Law test-1

1. New a One Person company (OPC) was incorporated during the year 2015-16 with an authorised
capital of Rs. 45 lakhs (4.5 lakhs shares of Rs. 10 each). The capital was fully subscribed and paid up.
Turnover of the company during 2015-16 and 2016-17 was Rs. 2 crores and Rs. 2.5 crores
respectively. Promoter of the company seeks your advice in the following circumstances, whether New
(OPC) can convert into any other kind of company during 2017-18. Please, advise with reference to
relevant provisions of the Companies Act, 2013 in the below mentioned circumstances:
(i) If promoter increases the paid up capital of the company by Rs. 10 lakhs during 2017-18
(ii) If turnover of the company during 2017-18 was Rs. 3 crores. (6 Marks)

2. XY Ltd. has its registered office at Mumbai in the State of Maharashtra. For better administrative
conveniences the company wants to shift its registered office from Mumbai to Nashik (within the State
of Maharashtra). What formalities the company has to comply with under the provisions of the
Companies Act, 2013 for shifting its registered office as stated above? Explain(4 Marks)

3. The directors of Smart Computers limited borrowed a sum of money from Mr.Tridev. The
company's articles provided that the directors may borrow on bonds such sums as may, from time to
time, be authorized by resolution passed at a general meeting of the company. The shareholders
claimed that there had been no such resolution authorizing the loan, and therefore, it was taken
without their authority and the company is not bound to repay the loan to Tridev. In the light of the
contention of shareholders, decide whether the company is bound to pay the loan. (6 Marks)

4.Explain the provisions of the Companies Act, 2013 relating to the ‘Service of Documents’ on a
company and the members of the company. (3 Marks)

5. Kavya Ltd. has a paid up share-capital of Rs. 80 crores. Amjali Ltd. holds a total of Rs. 50 crores of
Kavya Ltd. Now,Kavya ltd. is making huge profits and wants to expand its business and is aiming at
investing in Amjali Ltd. Kavya Ltd. has approached you to analyse whether as per the provisions of
the Companies Act, 2013, they can hold 1/10th of the share capital of Amjali Ltd. (5 Marks)

6.Kapila Limited issued equity shares of ` 1,00,000 (10,000 shares of ` 10 each) on 01.04.2021
which have been fully subscribed, whereby Kusha Limited holds 4000 shares and Prem Limited holds
2000 shares in Kapila Limited. Kapila Limited is also holding 20% equity shares of Red Limited before
the date of issue of equity shares stated above. Red Limited controls the composition of Board of
Directors of Kusha Limited and Prem Limited from 01.08.2021. Examine with relevant provisions of
the Companies Act, 2013:

(i) Whether Kapila Limited is a subsidiary of Red Limited?

(ii) Whether Kapila Limited can hold shares of Red Limited? (6 Marks)

7.Gully GilliDanda Club was formed as a Limited Liability Company under section 8 of the Companies
Act, 2013 with the object of promoting GilliDanda by arranging introductory courses at district level
and friendly matches. The club has been earning surplus. Of late, the affairs of the company are
conducted fraudulently and dividend was paid to its members. Mr. A, a member decided to make a
complaint with Regulatory Authority to curb the fraudulent activities by cancelling the licence given to
the company.

(i) Is there any provision under the Companies Act, 2013 to revoke the licence? If so, state the
provisions.

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(ii) Whether the company may be wound up?

(iii) Whether the Gully GilliDanda Club can be merged with Stick Private Limited, a company engaged
in the business of networking? (5 Marks)

8. Paritosh and friends got registered a company in the name of Taxmann advisory Private
Limited. Taxmann is a registered trademark. After 5 years when the owner of trademark came to
know about the same, it filed an application with relevant authority. Can the company be compelled
to change its name by the owner of trademark? Can the owner of registered trademark request the
company and then company changes its name at its discretion? (6 Marks)

9. Mr. X, in association with his relative formed a company to promote education for the children
of poor section. A licence was issued by the Central Government allowing the said company to be
registered under section 8 of the Company. Government aids and lot of funds were contributed by
public for the fulfilment of the benevolent object. However, on the compliant against the company, CG
came to know about the manipulation of the funds in the company and so order to revoke the licence
of the company. Further, directed for the amalgamation with another company registered under this
section with an object to save girl child.

Examine the legal position as to the order passed by the Central government in the given situation in
the light of the Companies Act, 2013. (6 Marks)

10. X Ltd., holds 20 lacs shares in ABZ Ltd. In 2017, ABZ Ltd. controls the composition of the
Board of directors of X Ltd. and transfers certain shares to it. State whether such transfer of shares
by ABZ Ltd. to X Ltd. is valid. (3 marks)

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