| 1. | Answer any six of the following: | 6x4=24 | |
| | (a) | What is the status of a "finder of goods" under the Indian Contract Act, 1872? What are his rights? | | (0) |
| | (b) | Which are the essential elements of a valid acceptance of a Bill of Exchange? An acceptor accepts a "Bill of Exchange" but write on it "Accepted but payment will be made when goods delivered to me is sold". Decide the validity. | | (0) |
| | (c) | What are the consequences of "destruction of goods" under the Sale of Goods Act, 1930, where the goods have been destroyed after the agreement to sell but before the sale is affected. | | (0) |
| | (d) | Is it possible for the partners in a firm having majority to expel a partner under the provisions of the Indian Partnership Act, 1932? Does the firm get dissolved if the expulsion of a partner is not valid? | | (0) |
| | (e) | Explain the meaning of "salary" and "wages" under the Payment of Bonus Act, 1965. | | (0) |
| | (f) | A Multi-State Cooperative Society is desirous of amending its bye-laws. Advise the society as to what procedure is required to be followed for the said purpose under the Multi-State Cooperative Societies Act, 2002? | | (0) |
| | (g) | How is the Central Board of Trustees Constituted under the provisions of the Employees Provident Fund and Miscellaneous Provisions Act, 1952? Explain its composition. | | (0) |
| | (h) | What are the conditions of registration of a society under the provisions of the Cooperative Societies Act, 1912? | | (0) |
| 2. | (a) | Explain the general rules of relating to "Acceptance" under the Indian Contract Act, 1872. | 6 | (0) |
| | (b) | What do you understand by "Caveat–Emptor " under the Sale of Goods Act, 1930? What are the exceptions to this rule? | 6 | (0) |
| 3. | (a) | What tests can be applied in determining whether a person is an agent of another? State any five circumstances where under an agent is personally liable to a third party for the acts during the course of agency | 6 | (0) |
| | (b) | What is the procedure of registration of a partnership firm under the Indian Partnership Act, 1932? What are the consequences of non-registration? | 6 | (0) |
| 4. | (a) | A issues a cheque for Rs. 25,000/- in favour of B. A has sufficient amount in his account with the Bank. The cheque was not presented within reasonable time to the Bank for payment and the Bank, in the meantime, became bankrupt. Decide under the provisions of the Negotiable Instruments Act, 1881, whether B can recover the money from A? | 6 | (0) |
| | (b) | In an accounting year, a company to which the payment of Bonus Act, 1965 applies, suffered heavy losses. The Board of Directors of the said company decided not to give bonus to the employees. The employees of the company move to the Court for relief. Decide in the light of the provisions of the said Act whether the employees will get relief? | 6 | (0) |
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| 5. | (a) | Describe the provisions relating to contribution by the employees and the employer under the Employees Provident Fund and Miscellaneous Provisions Act, 1952. | 6 | (0) |
| | (b) | State the law relating to appointment and powers of the Central Registrar under the Multi–State Cooperative Societies Act, 2002. | 6 | (0) |
| 6. | (a) | Sohan is a member of a cooperative society registered with the unlimited liability under the Cooperative Societies Act, 1912. Holding shares of the society for ten months, Sohan transfers his shares to Mohan. Decide whether transfer of shares in favour of Mohan is valid? | 6 | (0) |
| | (b) | What do you mean by an acceptance of a negotiable instrument? Examine validity of the following in the light of the provisions of the Negotiable Instrument Act, 1881: | 6 | |
| | | (i) | An oral acceptance | | (0) |
| | | (ii) | An acceptance by mere signature without writing the word "accepted". | | (0) |
| 7. | Answer any four of the following : | 5x4=20 | |
| | (a) | Briefly explain the doctrine of "Constructive Notice" under the Companies Act, 1956. Are there any exceptions to the said doctrine? | | (0) |
| | (b) | Explain the concept of "Shelf Prospectus" in the light of Companies (Amendment) Act, 2000. What is the law relating to issuing and filing of such prospectus? | | (0) |
| | (c) | Explain clearly the concept of "Perpetual Succession" and "Common Seal" in relation to a company incorporated under the Companies Act, 1956. | | (0) |
| | (d) | What are the conditions and procedure where under shares may be forfeited under the Companies Act, 1956? | | (0) |
| | (e) | What do you understand by "share–warrant"? How is a share–warrant different from "share certificate"? | | (0) |
| 8. | (a) | After receiving 80% of the minimum subscription as stated in the prospectus, a company allotted 100 equity shares in favour of `X'. The company deposited the said amount in the bank but withdrew 50% of the amount, before finalisation of the allotment, for the purchase of certain assets. X refuses to accept the allotment of shares on the ground that the allotment is voilative of the provisions of the Companies Act, 1956. Comment. | 5 | (0) |
| | (b) | The Directors of a company registered and incorporated in the name "Mars Textile India Ltd." desire to change the name of the company entitled "National Textiles and Industries Ltd." Advise as to what procedure is required to be followed under the Companies Act, 1956? | 5 | (0) |
| 9. | (a) | The Board of Directors of a company decide to pay 5% of issue price as underwriting commission to the underwriters. On the other hand the Articles of Association of the company permit only 3% commission. The Board of Directors further decide to pay the commission out of the proceeds of the share capital. Are the decisions taken by the Board of Directors valid under the Companies Act, 1956? | 5 | (0) |
| | (b) | Explain the provisions of the Companies Act, 1956 relating to establishment of an "Investors Education and Protection Fund". | 5 | (0) |
| 10. | (a) | Advise the Board of Directors of a public limited company in relation to following matters, under the provisions of the Companies Act, 1956: | 5 | |
| | | (i) | Sources out of which the company can declare dividend. | | (0) |
| | | (ii) | Transfer of profits to reserves before declaring dividend for a particular financial year. | | (0) |
| | (b) | A who holds one share certificate of 1000 Equity shares in a company, wants to transfer 300 shares in favour of B. Explain the procedure to be followed for executing the partial transfer under the provisions of the Companies Act, 1956. | 5 | (0) |
