CMA MAY-2023 EXAMINATION

INTERMEDIATE LEVEL I
CORPORATE & BUSINESS LAWS

Course Code : LT125 Total Marks : 100

Reading Time : 15 minutes Writing Time : 180 minutes

Instructions to Candidates
 You MUST NOT write anything during the reading time.
 You should attemptALLquestions.
 Answers should be properly structured and relevant.
 Carefully read ALL the requirements and sub-questions before attempting a specific
question.
 ALL answers must be written in the answer book.
 AVOID WRITING/MARKING on the question paper at any time which may cause
disciplinary action.
 Start answering each question from a fresh sheet.
 Answers should be clearly numbered with the sub-question number.

Allowable Materials
 Writing Stationaries
 Non-programmable Calculator

Assessment Structure
Sub- Expected Time
Marks
question Required
Question 1 Multiple Choice Questions 10 10 20 minutes
Section
Question 2 Modified True/False 5 5 10 minutes
A
Question 3 Matching 5 5 10 minutes
Question 4 Essay/Case 2 20 32.50 minutes
Section Question 5 Essay/Case 3 20 32.50 minutes
B Question 6 Essay/Case 3 20 32.50 minutes
Question 7 Essay/Case - 20 32.50 minutes
Revision 10 minutes
Total 100 180 minutes

RESTRICTED USE
This paper MUST NOT BE REMOVED from the examination venue

Do not turn the page until instructed

 SECTION A [20 MARKS]
THERE ARE 3 (THREE) QUESTIONS IN THIS SECTION. ANSWER ALL THE
QUESTIONS IN THE ANSWER SCRIPT FOLLOWING THE EXAMPLE PROVIDED FOR
THE SPECIFIC QUESTION.

QUESTION 1 [10 × 1 = 10 MARKS]

There are ten (10) multiple-choice questions with five options. Pick the option that best
explains the given question. Write your answer on the answer script [DO NOT PUT ANY
MARK ON THE QUESTION PAPER]. Follow the example given below in providing your
answer.

Example:
1. ICMAB stands for the –
(a) Institute of Cost Management Accounting of Bangladesh
(b) Institute of Cost and Management Accountants of Bangladesh
(c) Institute for Cost Managers and Accounting of Bangladesh
(d) Institute of Cost Management Accountants of Bangladesh
(e) Industrial Cost Management Accountants of Bangladesh

Answer: 1 (b)

(i) Actuary report by actuary for valuation of liabilities is required for

(a) Fire insurance
(b) Marine insurance
(c) Life insurance
(d) Both a, b & c
(e) None of the above
(ii) ‘Discharge’ means the termination of services of a worker by the employer for
(a) Reasons of physical or mental in capacity
(b) For misconduct
(c) On attaining the particular age under section 28 of the Labor Act, 2006
(d) Both b & c
(e) None of the above
(iii) A company may change its name by
(a) Special resolution
(b) Special resolution and subject to the approval of the Registrar
(c) Ordinary resolution
(d) Ordinary resolution and subject to the approval of the Registrar
(iv) Reduction of share capital of a company limited by shares
(a) Needs confirmation by the Court
(b) Dose not require confirmation by the Court
(c) Needs only passing special resolution
(d) Needs only passing extra ordinary resolution
(v) Statuary report is to be sent before …. days of the said meeting to every member of
the company.
(a) 21 days
(b) 14 days
(c) 30 days
(d) None of the above

CMA May 2023 Examination, LT125 [Page 2 of 6]

(vi) Every private company, other than a private company, which is a subsidiary of a public
company shall have at least
(a) Two Directors.
(b) Three Directors.
(c) Four Directors.
(d) None of the above
(vii) A company may be wound up by the court,
(a) If the company has by special resolution resolved that the company be wound up
by the court
(b) If the company has by ordinary resolution resolved that the company be wound
up by the court
(c) If the company has by extra ordinary resolution resolved that the company be
wound up by the court
(d) None of the above
(viii) Every partner is liable, for all acts of the firm done while he is a partner
(a) Jointly with all other partners
(b) Severally with all other partners
(c) Jointly with all other partners and also severally
(d) None of the above
(ix) As per ‘Financial Institutions Act, 1993’, Financial Institution may be amalgamated with
any other financial institution
(a) With prior approval of the Bangladesh Bank
(b) Without prior approval of the Bangladesh Bank
(c) With prior approval of the Bangladesh Securities and Exchange Commission
(x) The directors of every financial institution shall submit to the Bangladesh Bank a copy
of the profit and loss account and balance sheet prepared in accordance with the
(a) Banking Companies Act
(b) Companies Act.
(c) Financial Institutions Act
(d) None of the above

QUESTION 2 [5 × 1 = 5 MARKS]
There are five (5) statements given under the question. Identify the statements as True or
False. If the statement is false, rewrite the statement on the answer script to make it ‘True’.
Reasoning is NOT required. Follow the example given below in providing your answer.

Example:
(a) ICMAB stands for the Industrial Cost Management and Accounting of Bangladesh.

Answer:
(a) False. ICMAB stands for the Institute of Cost and Management Accountants
of Bangladesh.

Note:
 You will not get any mark if you simply rewrite as ICMAB does not stand for the
Industrial Cost Management Accountants of Bangladesh.
 If the statement is true, you need NOT to rewrite the statement rather only
mention that the statement is True.

CMA May 2023 Examination, LT125 [Page 3 of 6]

(a) A minor cannot be capable of being appointed director of a company.
(b) A resolution shall be a special resolution when it has been passed by majority
members entitled to vote as are present in person or by proxy.
(c) Every balance sheet, and every profit and loss account of any company other than
banking company shall be signed on behalf of the board of directors by at least three
directors.
(d) In any establishment, where generally one hundred or more labours are employed, for
drinking cold water in summer shall have to be supplied as per provision of the ‘The
Bangladesh Labour Act-2006’.
(e) No woman labour can be employed to work without her approval from 8 p.m. to 8 a.m.
as per provision of the ‘The Bangladesh Labour Act-2006’.

QUESTION 3 [5 × 1 = 5 MARKS]
Match the items of column A with the most suitable items of column B. Match only one item
of column A with one item of column B. Write your answer on the answer script. Follow the
example given below in providing your answer.

Example:

Column A Column B
1. ICMAB (a) Professional accountancy body
(b) University

Answer: 1 (a)

Column A Column B
(i) The alteration of memorandum shall not take effect until (a) General
and except in so far it is confirmed by the… (b) Court
(ii) Where a company having a share capital has increased
(c) 15
its share capital beyond the registered capital, it shall file
with the Registrar, within ……. days after the passing of (d) Registrar
the resolution. (e) Articles
(iii) No director shall without the consent of the company in (f) 21
…….. meeting hold any office of profit under the (g) Memorandum
company. (h) 14
(iv) The resolution to issue shares at a discount must specify (i) Special
the maximum rate of discount, not exceeding …….. (j) 10
percent in any case.
(v) A company may be wound up voluntarily when the
period, if any, fixed for the duration of the company by
the ………. of association expires.

END OF SECTION A

CMA May 2023 Examination, LT125 [Page 4 of 6]

 SECTION B [80 MARKS]
THERE ARE 4 (FOUR) QUESTIONS IN THIS SECTION. ANSWER ALL THE QUESTIONS
IN THE ANSWER SCRIPT. SHOW ALL RELEVANT COMPUTATION.
QUESTION 4 [Marks: 10 + 5 + 5 = 20]
The Chairman, Board of Directors of MNP Bank Limited listed with stock exchanges drew
attention of the directors regarding the compliance issues of the Companies Act, 1994 which
is to be completed within the shortest possible of time and the Chairman requested the
Company Secretary to make a brief statement before the Board in this regard.
Then the Company Secretary with the permission of the Chair said that the Companies Act,
1994 has been playing a vital role for operation of Banking business in the country. The
Companies Act, 1994 has been amended twice in 2020 by the Parliament through the
passing of Companies Act (1st Amendment) 2020 and Companies Act (2nd Amendment)
2020 dated 25th February 2020 and 26th November 2020 respectively.
In the 2nd amendment which was promulgated on 26th November 2020, A new Section 11
(Ka) [Indication of Limited Company] has been added after Section 11 which requires a
public limited company to use the term ‘’PLC’’ at the end. The words LTD and PLC for
private limited and public limited companies respectively required to be used with the names
of the Company. That’s why, our bank has to take initiatives regarding inclusion of PLC at
the end of bank’s name (i.e. MNP Bank PLC from MNP Bank Limited) as well as compliance
thereof. As the AGM of our Bank will be held on May, 2023, so we can proceed to ensure
the compliance issue.
Based on the above scenario of MNP Bank Limited, please advice on the following
issues taken into consideration the provision of the Companies Act, 1994:
(a) What formalities shall have to be observed by MNP Bank Limited to change its name?
(b) The Board of Directors of MNP Bank Limited desires to approve the proposed name
change in its coming AGM which will be held on May, 2023. Do you think, is it possible
to approve the special agendum in the AGM without having the Extra Ordinary General
Meeting (EGM)?
(c) One of the Directors of the Bank said that only ordinary resolution is to be required to
change its name and simple majority in the AGM will be required to approve the issue.
Do you agree with the statement? What sort of resolution is to be required and what
percentage of majority is to be needed to approve the issue?
QUESTION 5 [Marks: (2x5) +5+ 5 = 20]
(a) Comment on the following matters:
(i) Mr. Albert is a sponsor shareholder of XYZ Bank plc. Presently he is holding 10%
shares of the bank. Now he wants to hold additional 2% shares.
(ii) Ms. Napa and 4 members of her family holding 10% shares of Yes Bank plc. At
present 2 members of her family are representing in the Board of Director of Yes
Bank plc. Now Ms. Napa has applied to the competent authority to increase the
number of representative of her family from 2 to 5 members in the Board of
Director of Yes Bank plc.
(b) The provision of the Financial Institutions Act 1993 requires the auditor of a non-
banking financial institution to inform certain matters to Bangladesh Bank without any
delay. What are these matters?
(c) Describe the power of Bangladesh Bank to remove directors of a banking company as
per Bank Company Act, 1991.

CMA May 2023 Examination, LT125 [Page 5 of 6]

QUESTION 6 [Marks: (4 x 5) = 20]
(a) Is registration of a partnership firm mandatory? What do you mean by the Partnership
at will?
(b) What is the effect of crossing a cheque with the words ‘Not negotiable’ written across
its face?
(c) Explain how ‘Mutual Agency’ relationship exists in case of a partnership business.
(d) Explain the process of dissolution of firm.

QUESTION 7 [Marks: (4 x 5) = 20]

(a) The date of latest AGM of ABC Ltd., a listed company of DSE is fixed on 28 November,
2022. XYZ, Chartered Accountants is the current auditor of the Company. In the AGM
dated 28 November, 2022 the current auditor XYZ, Chartered Accountants is replaced
by new auditor DEF, Chartered Accountants. Write down the minutes of the said AGM
regarding the appointment of new auditor.
(b) A meeting was called upon by the requisition of members of ABC public Ltd. company
on 1st December 2022 at 10:00 AM. But till 10:30 AM only two members were present.
Describe what will be the consequence of the said meeting. Specify your decision if the
meeting is called by otherwise.
(c) In case of Initial Public Offering how the offering price is fixed under ‘Book Building
Method’ as per provision of the Bangladesh Securities and Exchange Commission
(Public Issue) Rules.
(d) Describe who shall sign the Balance Sheet, Profit & Loss Account as per provision of
the ‘Companies Act, 1994’.

END OF SECTION B

CMA May 2023 Examination, LT125 [Page 6 of 6]