Companies Act_Practical Problems_43

Following information is available from the audited balance sheet of Short Cut Ltd. as at 31st March, 2004 :

Paid-up share capital Rs. 500 lakh
Share premium account Rs. 100 lakh
General reserves Rs. 800 lakh
Secured loans Rs. 500 lakh
Unsecured loans Rs. 400 lakh
The company plans to buy-back its shares. Compute the maximum limit upto which the company can buy-back its shares.

Companies Act_Practical Problems_42

Balance sheet of ABC Ltd. as at 31st March, 2004 shows the following liabilities :
Paid-up capital Rs. 10 crore.
Reserves and surplus Rs. 20 crore.
Reserves for redemption of debentures Rs. 5 crore.
The company has already advanced to the following companies :
XYZ Ltd. — Rs. 6 crore.
MNO Ltd. — Rs. 2 crore.
ABC Ltd. has given corporate guarantee of Rs. 5 crore to STU Ltd.
PQR Ltd. has approached ABC Ltd. for inter-corporate loan of Rs. 8 crore.
As the Company Secretary of ABC Ltd., advise the management on the limits of making loans and inter-corporate investments.

Companies Act_Practical Problems_41

Clover Ltd. has received a notice from its shareholders holding in all 8% of the paid-up capital for the removal of one of the directors. Advise the company.

Companies Act_Practical Problems_40

Abhijeet is a shareholder of Kutumb Ltd. On receipt of notice of an annual general meeting to be held on 28th September, 2004, Abhijeet issued a proxy in favour of Baljeet on 25th September, 2004. Abhijeet again issued another proxy in favour of Charanjeet on 26th September, 2004. Both Baljeet and Charanjeet attended the meeting on 28th September, 2004. Decide who is entitled to vote on a poll.