Company Law-1

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Total = 40 marks

Overall attempt is good. Try to correlate with relevant


section. You can score good marks, just work on small
points. Practice more and more questions from institute
material. You have a good conceptual clarity of the
relevant topics. Presentation is very good. You have
good focus on quality rather than quantity. Follow the
same approach towards your exams.
Well performed
Good concept clarity
Well explained

Hence dividend cannot be declared out


Section 91 (1)
Try to correlate with relevant section
Section 19(1)

a subsidiary company shall not either by itself or through its nominees hold
shares in its holding company and no holding company shall allot or
transfer its shares to any of its subsidiary companies and any such
allotment or transfer of Shares of a company to its subsidiary company
shall be void.
In this question you have performed well
section 59 of the companies Act, 2013

Mention the relevant section


Section 71 (2)

You need to explain more relevant content in your answer

The company shall not issue secured debentures, unless it complies with the
following conditions, namely:
(a) An issue of secured debentures may be made, provided the date of its redemption
shall not exceed ten years from tie dale of A company engaged in the setting up
of infrastructure projects may secured debentures for a period exceeding ten years but
rot thirty years;
(b) Such an issue of debentures shall be secured by the creationcharge, on the
properties or assets of the company, having a value which is sufficient for the due
repayment of the amount of debentures and interest thereon;

In case of any loan taken by a subsidiary company from any bank or


financial institution the charge or mortgage may also be created on the properties
or assets of the holding company.
To consider and, if thought fit, to pass with or without modification(s), the following
resolution as Special Resolution:
"RESOLVED THAT pursuant to the provisions of Section 180(3)(c) and other
applicable provisions, if any, of the Companies Act, 2013,

However, in viewof the increased business activities of the company, the said
ceiling of Rupees(.................)has been found to be inadequate. Your directors are
of the opinion that the ceiling of borrowings by the Board be raised to
rupees.Therefore, the proposed resolution for consideration and approvalby the
members of the company. None of the directors is concernedor interested in the
proposed resolution.

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