LAW CHAPTER-WISE TEST 6
TOPIC:- THE COMPANIES ACT, 2013
QUESTION PAPER
Maximum Time: 1 Hours Maximum Marks: 30
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Part- I (Descriptive Questions)
Q No. QUESTIONS Marks
Q.1 Briefly explain the doctrine of “Ultravires” under the Companies Act, 2013. What 5
are the consequences of Ultravires acts of the company?
Q.2 Mr. Om, an assessee, had large income in the form of dividend and interest. In 5
order to reduce his tax liability, he formed four private limited company and
transferred his investments to them in exchange of their shares. The income
earned by the companies was taken back by him as pretended loan. Can Mr. Om be
regarded as separate from the private limited company he formed?
Q.3 Naveen incorporated a “One Person Company” making his sister Navita as the 5
nominee. Navita is leaving India permanently due to her marriage abroad. Due to
this fact, she is withdrawing her consent of nomination in the said One Person
Company. Taking into considerations the provisions of the Companies Act, 2013
answer the questions given below.
a) If Navita is leaving India permanently, is it mandatory for her to withdraw
her nomination in the said One Person Company?
b) If Navita maintained the status of Resident of India after her marriage, then
can she continue her nomination in the said One Person Company?
Q.4 Explain clearly the doctrine of ‘Indoor Management’ as applicable in cases of 5
companies registered under the Companies Act, 2013. Explain the circumstances in
which an outsider dealing with the company cannot claim any relief on the ground
of ‘Indoor Management’.
Q.5 Sound Syndicate Ltd., a public company, its articles of association empowers the 5
managing agents to borrow both short and long term loans on behalf of the
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company, Mr. Liddle, the director of the company, approached Easy Finance Ltd., a
non banking finance company for a loan of ` 25,00,000 in name of the company.
The Lender agreed and provided the above said loan. Later on, Sound Syndicate
Ltd. refused to repay the money borrowed on the pretext that no resolution
authorizing such loan have been actually passed by the company and the lender
should have enquired about the same prior providing such loan hence company
not liable to pay such loan.
Analyse the above situation in terms of the provisions of Doctrine of Indoor
Management under the Companies Act, 2013 and examine whether the contention
of Sound Syndicate Ltd. is correct or not?
Q.6 Examine the following whether they are correct or incorrect along with reasons: 5
a) A company being an artificial person cannot own property and cannot sue
or be sued.
b) A private limited company must have a minimum of two members, while a
public limited company must have at least seven members.
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