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Complete the sentence.
Any act done by the company which goes beyond the powers of Memorandum of Association will be calledas _________
Concept: undefined >> undefined
Complete the sentence.
The document which is subordinate to the Memorandum of Association is called _________
Concept: undefined >> undefined
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Complete the sentence.
The document issued by a company to invite investors to buy its securities is called as _________
Concept: undefined >> undefined
Complete the sentence.
The document which contains the rules and regulations governing the internal management of a company is called _________
Concept: undefined >> undefined
Select the correct option from the given options:
| Group A | Group B |
| ___________ | Memorandum of association. |
Concept: undefined >> undefined
Select the correct option from the given options:
| Group A | Group B |
| Liability clause | ___________ |
Concept: undefined >> undefined
Select the correct option from the given options:
| Group A | Group B |
| Incomplete prospectus | ___________ |
Concept: undefined >> undefined
Select the correct option from the given options:
| Group A | Group B |
| ___________ | Establishes relation between company and its member |
Concept: undefined >> undefined
Arrange in proper order.
a) Subscription clause.
b) Name clause.
c) Object clause.
Concept: undefined >> undefined
Explain the following term/concept.
Name clause
Concept: undefined >> undefined
Explain the following term/concept.
objective clause
Concept: undefined >> undefined
Explain the following term/concept.
Liability clauses
Concept: undefined >> undefined
Explain the following term/concept.
Capital clauses
Concept: undefined >> undefined
Study the following case/situation and express your opinion:
The Articles of a company stated that while borrowing any money from outsiders. The document must have the signatures of the Managing Director (MD) and any one of the directors. The Articles of Association clearly stated the procedure to be followed while borrowing money. The Managing Director did not follow all the procedures but still borrowed money from Mr. X. Mr. X assumed that the MD has followed the required procedures:
(a) Can the MD be held punishable for his act?
(b) Under which Doctrine can Mr. X take action against the company?
(c) Explain the Doctrine.
Concept: undefined >> undefined
Study the following case/situation and express your opinion.
Mr. A entered into a contract with Star Limited company and as advance payment gave a cheque of ₹ 1 lac to a Director Mr. Sam. Mr. Sam is not the Managing Director. Articles state that only the MD is authorized to sign any contracts or receive any payments on behalf of the company.
- Did Mr. Sam have the authority to accept the cheque? Why?
- Can Mr. Sam’s action be called as Ultra Vires? Why?
Concept: undefined >> undefined
Study the following case/situation and express your opinion:
The object clause of Memorandum of a company stated the main object as the manufacturing of plastic chairs and tables and any other activity in furtherance of achievement of its main activity. The Board of Directors wants to now also produce TV. Serials and feels that the shareholders may give their permission.
a) Can the company with immediate effect start producing TV? Serials? Why?
b) How can the object clause of the company be altered?
Concept: undefined >> undefined
Study the following case/situation and express your opinion:
A public limited company has issued all the shares mentioned in its Memorandum as Authorized Capital. Now the Company wants to make a public issue of 10,000 shares at face value of Rs 100 per share, to raise more funds for its expansion activities :
(a) Which clause of Memorandum needs to be altered?
(b) In which meeting the alteration can be approved?
(c) Which document should the company issue to invite the public to buy its shares?
Concept: undefined >> undefined
Study the following case/situation and express your opinion:
A company stated in its prospectus that it has been making profits since the last 5 years. However, Mr. X. an investor found out that two years back the company had not made any profit. The prospectus was filed with the ROC on 1 st Jan 2017 and was issued to the public on 10th Feb 2018.
a) Can Mr. X state that there was a misstatement in the prospectus?
b) If found guilty which two types of liability will the company and its officers face?
c) Can the prospectus be valid for issue to the public on 10th Feb 2018?
Concept: undefined >> undefined
Study the following case/situation and express your opinion:
A Company plans to offer Rights Issue.
a) Which document must it send to its shareholders for offering the Rights Issue?
b) Instead of Rights Issue, if the company wants to issue shares to the public, which document must it issue for inviting the public to subscribe for it?
c) Name the document which is called as incomplete prospectus.
Concept: undefined >> undefined
Distinguish between the following:
Memorandum of association and articles of association.
Concept: undefined >> undefined
