Company Law · Semester 3

Company Law · January/February 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 · January/February 2015

January/February 2015 · Company Law · Semester 3

FACULTY OF LAW
LL.B. (3 YDC) II - Year III - Semester Examination, January / February 2015
Subject: LAW
PAPER - IV: COMPANY LAW
Code: 5684 | Time: 3 Hours | Max. Marks: 80
PART - A (5 x 6 = 30 Marks) — Note: Answer any FIVE of the following.
1. Differences between a partnership firm and a company.
2. Advantages of incorporation.
3. Indoor management.
4. Capital shares.
5. Mismanagement.
6. Creditors.
7. Secretary meetings.
8. Quorum.
PART - B (2 x 15 = 30 Marks) — Note: Answer any TWO of the following.
9. Explain corporate governance. What are the advantages and disadvantages of incorporation of a
company?
10. Explain: "Auditor is a watch dog but not a blood hound." Bring out the various powers and
duties on the part of the auditor to keep the company away from scams.
11. What are the different modes of winding up of companies, and what are the consequences if a
company winds up?
12. What is a Memorandum of Association?
PART - C (2 x 10 = 20 Marks) — Answer any TWO of the following.
13. A private company has only two shareholders who are also the directors, with equal rights of
management and voting power. The company has made huge profits, but there is a complete
deadlock in the management of the company. One of the shareholders applied for the winding up
of the company. Decide.
14. Vaibhav, a trader, carried on business under the name of "Vaibhav and Co. Ltd." without being
registered as a company with limited liability. Decide the consequences of the act of Vaibhav.
15. Grace Ltd., a Public Ltd. Company, has received an application from Rosy for transmission of
certain shares in her name. Rosy, being the widow of a shareholder, applies for transmission of the
shares standing in the name of her deceased husband without producing a succession certificate.
Can the company transfer the shares of the deceased member? Discuss.

16. All the members of a private company, while going in a van, met with an accident and all of
them died on the spot. Does the private company cease to exist?

Part A · 6 marks

  1. Differences between a partnership firm and a company.
    Topics: Company, partnership, HUF and LLP distinguished
    Year and frequency →
  2. Advantages of incorporation.
    2× in bank Topics: Prospectus and pre-incorporation contracts
    Year and frequency →
  3. Indoor management.
    Topics: Memorandum, ultra vires and indoor management
    Year and frequency →
  4. Capital shares.
    Topics: Kinds of shares and transfer
    Year and frequency →
  5. Mismanagement.
    Topics: Majority rule, oppression and mismanagement
    Year and frequency →
  6. Creditors.
    Year and frequency →
  7. Secretary meetings.
    Topics: Meetings and resolutions
    Year and frequency →
  8. Quorum.
    Year and frequency →

Part B · 15 marks

  1. Explain corporate governance. What are the advantages and disadvantages of incorporation of a company?
    Topics: Company, partnership, HUF and LLP distinguished; Prospectus and pre-incorporation contracts
    Year and frequency →
  2. Explain: "Auditor is a watch dog but not a blood hound." Bring out the various powers and duties on the part of the auditor to keep the company away from scams.
    Topics: Appointment, duties and independent directors; Company, partnership, HUF and LLP distinguished
    Year and frequency →
  3. What are the different modes of winding up of companies, and what are the consequences if a company winds up?
    Topics: Winding up and Insolvency and Bankruptcy Code; Company, partnership, HUF and LLP distinguished
    Year and frequency →
  4. What is a Memorandum of Association?
    Topics: Memorandum, ultra vires and indoor management
    Year and frequency →

Part C · 10 marks

  1. A private company has only two shareholders who are also the directors, with equal rights of management and voting power. The company has made huge profits, but there is a complete deadlock in the management of the company. One of the shareholders applied for the winding up of the company. Decide.
    2× in bank Topics: Memorandum, ultra vires and indoor management; Appointment, duties and independent directors; Winding up and Insolvency and Bankruptcy Code
    Year and frequency →
  2. Vaibhav, a trader, carried on business under the name of "Vaibhav and Co. Ltd." without being registered as a company with limited liability. Decide the consequences of the act of Vaibhav.
    Topics: Company, partnership, HUF and LLP distinguished
    Year and frequency →
  3. Grace Ltd., a Public Ltd. Company, has received an application from Rosy for transmission of certain shares in her name. Rosy, being the widow of a shareholder, applies for transmission of the shares standing in the name of her deceased husband without producing a succession certificate. Can the company transfer the shares of the deceased member? Discuss.
    Topics: Kinds of shares and transfer; Company, partnership, HUF and LLP distinguished
    Year and frequency →
  4. All the members of a private company, while going in a van, met with an accident and all of them died on the spot. Does the private company cease to exist?
    Topics: Company, partnership, HUF and LLP distinguished
    Year and frequency →