LOVELY PROFESSIONAL UNIVERSITY

HOME WORK -IV

Name of faculty: Sukhpreet Kaur

CourseNo : MGT201 Course Title : COMPANY LAW Class : BBA-MBA
Semester : IV Section : S1907 Batch :
Max. Marks : 15 DOA : 30-10-2010 DOS : 10-11-2010

S. Roll Topi Objectives of Topic Orga Model*

N No c Academic Activity nizati
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The objective of CASE ANALYSIS on n of

the Assignment is the topics:
as follow: written
a) To imbibe 1. Meetings and
To the habit of Resolutions report.
analysis. 2. Prevention of
all b) Inculcate Oppression and 5 marks
the habit of Mismanagement for written
the interpretatio 15 cases are given to report.
n and all the students related to
stud decision the above mentioned 10 marks
making by topics for home
ents doing Cases are mentioned in work
practical the Annexure III
based test.
analysis.

Signature of COS-F Signature of Course Coordinators

 HOMEWORK-IV
COURSE CODE: MGT201 COURSE: COMPANY LAW

Case 1:
The board of directors of F.G. Limited has the following proposals to be discussed at the board’s
meeting:
(i) Appointment of “A” relative of one of the directors, on a salary of Rs. 25,000 p.m, as a
chief accountant of the company
(ii) To give guarantee to state bank of India on behalf of AB private ltd. in which a director
of the company is also a director
(iii) To borrow Rs. 50 lakhs from state bank by mortgaging the fixed assets of the company.
The company’s paid –up capital is Rs. 25 lakhs and it has no reserves.
Advice the board in respect of above proposals in the light of provisions of the companies
Act.
Case 2:
(a) A shareholder filed a petition complaining that the affairs of XY Co. Ltd. were conducted
in a manner oppressive to him and to other members, after having obtained the written
consent of one-tenth of shareholders. Some of these shareholders later withdrew their
consent and as a consequence, the number of members fell below one-tenth. Can A
proceed with his petition in the company law board?
(b) Indicate also, whether it was necessary for ‘A’ in this case to show circumstances
justifying the winding up of the company for an order by the court.
Case 3:
An annual general meeting scheduled on 30th December 1934, was adjourned to 31st March1935,
and was held on that date. The next meeting was held in February 1936. Can the company be
held liable for not holding any meeting in 1935?

Case 4:
Default has been made in holding the annual general meeting of a company, more than 18
months having elapsed since the date of the last such meeting. What can be done in the
circumstances by any member who wishes that the meeting should be held?

Case5 :
A company failed to send the notice of Annual general meeting to 20 shareholders of the
company which has 500 shareholders. Does it invalidate the business transected at the meeting?

Case 6:
What type of resolution is required to transect the following Business?
a) Consolidation of shares.

b) Appointment of retiring auditors of a public company in which 30% of the subscribed

 capital of the company is held by public financial institutions.

c) Adoption of Statutory report.

d) Appointment of the additional director as regular director.

e) Changing registered office of the company from one state to another?

Case 7:
Forty out of 100 members of a company submitted a requisition for holding an extra ordinary
general meeting in order to remove the managing director from office. On the failure of the
company to call the meeting, the requisitionists themselves called the meeting at the registered
office of the company. On the appointed day, they could not hold the meeting at the registered
office, as it was kept under lock and key by the managing director himself. The member held the
meeting elsewhere and adopted a resolution removing the managing director from office. Is the
resolution Valid?
Case 8:
A proxy was appointed by a member on an instrument duly executed. Will the vote cast by proxy
be valid in the following cases, viz, i) When the member himself attended and cast his vote at the
meeting without revoking the authority of the proxy; ii) When the member died in the meantime?
Case 9:
A company is registered at Bombay want to conduct its 5 th annual general meeting at New Delhi.
Can the company hold the meeting in Delhi?
Case 10:
The governor of a state is a member of a company and has appointed Mr. X as his representative
for the purpose of attending meeting of a company. Both the governor and his representative are
unable to attend the forthcoming general meeting though they are anxious to do so. Can anything
be done in these circumstances?
Case 11:
Indicate the type of meeting Board, Shareholders, Miscellaneous- at which the following items
of the business can be transected: i) to re elect the Director, ii) to alter the article of association,
iii) to adopt the statutory report, iv) to recommend dividend, v) to appoint a new trustee for
debenture holder, vi) to reduce the rate of dividend on preference shares.
Case 12:
A proxy duly executed by one of the joint shareholders was lodged 48 hours before the
commencement of an adjourned general meeting of a public limited company. Is the proxy so
lodged valid?
Case 13:
In a general meeting of shareholders a special resolution was put to vote, 90 voted in favour, 20
voted against and 40 were abstained. Has the resolution been validly passed?

Case 14:
Mr. P is named as a director for life in the articles of association of M/s XYZ Private Ltd. which
was incorporated on 1st April, 2007. The articles of association of the company also provide that
he cannot be removed by the members in general meeting. Some of the members want to remove
‘P’ by passing an ordinary resolution in general meeting. State whether the proposed action is
valid with reference to the relevant provisions of the Companies Act, 1956.

Case 15:
An annual general meeting is called on a fixed day. After the sending of the notice of the
meeting, the Government notifies that date as a public holiday. Can be meeting proceed as
scheduled?