(CA Inter)May26/Sep26

16 Buy-back with board resolution is allowed, if amount involved is a. Not exceeding twenty five percent of the total paid-up equity capital and free reserves of the company b. Not exceeding twenty five percent of the total paid-up equity capital c. Not exceeding ten percent of the total paid-up equity capital and free reserves of the company d. Not exceeding ten percent of the total paid-up equity capital

13 Section 67 of the Companies Act, 2013 impose a restriction on public company from giving any financial assistance whether directly or indirectly and whether by means of a loan, guarantee, the provision of security or otherwise for the purpose of, or in connection with, a purchase or subscription made or to be made, by any person of or for any shares in the company or in its holding company. Star Engineering limited which is not covered by any of exemptions specified under said section, contravene the restrictive provisions stated above. Every officer of the company who is in default shall be liable for; a. Fine which shall not be less than one lakh rupees but may extend to twenty- five lakh rupees b. Fine which shall not be less than one lakh rupees but may extend to twenty- five lakh rupees or Imprisonment for a term which may extend to three years or both c. Fine which may extend to twenty-five lakh rupees or Imprisonment for a term which may extend to three years or both d. Fine which shall not be less than one lakh rupees but may extend to twenty- five lakh rupees and Imprisonment for a term which may extend to three years

11 In a litigation regarding title of shares, a share certificate issued in physical form by Modern Furniture Limited, an unlisted private company that doesn’t have a common seal submitted as evidence of the title. The same shall be clear and convincing evidence of title, if signed by; i. two directors ii. two directors, out of which one shall be managing director iii. two directors and the Company Secretary, wherever the company has appointed a Company Secretary iv. a director and the Company Secretary, wherever the company has appointed a Company Secretary

10 Sarvodhaya Urban Nidhi Limited has 14 Crore and 6 Crore as paid-up equity and preference share capital respectively. Balance in retain earnings account is 2.4 Crore. Equity share capital having face value of 10 each, while preference share has face value of 100 each. Mr. Surya and Mr. Chandan own11,20,000 and 5,60,000 shares respectively. In context of resolution placed before the company which directly affect the rights attached to his preference shares, the voting right of Mr. Surya and Mr. Chandan in percentage term shall be: (a) 8% and 4% respectively (b) 5.6% and 2.8% respectively (c) 5% and 2.8% respectively (d) 5% and 2.5% respectively

9 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: (a) The articles of association of the company shall authorize issue of shares with differential rights; (b) The issue of shares shall be authorized by an ordinary resolution passed at a general meeting of the shareholders; (c) The issue of shares shall be authorized by special resolution passed at a general meeting of the shareholder d) The company shall have consistent track record of distributable profits for the last three years

8 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 Sukanyawho 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) A private limited company can have maximum of Rs One crore as share capital. (b) A private limited company can have maximum of Rs Two crores as share capital. (c) A private limited company can have maximum of Rs Five crores as share capital. (d) A private limited company can have unlimited share capital

7 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? (a) B Limited, whose equity shares (the company is having both equity as well as preference shares) are listed on a recognised stock exchange. (b) A Limited, whose equity shares (only type of share the company is having) are listed on a recognised stock exchange (c) C Limited, whose preference shares (the company is having both equity as well as preference shares) are listed on a recognised stock exchange (d) D Limited, whose equity shares as well as preference shares are listed on a recognised stock exchange.