Questions on company law

company law exam paper

Janki Prasad 4 All Answer Holding, subsidiary relationship: For the purpose of determining whether a company is subsidiary of another company, only equity shares issued by the first mentioned company are to be taken into account [Section 4 1 b iiof Companies Act, ].

The date of issue of certificate is immaterial.

company law test bank

Most important thing is, that such acts cannot be ratified even by the whole body of the shareholders of the company. Thus, when the corporate veil is lifted by the courts, i. Fees for registration of a company depending upon the authorised capital must also be paid.

Company law revision questions

Since the company came into existence on the date of incorporation stated on the certificate, it is quite legal for the company to enter into contracts. The dividend and interest income received by the companies was handed back to F as a pretended loan. It is also clear from the definition of the guarantee company that it does not raise its initial working funds from its members. It is created by a process of law and can be put to an end only by the process of law. Hence, the United Traders Association constituted by two joint Hindu Families is an Illegal Association according to the provisions of Section 11 as stated above. He seeks your advise about the procedure to be followed to give effect to the above proposal. Question 38 Explain the doctrine of Ultra-vires.

See that one of the promoters is kept as the subscriber to the memorandum and articles of association of the proposed company.

In the given case, A will not succeed and the company is empowered to appoint B as a solicitor of the company and may change the articles accordingly.

Questions on company law

Any of the circumstances illustrated below must exist to constitute the relationship of holding and subsidiary companies: a When one company controls the composition of Board of Directors of the other companies.

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company Law important questions