CWA/ICWA Inter :: Business Laws and Communication Skills : June 2005

I-7(BLC)
Revised Syllabus

Time Allowed : 3 Hours Full Marks : 100
The figures in the margin on the right side indicate full marks.
Question No. 1 (a) 1 (b) is compulsory and attempt any three from the rest in
Section I and any two from section II.
Section — I
(Business Laws)
Marks
1. (a) Comment on the following statements: 2x9=18
(i)21 days notice cannot be avoided to convene a valid Annual General Meeting.
(ii)Eligibility to Bonus depends on the period of actual service.
(iii)ABC Ltd. who acquires 51% Equity shares of VK Ltd., proposed for directorship of VK Ltd.
(iv)Preparation and submission of 'Statutory Report' is Compulsory for every Company.
(v)

Best Co. Ltd. has seven shareholders which includes three directors. All the shareholders and directors became insolvent. Hence the Company ceases to exist.

(vi)A minor can be admitted as a Partner in a Partnership firm.
(vii)All dealership agreements require registration (MRTP Act, 1969).
(viii)An apprentice is an workman under Industrial Dispute Act.
(ix)

Goods bought and used exclusively for purpose of earnings one's livelihood by means of self-employment is a commercial purpose.
(b) Mention the conditions subject to which the Gratuity is payable to Employees. 4
2. (a)

What are the restrictions on use of stream or well for disposal of Polluting matter, Water (Prev. & Control of Pollution) Act, 1974?

 4
(b)

The statutory auditor certified the account of the Company without giving 'True or Fair View'. Can the Company adopt such Accounts on the basis of clarification given by the Board of Directors?

 3
(c) Mention the list of business in which Resolutions may be passed through Postal Ballot. 5
(d)

Board of Directors of ABC Ltd. want to contribute Rupees Ten Lakhs to National Defence Fund but Memorandum and Articles of Association have not empowered. Advice whether the Board can contribute the said amount.

 4
3. (a)

What are the restriction or prohibition under AIR (Prev. & Control of Pollution) Act, 1981 on the use of Industrial Plant?

 4
(b) How a Statutory Auditor of a Company is appointed? 5
(c) Certain resolution require special notice at general meeting. What are those? 3
(d)
(i)

How name of a Company (under Companies Act, 1956) can be changed?

2
(ii)

Mr. A who is Director of 14 Public Limited Companies received offer from (1) Janata Charitable Trust for Director (2) ABC Ltd. for an Alternate Director (3) XYZ Ltd. for Director (4) S.S. Pvt. Ltd. for Director. He wants to accept all the offer. Advice.

2
4. (a) Explain the essential elements of a valid contract. 4
(b) State the Law relating to borrowing of funds by the Company. 4
(c) What are the procedures followed for appointment of Managing Director? 5
(d) What is motion and the different kinds of motion? 3
Please turn over

( 2 )

I-7(BLC)
Revised syllabus		 Marks
5. (a) Distinguish between Ordinary Resolution and Special Resolution. 5
(b) Can dividend be withheld after declaration in Annual General Meeting? Explain legal provisions. 3
(c) State the time limit for holding Annual General Meeting by a Public Limited Company. 4
(d) When notice for dishonour is not necessary (N. I. Act)? 4
6. Write explanatory notes on any four:
(a)Resale Price Maintenance (MRTP).
(b)Conditions & Warranties (Sale of Goods Act).
(c)Authentication of Balance Sheet and Profit & Loss Account.
(d)Lifting of Corporate veil.
(e)Quorum for Board meeting.
 4x4=16
 
Section II
(Communication Skills)
 
7.

Prepare notice of an Annual General Meeting in which following special business is to be considered:
To increase Authorised Share Capital.
Draft explanatory statement persuant to Section 173 of Companies Act, 1956 where necessary.

 15
8. (a)

Draft a suitable letter to a customer requesting him to clear Rs. 70,000/- which remains outstanding against a bill dated 01.6.2004.

 8
(b)

An Employee has been on unatuhorised leave for last one month. His reply against a show cause notice is unsatisfactory. This being first offence, management decided to give him chance to improve. Draft a suitable letter on behalf of management.

 7
9. (a)

Draft a suitable reply on behalf of General Insurance Company agreeing to pay an insurance claim for loss suffered due to theft of certain materials, but the Company has accepted the claim for lesser amounts against the claim.

 8
(b)

Draft Inter-office memo from Managing Director to Departmental Heads seeking their views on future strategies for growth prospect of the Company.

 7
10. (a)

Write a letter to bank for increasing the cash credit limit from Rs. 15 lakhs to 30 lakhs for increased volume of business specially export business.

 8
(b)

Write a letter to your bank who dishonoured your cheque No. 217615 dated 31.05.2005 for Rs. 90,000/- which was issued to Ram Sham Company Ltd. inspite of having sufficient funds in your Bank Account.

 7

__________

© Krishbhavara ♣