Thursday, July 30, 2009

Bonus Act_Practical Problems_35

Skypark Wooden Toys Limited was established at Kolkata in the year 2005 employing 5 100 workmen. Since then the company suffered the losses, but minimum bonus was paid in the accounting years of 2006 and 2007. In the accounting year 2008 the company earned huge profits. After mitigating the previous losses the company is having surplus profits and wants to pay the bonus to its workmen. Skypark Wooden Toys Limited wants the legal advice on the following issues :
(a) How much minimum and maximum bonus may be paid to the workmen ?
(b) Whether the company may adjust the puja bonus already paid to the workmen while calculating the amount of bonus payable to workmen of that accounting year.
(c) Company wants to give wooden toys as bonus instead in cash. Whether the Company can do so ?
Advice the Skypark Wooden Toys Limited, stating the provisions of the Payment of Bonus Act, 1965.

(a) Payment of minimum bonus and maximum bonus : -
Every employer shall be bound to pay to every employee in respect of every accounting year, minimum bonus which shall be 8.33% of the salary or wages earned by the employee during the accounting year or Rs.100, whichever is higher whether or not the employer has any allocable surplus in the accounting year. But if the employee has not completed 15 years of age at the beginning of the accounting year he will be entitled to a maximum bonus which shall be 8.33% of the salary or wage during the accounting year Rs.60, whichever is higher. In view of much minimum bonus, be bound to pay to every employee in respect of that accounting year bonus which shall be an amount in proportion to the salary or wage earned by the employee during the accounting year subject to a maximum 20% of such salary or wage.

(b) As per 17 of payment of bonus act, 1965, if in an accounting year, an employer has paid any pooja bonus or other customary bonus to employee or has paid a part of bonus payable under the act before the date on which such bonus becomes payable, the employer may deduct this amount from the final bonus payable. But the amount may be deducted only from the bonus of that accounting year.

(c) Section 19 says that all amounts payable to employee shall be paid in cash no bonus shall be paid to employees in the form other than cash. Hence, company can’t give wooden lays as bonus instead of cash.

Monday, July 27, 2009

Companies Act_Practical Problems_87

The articles of ABC Limited provided that only those shareholders would be entitled to vote whose names have been there on the Register of Members for two months before the date of the meeting. X, a member, of the ABC Limited was holding 200 equity shares of the company. X transferred his shares to Y before one month from the date on which the meeting was due. The name of Y could not be entered in the Register of Members as the application of transfer of shares was pending. X attended the meeting but he was prohibited by the company from exercising his voting right on the ground that he has not hold his shares for specified period as provided in the articles before the date of the meeting. State whether X can exercise his voting right in the meeting ? State also the grounds upon which X may be excluded from exercising his voting rights in the meeting of the shareholders.
According to provision of companies Act, 1956. A member of a company has no voting right unless he actually acquires shares. A person becomes member only when his name is entered in register of member of the company. Till then, he is only holder.
In case of transfer of share, transfer is entitled to vote when his name is entered into register of member. The case is, X transfer his shares to y before one month from the date on which meeting was done and name of y is not entered is the register of member as the application of transfer of share is pending. Article of company provided that only there shareholders would be entitled to vote whose names have been there on register of members for two month of the above. Since transfer of shares procedure is pending and the name of y is not entered into register of member. Hence y is neither a shareholder nor he has right to vote. And x can exercise his voting right in the meeting as his name has not been struck off from register of member.
But if transfer process is complete and x name is struck off from company’s register of member than he is excluded from the voting right.

Friday, July 24, 2009

Contract Act_Practical Problems_97

A, the bailor, pledges cinema projector and other accessories with Cine Association Co-operative Bank Limited, the bailee, for loan. A requests the bank to allow the pledged goods to remain in his possession and promises to hold the same in trust for the bailee and also further promises to handover the possession of the same to the bank whenever demanded. Examining the provisions of Indian Contract Act, 1872 decide, whether a valid contract of pledge has been made between A, the bailor and Bank, the bailee ?
Where a mercantile agent is, with the consent of the owner, in possession of goods or the documents of title to goods, any pledge made by him, when acting in the ordinary course of business of a mercantile agent, shall be as valid as if he were expressly authorized by the owner of the goods to make the same; provided that the pawnee acts acts in good faith and has not at the time of the pledge notice that the pawnor has no authority to pledge. As per the provisions above it is clearly evident that contract made between A & Bank is valid.

Thursday, July 09, 2009

SEBI Guideline_Practical Problems_1

The Balance Sheet of Get Well Soon Ltd. as at 31.3.2009 disclosed the following details:
(i) Authorized share capital Rs. 400 crores
(ii) Paid up share capital Rs. 150 crores
(iii) Reserves and surplus Rs. 750 crores
The company has issued in the year 2004, Fully Convertible Debentures of Rs. 100 crores which are due for conversion in the year 2009. The company proposes, after conversion of Debentures to issue Bonus shares in the ratio of 1 1. Explain briefly the requirements of the Companies Act, 1956 and the Securities and Exchange Board of India (SEBI) guidelines to be followed by the company in this regard.

Competition Act_Practical Problems_5

The Central Government on the recommendation of selection committee appoints Mr. RKP aged 56 years as Member of the Competition omission of India to be effective from 1st January, 2009. State with reference to the provisions of Competition Act, 2002 the term for which he will be appointed and whether he can be reappointed as such and also if he resigns two years whether the vacancy can be filled up by the Chairman of the commission.

Wednesday, July 08, 2009

FEMA_Practical Problems_12

State the kind of approval required for the following transactions under the Foreign Exchange Management Act, 1999.:
(i) L a famous playback singer of India wants to perform a musical night in Paris for Indians residing there. Foreign exchange to the extent of US D 20,000 is required for this purpose.
(ii) M requires US D 5,000 to make payment related to ‘call back services’ of telephone.
(iii). N wants to pursue a course in business management in New York. He wants to draw US D 50,000 towards expenses for studying abroad.
(iv) R wants to draw US D 20,000 to make donation to a charitable trust situated in South Korea.

Thursday, July 02, 2009

Quick management lesson

Ek din ek kutta jungle main raasta kho gaya . Tabhi usane dekha ek sher uskii taraf aa raha hai. Kutte ki saans rookh gayi. "Aaj to kaam tamaammera!" usne socha.

Phir usne saamane kuchh sookhi haddiyan padi dekhi.

Woh aate hue sher ki taraf peeth kar ke baith gaya aur ek sookhi hadii ko choosane laga aur zor zor se bolne laga, "wah! Sher ko khaane ka maza hi kuchh aur hai. Ek aur mil jaaye to poori daawat ho jayegi!" Aur usne zorse dakaar mara.

Is bar sher jhatkaa laga. Usne socha "ye kutta to sher ka shikar karta hai! Jaan bacha kara bhago!" Aur sher wahan se champat ho gaya .

Ped par baitha ek Bandar yeh sab tamasha dekh raha tha. Usne socha yeh mauka achha hai sher ko sari kahani bata deta hoon - sher se dosti ho jayegi aur usase zindagi bhar ke liye jaan ka khatra dur ho jayega. Woh phataphat sher ke pichhe bhaga. Kutte ne Bandar ko jaate hue dekh liya aur samajh gaya ki koi locha hai. Udhar Bandar ne sher ko sab bata diya ki kaise kutte ne use bewakoof banaya hai. Sher zor se dahada, "chal mere sath abhi uski leela kahatam karta hu" aur Bandar ko apani peeth parbaitha kar sher kutte ki taraf lapka..

Can u imagine the quick management by the DOG......... .......... ...

Kutte ne sher ko aate dekha to ek bar phir uskii taraf peeth karke baithgaya aur zor zor se bolne laga, "Is Bandar ko bhej ke 1 ghanta ho gaya, saala ek sher phaans kar nahi la sakta!"


There once was a king who offered a prize to the artist who would paint the best picture of peace. Many artists tried. The king looked at all the pictures. But there were only two he really liked, and he had to choose between them.

One picture was of a calm lake. The lake was a perfect mirror for peaceful towering mountains all aroundit. Overhead was a blue sky with fluffy white clouds. All who saw this picture thought that it was a perfect picture of peace.

The other picture had mountains, too. But these were rugged and bare. Above was an angry sky, from which rain fell and in which lightning played. Down the side of the mountain tumbled a foaming waterfall. This did not look peaceful at all.

But when the king looked closely, he saw behind the waterfall a tiny bush growing in a crack in the rock. In the bush a mother bird had built her nest. There, in the midst of the rush of angry water, satthe mother bird on her nest - in perfect peace.

Which picture do you think won the prize?

The king chose the secondpicture.

Do you know why?

"Because," explained the king, "peace does not mean to be in a placewhere there is no noise, trouble, or hard work. Peace means to be in the midst of all those things and still be calm in your heart. That is the real meaning of peace."

Life is tough, but it's a lot tougher when you are Stupid

First-year students at Texas A & M's Vet school were attending their first Anatomy class, with a dead pig.

They all gathered around the surgery table with the body covered with a White sheet. The professor started the class by telling them, 'In Veterinary Medicine it is necessary to have two important qualities as a Doctor: The first is that you not be disgusted by anything involving the Animal body'. For an example, the Professor pulled back the sheet, touched his finger in the mouth of the dead pig, withdrew it and put his Finger in his mouth. 'Go ahead and do the same thing,' he told his students.

The students freaked out, hesitated for several minutes. But eventually took turns putting their finger in the mouth of the dead pig and tasted in their mouth.

When everyone finished, the Professor looked at them and said, 'The Second most important quality is observation. I touched with my middle Finger and tasted on my index finger. Now learn to pay attention...

Moral of the story:
Life is tough, but it's a lot tougher when you are Stupid....