Osmania University · Faculty of Law
Company Law · January/February 2017
January/February 2017 · Company Law · Semester 3
FACULTY OF LAW
LL.B. (Hons.) (3 YDC) / LL.B. (3 YDC) II - Year III - Semester Examination, January / February 2017
Subject: LAW
PAPER - IV: COMPANY LAW
Code: 576 | Time: 3 Hours | Max. Marks: 80
PART - A (5 x 6 = 30 Marks) — Answer any FIVE of the following:
1. Separate legal personality of a company.
2. Advantages of Incorporation.
3. Pre-Incorporation contracts.
4. Prospectus.
5. Managing Director.
6. Company Secretary.
7. AGM.
8. Official Liquidator. [partially obscured in source image]
PART - B (2 x 15 = 30 Marks) — Answer any TWO of the following questions:
9. Define 'Company'. What are its characteristics?
10. "As the memorandum of association drafted, the doctrine of ultra vires is an illusory protection
to the shareholders and a pitfall for third parties." Discuss the doctrine of ultra vires in light of the
above observation.
11. How can directors of a company be removed from office before the expiry of their term? Explain
the procedure for filling the vacancy caused by removal of a director.
12. What are the circumstances under which a company can be wound up?
PART - C (2 x 10 = 20 Marks) — Answer any TWO of the following questions:
13. A husband and wife, who were the only two members of a private limited company, were shot
dead by dacoits. Does the company also die with them?
14. The Board of Directors of Ratnakar Ltd. met only 3 times in the previous year. A fourth meeting
was adjourned twice for lack of quorum. Does this constitute a violation of the Companies Act?
15. 'X' Co. had no money to pay the directors' fee. The directors thereupon paid into the company's
bank account the amount remaining due on their shares and retook the amount as fee. Does this
give a discharge to the directors' liability to pay on their shares?
16. A Private company having two directors has just become a Public company by virtue of sec. 43 -
A. Is it obligatory for the company to appoint a third director?