CAP CLASSES

Qn 10) Prithvi Cements Limited is desirous of issuing debentures carrying voting rights. Choose the right option from the following: (a) Prithvi Cements Limited can issue debentures carrying voting rights by passing an ordinary resolution at a general meeting of the company (b) Prithvi Cements Limited can issue debentures carrying voting rights by passing a special resolution at a general meeting of the company. (c) Prithvi Cements Limited can issue such debentures carrying voting rights only if it mortgages its land and buildings worth two times the amount of the debentures. (d) Prithvi Cements Limited cannot issue debentures carrying voting rights.

Qn 9) Vanita Watches Limited has proposed to issue sweat equity shares to five of its employees for the ‘value additions’ made by them in term of economic benefits which proved beneficial to the company. The period for which the employees who have been allotted the said sweat equity shares cannot transfer them is:

Qn 8) 28. Keshika, the original allottee and owner of 1000 equity shares of ` 50 eachin Modern Biscuits Private Limited, wanted to transfer these shares to her younger sister Vanshika by way of gift. She completed the transfer deed in all respects and delivered the same to the company along with the share certificates on 17th July, 2020. However, the company di not register the transfer even after the expiry of more than one month nor did it send any notice of refusal. The lone reminder to the company remained unanswered. An appeal is to be filed against the company with the National Company Law Tribunal (NCLT) against this failure to register transfer of the said shares. Who has the right to file the appeal in this regard? (a) Keshika, who continues to remain owner and transferor of the said equity shares till they are registered in the name of Vanshika, has the right to file an appeal with NCLT against the company. (b) Vanshika, as transferee and potential owner of equity shares, has the right to file an appeal with NCLT against the company. (c) Both Keshika and Vanshika have to file a joint appeal with NCLT against the company, for neither Keshika nor Vanshika are authorised to file the appeal individually. (d) As per its discretion, NCLT may allow either Keshika or Vanshika to file an appeal against the company.

Qn 7) Shreem Lakshmi Jewellery Store Private Limited was incorporated on 27th August, 2020 with 30 persons as subscribers to the Memorandum of Association and with an Authorised share capital of 1 crore divided into equal number of shares of 1 each. Each subscriber subscribed for ` 1.00 lac shares. Advise the company about by what date it needs to deliver the share certificates to the subscribers.

Qn 6) 26. Radha, the original allottee of 2000 equity shares in Murti Mechanical Toys Private Limited has transferred the same to Ruchi. The instrument of transfer dated 21st August, 2020, duly stamped and signed by Radha was handed over to Ruchi. Advise Ruchi regarding the latest date by which the instrument of transfer along with share certificates must be delivered to the company, to register the transfer in its register of members.

Qn 5) 25. Swagat Hospitality Limited defaulted in the repayment of last two instalments of term loan availed from National Commercial Bank. On 30th September, 2019, they cleared all the dues by repaying it. When can it issue equity shares with differential voting rights? (a) Upon expiry of five years from the date on which the default was made good (b) Upon expiry of three years from the end of the financial Year in which the default was made good (c) Upon expiry of five years from the end of the financial Year in which the default was made good (d) Upon expiry of seven years from the end of the financial Year in which the default was made good

Qn 4) A company bought back 10% of its equity shares in August 2020. Due to certain miscalculations during the first buy-back, it again bought back another 10% equity shares in September 2020. Is second buy-back valid? (a) It can do so subject to the fulfilment of other conditions because maximum buy-back in a financial year is up to 25% (b) It cannot do so because there must be a time gap of 12 months between two buy-backs (c) It can buy back shares within one year but the company should pass an ordinary resolution at a meeting of its board (d) It can buy back shares within one year but the company will have to pass a special resolution

Qn 3) If a company has Authorised Share Capital of 6,00,000, Paid-up Share Capital of 5,00,000 and a loan of ` 2,00,000 obtained from the State Government. The State Government has directed the company to convert its loan into equity shares, then such order shall have the effect of increasing:

Qn 2 ) Rajesh Infrastructure Limited wants to issue preference shares for a period exceeding 20 years for financing its proposed infrastructure project. On the basis of which statement, company can do so? (a) Yes, the company can issue irredeemable preference shares by passing a special resolution (b) Yes, company can issue preference shares for a period exceeding 20 years with the prior approval of Central Government (c) Yes, the company can issue irredeemable preference shares for infrastructure project (d) Yes, the company can issue preference shares for financing an infrastructure project for a period exceeding to 20 years.