Company Law · Semester 3

Company Law · December 2015

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Study aid only. Confirm statute numbers with the current bare Act and the official OU LL.B. (3-YDC) 2024–25 syllabus PDF.

Official previous-year question paper (PDF scan), OU LL.B. Year 2 Semester 1 (III Semester). Download the file; question-to-topic mapping can be added later from this paper.

Osmania University · Faculty of Law

Company Law · December 2015

December 2015 · Company Law · Semester 3

FACULTY OF LAW
LL.B. (3 YDC) II - Year III - Semester Examination, December 2015
Subject: LAW
PAPER - IV: COMPANY LAW
Code: 3094 | Time: 3 Hours | Max. Marks: 80
PART - A (5 x 6 = 30 Marks) — Answer any FIVE of the following:
1. Corporation.
2. Certificate of Commencement of Business.
3. Unlimited Companies.
4. Doctrine of Constructive Notice.
5. Reserve Capital.
6. Statutory Meeting.
7. Oppression.
8. Creditors' voluntary winding up.
PART - B (2 x 15 = 30 Marks) — Answer any TWO of the following:
9. Distinguish between a public limited company and a private limited company.
10. Discuss the provisions of the Companies Act, 1956 relating to buy-back of shares by a company.
11. State the legal provisions relating to disposal of unpaid and unclaimed dividends.
12. What reliefs are available to minority shareholders against wrongful conduct of the majority?
PART - C (2 x 10 = 20 Marks) — Answer any TWO of the following:
13. Directors of a public limited company accepted a bill of exchange on behalf of the company, but
the word "limited" was omitted from the name of the company at the time of acceptance. Who can
be held liable for payment of the bill?
14. Sanjeev is a director in two companies, i.e., Goodluck India Pvt. Ltd. and Lucky Winner Pvt. Ltd.
Sanjeev attended board meetings of these two companies on 22nd Aug 2013 in the same building
"Welcome House" at 2.00 p.m. and 4.00 p.m. respectively. (i) Can Sanjeev draw T.A. from both the
companies? (ii) Is he entitled to receive sitting fees fully from both the companies?
15. A public limited company has fifteen directors, four of whom are not subject to retire by
rotation. Is it a validly constituted board? Comment.
16. The members of a company appointed 'A' to be the liquidator in a creditors' voluntary winding
up. At the meeting of the creditors, it was proposed that 'B' be appointed liquidator. Seven creditors
representing Rs. 90,000 of the debts voted for the appointment of 'B' and ten creditors representing

Rs. 60,000 of the debts voted against his appointment. Who should be duly appointed as liquidator?
Why?

Part A · 6 marks

  1. Corporation.
    Year and frequency →
  2. Certificate of Commencement of Business.
    Year and frequency →
  3. Unlimited Companies.
    Year and frequency →
  4. Doctrine of Constructive Notice.
    Year and frequency →
  5. Reserve Capital.
    Year and frequency →
  6. Statutory Meeting.
    3× in bank
    Year and frequency →
  7. Oppression.
    2× in bank Topics: Majority rule, oppression and mismanagement
    Year and frequency →
  8. Creditors' voluntary winding up.
    Topics: Winding up and Insolvency and Bankruptcy Code
    Year and frequency →

Part B · 15 marks

  1. Distinguish between a public limited company and a private limited company.
    Topics: Company, partnership, HUF and LLP distinguished
    Year and frequency →
  2. Discuss the provisions of the Companies Act, 1956 relating to buy-back of shares by a company.
    Topics: Kinds of shares and transfer; Company, partnership, HUF and LLP distinguished
    Year and frequency →
  3. State the legal provisions relating to disposal of unpaid and unclaimed dividends.
    Year and frequency →
  4. What reliefs are available to minority shareholders against wrongful conduct of the majority?
    Topics: Majority rule, oppression and mismanagement
    Year and frequency →

Part C · 10 marks

  1. Directors of a public limited company accepted a bill of exchange on behalf of the company, but the word "limited" was omitted from the name of the company at the time of acceptance. Who can be held liable for payment of the bill?
    Topics: Appointment, duties and independent directors; Company, partnership, HUF and LLP distinguished
    Year and frequency →
  2. Sanjeev is a director in two companies, i.e., Goodluck India Pvt. Ltd. and Lucky Winner Pvt. Ltd. Sanjeev attended board meetings of these two companies on 22nd Aug 2013 in the same building "Welcome House" at 2.00 p.m. and 4.00 p.m. respectively. (i) Can Sanjeev draw T.A. from both the companies? (ii) Is he entitled to receive sitting fees fully from both the companies?
    Topics: Meetings and resolutions
    Year and frequency →
  3. A public limited company has fifteen directors, four of whom are not subject to retire by rotation. Is it a validly constituted board? Comment.
    3× in bank Topics: Appointment, duties and independent directors; Company, partnership, HUF and LLP distinguished
    Year and frequency →
  4. The members of a company appointed 'A' to be the liquidator in a creditors' voluntary winding up. At the meeting of the creditors, it was proposed that 'B' be appointed liquidator. Seven creditors representing Rs. 90,000 of the debts voted for the appointment of 'B' and ten creditors representing Rs. 60,000 of the debts voted against his appointment. Who should be duly appointed as liquidator? Why?
    Topics: Appointment, duties and independent directors; Company, partnership, HUF and LLP distinguished; Winding up and Insolvency and Bankruptcy Code
    Year and frequency →