Page 199 - DCOM106_COMPANY_LAW

Company Law

Notes Self Assessment

5. Which of the following are included in the ‘Statutory Books’ for the purpose of company
audit?
(i) Register of charges
(ii) Minutes Books for the Board meetings
(iii) Articles of Association

(iv) Minutes Book for the shareholder’s meeting
(v) Register of members
(vi) Memorandum of Association
Select the correct answer using the codes given below:
Codes
(a) (i), (ii), (iv) and (v) (b) (ii), (iii), (iv) and (vi)
(c) (i), (iii), (v) and (vi) (d) (ii), (iii), (v) and (vi)

6. Consider the following statements: A statutory auditor of a public limited company claims
that he has the following legal rights in relation to his duties:
(i) Right to refuse to make a report
(ii) Right of access to books of accounts and registers
(iii) Right to seek explanation from directors and officers

(iv) Right to make statement in the general meeting.
Of the above statements:
(a) (i), (ii) and (iii) are correct (b) (i), (ii) and (iv) are correct
(c) (i), (iii) and (iv) are correct (d) (ii), (iii) and (iv) are correct

12.4 General Meeting for Shareholders

When it is proposed to alter, vary or affect the rights of a particular class of shareholders
(e.g., where accumulated dividends on cumulative preference shares are to be cancelled) and it
is not possible to obtain the consent in writing, of the holders of 3/4th of the issued shares of that
class, a meeting of the holders of those shares may be called. Such a meeting is commonly
known as a ‘class meeting’. It should be noted that all resolutions in a class meeting must be
passed as special resolutions.
The holders of at least 10% of the issued shares of that class who did not consent in favour of the
resolution may apply to the court within 21 days to have the resolution cancelled and where
such application is made, the resolution shall not have effect unless and until it is confirmed by
the court.

Task A meeting was properly convened and was subsequently adjourned by the chairman.
No fresh notice is given for the adjourned meeting which is held subsequently. State
whether the adjourned meeting is valid. [Hint: The adjourned meeting in question is valid
as per s.174.]

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