Page 234 - DCOM404_CORPORATE_LEGAL_FRAMEWORK

Unit 10: Share Capital

3. A company is an ............................ and therefore, cannot act itself. It must act through some Notes
human intermediary.
4. The various provisions of law empower ................................. to do certain things. They are
specifically reserved for them to be done in company’s general meetings.

5. Every company must keep at its ............................................ of accounts which shall give a

true and fair view of the financial affairs of the company.

6. It is ............................ for every company to appoint qualified auditors to do the audit of the
accounts maintained by the company.
7. ................................. makes provision for a resolution relating to appointment or removal of
auditor.

8. The ............................... may appoint one or more competent persons as inspectors to
investigate into the affairs of any company
9. ............................................. who, by virtue of an agreement with the company or of a
resolution passed by the company in general meeting or by its Board of directors or, by
virtue of its memorandum or articles of association, is entrusted with substantial powers
of management which would not otherwise be exercisable by him.
10. ..........................................an individual who, subject to the superintendence, control and
direction of the Board of Directors, has the management of the whole, or substantially the
whole of the affairs of the company and includes a director or any other person occupying
the position of a manager, by whatever name called and whether under a contract of service
or not”
11. ..............................provides that no compensation for loss of office may be paid by a company

to any director other than the managing director, or wholetime director.
12. ................................. are a record of business transacted at meetings.

10.12 Review Questions

1. Write a short notes on the following: (i) Issue of shares at premium (ii) Issue of shares at
discount.

2. Describe the procedure for alteration of share capital.
3. Describe the procedure for reduction of share capital.
4. What is meant by allotment of shares? State the statutory requirements in this respect.
5. Write short note on: (i) Listing of shares, (ii) Opening and closing the subscription list, (iii)
Return of allotment, (iv) Duplicate share certifi cate.
6. Distinguish between transfer and transmission of shares.
7. What charges are registered under the Companies Act, 1956?
8. What is the effect of non-registration of a registrable charge?
9. What are the different kinds of general meetings of a company?

10. Define statutory meeting of a public company.

11. What books of account is a company bound to maintain?
12. Write notes on (i) special audit and (ii) cost audit. Discuss the powers and duties of auditors
with reference to leading cases.

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