IPCC Weekend Test

Subject: Law Time : 60 Min Date : 25.12.10 Marks: 20 M

P 1. ABC Pvt. Ltd., Company is a Private Company having five members only. All the members of the company were going by car to Mumbai in relation to some business. An accident took place and all of them died. Answer with reasons, under the Companies Act, 1956 whether existence of the company has also come to the end? P 2. The United Traders Association was constituted by two Joint Hindu Families consisting of 21 major and 5 minor members. The Association was carrying the business of trading as retailers with the object for acquisitions of gain. The Association was not registered as a company under the Companies Act, 1956 or other law. State whether United Traders Association is having any legal status? Will there be any change in the status of this Association if the members of the United Traders Association is subsequently reduced to 15. P 3. The paid-up share capital of XYZ (Private) Company Limited is Rs. 20 lakhs consisting of 2,00,000 Equity shares of Rs. 10 each fully paid-up. ABC (Private) Limited and its subsidiary DEF (Private) Limited are holding 60,000 and 50,000 shares respectively in XYZ (Private) Company Limited. Examine with reference to the provisions of the Companies Act, 1956, whether XYZ (Private) Company Limited is a subsidiary of ABC (Private) Limited. Would your answer be different if DEF (Private) Limited is holding 1,10,000 shares in XYZ (Private) Company Limited and no Shares are held by ABC (Private) Limited in XYZ (Private) Company Limited? P 4. Fortune Traders Limited was registered as a public company. There are 64 members in the company as noted below: (i) Directors and their relatives 34 (ii) Employees 10 (iii)Ex-employees (shares were allotted when they were employees) 5 (iv) 5 couples holding shares jointly in the names of husband and wife (5 x 2) 10 (v) Others 5 Total number of members 64 The Board of Directors of the company proposes to convert it into a private company. Advise the board of directors about the steps to be taken for conversion into a private company including reduction in the number of members, if necessary.

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