Institute of Chartered Financial Analysts of India (ICFAI) University 2008 C.A Accounts -PCC--08_ – 3 LAW, ETHICS AND COMMUNITION.doc - Question Paper

ques. 6

explain under the Employees Provident Funds and Miscellaneous Act, 1952 as whether the
Provident fund contribution is a preferential payment in case of the employer being declared
insolvent. (5 Marks
ques. 7

define in brief the advantages and protections available to a “holder in due course” under
the provisions of the Negotiable Instruments Act, 1881. (5 Marks)

ques. 8

What will be the consequence in case a Private Company incorporated under the provisions of
Indian Companies Act,1956 defaults in complying with conditions constituting Private
Company in terms of part three (1) (iii) of the Companies Act, 1956. (5 Marks)

ques. 9

Developers Ltd. hold a General Meeting of shareholders for passing a special resolution
regarding alteration of Articles of Association. Out of the members current in the meeting 20
voted in favour, four against and eight members did not vote and remained absent from voting. The
Chairman of the meeting declared the resolution as passed. Is it a valid resolution as per the
provisions of the Indian Companies Act, 1956 ? (5 Marks)

ques. 10

The Articles of a Public Company clearly said that Mr. A will be the solicitor of the company.
The Company in its general meeting of the shareholders resolved unanimously to appoint B in
place of A as the solicitor of the company by altering the articles of association. Examine,
whether the company can do so ? State the reasons clearly. (5 Marks)

ques. 11

The Articles of Association of MSW Ltd. contained a provision that upto 4% of problem price of
the shares may be paid as underwriting commission to the underwriters. The Board of
directors decided to pay 5% underwriting commission. Can the Board of directors do so ?
State the provisions of legal regulations in this regard as said under the Indian Companies Act, 1956.
(5 Marks)

ques. 12

What is meant by “Shelf prospectus” ? Who can file a “Shelf prospectus” with the Registrar of
Companies? Stating the provisions of Companies Act, 1956 point out the circumstances under
which such prospectus is needed to be filed with the Registrar of Companies. (5 Marks)


PART-II
ques. No. 13 is compulsory.
Attempt any 2 ques. from rest.

ques. 13

(a) To pay proper attention to business ethics is certainly beneficial in the interest of
business. define 4 such benefits which may be found by paying attention to
business ethics.
(b) discuss how corporate social responsibility minimises the ecological damage and helps in
achieving long-term objectives, so that the business may gain long-term profit
maximization. (5+5=10 Marks)
ques. 14

A retailer was purchasing goods regularly from XYZ Ltd. for the purpose of resale. There were
defects in the goods in 1 of the purchase lot and as a outcome the retailer suffered loss of his
share in competition. The retailer sued the stated company for this cause. The company
contended that the goods were purchased for the purpose of resale and therefore, not bound.
Is it a valid contention ? discuss clearly the provisions of Competition Act, 2002 in this regard. (5 Marks)

ques. 15

ans any 2 out of four. You are needed to state whether the statement is accurate or
incorrect with brief reasons:
(a) The Governance Model positions management as accountable solely to investors.
(b) Business does not sub-serve environmental ethics.
(c) Consumer for personal use and consumer for commercial use are synonymous.
(d) Water pollution is also a type of resource depletion. (5 Marks)

ques. 16

State, how far a sound ethical environment in a company may be created and corporate
scandals may be avoided. (5 Marks)


PART III
ques. Nos. 17 is compulsory.
Attempt any 2 ques. from rest.

ques. 17

(a) discuss clearly the advantages of a formal communication.
(b) As a secretary of AB forgings Ltd., draft a notice of a board of directors meeting to
consider any 5 items as agenda of the meeting, to be held on November 15, 2008 at
the registered office of the Company at Mysore.

ques. 18

What is meant by “Negotiation”? Name the different steps which can be identified in the
process of negotiation from begin to the completion of the process. (5 Marks)

ques. 19

ABC Ltd. wants to hold its Annual General Meeting on 15th December, 2008 to explain the
matters relating to ordinary business. Draft a notice along with notes in brief for calling annual
general meeting of its shareholders. (5 Marks)

ques. 20

State the different components which are needed to draft a partnership deed. (5 Marks)

Earning:   Approval pending.