Companies Act_Practical Problems_16

A Pvt. Ltd has 5 directors- 3 Indian and 2 German. On a matter concerning the company’s business, an urgent decision is necessary. Hence, a Board meeting is held at which all three Indian directors are present. They seek the German directors’ consent to the resolution by videoconference with them. The articles require at least 2 directors from each side to vote for a resolution at a Board meeting. The resolution passed in this way unanimously. Is the resolution valid?

Companies Act_Practical Problems_15

In the Board meeting, where quorum was of three Directors, four Directors were present at the meeting when it began. All participated in the discussions (audio recording is available) but only two signed the attendance register and other two refused to sign. Does this invalidate the meeting?

Is it necessary that quorum should be present at the time of each & every agenda being discussed at the meeting? OR Is it sufficient if it is present only at the beginning at the meeting? Whether the answer is same for Board and General Meetings?

Companies Act_Practical Problems_14

In the Board meeting, where quorum was of 4 Directors, Five Directors were present at the meeting when it began. All signed the attendance sheet but during the meeting due to difference of opinion, two left the meeting in between and while walking out scratched their names & signatures from the attendance sheet. Will that affect the validity of the quorum?

Companies Act_Practical Problems_13

Quorum for the Board meeting is 1/3rd of the total number of Directors. The Board had 10 members till 30th April 06. On 5th May 06 Mr. X , Director of the company died. For the meeting to be held on 3rd June 2006, what would be the quorum?

Consumer Protection Act_Practical Problems_6

I had applied for electricity connection. However, power supply was not provided to me. Can I seek redressal of my grievance in Consumer Court?

Your grievances is that you application for electricity connection was not granted. Electricity may be a service but the hiring of the service is not complete till the Electricity Board sanctions
service. Hence, you can’t approach a Consumer Court for redressal of your said grievance. Your remedy is to file a civil suit in the Court of law against the Electricity Board.

Consumer Protection Act_Practical Problems_5

The transformer, which was supplying electricity to me, got burned and was replaced by the department after about two months. However, However I was billed with consumption charges. Am I liable to pay any such charges when there was no consumption of electricity by me?

When the electricity was not supplied and the electricity bills produced by you showed that there was no consumption of electricity by you and admittedly the reason for that was burning
of the transformer, you are not liable to pay any minimum charges.

The legal effects of frustration

At common law: the contract is automatically brought to an end at the time of the frustrating event. The relevant statute is the Law Reform (Frustrated Contracts) Act 1943. It only applies where there’s no express provision in the contract for what happens if it’s frustrated.

The key provisions are:
If some sort of pre-payment or deposit has been made, the buyer can get that pre-payment back, minus any expenses incurred by the seller.

If the contract has already been partly performed, it’s a bit more complicated. You have to pay for any benefit you’ve already received. Suppose the contract is for a complete garden makeover, and at the time of the frustrating event, the contractor has already installed a swimming pool in your garden. You have to compensate the gardener for the expenses he’s incurred in installing your pool.