1. Comment on the following :

(a) In no circumstances a company can issue redeemable preference shares with a redemption

period beyond 20 years.

(b) Powers of the directors of a company are co-extensive with those of the company.

(c) One person company shall be formed only as a company limited by shares.

(d) The gap between two annual general meetings can never exceed 15 months.

(5 marks each)

Attempt all parts of either Q.No. 2 or Q.No. 2A

2. Distinguish between the following :

(a) 'Independent director' and 'non-executive director'.

(b) 'Inspection' and 'investigation'.

(c) 'Limited liability partnership' and 'body corporate'.

(d) 'ESOP' and 'sweat equity shares'.

(4 marks each)

OR (Alternate question to Q.No. 2)

2A. (i) To consider a body corporate as a foreign company, a place of business in India is to

be established. State the activities that do not constitute carrying of business in India.

(ii) Masons (Pvt.) Ltd. is a private limited company as per the articles of association of the

company. However, a public company acquired shares in Masons (Pvt.) Ltd. thereby

making the company, Masons (Pvt.) Ltd., a subsidiary of that public company. State

the impact of such acquisition of shares by a public company on Masons (Pvt.) Ltd.

(iii) "Financial statements shall be signed only by the Chairperson of the company.'' Explain.