MBAG-204 Sri Sathya Sai Institute of Higher Learning (Deemed tobe Univesiy) Vidyagiri, Prasanthi Nilayam Master of Business Administration Second Semester Examinations, May 2023 Business Law Duration: 3 Hours 17/05/2023 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) 1. Answer the following questions. Each question carries FIVE Marks. 1. Radhika, who is an independent director reappointed to the board at the annual general meeting of the shareholders of a listed company. But a group of shareholders objected to the appointment as Radhika’s husband recently acquired more than 10% shares in the company. Examine and discuss the position regarding the eligibility of independent directors. 2, Explain punitive at of CCI towards Amazon, 3. What are the requirements for the reliability of e-contracts with reference to case of Tamil Nadu Organic v. State Bank of India (2019)? 4, a) A lends his motor-car to B for a drive by him only. B allows his daughter C, who is an expert car driver, to drive the vehicle. C drives the car carefully but the axle suddenly breaks and the car is damaged. Is B liable for the damage? b) All the seven signatures of a Memorandum of Association (MOA) were forged by a person and a certificate of incorporation was duly obtained. Is the certificate of incorporation valid? (2%4+2 Yes Marks) SECTION (4x10=40 Marks) IL. Answer ANY FOUR of the following questions, Each question carries TEN Marks. 5, Anirudh and Abhilash have a partnership in manufacturing an electronics product. They intend to start a joint stock company in order to expand their business further. You are a consultant who is supposed to help them to start the company. Explain to them the types of shares and debentures available as per Companies Act 2013. 6. Write short notes on the following: a) Prohibition of insider trading b) Borrowing powers of Companies (5+5=10 Marks) 7. Ifthere isa violation of FEMA rules, then it is considered a civil offence. How is FEMA is different from FERA? Explain with reference to adjudication and appeal, contravention and penalties? 8. a) Enlighten the functions of IRDA to meet the objective to regulate the insurance industry in fairness and ensure the financial soundness of the industry. b) Is the Principle of Indemnity applicable to Life Insurance? Give reasons. (5+5=10 Marks) Page 1 of 2MBAG-204 9. A public listed company had placed the proposal for amending the AOA at the annual general meeting of the shareholders. The resolution received acceptance from 52% of the total shareholder votes casted. Assuming that all the cligible shareholders have casted the votes, examine whether the AOA can be legally amended, examine the relevance of MOA and AOA of a company. SECTION -C (2x20=40 Marks) IIL Answer the following questions. Each question carries TWENTY Marks. 10, a) Explain various modes of discharge of surety from liability b) Regulations not only control the functions of these financial institutions but also provide a framework within which they have to work - Explain the purpose and importance of control and regulation banking in Indi (10+10=20 Marks) OR 11, “All agreements are contracts if they are made by free consent of the parties competent to contract, for a lawful consideration and with a lawful object and not hereby expressly declared to be void”. Discuss the various elements of a valid contract inherent in this sentence. Illustrate your points with appropriate illustrative examples in each case. 12, Satyam Computer Services Limited, 2 worldwide IT firm situated in India, has just been added to a renowned list of firms engaged in fraudulent financial operations. Mr. Ramalingam Raju, Satyam’s CEO, accepted responsibility for all of the accounting irregularities that exaggerated the company’s sales and earnings, as well as a cash position of about $1.04 billion that did not exist. In 2007 and 2009, Satyam received the Golden Peacock Award for the best-governed corporation in September 2008. Satyam Computers, formerly India’s IT ‘crown jewel and the country’s fourth-largest company with high-profile customers, has now gotten engaged in the country’s greatest corporate scandal in living memory. Mr. Ramalinga Raju, who was apprehended and confessed to a $1.47 billion (Rs. 7,800 crores) scam, revealed that he had been making up earnings for years. It was alleged that Raju and his brother, Mr. B. Rama Raju, the Managing Director, disguised the lie from the company’s board, top management, and auditors, The scandal brought to light the importance of corporate governance (CG) in designing audit committee standards and board member responsibilities. In this context explain the appointment, duties, responsibilities and removal auditors as per companies Act 2013. @@@e@ Page 2 of 2