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NIR/KW/18/7471
Sixth Semester B.A. LL.B. Five Years Course (C.B.S.) Examination
COMPANY LAW
Compulsory Paper—2
Time : Three Hours] [Maximum Marks : 80
N.B. :— (1) Attempt all Sections. Section 'A' consists of 10 marks, Section 'B' consists of 30 marks and
Section 'C' consists of 40 marks.
(2) Follow the instructions given in each Section.
(3) Marks are indicated against each question/Section.
SECTION–A
1. Choose the correct alternative (any ten) :
(i) Certificate of Incorporation of a Company is issued by :
(a) Registrar of Companies (b) Secretary Ministry of Corporate Affairs
(c) Registrar of Societies (d) None of the above
(ii) The minimum number of subscribers required to form a Private Company is :
(a) 2 (b) 3
(c) 4 (d) 6
(iii) A Company can be attributed with _____.
(a) Nationality (b) Domicile
(c) Residence (d) All the above
(iv) A Public Company can't commence its business unless _____.
(a) The certificate of incorporation is obtained
(b) The certificate for the commencement of business is obtained
(c) The certificate of appreciation is obtained
(d) None of the above
(v) A Company may change its name :
(a) By passing a special resolution (b) With the approval of Central Govt.
(c) With the approval of Directors (d) (a) and (b) only
(vi) The Second Clause of Memorandum must specify :
(a) The name of the Company (b) The Registered Office of the Company
(c) The Object of the Company (d) None of the above
(vii) The doctrine of ultra-vires was first demonstrated in the case of :
(a) Salomon vs. Salomon & Co. Ltd.
(b) Ashbury Railway Carriage & Iron Co. vs. Riche
(c) National Textile Workers' Union vs. P.R. Ramkrishna
(d) All the above
(viii) Shares are _____.
(a) Movable Property (b) Immovable Property
(c) Tangible Property (d) None of the above
(ix) Every Company is required to call at least _____ meeting(s) of its shareholders every year.
(a) 2 (b) 1
(c) 3 (d) 4
(x) Choice of alteration of object in M.O.A. lies with the _____.
(a) Share-holders (b) Registrar
(c) Creditors (d) Debenture holders
(xi) The requirements for alteration of Objects clause is _____.
(a) Passing of a special resolution (b) Passing of ordinary resolution
(c) Approval by Registrar (d) None of the above
(xii) The Certificate of Incorporation brings the Company into existence as a _____.
(a) Citizen (b) Natural person
(c) Legal person (d) Artistic person
BKR—6074 1 (Contd.)

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(xiii) Charge includes _____.

(a) Loans (b) Mortgage
(c) Security (d) Hire
(xiv) Dividend is to be paid in the form of _____.
(a) Cash (b) Kind
(c) Share (d) All the above
(xv) Private Company can allot shares without receiving minimum subscription.
(a) True (b) False
(c) Party true (d) None of the above 1×10=10
SECTION–B
Note :— Both the questions in this Section are compulsory.
2. Answer the following (any three) :
(a) Meaning of Oppression and Mismanagement.

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(b) Explain the Removal and Resignation of a director.

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(c) Write note on Government Companies.

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(d) Distinguish Company from Partnership Firm. 5×3=15

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3. Write short notes on (any three) :

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(a) Forfeiture of shares.
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(b) Modes of becoming a shareholder.
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(c) Requisites of valid meeting.

(d) Pre-incorporation contract. 5×3=15
SECTION–C
Note :— Answer the following (any five) :
4. What do you understand by the phrase 'lifting of the corporate veil' ? Under what circumstances can
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the corporate veil be lifted ? Discuss with the help of decided cases.
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5. What is meant by term 'dividend' ? Explain the procedure for declaration and payment of dividend.
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6. What is a 'Charge' ? Can a floating charge become fixed ? If so, under what circumstances.
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7. Discuss the economic rights of shareholders of a Company.

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8. Explain the powers and duties of directors.

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9. Explain the principle laid down in Royal British Bank v/s Turquanand relating to Doctrine of Indoor
Management.
10. Discuss the responsibilities of auditor of a Company.
11. Elaborate the circumstances under which the Court can passed the order of winding up of the
Company who may file such petition. 8×5=40

BKR—6074 2 NIR/KW/18/7471

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