International Institute of Management and Technology

Corporate Law

Part A: Attempt all the following 10*2=20 Marks

1. The term company is defined under which sec of the Act?

a) Sec 3 (1)

b) Sec 4 (2)

c) Sec 2 (4)

d) Sec 1 (3)

2. Property of the company belongs to

a) Company

b) Share holders

c) Members

d) Promoters

3. The relationship of sole selling agent and the appointing company is that of a
____________________ and is governed by provisions of ______________.

4. The term ‘appointment’ in relation to sole selling agent and sole buying or purchasing agents
includes ________________.

5. A company shall not appoint any individuals, firms or body corporate having _____________
in the company as its sole buying or purchasing agent unless such an appointment has been
previously ___________ by the __________________.

6. The word ‘Investments’ in common parlance would include any property or right in which
___________________ is invested.

7. The term ‘Investments’ is used in a limited sense to mean the investing of money in
______________________.

8. The power to invest the funds of the company is the _____________ of the Board of
Directors.

9. In case of default, the company and every officer of the company who is in default shall be
punishable with fine of ______________.
10. A company comes into existence by registration in the __________________________.

Part B: Attempt five of the following 5*10=50 Marks

1. Explain the provisions of the Employees’ Provident Fund and Miscellaneous Provisions
Act, 1952 regarding the following:

(i) rate of interest on amount due from the employer under the Act.

(ii) maximum limit of interest rate

2. Rate, limit and period of payment of interest (The EPF and MP Act, 1952)
3. R is the wife of P. She purchased some sarees on Credit from Q. Q demanded the amount
from P. P Refused. Q filed a suit against P for the said amount. Decide in the light of
provisions of the Indian Contract Act, 1872, whether Q would succeed?
4. State the eligibility and disqualification of the members of a Multi-State Cooperative
Society under the provisions of the Multi-State Cooperative Society Act, 1984 (as
amended by the Act of 2002).
5. ABC Pvt. Ltd., Company is a Private Company having five members only. All the
members of the company were going by car to Mumbai in relation to some business. An
accident took place and all of them died. Answer with reasons, under the Companies Act,
1956 whether existence of the company has also come to the end?
6. Explain the doctrine of “Ultra-vires”. What are the legal effects of ultra-vires transactions
under the Companies Act, 1956?

Part C 30 Marks

1. Ravi sent a consignment of goods worth Rs. 60,000 by railway and got railway receipt.
He obtained an advance of Rs. 30,000 from the bank and endorsed and delivered the
railway receipt in favour of the bank by way of security. The railway failed to deliver the
goods at the destination. The bank filed a suit against the railway for Rs. 60,000.
Decide in the light of provisions of the Indian Contract Act, 1872, whether the bank
would succeed in the said suit?
7. State the privileges of a Cooperative Society registered under the Cooperative Society
Act, 1912 relating to the exemption from Income-tax, Stamp duty and Registration fee.