(iv) A petition signed by 100 members of a company has been moved to Company Law

Board (CLB) for prevention of mismanagement. Later on, half of the members

(signatories) withdrew their consent after filing the petition. Examine whether the

remaining applicants (petitioners/signatories) to the petition would be successful in their

complaint to CLB.

(4 marks each)

4. (a) Vir is a director in DJA Ltd. (the company). The company holds 75% shares of MRN

Ltd. Vir wants to inspect the books of MRN Ltd. Examining the provisions of the

Companies Act, 2013 advise whether Vir, the director of DJA Ltd. can be allowed to

inspect the books of MRN Ltd.

(4 marks)

(b) Explain the provisions of the Companies Act, 2013 relating to 'secretarial audit'. State

whether 'secretarial audit' is mandatory for all companies.

(4 marks)

(c) PQR Ltd. is an unlisted company and has 400 shareholders in all. The shareholders

of the company propose voting by electronic mode. Chairman of the company rejected

the shareholders' proposal. Explaining the provisions of the Companies Act, 2013,

examine the validity of rejection of the shareholders' proposal by the Chairman.

(4 marks)

(d) Board of directors of Joy Ltd., by a resolution passed at its meeting, decide to provide

a loan of -

50 crore to Happy Ltd. The paid-up share capital of Joy Ltd. on the date

of resolution was -

100 crore and the aggregate balance in the free reserves and securities

premium account stood at -

40 crore. Examining the provisions of the Companies

Act, 2013, decide whether the Board's resolution to provide a loan of -

50 crore to

Happy Ltd. is valid ?

(4 marks)

5. (a) Explain the provisions of the Companies Act, 2013 relating to the constitution of an

audit committee. What role does the audit committee play in the management of a

company ?

(4 marks)

(b) Based on the information given in the memorandum of association, Smart Ltd. was

incorporated and the certificate of incorporation was issued by the Registrar of Companies,

New Delhi. The memorandum of association was duly signed, except that X, Y and

Z signed it on behalf of five minors.

Examine the validity of the certificate of incorporation issued by the Registrar of

Companies.

(4 m