Companies Act_Practical Problems_70

Following information has been extracted from the balance sheet of Richy Rich Ltd. :
(i) Paid-up share capital Rs.20 crore
(ii) Reserves and surplus Rs.80 crore
(iii) Capital reserve Rs.5 crore
(iv) Investment in securities Rs.10 crore
(v) Loan to companies Rs.30 crore

DEF Ltd. has requested Richy Rich Ltd. for a loan of Rs.50 crore which the Board
of directors will consider at its ensuing meeting. Explain the legal position and
advise the Board.

Companies Act_Practical Problems_69

Ajay sold his shares and executed a transfer deed in favour of Vijay. The documents were lodged for transfer with the company. However, before effecting and registering the transfer by the company, Ajay, the transferor passed away. What is the impact of the death of Ajay on the registration of transfer of shares in favour of Vijay, if the death of Ajay is – (i) intimated to the company before the registration; and (ii) intimated to the company after registration of the transfer of the shares in favour of Vijay ?

If Vijay dies before registration of the transfer of shares, what will be the consequences (i) if the death of Vijay is intimated to the company before registration of transfer; and (ii) if the death of Vijay is not intimated to the company before the registration of transfer ?

Companies Act_Practical Problems_68

For a breech of a contract by a company a proprietary firm filed a suit against, inter alia, a non-executive director who negotiated and concluded a written contract on behalf of the company. Will the suit filed against the non-executive director stand to legal scrutiny?

NI Act_Practical Problems_58

A cheque was issued by a company which bounced. A compliant under section 138 of the Negotiable Instruments Act, 1881 was lodged among others against the agent of the company. The magistrate took cognizance of the complaint and issued notice among others to the said agent of the company. Is the Magistrate right in issuing the summons to the agent of the company?

Practical Problems_Partnership Act_10

An unregistered partnership issued a cheque which bounced. On a complaint by the payee of the cheque the offence was taken cognizance of under section 138 of the Negotiable Instruments Act, 1881. The partnership assailed the summons before the High Court. Is the action of the unregistered partnership correct in law?

Companies Act_Practical Problems_67

A Scheme of Arrangement between two companies provided for the chanage of name of the transferee company. The Scheme was confirmed by the High Court. For giving effect to the change of name will it be necessary for the transferee company to company with the requirements of the Companies Act, 1956 in this regard?

Companies Act_Practical Problems_66

When all the directors of two private companies are common, whether it is permissible to hold a Joint Board Meeting of two companies at the same time and place, more particularly when the subject matter is common ?