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II Semester 3 Year LL.B./VI Semester 5 Year B.B.A. LL.B./B.A. LL.B.

Examination, December 2014
COMPANY LAW
Duration : 3 Hours Max. Marks : 100

Instructions : 1. Answer Q. No. 9 and any five of the remaining questions.

2. Q. No. 9 carries 20 marks and the remaining questions
carry 16 marks each.
3. Answers should be written either in English or in Kannada
completely.
ÓÜãaÜ®æWÜÙÜá : 1. ±ÜÅÍæ° ®Üí. 9 ÊÜáñÜᤠCñÜÃÜ ¿ÞÊÜâ¨æà 5 ±ÜÅÍæ°WÜÚWæ EñܤÄÔ.
2. ±ÜÅÍæ° ®Üí. 9PæR 20 AíPÜWÜÙÜá ÊÜáñÜᤠEÚ¨Ü ±ÜÅÍæ°Wæ 16 AíPÜWÜÙÜá.
3. EñܤÃÜÊÜ®Üá° ÓÜí±Üä|ìÊÝX PܮܰvܨÜÈÉ A¥ÜÊÝ CíXÉЅ®ÜÈÉ ŸÃæÀáÄ.

Q. No. 1. Discuss the advantages of incorporation of a company.

PÜí±Ü¯¿á ¯WÜËáàPÜÃÜ|¨Ü A®ÜáPÜãÆñæWÜÙÜ®Üá° aÜbìÔÄ.
Q. No. 2. What is incorporation and what are the different stages of
incorporation.
¯WÜËáàPÜÃ|
Ü WæãÚÓÜáËPæ Gí¨ÜÃàæ ®Üá ? ÊÜáñÜᤠ¯WÜËáàPÜÃ|
Ü ¨Ü ËË«Ü ÖÜíñÜWÙÜ áÜ
¿ÞÊÜâÊÜâ ?
Q. No. 3. What is memorandum of association of a company ? Explain
the fundamental clauses of memorandum of association.
PÜí±Ü¯¿á ÓÜíÓݧ±®Ü Ý ±ÜñÅÜ Gí¨ÜÃàæ ®Üá ? ÓÜíÓݧ±®Ü Ý ±ÜñÅÜ ¨È
Ü É®Ü ÊÜáãÆ»ÜãñÜ
SívÜWÜÙÜ®Üá° ËÊÜÄÔÄ.

Q. No. 4. Who is a promoter ? What are his powers and liabilities ?

±ÜÅÊñÜ ì
Ü PÜ®íæ ¨ÜÃæ ¿ÞÃÜá ? AÊÜ®Ü A—PÝÃÜ ÊÜáñÜᤠÖæãOæWÝÄPæWÙÜ ÝÊÜâÊÜâ ?
Q. No. 5. What is prospectus ? What are the remedies that are available
for misrepresentation in the prospectus ?
±ÜÄaÜ¿á±ÜñÜÅ Gí¨ÜÃæà®Üá ? ±ÜÄaÜ¿á±ÜñÜŨÜÈÉ®Ü ÓÜíWÜ£¿á ñܱÜâ³ ¯ÃÜã±ÜOæWæ
CÃÜáÊÜ ±ÜÄÖÝÃæãà±Ý¿áWÜÙÝÊÜâÊÜâ ?
P.T.O.
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Q. No. 6. Describe the general principles and statutory restrictions for

allotment of shares.
ÍæàÃÜáWÜÙÜ ÖÜíbPæ¿á ÓÝÊÜޮܠ¯¿áÊÜáWÜÙáÜ ÊÜáñÜᤠÍÝÓÜ®Ÿ
Ü ¨Üœ ¯Ÿìí«ÜWÙÜ ®Ü áÜ °
ËÊÜÄÔ.

Q. No. 7. Discuss briefly the conditions of relief for oppression and mis
management in the company.
PÜí±Ü¯¿áÈÉ ¨Ü¸ÝºÚPæWæ ÊÜáñÜᤠ¨ÜáÊÜÂìÊÜÖÝÃÜ¨Ü ±ÜÄÖÝÃÜ¨Ü ¯Ÿìí«ÜWÜÙÜ®Üá°
aÜbìÔ.

Q. No. 8. Write short note on any two of the following :

(a) Holding and subsidiary company.
¯¿áíñÜÅPÜ ÊÜáñÜᤠ¯¿áí£ÅñÜ PÜí±Ü¯WÜÙÜá
(b) Different kinds of share capital of a company
PÜí±Ü¯¿á ÍæàÃÜá ŸívÜÊÝÙÜ¨Ü ËË«Ü ±ÜÅPÝÃÜWÜÙÜá
(c) Compulsory winding up of a company.
PÜí±Ü¯¿á PÜvÝx¿á ÓÜÊÜޱܮæ.

Q. No. 9. Solve any two of the following problems :

(a) The articles of association of X company contained a clause
to the effect that B (an outsider) should be a director and
should not be removed for 5 years. However he was
removed earlier and he brought an action to restrain company
from excluding him will be succeed ?
X GíŸ PÜí±Ü¯¿á ÈUñÜ PÜorÙæ¿á Jí¨Üá SívÜ¨Ü ±ÜÅPÝÃÜ B (ÖæãÃÜX®Ü
ÊÜÂQ¤) GíŸáÊÜÊܮܮÜá° PÜí±Ü¯¿á ¯¨æìàÍÜPܮܮݰX ®æàËáÓÜáÊÜâ¨Üá ÊÜáñÜá¤
5 ÊÜÐÜìWÜÙÜÊÜÃæWæ AÊܮܮÜá° B Óݧ®Ü©í¨Ü ñæWæ¨ÜáÖÝPÜáÊÜí£ÆÉ Gí¨Üá CñÜá¤
B¨ÜÃæ AÊܮܮÜá° ÊÜááíbñÜÊÝXÁáà ñæWæ¨ÜáÖÝPÜÇÝÀáñÜá. A¨ÜÃÜ ËÃÜá¨Üœ
AÊÜ ® Ü á PÜ í ±Ü ¯ ¿á Êæ á àÇæ ¨ÝÊæ ¿ á®Ü á ° ÖÜ ã vÜ á ñݤ ® æ . AÊÜ ® Ü á
g¿áWÜÚÓÜáÊÜ®æà ?
*02020621* -3- 0202/0621

(b) The director of a company borrowed a sum of money from

the plaintiff bank. The company’s articles provided that the
director might borrow on bonds such sums as may from
time to time be authorised by a resolution passed at general
meeting of the company. Share holders claimed that there
had been resolution authorising the loan and therefore it
was taken without their authority. Is the company liable to
the plaintiff bank ?
Jí¨Üá PÜí±Ü¯¿á ¯¨æìàÍÜP®Ü áÜ ÊÝ© ¸ÝÂíQ¯í¨Ü ÓÝÆÊÜ®áÜ ° ±Üv¿ æ ááñݤ®.æ
B PÜí±Ü¯¿á ÈUñÜ PÜorÙæ¿á ±ÜÅPÝÃÜ ¯¨æìàÍÜPÜÃÜá ÓÝÆ ñæWæ¨ÜáPæãÙÜáÛÊÜ
ÊÜáá®Ü° ÊÝÑìPÜ ÓÝÊÜޮܠÓÜ»æ¿áÈÉ ¯¿áÊÜÞÊÜÚ¿á®Üá° ±ÝÓÜá ÊÜÞw
ÍæàÃÜá¨ÝÃÜÃÜ A®ÜáÊÜ᣿á®Üá° ±Üvæ¨ÜáPæãÙÜÛ¸æàPÜá ÖÝWÜã AÊÜÃÜá GÐÜár
ÊæãñܤPæR A®ÜáÊÜᣠPæãqrÃÜáñݤÃæãà AÐærà ÊæãñܤÊÜ®Üá° ÓÝÆ ±Üvæ¿á¸æàPÜá
GíŸá¨ÝXñÜá¤. B¨ÜÃæ D ±ÜÅPÜÃÜ|¨ÜÈÉ ¯¨æìàÍÜPÜÃÜá ¿ÞÊÜâ¨æà
¯¿áÊÜÞÊÜÚ¿á®Üá° ±ÝÓÜá ÊÜÞwÃÜÈÆÉ ÊÜáñÜᤠÍæàÃÜá¨ÝÃÜÃÜ A®ÜáÊÜá£
CÆɨæ ÓÝÆ ±Üvæ¿áÇÝXñÜá¤. PÜí±Ü¯¿á ÊÝ© ¸ÝÂíQWæ ¸Ý«ÜÂÓܧ/
ÖæãOæWÝÃÜÊÝWÜáñܤ¨æÁáà ?
(c) ‘X’ a minor was registered as a share holder. After attaining
majority he received dividend from the company.
Subsequently company went into liquidation X denies his
liability. Decide.
‘X’ GíŸ A±ÝÅ±Ü ¤ ÊÜ ¿ áÓÜ R ®Ü á Jí¨Ü á PÜ í ±Ü ¯ ¿á ÓÜ ¨ Ü Ó Ü Â ®ÝX
®æãàí¨ÝÀáÓÜƳor®Üá. AÊÜ®Üá ±Ýűܤ ÊÜ¿áÓÜR®Ý¨Ü ŸÚPÜ PÜí±Ü¯Àáí¨Ü
ÇÝ»ÝíÍÜÊÜ®Üá° ÔÌàPÜÄÓÜáñݤ®æ. ñܨܮÜíñÜÃÜ PÜí±Ü¯ ÓÜÊÜޱܮæ¿ÞWÜáñܤ¨æ.
X ®Üá ñܮܰ ÖæãOæWÝÄPæ¿á®Üá° AÆÉWÜÚ¿ááñݤ®æ. £àÊÜÞì¯Ô.

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