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Q1. Board of A Ltd exercised the power to remit (ignore) repayment of debt due from Director. The exercise of such power was through consent of the Company through ordinary resolution. Is the treatment correct?



Q2. Board of Adarsh (Pvt) Ltd sold its undertaking as defined in explanation to Sec 180(1)(a). The Company at the GM objected to such an exercise of power calling it to be a wrongful as it was without approval of Company through Special Resolution as required for sale of undertaking u/s 180(1)(a) of Companies Act, 2013. Owing to the same, the title of the purchaser of the undertaking was brought into question. Is the treatment correct.



Q3. A Ltd seeks to make contribution to Charitable funds of 5 lakh in FY 2017-18. The Board approved such a resolution without consent of Company at GM. In light of the given extract for the 3 immediately preceding FY, is the treatment correct? FY Net Profits (in lakhs) FY 2014-15 50 FY 2015-16 150 FY 2016-17 100



Q4. Board of A Ltd exercised the power to sell its whole undertaking in Ab Ltd its subsidiary. A Ltd’s total income for the previous financial year was 100 crores. The income share contributed by Ab Ltd was 30 Crores only. The exercise of such power was through consent of the Company through ordinary resolution. Is the treatment correct.



Q5. In the above question would the treatment be correct if the Money proposed to be borrowed was 70 crores instead of 60 crores



Q6. A. Ltd’s extract of financial statements is as follows : Paid-Up Capital and Free Reserves 100 Crores. Sec Premium 10 crores Money Borrowed 50 crores (includes 10 crores temporary loan repayable within 6 months). Money proposed to be borrowed 60 crores. An ordinary resolution at the GM is passed to approve such additional borrowing. Is the treatment correct?



Q7. Board of A Ltd exercised the power to sell its whole undertaking in Ab Ltd (its subsidiary). A Ltd’s total net worth as per the preceding financial year audited Balance Sheet was 100 crores. The Investment in Ab Ltd was 15 Crores only. The exercise of such power was through consent of the Company through ordinary resolution. Is the treatment correct.



Q8. A Ltd. with turnover of 100 lakhs Contributed 10 Lakh to the Flower Hand Broom Political Party. The contribution was consented through a BOD resolution . Some members of the Company objected that Company’s consent for the same shall have been obtained. Is the Contribution valid in light of Companies Act, 2013



Q9. Mr. A was interested in a contract. He was a Director of A.Ltd. The interest was not disclosed. On prospective discovery of his interest the Director, the BOD wanted to annul the contract. Can it do so?



Q10. Board of A Ltd exercised the power to sell its whole undertaking in Ab Ltd its subsidiary. A Ltd’s total net worth as per the preceding financial year audited Balance Sheet was 100 crores. The Investment in Ab Ltd was 30 Crores only. The exercise of such power was through consent of the Company through special resolution. The limits for the sale of investment were not explicitly mentioned in GM-SR. Is the treatment correct?



Q11. Board of A Ltd wishes to exercise the power to sell its whole undertaking in Ab Ltd its subsidiary. A. Ltd’s total net worth as per the preceding financial year audited Balance Sheet was 100 crores. The Investment in Ab Ltd was 30 Crores only. The exercise of such power was done after consent of the Company through ordinary resolution. Is the treatment correct?



Q12. Would the treatment be correct in the above case change if instead of net profit of 50 Lakhs in FY 2014-15 the company made net profit of 40 Lakhs.



Q13. In question No. 69 would the treatment be correct if Money Borrowed previously (i.e.50 crores) had temporary loans component of 20 crores instead of 10.



Q14. In question No. 69 would the treatment be correct if the Money proposed to be borrowed was 71 crores instead of 60 crores



Q15. What penal provisions befall a Director who has not disclosed interest u/s 184



Q16. Board of A Ltd exercised the power to sell its whole undertaking in Ab Ltd its subsidiary. A Ltd’s total income for the previous financial year was 100 crores. The income contributed by Ab Ltd was 15 Crores only. The exercise of such power was through a consent of the Company through ordinary resolution. Is the treatment correct?



Q17. Would the contribution be valid if in question no 78 A Ltd was a Company in which CG or SG or partly both held more than 51 % shareholding?



Q18. Would the contribution be valid in question no. 78 if A Ltd was incorporated 364 days before making such a contribution?



Q19. Board of A Ltd exercised the power to invest in trust securities the proceeds of compensation received as a result of merger/amalgamation. The exercise of such power was through consent of the Company through ordinary resolution. Is the treatment correct?



Q20. Board of A Ltd exercised the power to sell its whole undertaking in Ab Ltd its subsidiary through a consent of the Company vide an ordinary resolution. Later it was discovered in 4 months that the situation warranted a special resolution. Owing to the same, the title of the purchaser of the undertaking was brought into question. Is the treatment correct.









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