director of Black Stone Holdings Limited
(BSHL), a private limited company, by its Board of Directors. Later on it was found that
the appointment procedure was wrong. But before discovering the fact Mr. Talukder
concluded two contracts with Zian Constructions Limited (ZCL). When the management
of ZCL came to know about the procedural mistake in the appointment of Mr. Talukder as
the Managing Director of BSHL, it decided not to perform the contract.

Give your opinion with regard to the aforesaid decision of the management. 5

b) Board of Directors of a private limited company proposed cash dividend @ Tk. 5.00 per
ordinary share of Tk. 10.00 each. In the Annual General Meeting some shareholders
suggested that cash dividend should be declared @ Tk. 8.00 per ordinary share since there
is huge amount of retained earnings in the Company. On the other hand, some other
shareholders suggested that the cash dividend recommended by the Board @ Tk. 5.00 per
share be converted into stock dividend.

Explain how the Chairman of the meeting should deal with the suggestions of the
shareholders. 5

2. a) When a bill of exchange can be treated as negotiated in line with Negotiable Instrument
(NI) Act 1881? Explain the term “Negotiation by delivery” with example. 5
b) Discuss the rules regarding negotiation of an instrument obtained by fraud. 5

3. a) When and how may a partner be expelled? 5

b) Describe the mode of settlement of accounts between partners of a dissolved partnership
firm. 5

4. a) What is Industrial Dispute? 2

b) When does an Industrial Dispute arise? 2
c) Who can raise a dispute? 2
d) Discuss the settlement of Industrial disputes by Arbitration and Labor Court. 4

5. a) Explain the rules pertaining to call general meetings under the Companies Act 1994. 5
b) What types of businesses are transacted at an annual general meeting? 5

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