Shares and Share Capital – Company Law Important Questions

Question 1.Distinguish between Reserve Capital and Capital Reserve. (December 2009) (June 2012) (December 2012)(4 marks)Or‘Reserve Capital’ and ‘Capital Reserve’ are one and the same. (December 2014) (5 marks)Answer:Following are the main points of distinction between reserve capital & capital reserve: Points Reserve Capital Capital Reserve Meaning Reserve capital is that part of the uncalled capital …

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Debt Instruments and Deposits – Company Law Important Questions

Question 1.What are the rights, powers, and disabilities of debenture trustees?OrWith reference to the provisions of the Companies Act, 2013 and the rules framed thereunder, state the disqualifications for a Debenture Trustee. Ex¬plain whether the following persons can be appointed as Debenture Trustee?(i) A relative of the whole-time director of the company.(ii) A shareholder who …

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Distribution of Profits and Dividend – Company Law Important Questions

Question 1.Distinguish between: Interim Dividend and Final Dividend. (December 2014) (4 marks)Answer: Basis of Distinction Interim Dividend Final Dividend Meaning The dividend which is paid in the middle of the year is known as an interim dividend. A dividend that is recommended by the Board of Directors and approved by the shareholders in AGM is …

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Corporate Social Responsibility – Company Law Important Questions

Question 1.Write a note on Corporate Social Responsibility. (June 2016) (4 marks)Answer:1. As per section 135 of the Companies Act, 2013, the CSR provision is ap¬plicable to companies that fulfill any of the following criteria during the immediately preceding financial year: 2. The CSR Rules have widened the ambit for compliance obligations to include the …

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Transparency and Disclosures – Company Law Important Questions

Question 1.During the financial year 2016-17, the board of directors of CARE Automation Services Limited has issued shares to employees under Employees Stock Option Scheme. Ms. Excellent has recently joined the Board of the company and asks you, the Secretary of the company, as to what details are to be disclosed in the Board’s Report …

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