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Second Semester of Three Year LL.B. Examination, January 2011

COMPANY LAW (Course – II)
Duration : 3 Hours Max. Marks : 100

Instructions : 1. Answer all 5 questions.

2. One essay type and one short note question or problem
from each unit to be attempted, which is referred as part (a)
and (b) in all units.
3. Figures to the right indicate marks.
4. Answer should be written either in English or Kannada
completely.
UNIT – I
Q. No. 1. (a) Explain the doctrine of ‘Lifting the corporate veil’. Marks : 15
“ÓÜíÓݧ ÓÜÌÃÜã±Ü¨Ü ÊÜááÓÜáQ®Ü GñÜá¤WÜvæ ”¿á ñÜñÜÌÊÜ®Üá° ËÊÜÄÔ.
OR/A¥ÜÊÝ
“A certificate of incorporation is conclusive evidence that all
the requirements of the Companies Act, 1956 have been
complied with”. explain.
“¯WÜÊÜá¨Ü Jí¨Üá ±ÜÅÊÜÞ|±ÜñÜÅÊÜâ B PÜí±Ü¯¿áá PÜí±Ü¯ A—¯¿áÊÜá¨Üw¿áÈÉ
A¨ÜÃÜ GÇÝÉ AÊÜÍÜÂPÜñæWÜÚWæ A®ÜáÓÝÃÜÊÝX¨æ GíŸá¨ÜPæR ¯OÝì¿áPÜ ÓÝQÒ ”
ËÊÜÄÔ.
(b) A Company was incorporated for the purpose of manufacturing
chemicals as its main business. It distributed Rs. 50,000/- to
University and scientific institutions for scientific and education
research. Is it valid ? Marks : 5
Jí¨Üá PÜí±Ü¯¿áá ñܮܰ ±ÜÅÊÜááS E¨æãÂàWÜÊÝX ÃÜÓÝ¿á®ÜWÜÙÜ®Üá° Eñݳ©ÓÜÆá
PÜí±Ü¯¿á®Üá° ®æãàí¨ÝÀáÓÜƳvÜáñܤ¨æ. A¨Üá 50,000&ÃÜã±ÝÀáWÜÙÜ®Üá° ÊæçhÝn¯PÜ
ÎPÜÒ|¨Ü ±ÜÅWÜ£ ÖÝWÜã ÓÜíÍæãà«Ü®æWÝX ËÍÜÌ˨ÝÂÆ¿áWÜÚWæ ÊÜáñÜᤠËhÝn®Ü
ÓÜíÓæ§WÜÚWæ ËñÜÃÜOæ ÊÜÞvÜáñܤ¨æ. C¨Üá ®Ý¿áÓÜÊÜá¾ñÜÊæà ?
OR/A¥ÜÊÝ
A is the holder of all shares, except one of a Paper Co. A
insures the company paper in his own name. The paper is
destoryed by fire. Can A recover the loss ?
A ®Üá PÝWÜ¨Ü PÜí±Ü¯Áãí¨ÜÃÜ ÖæãÃÜñÜá GÇÝÉ ÍæàÃÜáWÜÙÜ®Üá° ±Üvæ¨ÜáPæãíw¨Üª®Üá. D
PÝWÜ¨Ü¨Ü ËÊæá¿á®Üá° ñܮܰ ÖæÓÜÄ®ÜÈÉÁáà ÊÜÞwԨܮÜá. ¸æíQ ¹¨Ü᪠PÝWܨÜÊÜâ
®ÝÍÜÊÝÀáñÜá. A ®Üá ±ÜÄÖÝÃÜ ±Üvæ¿áŸÖÜá¨æà ?

P.T.O.
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UNIT – II
Q. No. 2. (a) Explain the doctrine of Ultra-vires. What are the effects of
Ultra-vires agreements ? Marks : 15
‘PÝ¿áìÊݲ¤ ¸Ý×ÃÜ ’ ñÜñÜÌWÜÙÜ®Üá° ËÊÜÄÔÄ. PÝ¿áìÊݲ¤ ¸Ý×ÃÜ ÊÜÞwÃÜáÊÜ
J±Ü³í¨Ü©í¨Ü E¨Ü½ËÓÜáÊÜ ±ÜÄOÝÊÜáWÜÙÜá ¿ÞÊÜâÊÜâ ?
OR/A¥ÜÊÝ
Explain the procedure and requisites of a valid general meeting.
Jí¨Üá FiìñÜ ÓÝÊÜޮܠÓÜ»æ¿á ±ÜÅQÅÁá ÊÜáñÜᤠAÊÜÍÜÂPÜñæWÜÙÜ®Üá° aÜbìÔ.
(b) Articles of Association are altered so as to result in breach of
contract entered into by a company with its M.D. Is the alteration
valid ? Marks : 5
ÊÜÞ®æàiíW… væçÃæPÜrÅ hæãñæWæ ÊÜÞw¨Ü PÜÃÝÃÜ®Üá° »ÜWÜ°ÊÝWÜáÊÜíñæ JÙÝvÜÚñÜ
¯¿áÊÜÞÊÜÚ¿á®Üá° Jí¨Üá PÜí±Ü¯¿áá Ÿ¨ÜÇÝÀáÓÜáñܤ¨æ. D Ÿ¨ÜÇÝÊÜOæ¿áá
PÝ®Üã®Ü៨ܜÊæà ?
OR/A¥ÜÊÝ
A Company inserted an advertisment in a newspaper stating
that some shares were still available for sale according to the
terms of the prospectus of the company which could be
obtained on application. Do you consider it as a prospectus ?
PÜí±Ü¯¿áá ÊÜñÜìÊÜÞ®Ü ±Ü£ÅPæÁãí¨ÜÃÜÈÉ Jí¨Üá hÝ×àÃÝñÜ®Üá° ±ÜÅPÜqÔ PÜí±Ü¯¿á
ÐæàÃÜáWÜÙÜá C®Üã° ÊÜÞÃÝoPæR EÚ©Êæ. ¿ÞÃݨÜÃÜ㠟¿áÔ¨ÜÃæ Aiì ÓÜÈÉÔ
±Üv¿æ áŸÖÜá¨æíæ ¨Üá ÖæãÃÜwÔñÜá. A¨Üá ±ÜÄaÜ¿á ±ÜñÅÜ Êíæ ¨Üá ¯àÊÜâ ±ÜÄWÜ~ÓÜáËÃÝ ?
UNIT – III

Q. No. 3. (a) What is meant by allotment of shares ? Explain statutory

restrictions and general principles of allotment of shares. Marks : 15
ÐæàÃÜá ÖÜíbPæ Gí¨ÜÃæà®Üá ? ÐæàÃÜá ÖÜíbPæ¿á ŸWæY CÃÜáÊÜ ÍÝÓܯà¿á
¯Ÿìí«Ü®æWÜÙÜá ÊÜáñÜᤠÓÝÊÜޮܠñÜñÜÌWÜÙÜ®Üá° ËÊÜÄÔ.
OR/A¥ÜÊÝ
Briefly discuss the circumstances under which a company may
be wound up by the court.
¿ÞÊÜ ÓÜí¨Ü»ÜìWÜÙÜÈÉ ®Ý¿ÞÆ¿á PÜí±Ü¯¿á®Üá° ÊÜááPݤ¿áWæãÚÓܟÖÜá¨æí¨Üá
ÓÜíQұܤÊÝX aÜbìÔ.
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(b) A Film Company borrowed a sum of money on the security of
all its assets including machinery etc. now lying or that may be
brought hereafter until repayment. What kind of charge is it
created by the film comp any ? Marks : 5
µÆ¾ PÜí±Ü¯¿áá ñܮܰÈɨܪ ¿áíñæãÅà±ÜPÜÃÜ|WÜÙÜ ÖÝWÜã BÊæáàÇæ ÓÝÆ ÊÜááqrÓÜáÊÜÊÜÃæWæ
PæãwÓÜáÊÜ GÆÉ BÔ¤WÜÙÜ®Üá° Jñæ¤ Coár ÖÜ| ±Üvæ¿ááñܤ¨æ. C¨Üá ¿ÞÊÜ ñÜÃÜ¨Ü ÖæãOæ
BWÜáñܤ¨æ ?
OR/A¥ÜÊÝ
‘X’ had subscribed the M.O.A. of a company for 100 shares.
The company was duly registered but ultimately he took only
10 shares. The company was wound up. What is the extent of
‘X’s liability ?
‘X’®Üá Jí¨Üá PÜí±Ü¯¿á ÓÜíÓݧ±Ü®Ý ±ÜñÜÅPæR 100 ÐæàÃÜáWÜÚWæ ñܮܰ ÖæÓÜÃÜ®Üá°
®æãàí¨ÝÀáԨܪ®Üá. B PÜí±Ü¯¿áá ®ÜíñÜÃÜ ®æãàí¨ÝÀáÓÜƳqrñÜá. B¨ÜÃæ AÊÜ®Üá
PæàÊÜÆ 10 Ðæ à ÃÜ á WÜ Ù Ü ® Ü á ° ÊÜ Þ ñÜ Å SÄà©Ô¨Ü ® Ü á . ®Ü í ñÜ Ã Ü PÜ í ±Ü ¯ ¿áá
ÓÜÊÜޱܮÜWæãÙÜáÛñܤ¨æ. ‘X’®Ü gÊݸݪĿá ÊæáàÃæ H®Üá ?
UNIT – IV
Q. No. 4. (a) Enumerate the various penalties which can be imposed under
the SEBI Act, 1992 for various failures, defaults, non disclosure
and other offences. Marks : 15
ËË«Ü Ë´ÜÆñæ, ñܱÜâ³ , Ÿ×ÃÜíWÜ ±ÜwÓܨæ CÃÜáÊÜâ¨Üá ÊÜáñÜᤠCñÜÃÜ A±ÜÃÝ«ÜWÜÚWÝX
»ÝÃÜ £ à¿á B«ÝÃÜ ÊÜ á ñÜ á ¤ ˯ÊÜ á ¿á ÊÜ á ívÜ Ú A—¯¿áÊÜ á ¨Ü w ¿áÈÉ
˗ÓܟÖÜá¨Ý¨Ü ËË«Ü gáÇݾ®æWÜÙÜ®Üá° ËÐܨܱÜwÔ.
OR/A¥ÜÊÝ
Discuss when and how the Central government can suspend
business of a stock exchange, under the Securities Contracts
(Regulation) Act, 1956.
»Ü¨ÜÅñÝ ±ÜñÜÅWÜÙÜ PÜÃÝÃÜá (¯¿áíñÜÅ|) A—¯¿áÊÜá¨Ü Aw¿áÈÉ ÖæàWæ ÊÜáñÜᤠ¿ÞÊÜ
ÓÜí¨ÜÜ»ÜìWÜÙÜÈÉ Pæàí¨ÜÅ ÓÜPÝìÃÜÊÜâ ÓÝrP… ˯ÊÜá¿á¨Ü ÊݱÝÃÜÊÜ®Üá° ÃܨÜ᪠ÊÜÞvÜáñܤ¨æ
aÜbìÔ.
(b) Write a short note on ‘Powers of Central Government’ under
the SEBI Act, 1992 Marks : 5
B«ÝÃÜ ÊÜáñÜᤠ˯ÊÜá¿á ÊÜáívÜÚ A—¯¿áÊÜá, 1992 ÃÜ Aw¿áÈÉ Pæàí¨ÜÅ
ÓÜPÝìÃÜQRÃÜáÊÜ A—PÝÃÜWÜÙÜ ŸWæY ÆZá q±Ü³~ ŸÃæÀáÄ.
OR/A¥ÜÊÝ
Write a short note on ‘Powers of SEBI under the Securities
Contracts (Regulation), Act 1956.
»Ü¨ÜÅñÝ ±ÜñÜÅWÜÙÜ PÜÃÝÃÜá (¯¿áíñÜÅ|) A—¯¿áÊÜá¨Ü Aw¿áÈÉ , ¯¿áÊÜáWÜÙÜ®Üá°
ÃÜã²ÓÜÆá Óæ¹ (SEBI) Wæ CÃÜáÊÜ A—PÝÃÜWÜÙÜ ŸWæY ÆZá q±Ü³~ ŸÃæÀáÄ.
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UNIT – V

Q. No. 5.(a) Discuss the powers of Reserve Bank of India to regulate capital
account transactions, under the Foreign Exchange Management
Act, 1999. Marks : 15
˨æàΠ˯ÊÜá¿á ÊÜÂÊÜÓݧ±ÜPÜ A—¯¿áÊÜá 1999ÃÜ Aw¿áÈÉ ÊÜáãÆ«Ü®Ü TÝñæ
ÊÜ×ÊÝoá (Capital account transactions) ¯¿áí£ÅÓÜÆá, »ÝÃÜ£à¿á
ÄgÊ…ì ¸ÝÂíQXÃÜáÊÜ A—PÝÃÜWÜÙÜ®Üá° aÜbìÔ.
OR/A¥ÜÊÝ
Discuss the powers of the Competition Commission of India,
to enquire into agreements and dominant position of enterprise,
under the Competition Act, 2002.
±æç±æäàq A—¯¿áÊÜá 2002ÃÜ Aw¿áÈÉ PÜÃÝÃÜáWÜÙÜ ÊÜáñÜᤠE¨ÜÂÊÜá¨Ü ±ÜÅ»ÜáñÜÌ
Óݧ®ÜWÜÙÜ ŸWæY , ËaÝÃÜOæ ÊÜÞvÜÆá »ÝÃÜñÜ¨Ü ±æç±æäàq BÁãàWÜQRÃÜáÊÜ A—PÝÃÜWÜÙÜ®Üá°
aÜbìÔ.
(b) Write a short note on ‘Adjudicating Authority’ under the
FEMA, 1999. Marks : 5
˨æàΠ˯ÊÜá¿á ÊÜÂÊÜÓݧ±ÜPÜ A—¯¿áÊÜá (FEMA) 1999, ÃÜ Aw¿áÈÉ
‘®Ý¿á¯|ì¿á A—PÝÄ’ ŸWæY ÆZá q±Ü³~ ŸÃæÀáÄ.
OR/A¥ÜÊÝ
Write a short note on ‘Penalty for furnishing incorrect.
±æç±äæ àq A—¯¿áÊÜá, 2002 ÃÜ Aw¿áÈÉ ÓÜÄ¿áÆÉ¨Ü ÊÜÞ×£¿á®Üá° BÁãàWÜPRæ
¯àw¨ÜÃæ CÃÜáÊÜ gáÇݾ®æ ŸWæY ÆZá q±Ü³~ ŸÃæÀáÄ.

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