hitechpathshala

Q. 1

DBS Chemicals Limited issue ordinary share of different classes. DBS planned to vary rights of one the class wherein there were only 105 holders. 100 out of 105 holders own 0.5% shares of that class, whereas each of remaining 5 holders hold 10% shares of that class. Presuming 100 holder who own 0.5% shares already signed/authorised the consent letter sanctioning the variation, how many holders out of such 5 need to authorise the said letter to approve the variation.

0

1

3

5

Q. 2

Buy-back with board resolution is allowed, if amount involved is

Not exceeding twenty five percent of the total paid-up equity capital and free reserves of the company

Not exceeding twenty five percent of the total paid-up equity capital

Not exceeding ten percent of the total paid-up equity capital and free reserves of the company

Not exceeding ten percent of the total paid-up equity capital

Q. 3

A company that incorporated and commenced the business on 9th Nov 2022, can issue sweat equity share only after 8th Nov 2023.

True

False

Partly true partly false

Neither false neither true

Q. 4

Notice of refusal to register transfer of shares by private company shall be sent only to the transferee within 30 days, stating reasons of refusal therein

True

False

Partly true partly false

Neither false neither true

Q. 5

Bonus share can be issued to partly paid shares in proportion to paid-up value.

True

False

Partly true partly false

Neither false neither true

Q. 6

Corrupt Limited has received a request from Mr. Suresh for transfer of 100 partly paid equity shares, to Mr. Ramesh. However, Mr. Ramesh expired in the meantime, but no intimation of the same has been received by the company. In the given circumstances, advise as per the provisions of the Companies Act, 2013:

Corrupt Limited will not register the transfer the shares in the name of Mr. Ramesh, without verification from Mr. Suresh

Corrupt Limited can register the shares in the name of Mr. Ramesh as it is not aware of the untoward incident.

Corrupt Limited will not register the transfer the shares in the name of Mr. Ramesh, without verification from Mr. Ramesh

Corrupt Limited will give the shares back to Mr. Suresh

Q. 7

The Authorized share capital clause of LMN & Co. ltd. consisted of Preference share capital and Equity share capital both. With regard to equity share capital, the article of association of the company has given authorization to issue differential equity shares. Apart from authorization by the Articles, from the following strike out the condition, which is not mandatory to comply with—

Such issue of shares must be authorized by an ordinary resolution passed at a general meeting of the shareholders or by postal ballot, as the case may be

The company must have consistent track record of distributable profit for the last five years.

The company has no subsisting default in the payment of the declared dividend to its shareholders.

The company has not defaulted in filing financial statements and annual returns for three financial years immediately preceding the financial year in which it is decided to issue such shares

Q. 8

Prithvi Cements Limited is desirous of issuing debentures carrying voting rights. Which of the following options is best suited in such a situation:

Prithvi Cements Limited can issue debentures carrying voting rights if an ordinary resolution is passed permitting such issue.

Prithvi Cements Limited can issue debentures carrying voting rights if a special resolution is passed permitting such issue.

Prithvi Cements Limited can issue debentures carrying voting rights if it mortgages land and buildings worth two times the amount of such debentures.

Prithvi Cements Limited cannot issue debentures carrying voting rights.

Q. 9

In a company if any change of right of one class also affects the right of other class, then:

A resolution should be passed in general meeting in this case

Company need not to do anything else

Written consent of three fourth majority of that other class should be obtained

A resolution in joint meeting of both the classes should be passed

Q. 10

Goals Limited, a listed company has authorised share capital of `Rs 25,00,000 (issued, subscribed and paid up capital of `Rs 20,00,000). The company has planned to buy back shares worth `Rs 10,00,000. What is the maximum amount of equity shares that the company is allowed to buy back based on the total amount of equity shares?

`Rs 2,00,000

`Rs 5,00,000

Rs 6,25,000

Rs 8,00,000

Q. 11

A Private Company cannot issue securities:

By way of rights issue

By way of bonus issue

By way of private placement

By issue of Prospectus in Public

Q. 12

Which among the following companies is not required to provide its members the facility to exercise right to vote by electronic mode under the provisions of the Companies Act, 2013?

B Limited, whose equity shares (the company is having both equity as well as preference shares) are listed on a recognised stock exchange.

A Limited, whose equity shares (only type of share the company is having) are listed on a recognised stock exchange

C Limited, whose preference shares (the company is having both equity as well as preference shares) are listed on a recognised stock exchange

D Limited, whose equity shares as well as preference shares are listed on a recognised stock exchange.

Q. 13

A Company limited by shares can issue equity shares with differential voting rights. Which of the following is not a necessary condition to be fulfilled before issue of such shares:

The articles of association of the company shall authorize issue of shares with differential rights;

The issue of shares shall be authorized by an ordinary resolution passed at a general meeting of the shareholders;

The issue of shares shall be authorized by special resolution passed at a general meeting of the shareholders;

The company shall have consistent track record of distributable profits for the last three years;

Q. 14

Shruti, a common friend of Suchitra and Sukanya, got incorporated OPC sometime before and during a chit-chat with her friends informed them that there is some limit on the maximum capital which her OPC can have and she would have to convert her OPC either into a private or public limited company if such limit exceeded. Suchitra and Sukanya who are desirous of forming a private limited company for carrying on textile trading business, are unsure about the maximum capital which a private limited company can have. Advise.

A private limited company can have maximum of Rs One crore as share capital.

A private limited company can have maximum of Rs Two crores as share capital.

A private limited company can have maximum of Rs Five crores as share capital.

A private limited company can have unlimited share capital.

Q. 15

Where a share capital of the company is divided into different classes of shares, the rights attached to the shares of any class may be varied with the consent in writing of the holders of not less than ----------- - of the issued shares of that class or by means of a special resolution passed at a separate meeting of the holders of the issued shares of that class:

One-fourth

50%

Three-fourths

75%:

LAW CH 4 SHARE CAPITAL & DEBENTURE

Marks: 15