CWA/ICWA Inter :: Business Laws and Communication Skills : December 2002

I-7(BLC)
Revised Syllabus

Time Allowed : 3 Hours Full Marks : 100
Question No. 1 [both (a) and (b)] are compulsory and
attempt any three from the rest in section I and
any two from section II.
Section — I
Marks
1. (a) Comment on the validity of the following statements:
(i)

In case of joint holding of shares notice of the meeting is required to be sent to all the joint holders.

(ii)

Tea Party Ltd. paid dividend for financial year 2001-02 by way of ten grams of Darjeeling tea per equity shares Rs. 10 each.

(iii)

Mr. Ambitious is appointed as a non whole-time director of New Corporation Ltd. Mr. Ambitious is a director in 15 other companies.

(iv)

Perfect Ltd., declared interim dividend on 28.2.2002. The dividend cheques were posted on 30.4.2002.

(v)

Mr. Confused does supervisory work. Mr know has advised the company that the provisions of Industrial Disputes Act is not applicable.

(vi)

Mr. Gourmet has bought 20 kgs of foodstuff against cash payment from Mr. Not-a-gain under a contract of sale (Sale of Goods Act). But half the consignment is rotten and Mr. Not-a-gain is refusing to refund the money.

(vii)

The decision of a lower court is not binding upon the higher court.

(viii)

An agreement which does not create legal relationships is enforceable in law.

(ix)

If a minor does not become a partner on attaining minority, his share in the firm will not be affected for any of the firm's acts.

(x)Set off and set on convey the same meaning.
(xi)A loan to a director whether in a private or public company is unregulated.
(xii)Every company should hold a statutory meeting.
 1 ½ x 12
(b) Distinguish between strike and lock-out. 4
2. (a)

A minor was taken to the nursing home by his parents for treatment. Who is the consumer in this case and who can claim compensation for deficiency in service?

 3
(b)

A cost auditor submitted his cost audit report (in duplicate) to the Central Government on 15.10.2002, relating to financial year ending 31.3.2002. The Central Government's letter dated 20.10.2002 was replied by the cost auditor by his letter dated 30.11.2002 Comment.

 5
(c) Distinguish between Special business and Special resolution. 8
3. (a)

An EGM was held on 30.4.2002. There were 10 items of business to be transacted. After completion of the 7th item the meeting was adjourned till 15th June, 2002. The board of directors added two more items of business for consideration by the adjourned meeting. Advise on the legality and the procedure to be followed.

 5
(b)

The accounting year of X Ltd. ends on 31st March. The 4th AGM was held on 28.8.2001. Determine the date by when the 5th AGM should be held.

 2
(c)

Calculate the amount of gratuity payable to Mr. Retiree - monthly salary Rs. 25,000, date of joining 1.1.1977 and date of superannuation 31.8.2002.

 3
(d) It is mandatory for all companies to appoint a managing director. - Comment. 3
(e) How does a person cease to be a director? 3
4. (a) Can shares be issued at a discount? Discuss the provisions of law relating thereto. 4
(b) Discuss the provisions relating to the appointment of directors in a company. 12
Please turn over

( 2 )

I-7(BLC)
Revised syllabus		 Marks
5. (a) Explain the essentials of a valid contract. 8
(b) Distinguish between -
 (i) Contract of indemnity and Contract of guarantee, and
(ii) Hire purchase and Purchase on instalments.		 4x2=8
6. Write explanatory notes on any four:
(i)Holder in due course;
(ii)Public company;
(iii)Shelf prospectus;
(iv)Asset management company;
(v)Remuneration of promoters;
(vi)Continuous service.
 4x4=16
 
Section II (Communication Skill)
Answer any two questions.
 
7.

Your company is interested in market survey of its well known consumer product "Life Style". This product is in the market for the last 5 years and used mostly by women.
Draft a suitable report as the marketing manager to be submitted to the board of directors after completion of survey.

 15
8. (a)

Your company requires additional fund for meeting extra order from different parts of the country.
Write to your banker to grant enhancement of your cash credit limit. Also point out that you would hypothecate stocks and book debts for obtaining such limits.

 8
(b)

Your company has suffered a loss of Rs. 10 lakhs due to outbreak of fire in the factory, covered by Fire Insurance Policy.
Draft a suitable letter to the Insurance Company for an early settlement of your claim. Mention the incident in brief and enclose the F.I.R.

 7
9. (a)

From the report submitted by the Departmental Head, you find an employee, inspite of giving adequate warnings, has not improved his attendance. As the H.R.D. Manager draft a suitable show-cause notice.

 8
(b)

Draft a suitable termination notice to an employee, whose explanation in reply to show-cause notice, was not found satisfactory. Mention the clause in the Service Rule by which such action is being taken.

 7
10. (a)

Write to the Post Master General for allowing a subsidized rate of postalo charges for sending educational journals to different institutions.

 6
(b)

Draft an Auditor's Certificate on compliance with the conditions of corporate governance of a company under clause 49 of the Listing Agreement with Stock Exchange.

 9

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