MBAG-204

Sri Sathya Sai Institute of Higher Learning

(Deemed to be University)
Vidyagiri, PrasanthiNilayam

Master of Business Administration

Second Semester Examinations, November 2020
Business Law
Duration : 3 Hours 09-11-2020 Max. Marks : 100
Note: 1. Answer Sections A, B&C in the answer book provided.
2. Comply with the instructions given in the Main Answer Book carefully.

SECTION – A
(4x5=20 Marks)
I. Answer the following questions. Each question carries FIVE Marks.

1. Elaborating on the concept of corporate social responsibility, discuss the various provisions of law in India
for the same. (harini)
2. Karan, a minor, enters into contract with a money lender by mortgaging forged property documents. He
borrows rupees one lakh for a period of one year. Is it a valid contract? What would be your answer if the
property documents were genuine. (dikcha)

3. Explain with examples, the concept of Insider Trading under The Companies Act, 2013.

4. A issued a cheque dated 17.08.2020 for ₹50,000/– in favour of B on 20.05.2020. Then on 15.08.2020 A
requested B not to deposit the cheque on the said date and to deposit it after one month on 17.09.2020 and
also gave instructions to his banker to “stop payment” of the said cheque. On 17.08.2020 there was a sum
of ₹ 35,000/– to the credit of A in his bank account. The cheque was returned for insufficient funds. Is A
liable for dishonour of cheque? (anagha)

SECTION – B
(4x10=40 Marks)
II. Answer ANY FOUR of the following questions. Each question carries TEN Marks.

5. X alongwith his friends wants to incorporate a software company. Four of his friends agree to contribute
to the seed capital. You are required to advise him whether he should incorporate a private limited or a
public limited company.

6. AB wants to register a Public company. You are required to counsel him on Memorandum and Articles of
Association, and also discussExecutive and Non–Executive Directors. (harini)

7. X was to supply machinery to Y within three months. The said period was extendable on mutual consent.
The machinery could not be supplied within the given time of three months. Y gave a notice to X thereby
avoiding the contract and claiming compensation on the ground that time was essence of contract. Discuss
the rights and liabilities of both X and Y in the light of the Indian Contract Act, 1872. (anagha)

8. Directors are deemed to be “officers in default” if they are aware of a violation of The Companies Act,
2013 by virtue of their participation in board meetings without objecting to the same, or if some violation
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takes places with their consent or connivance. Comment. What would be the situation of independent or
non–executive directors if there was an acting full time director/ managing director? (anagha)

9. Describe IRDA in terms of the role it plays in regulating and developing the Insurance Industry in India.
(dikcha)

SECTION – C
(2x20=40 Marks)
III.Answer ANY TWO of the following questions. Each question carries TWENTY Marks.

10. What risk does a corporate face in case:

a) Of abuse of dominance by it?

b) The CCI finds that the agreement entered into by the corporate is anti–competitive?

c) What orders can the CCI pass when it finds that the said anti–competitive agreement has been entered
into by a cartel?
(8+8+4=20 Marks)

11. a) Under what conditions a company can issue fully paid up bonus shares to its members. (harini)

b) The directors of a company were of the opinion that the financial statements of the company for the
last five financial years ought to be revised. Can they go ahead with this? If yes, what procedure has to
be adopted?

c) ABC Pvt Ltd Company has all its directors as chartered accountants. The company seeks to be
appointed as auditors for M/s XYZ Ltd permanently. Can the company ABC Pvt Ltd be appointed as
its auditor? What is the procedure to be followed for appointment of an auditor under the Companies
Act, 2013 and for what tenure? How can an auditor be removed before the expiry of its term?
(5+7+8=20 Marks)

12. Discuss individually about the validity of each of the transactions given below and conditions, if any, that
have to be complied with.

a) A withdrew $5000 from a money lender for his travel to Bhutan.

b) Mother of X is living in USA with her son Y. X withdraws sum of USD 5000 every month to send the
same to his mother in USA for her maintenance.

c) B is diagnosed with serious ailment for which he seeks to take treatment in USA and wishes to
withdraw to the tune of $ 300000

d) X, a resident in India, had acquired an immovable property in USA while he was residing there.
Now, while in India, X seeks to transfer his property in USA to Z who resides in USA.

(5×4=20 Marks)

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