LL.M Corporate and Securities Law 1st Year Paper II: GENERAL PRINCIPLES OF COMPANY LAW- I(Acharya Nagarjuna University (ANU), Guntur, Andhra Pradesh-2012)

LL.M. (Previous) DEGREE EXAMINATION, MAY 2012.
First Year
Corporate and Securities law
Paper II — GENERAL PRINCIPLES OF COMPANY LAW – I
Time : Three hours Maximum : 100 marks
Answer any FIVE questions.
All questions carry equal marks.
1. “Incorporation of a company offers certain advantages to the business community as compared with all other kinds of business organisations”. What are they? Explain.
2. What is doctrine of ultra vires? How it is diluted? Explain the consequences of ultra vires transactions.
3. Explain the rule laid down in Royal British Bank Vs. turquand along with exceptions. Give supporting case law.
4. “The Golden rule as to the framing of prospectus must be observed. This golden legacy has condensed in few words the whole doctrine as to the rule of conduct between share holders and directors” Explain.
5. “A valid alloment of shares has to comply with the requirements of the companies Act as well as principles of the law of contract relating to acceptance of offers” Explain.
6. “Conservation of capital is one of the main principles of company law. A reductions of capital is unlawful except when sanctured by the court” Explain.
7. “Capital must be divided into shares of a fixed amount. All the shares may be of only one class or may be divided into two different classes of securities”. Explain briefly the different classes of shares holders.
8. “When Joint Stock companies were established the great object was that the shares should be capable of being easily transferred, but at the same time it is open to a company to restrict the right of its members to transfer their shares” Explain this statement with decided cases.
9. Explain how to become a member and who are entitled to become members of the
company.
10. Write short notes on any TWO of the following.
(a) Promoters (b) Pre-incorporation contracts
(c) Articles of association (d) Buy back of shares.