MCQ of Law.pdf

Index for MCQs Q. No. Chapter Name Questions 1 Appointment and Qualifications of Directors 32 2 Meetings of Board and its Powers 49 3 Ap...

Index for MCQs Q. No. Chapter Name Questions 1 Appointment and Qualifications of Directors 32 2 Meetings of Board and its Powers 49 3 Appointment and Remuneration of Managerial Personnel 19 4 Investigation, Inspection and Inquiry 19 5 Compromise, Arrangements and Amalgamations 18 6 Prevention of Oppression and Mismanagement 12 7 Winding Up 22 8 Miscellaneous 61 9 Adjudication, Special Courts, NCLT and NCLAT 17 10 E-filing 5 11 The SEBI Act, 1992 and SEBI Regulations 37 12 The Foreign Exchange Management Act, 1999 45 13 The Foreign Contribution (Regulation) Act, 2010 15 14 The Insolvency and Bankruptcy Code, 2016 32 Total 383  Appointment and Qualifications of CHAPTER 1: Directors ? Question 1: [RTP NOV 2023] ABHI Limited, a listed company, proposed Mr. Arun and Mr. Raj, before the Board to appoint one of them as a Small Shareholder Director (SSD). Particulars about proposed SSD’s Mr. Arun He holds 50 preferential shares of ABHI Limited. Also, currently working as Small Shareholder’s Director in Sona Limited, which is not competing in business to ABHI Limited. Mr. Raj He is not holding any shares of ABHI Limited. He is currently representing two different companies, one as a director and another as a Small Shareholder Director. Requirement: Examine in the light of the given facts as per the Companies Act, 2013, the correct statement on the validity of the proposal of appointment of Mr. Arun and Mr. Raj as a Small Shareholder Director in ABHI Limited? (i) Proposal to appoint Mr. Arun is only valid and he can be appointed as Small Shareholder Director as he is holding shares of ABHI Limited though he is a SSD in Sona Ltd. (ii) Proposal to appoint Mr. Raj is invalid as he is not eligible to be appointed as a SSD as already he is holding a directorship in two different companies and also having no shares in ABHI Ltd. (iii) Proposal of appointment of Mr. Raj and Mr. Arun, both is valid as they are eligible to be appointed as SSD’s in ABHI Ltd., irrespective of their holding as a Small Shareholder Directorship in one of the companies. (iv) Proposal of appointment of Mr. Raj and Mr. Arun in invalid as both are ineligible to be appointed as SSD’s as they are being a director in more than two companies. (a) Statement (i) only (b) Statements (i) & (ii) (c) Statement (iii) only (d) Statement (iv) only ? Question 2: [Section:149(1),Rule3] [ICAI Module Paper 4 Law MCQs] As per the audited financial statements of immediately preceding FY 2020-21, the paid-up capital of Aastha Metal Products Limited was Rs. 75 crores (much below the threshold limit) which did not require appointing a woman director. However, the turnover during the same period was Rs. 334 crores i.e., above the threshold limit which required appointing a woman director. Choose t h e correct option from those given below as to whether Aastha Metal Products Limited is required to bring on the Board a woman director or not. a) The company is not required to appoint a woman director since only one of the parameters and not both have crossed the threshold limit. b) The company is required to appoint a woman director since any one parameter out of the two exceeding the threshold limit shall necessitate such appointment. c) The requirement of appointing a woman director arises only when paid up capital exceeds the threshold limit and therefore, the company is not required to appoint a woman director. d) In a situation where one parameter is below and the other is above the threshold limit, the company, as per its discretion, may or may not appoint a woman director. Q. No. Answer Q. No. Answer 1. (c) 2. (b) Appointment and Qualifications of Directors 1.1 ? Question 3: [RTP MAY 2020] Blue Rose Agri-Products Limited, which is inter-alia listed on National Stock Exchange, has called an extra-ordinary general meeting (EGM) of the shareholders on 29th January, 2019 at its Head Office in New Delhi to seek approval in respect of certain matters. It so happened that the company received a notice on 25th January, 2019 from the requisite number of small shareholders who proposed appointment of Shivank as their director but it refused to entertain the notice as the same was served quite late. Advise the latest date by which the small shareholders must have given the notice for the appointment of Shivank so that it was not refused by the company. (a) The notice should have been served latest by 24th January, 2019. (b) The notice should have been served latest by 15th January, 2019. (c) The notice should have been served latest by 22nd January, 2019. (d) The notice should have been served latest by 19th January, 2019. ? Question 4: [RTP MAY 2019] All the three directors of Cygnus Wires Limited generally remain out of India for developing connections and securing business opportunities on behalf of the company. However, the company must strictly follow the legal requirement that at least one of its directors must stay for the specified statutory period in India. To reckon as ‘resident director’ for the financial year 2018-19, advise the company as to which period spent in India shall count towards statutory period. (a) Period spent in India during the previous financial year 2017-18. (b) Total of fifty percent each of the period spent in India during the FY 2016- 17 and 2017-18. (c) Period spent in India during the financial year 2018-19. (d) Total of fifty percent each of the period spent in India during the FY 2017 - 18 and 2018-19. ? Question 5: [RTP MAY 2019] Mr. Roop was appointed as an Additional Director of XYZ Limited in July, 2018. Immediately after his appointment, on behalf of the Company he entered into an agreement with NY Private Limited for supplies of raw material. In the ensuing meeting, he was regularized as a Director. He signed Contract with Laxmi vendors. At the end of the December 2018, management came to know that his appointment was not valid as he was disqualified to act as a Director of any Company. He signed one more agreement in January 2019 with Saraswati vendors. In such scenario, what will be the status of contract/agreements he signed on behalf of XYZ Limited? (a) All agreement/ contracts will become invalid; (b) All agreement/ contracts will be valid; (c) All agreement/ contracts before December 2018 will be valid; (d) All agreement/ contracts before December 2018 will be invalid. Q. No. Answer Q. No. Answer Q. No. Answer 3. (b) 4. (c) 5. (c) Appointment and Qualifications of Directors 1.2 ? Question 6: [MTP MAY 2022] A public company should have minimum of: (a) 3 Members and 3 Directors (b) 3 Members and 7 Directors (c) 7 Members and 3 Directors (d) 7 Members and 7 Directors ? Question 7: [MTP MAY 2023] Supriya holds shares worth %13,50,000 in the capacity as one of the directors of Paridhi Tours and Travels Limited (PTTL) whose paid-up share capital is €4,50,00,000. Swikriti Bus Suppliers Limited (SBSL) with paid-up capital of ¥2,00,00,000 is in the business of supplying tourist buses. Being in need of adding three more tourist buses in its existing fleet of ten buses, PTTL through Supriya approached SBSL for the purpose of purchasing the required buses knowing fully well that Supriya holds certain amount of shares in SBSL making her an interested director. Out of the following four options, which one is applicable in the given situation (a) Supriya, as interested director, holds shares of SBSL of the value exceeding %1,00,000 but not exceeding Rs. 1,50,000 (b) Supriya, as interested director, holds shares of SBSL of the value exceeding €1,50,000 but not exceeding Rs. 2,00,000 (c) Supriya, as interested director, holds shares of SBSL of the value exceeding €2,00,000 but not exceeding Rs. 3,00,000 (d) Supriya is not an interested director as in order to be considered as an interested director Supriya was required to have holding of shares exceeding Rs. 4,00,000 in SBSL. ? Question 8: [MTP MAY 2023] Mr. D holds directorship in 10 Public Companies and 11 Private Companies as on 31.05.2022. One of the above Private Company is a dormant Company. Further on 30.06.2022 a Private Company has become a subsidiary of a Public Company. In the light of the provisions of the Companies Act, 2013 examine and decide the validity of holding directorship of Mr.D with reference to number of directorship as on 31.05.2022 and as on 30.06.2022. (a) Holding of directorship of Mr. D as on 31.05.2022 is invalid whereas holding of directorship of Mr. D as on 30.06.2022 is valid (b) Holding of directorship of Mr. D as on 31.05.2022 is valid whereas holding of directorship of Mr. D as on 30.06.2022 is not valid (c) Holding of directorship of Mr. D as on 31.05.2022 is valid whereas holding of directorship of Mr. D as on 30.06.2022 is also valid (d) Holding of directorship of Mr. D as on 31.05.2022 is invalid whereas holding of directorship of Mr. D as on 30.06.2022 is also invalid. Q. No. Answer Q. No. Answer Q. No. Answer 6. (c) 7. (d) 8. (b) Appointment and Qualifications of Directors 1.3 ? Question 9: [MTP MAY 2023] Neelima was an interested director when her company Sagar Suppliers Limited entered into a supply contract worth Rs. 20,00,000 with Sriniwas Tubes and Pipes Limited under which the latter company would supply requisite items for full one year to the former company. However, Neelima did not disclose her interest at the time when Board Meeting of Sagar Suppliers Limited where the issue of supply contract was discussed and even participated in the discussion. Which of the following options is applicable in the given situation: (a) Since Neelima did not disclose her interest, the contract is voidable at the option of Sriniwas Tubes and Pipes Limited (b) Since Neelima did not disclose her interest, the contract is voidable at the option of Sagar Suppliers Limited (c) Since Neelima did not disclose her interest, the contract can be enforced only upto 50% of its value i.e. maximum upto Rs. 10,00,000 (d) Since Neelima did not disclose her interest, the whole contract is void and cannot be enforced ? Question 10: [MTP NOV 2022] Mr. Q, a Director of PQR Limited, is proceeding on a foreign tour covering entire Europe for four months. He proposes to appoint Mr. Y as an alternate Director to act on his behalf during his absence. The Articles of Association of PQR Limited provide for the appointment of alternate Directors. Mr. Q claims that he has a right to appoint alternate Director of his choice. Which of the following options is applicable in the given situation: (a) Claim made by Mr. Q to appoint Mr. Y as alternate Director is valid as the Articles of Association of PQR Limited provide for such appointment. (b) Claim made by Mr. Q to appoint Mr. Y as alternate Director is not valid as the authority to appoint alternate Director has been vested in the Board of Directors only and that too subject to empowerment by the Articles of Association. (c) Mr. Y cannot be appointed as an alternate Director in place of Mr. Q since Mr. Q is proceeding on a foreign tour covering entire Europe for four months only which is less than the required absence of minimum six months. (d) Mr. Y cannot be appointed as an alternate Director in place of Mr. Q since Mr. Q is proceeding on a foreign tour covering entire Europe for four months which is more than the required absence of maximum three months. Q. No. Answer Q. No. Answer 9. (b) 10. (b) Appointment and Qualifications of Directors 1.4 ? Question 11: [Section:161(1)] [ICAI Module Paper 4 Law MCQs] The Board of Directors of MNO Pharma Limited is willing to appoint Mr. R, a qualified Cost Accountant having fifteen years of rich industrial experience, as Additional Director but the Articles of Association are silent about such appointment. Mr. M, the Managing Director of MNO Pharma Limited, is of the view that the Board does not have the power to appoint an Additional Director and therefore, if any such appointment is made, it shall be invalid. From the following four options, choose the one which is applicable in the given situation: a) An ordinary resolution in general meeting needs to be passed by MNO Pharma Limited for appointment of Mr. R as Additional Director. b) A special resolution in general meeting needs to be passed by MNO Pharma Limited for appointment of Mr. R as Additional Director. c) An enabling provision in the Articles of Association is needed which confers requisite power on the Board of Directors of MNO Pharma Limited for appointment of Additional Director. d) The Board of Directors of MNO Pharma Limited has the power to appoint Mr. R as an Additional Director irrespective of whether any clause finds place in the Articles of Association for such appointment or not. ? Question 12: [Section:165] [ICAI Module Paper 4 Law MCQs] Mr. Z is proposed to be appointed as the Director in RLP Mechanics Limited. It is noteworthy that Mr. Z already holds directorship in 1 dormant company, 2 Section 8 companies, 8 public limited companies and 9 Private Ltd. companies. However, out of nine private limited companies, two are subsidiaries of public limited companies. In the given circumstances, is it possible for Mr. Z to accept another directorship in RLP Mechanics Limited without attracting any invalidity: a) It is not possible for Mr. Z to accept another directorship in RLP Mechanics Limited since he is already holding directorships in twenty companies. b) It is not possible for Mr. Z to accept another directorship in RLP Mechanics Limited since he is already holding directorships in eight public limited companies and two such private limited companies which are subsidiaries of public limited companies. c) It is possible for Mr. Z to accept another directorship in RLP Mechanics Limited since Section 8 companies and dormant companies are excluded while calculating the limit of twenty companies. d) It is possible for Mr. Z to accept another directorship in RLP Mechanics Limited since there is no limit on holding any number of directorships. Q. No. Answer Q. No. Answer 11. (c) 12. (b) Appointment and Qualifications of Directors 1.5 ? Question 13: [Section:149(1), Rule3] [ICAI Module Paper 4 Law MCQs] In compliance with the Companies Act, 2013, at least one woman director shall be on the Board of the prescribed class or classes of companies. Ms. Riya is keen to seek the office of woman director in a company. Which of the following companies is mandatorily required to appoint a woman director where Ms. Riya can hold such office: a) PQR Limited, an unlisted co., whose paid-up share capital is 150 crore rupees as per the last date of latest audited financial statements is mandatorily required to appoint a woman dir. b) ABC Limited, a listed company, whose turnover is 150 crore rupees as per the last date of latest audited financial statements is mandatorily required to appoint a woman director. c) XYZ Limited, an unlisted company, whose turnover is 350 crore rupees as per the last date of latest audited financial statements is mandatorily required to appoint a woman director. d) All of the above ? Question 14: [MTP NOV 2019] Rachna, Ridhdhi, Ruby and Rakhi are directors in Zippona Tours and Travellers Private Limited whose equity shares are partly paid-up. The company required the shareholders to make payment of Rs. 3 per share (FV Rs. 10 per share) being the final call in respect of shares held by them latest by 30 th June, 2018. As director, Ruby held individually 2,00,000 shares and also at the same time held jointly 1,00,000 shares along with her brother Rajesh whose name appeared first in the Register of Members. In respect of 2,00,000 shares held individually by her, Ruby duly made the payment before the last date; however, in respect of joint shareholding of 1,00,000 shares, Rajesh was unable to make payment even though six months also expired from the last day i.e. 30th June, 2018. Advise whether Ruby incurs any disqualification regarding her directorship in the company. (a) Since Rajesh’s name appears first in the Register of Members, he is primarily responsible for making payment and therefore Ruby incurs no disqualification regarding her directorship in the company for non-payment of required amount in respect of joint shareholding; moreover, she has already discharged her liability in respect of shares individually held by her. (b) In case of joint shareholding, if Ruby earlier made payment of Rs. 7 per share from her personal bank account then she is also liable to pay Rs. 3 per share before the expiry of six months from the last date of payment i.e. 30th June, 2018; otherwise she is disqualified to be a director in the company irrespective of discharging her liability in respect shares individually is held by her. (c) In case of joint shareholding, Ruby as director is equally liable to get the payment made similar to her individual shareholding before the expiry of six months from the last date of payment i.e. 30th June, 2018; otherwise she is disqualified to be a director in the company. (d) In case of joint shareholding, Ruby as director is liable to get the payment made in respect of 50% of the joint holding and if that is done before the expiry of six months from the last date of payment i.e. 30th June, 2018, she incurs no disqualification regarding her directorship in the company irrespective of whether the remaining 50% is received by the company or not. ? Question 15: [ICAI BoS Portal] The maximum number of unlisted public companies in which a person can be appointed as a dir.: a) Shall not exceed 7 b) Shall not exceed 10 c) Shall not exceed 15 d) Shall not exceed 20 Q. No. Answer Q. No. Answer Q. No. Answer 13. (d) 14. (c) 15. (b) Appointment and Qualifications of Directors 1.6 ? Question 16: [ICAI BoS Portal] Mr. Z is proposed to be appointed as the Director in RLP Mechanics Limited. It is noteworthy that Mr. Z already holds directorship in one dormant company, two Section 8 companies, eight public limited companies and nine private limited companies. However, out of nine private limited companies, two are subsidiaries of public limited companies. In the given circumstances, is it possible for Mr. Z to accept another directorship in RLP Mechanics Limited without attracting any invalidity: a) It is not possible for Mr. Z to accept another directorship in RLP Mechanics Limited since he is already holding directorships in twenty companies. b) It is not possible for Mr. Z to accept another directorship in RLP Mechanics Limited since he is already holding directorships in eight public limited companies and two such private limited companies which are subsidiaries of public limited companies. c) It is possible for Mr. Z to accept another directorship in RLP Mechanics Limited since Section 8 companies and dormant companies are excluded while calculating the limit of twenty companies. d) It is possible for Mr. Z to accept another directorship in RLP Mechanics Limited since there is no limit on holding any number of directorships. ? Question 17: [Section: 152] [ICAI BoS Portal] Kutumb Agro Limited (KAL), a newly incorporated company, has not mentioned the names of the first Directors in its Articles of Association. There are eight subscribers to the Memorandum of Association including Parivaar Agro Private Limited. From the following four options, choose the one which indicates as to who shall be deemed to be the first Directors of KAL when nothing is mentioned in the Articles? a) All the eight subscribers to the Memorandum of Association of KAL shall be deemed to be the first Directors. b) Except Parivaar Agro Private Limited, all other subscribers to the Memorandum of Association of KAL shall be deemed to be the first Directors. c) The shareholders shall appoint the first Directors in the General Meeting of KAL. d) Out of the eight subscribers to the Memorandum of Association, the first Directors being three individuals shall be nominated by Sriniwas, the Chartered accountant who has signed the Memorandum as witness and they shall be deemed to be the first Directors of KAL. ? Question 18: [ICAI BoS Portal] A person cannot be appointed as Alternate Director for: a) Woman Director b) Independent Director c) Promoter Director d) Whole-time Director Q. No. Answer Q. No. Answer Q. No. Answer 16. (b) 17. (b) 18. (b) Appointment and Qualifications of Directors 1.7 ? Question 19: [ICAI BoS Portal] Which among the following is not a disqualification for appointment as a director: a) An order disqualifying him for appointment as a director has been passed by a Tribunal b) He has been convicted of the offence dealing with related party transactions at any time during the last preceding 5 years c) He has not been allotted DIN d) The company in which he had been a director, has not filed annual returns for the previous year ? Question 20: [ICAI BoS Portal] Seva Hospitality Services Limited having registered office in South Delhi is providing various kind of services, major components of which are tours and travels, both in India and abroad. In addition to six directors, Andrezj, a resident of Warsaw, Poland also held directorship in the company as foreign director. However, due to his extremely busy schedule at Warsaw, he resigned and requested the company to relieve him from the directorship w.e.f. 23rd July, 2023. With a view to intimate the Registrar regarding resignation of Andrezj, the company filed DIR-12 on 26th July, 2023. In respect of signing and filing of DIR-11, which of the following persons in India can be authorised by Andrezj in addition to a practising Chartered Accountant, a Cost Accountant in practice and a Company Secretary in practice who can sign and file the said Form DIR-11 on his behalf: a) His professional friend Shailja, an advocate practising in Delhi High Court b) His cousin Bartek residing in India and holding directorship in an unlisted company, namely, Mithila Dairy Products Limited His co-director Kritika, a resident director of Seva Hospitality Services Limited who filed DIR-12 on behalf of the company intimating the Registrar regarding resignation of Andrezj c) His cousin Bartek residing in India and holding directorship in an unlisted company, namely, Mithila Dairy Products Limited d) His close friend Devansh, Managing Director of Sunshine Travels Limited which is a listed company ? Question 21: [ICAI BoS Portal] Which among the following person is not eligible for appointment as director in a company: a) Mr. P, an angry young man b) Mr.Q, a lazy person c) Mr. R, a poor person d) Mr. S who has been sentenced by a court for a period of One year ? Question 22: [ICAI BoS Portal] ABC Ltd is a listed entity. The total number of directors in the company is 10. Out of 10, how much directors should be the Independent Directors: a) At least One b) Two c) Three d) Four Q. No. Answer Q. No. Answer Q. No. Answer Q. No. Answer 19. (d) 20. (b) 21. (d) 22. (d) Appointment and Qualifications of Directors 1.8 ? Question 23: [Section: 149(1)] [ICAI BoS Portal] The turnover of XYZ Components Limited as on the last date of latest audited financial statements is 400 crore rupees. An intermittent vacancy of a woman Director arose on June 15, 2021 due to the resignation of Ms. Swati. The immediate Board Meeting after the resignation of Ms. Swati was held on October 10, 2021. From the following options, choose the one which indicates the date by which the vacancy of the woman Director must be filled by XYZ Components Limited. a) July 14, 2021 b) August 14, 2021 c) September 14, 2021 d) October 10, 2021 ? Question 24: [ICAI BoS Portal] Mr. Nagarjuna, one of the directors of MGT Mechanics Limited, due to his own business interests, decided to resign as director and accordingly, sent his resignation letter dated 12th June, 2021 to the company stating that he intends to resign w.e.f. 15th June, 2021. Since no communication in relation to his resignation was received from MGT Mechanics Limited, he sent an e-mail on 17th June, 2021 enquiring about the receipt of his resignation letter by the company but there was no response. However, MGT Mechanics Limited received his resignation letter on 18th June, 2021. Out of the following four options, choose the one which indicates the correct date from which his resignation will be effective: a) 12th June, 2021 b) 15th June, 2021 c) 17th June, 2021 d) 18th June, 2021 ? Question 25: [Section: 149] [ICAI BoS Portal] A person along with his son holds exactly 2% of VP in a company. Is he qualified to become Independent Director? a) No, where a person with his relatives hold not less than 2% of VP of a company, such person is disqualified to be appointed as ID b) No, as ID is not allowed to hold any shares in the Company. c) Yes, as shareholding of relative is not to be considered for this purpose. e) Yes, where a person with his relatives holds more than 2% of VP of a company, such person is qualified to be appointed as ID Q. No. Answer Q. No. Answer Q. No. Answer 23. (d) 24. (d) 25. (a) Appointment and Qualifications of Directors 1.9 ? Question 26: [Section:161(4)] [ICAI Module Paper 4 Law MCQs] The Board of Directors of Pristine Pharmaceuticals Limited, which was incorporated under the Companies Act, 2013, consists of seven directors. It so happened that one of the directors Mr. Avinash who was appointed in the immediately previous Annual General Meeting (AGM) met with a serious accident which ultimately resulted in his untimely death after a couple of days of this mis-happening. Consequently, a casual vacancy in the office of director arose which needs to be filled up. The Board of Directors of Pristine Pharmaceuticals Limited is contemplating to appoint Mr. Rakesh in place of Mr. Avinash to fill the casual vacancy so originated. From the given options which one you would have chosen as a CA if you were to advise the Board of Directors regarding the time limit within which Mr. Rakesh could be appointed to fill such casual vacancy in the light of applicable provisions of the Companies Act, 2013: a) The casual vacancy created due to the untimely death of Mr. Avinash needs to be filled by the Board of Directors of Pristine Pharmaceuticals Limited within 3 months from the date of creation of such vacancy. b) The casual vacancy created due to the untimely death of Mr. Avinash needs to be filled by the Board of Directors of Pristine Pharmaceuticals Limited by passing a board resolution at its meeting and such appointment of Mr. Rakesh shall be subsequently approved by the members in the immediate next general meeting. c) The casual vacancy created due to the untimely death of Mr. Avinash needs to be filled by the Board of Directors of Pristine Pharmaceuticals Limited within one month from the date of creation of such vacancy. d) The casual vacancy created due to the untimely death of Mr. Avinash needs to be filled by the Board of Directors of Pristine Pharmaceuticals Limited within two months from the date of creation of such vacancy. ? Question 27: [Section:165] [ICAI Module Paper 4 Law MCQs] Prince is holding directorships in 20 companies of which 7 are public companies and out of 7, 3 have been categorized as dormant companies. Further, in 2 of these 7 public companies, he is holding alternate directorships. He has been offered directorships in 8 more public companies. Choose the correct alternative from the following options whether he can legally hold directorships in all these newly offered 8 public companies: a) Along with existing 20 directorships he can be director in all the 8 new companies which have offered him directorship. b) Being already director in twenty companies, he cannot accept further directorship in any other company. c) Along with existing twenty directorships he can be director only in six new companies. d) Along with existing twenty directorships he can be director only in three new companies. Q. No. Answer Q. No. Answer 26. (b) 27. (d) Appointment and Qualifications of Directors 1.10 ? Question 28: [Section:168(1) + Rule 15] [ICAI Module Paper 4 Law MCQs] Ritika Hospitality Services Limited, having its registered office in Bhikaji Cama Place, New Delhi, is providing various kind of services, major components of which are tours and travels, both in India and abroad. In addition to six directors, Andrezj, a resident of Warsaw, Poland also held directorship in the company as foreign director. However, due to his extremely busy schedule at Warsaw, he resigned and requested the company to relieve him from the directorship w.e.f. 23rd July, 2021. With a view to intimate the Registrar regarding resignation of Andrezj, the company filed DIR-12 on 26th July, 2021. In respect of signing and filing of DIR-11, which of the following persons in India can be authorised by Andrezj in addition to a practising Chartered Accountant, a Cost Accountant in practice and a Company Secretary in practice who can sign and file the said Form DIR-11 on his behalf: a) His professional friend Shailja, an advocate practising in Delhi High Court. b) His cousin Bartek residing in India and holding directorship in an unlisted company, namely, Mithila Dairy Products Limited. c) His earlier co-director Kritika, a resident director of Ritika Hospitality Services Limited who filed DIR-12 on behalf of the company intimating the Registrar regarding resignation of Andrezj. d) His close friend Devansh, Managing Director of Sunshine Travels Limited which is a listed company ? Question 29: [Section:167] [ICAI Module Paper 4 Law MCQs] Mr. Anand, Mr. Bipin, Mrs. Carol, Mr. Dhruv and Mr. Eknath are 5 Directors of the Elite Transporters Ltd. The Board of Directors of Elite Transporters Ltd. conducted 5 Board Meetings in the FY 2020- 21 which were attended by Mr. Anand, Mrs. Carol and Mr. Dhruv in full whereas Mr. Bipin attended only 4 meetings. However, it was noticed that Mr. Eknath failed to attend any of the Board Meetings and therefore, was liable to vacate the office of directorship but he did not vacate the office despite attracting the disqualification. You are required to choose the correct option from the following 4 which indicates the quantum of punishment that is applicable in case of Mr. Eknath for attracting the disqualification but not vacating the office of directorship as a consequence thereof: a) Mr. Eknath shall be punishable with fine which shall not be less than Rs 1,00,000 but which may extend to Rs 5,00,000. b) Mr. Eknath shall be punishable with fine which shall not be less than Rs 50,000 but which may extend to Rs 5,00,000 c) Mr. E shall be punishable with fine which shall not be less than Rs 1,00,000 but which may extend to Rs 3,00,000. d) Mr. Eknath shall be punishable with fine which shall not be less than Rs 1,50,000 but which may extend to Rs 3,00,000. Q. No. Answer Q. No. Answer 28. (c) 29. (a) Appointment and Qualifications of Directors 1.11 ? Question 30: [Section:151] [ICAI Module Paper 4 Law MCQs] Amar Furniture and Fixtures Limited is a listed company engaged in the production of furniture and fittings at its factory located in Pune. There are 50,000 small shareholders of which some want to elect a small shareholders’ Director so that due representation to the small shareholders is accorded by the company and the issues relating to them are resolved during the Board Meetings at the earliest. Accordingly, 750 small shareholders served a notice on the company for the appointment of Vishal, a small shareholder, who, if elected, shall hold the office of Director on behalf of the small shareholders. From the following four options, choose the one which is applicable in the given situation: a) Notice served by 750 small shareholders is valid and therefore, Amar Furniture and Fixtures Limited shall appoint Vishal as a small shareholders’ Director. b) Notice served by 750 small shareholders is not valid and therefore, Amar Furniture and Fixtures Limited shall appoint Vishal as a small shareholders Director only on the requisition of 1000 small shareholders c) Notice served by 750 small shareholders is not valid and therefore, Amar Furniture and Fixtures Limited shall appoint Vishal as a small shareholders Director only on the requisition of 5000 small shareholders. d) Notice served by 750 small shareholders is not valid and therefore, Amar Furniture and Fixtures Limited shall appoint Vishal as a small shareholders Director only on the requisition of 7500 small shareholders. ? Question 31: [Section:149(6)] [ICAI Module Paper 4 Law MCQs] HCQ Pharma Ltd., a company listed with the Bombay Stock Exchange, was incorporated on January 20, 2002. The Directors of the company want to appoint Mr. Sanjay who is a Managing Partner of Sanjay and Associates LLP, firm of Lawyers, as an Independent Director of the company at the forthcoming Annual General Meeting (AGM) to be held on September 24, 2021. Mr. Sanjay is acting as a legal advisor to Genesis Laboratory Ltd., Associate Company of HCQ Pharma Ltd. It is to be noted Adv. Sanjay charged consultation fees as given below: Year Fees Gross turnover of Sanjay and Associates 2018-19 2,00,00,000 40,00,00,000 2019-20 10,00,00,000 50,00,00,000 2020-21 0 45,00,00,000 You are required to identify the correct statement from those given below: a) HCQ Pharma Ltd. can appoint Mr. Sanjay as an Independent Director irrespective of the fact that he is Legal Advisor to Genesis Laboratory Ltd. which is its Associate Company. b) HCQ Pharma Ltd. cannot appoint Mr. Sanjay as an Independent Director as he is Managing Partner of the firm which is legal advisor to Genesis Laboratory Ltd., its Associate Company, irrespective of the amount of fees charged by Mr. Sanjay from its Associate Company. c) HCQ Pharma Ltd. cannot appoint Mr. Sanjay as an Independent Director as he is Managing Partner of the firm which is Legal Advisor to Genesis Laboratory Ltd., its Associate Company, and the fees charged by Mr. Sanjay exceeds the percentage as specified in the Companies Act, 2013, during one year out of the three immediately preceding FYs. d) HCQ Pharma Ltd. can appoint Mr. Sanjay as an Independent Director even though he is the Managing Partner of the firm which is Legal Advisor to Genesis Laboratory Ltd., its Associate Company, as Mr. Sanjay did not charge any fee during the immediately preceding FY. Q. No. Answer Q. No. Answer 30. (b) 31. (c) Appointment and Qualifications of Directors 1.12 ? Question 32: [Section:149(1)] [ICAI Module Paper 4 Law MCQs] National Software Limited, a government company with 14 Directors, is desirous of appointing two more Directors to enable good governance and to manage its affairs more efficiently and effectively. However, Mr. X, the Managing Director of National Software Limited, is of the view that the company can validly appoint only one more director and therefore, appointment of two more Directors would be a violation of the statutory provisions. Out of the following four options, choose the one which is applicable in the given situation: a) The contention of Mr. X, the Managing Director of National Software Limited, that the appointment of appointment of two more Directors in the company, thus raising the number of directors to more than fifteen, is valid since such action shall violate the statutory provisions. b) Appointment of more than fifteen Directors can be validly made by National Software Limited by passing an ordinary resolution in the general meeting. c) Appointment of more than fifteen Directors can be validly made by National Software Limited by passing a special resolution in the general meeting. d) In view of the fact that government companies are exempt from the provision which limits the maximum number of Directors in a company, National Software Limited can appoint two more directors, thus raising the total number of directors to sixteen from the present fourteen. Q. No. Answer 32. (d) Appointment and Qualifications of Directors 1.13  CHAPTER 2: Meetings of Board and its Powers ? Question 1: [SECTION 180] [RTP MAY 2023] Modern Furniture Limited is in expansion mode. Recently it has established the branches and showroom in 25 different cities of India. Following are the balances shown on 9 th December 2022 when board of Modern Furniture is considering to borrow money for expansion activities: Particulars Amount (in ‘crore) Share Capital 50000 Free Reserves 116000 Capital Redemption Reserve 28000 Revaluation Reserve 59400 Security Premium 32000 Secured Debt/Loans 98500 Unsecured Debt/Loan 33200 Unsecured Debt/Loan includes temporary loans of 30 lakhs, out which 13 lakhs raised for the purpose of financial expenditure of a capital nature, whereas 8 lakhs repayable on demand and remaining 9 lakhs will be repayable in three equal installment starting from next month. Advice the board of directors how much they can borrow, with board resolution only. (a) 3.60 Crore (b) 3.73 Crore (c) 6.80 crore (d) 6.93 crore ? Question 2: [SECTION 173] [RTP MAY 2020] In case of Topica Sugar Mills Limited, necessary arrangements are in place for conducting of Board Meetings through the means of video conferencing, a facility which Vaibhav and Yukta, the two directors out of six intend to utilize by participating in such meetings through it. During which part of the year they should intimate the company about their participation in Board Meetings through video conferencing? (a) At the beginning of the Financial Year (b) At the beginning of the Calendar Year (c) On 1st day of any month falling in the Financial Year (d) Before the Board Meeting. Q. No. Answer Q. No. Answer 1. (c) 2. (b) Meetings of Board and its Powers 2.1 ? Question 3: [SECTION 173] [RTP MAY 2020] Beauti Fashion Garments Limited has three independent directors besides eight others of its own. Due to the urgency of transacting certain important business, a Board Meeting was called by giving a shorter notice than the legally required. However, none of the independent directors was present at the Meeting to deliberate upon the motion related to that business. Despite absence of all the independent directors, a board resolution was passed for operationalizing the business by the directors personally present at that Meeting who were much more than the required quorum. Advise, whether the resolution passed at the Board Meeting called at a shorter notice was valid. (a) The resolution so passed is valid, for it was passed at the Board Meeting where the required quorum was present. (b) To be valid the resolution so passed needs to be circulated to all the directors and further, it is required to be ratified by all the three independent directors. (c) To be valid the resolution so passed needs to be circulated to all the directors and further, it is required to be ratified by at least two independent directors. (d) To be valid the resolution so passed needs to be circulated to all the directors and further, it is required to be ratified by at least one independent director. ? Question 4: [SECTION 167] [RTP MAY 2019] Ruby is a woman director in ABC Ltd. The Company held four meetings of the Board in the financial year 2022-23, but Ruby remained absent in all such meetings. However, she sought leave of absence in all such meetings and mentioned the person reasons. Based on this facts, which among the following statement is correct: (a) Ruby’s office as a director shall become vacant. (b) Since Ruby is a woman director, she can ask for leave of absence. (c) Ruby is close to the promoter of the company, hence if the promoter wish, she may continue to hold the office of director. (d) If Ruby joins the immediate next meeting, she can continue to hold the directorship ? Question 5: [SECTION 179] [MTP MAY 2023] Out of the total strength of six Directors of SQ Transformers Limited, five are attending a Board Meeting to consider the investment of funds of the company. The resolution relating to investment shall be taken as passed in which of the following cases: (a) When all the five Directors of SQ Transformers Limited attending the meeting consent to such investment of funds. (b) When any four Directors of SQ Transformers Limited out of five attending the meeting consent to such investment of funds. (c) When any three Directors of SQ Transformers Limited out of five attending the meeting consent to such investment of funds. (d) Investment proposal must be consented to by the total strength of six Directors of SQ Transformers Limited. Q. No. Answer Q. No. Answer Q. No. Answer 3. (d) 4. (a) 5. (a) Meetings of Board and its Powers 2.2 ? Question 6: [SECRETERIAL STANDARDS] [MTP MAY 2022] One of the director, who is actually residing at Nagpur, but his address as recorded with the company and in the DIN is of Mumbai. The director wish to receive the notice / agenda papers at Nagpur. At which address the notice for Board meeting and agenda papers may be sent? (a) The notice/ agenda papers be sent as per the wish of the concerned director. (b) The notice / agenda papers se sent at Nagpur address. (c) The notice / agenda papers be sent at Mumbai address. (d) The notice/ agenda papers be sent at both the addresses i.e. at Nagpur as well as at Mumbai. ? Question 7: [SECTION 182] [MTP NOV 2022] Chetan Motorboats Limited, incorporated on 25th June, 2021 is desirous of making donations to a reputed political party. Out of the following options, choose the one which correctly depicts as to when Chetan Motorboats Limited shall be eligible to make such donations to a political party: (a) Chetan Motorboats Limited shall be eligible to make donations to a political party after one year from the date of its incorporation. (b) Chetan Motorboats Limited shall be eligible to make donations to a political party after two years from the date of its incorporation. (c) Chetan Motorboats Limited shall be eligible to make donations to a political party after three years from the date of its incorporation. (d) Chetan Motorboats Limited shall be eligible to make donations to a political party after five years from the date of its incorporation. ? Question 8: [SECTION 173] [MTP NOV 2019] Three directors, namely Samiksha, Santosh and Samta intimated Pluto Plastic & Mechanical Toys Limited about their participation in the Board Meetings through video conferencing at the appropriate time of the year. However, after attending the first Board Meeting held in the Financial Year 2019-20 by means of video conferencing, Santosh wants to participate in the next Meeting to be held at a future date in person. Is it possible for him to do so when consent given for participation in meetings through video conferencing remains valid for full one year. (a) No, Santosh cannot attend future Board Meetings in person even if the company is intimated of such intention sufficiently in advance. (b) Yes, Santosh can attend future Board Meetings in person if he intimates the company of his intention sufficiently in advance. (c) Yes, Santosh can attend future Board Meetings in person only if all the remaining directors consent to such request. (d) Yes, Santosh can attend future Board Meetings in person but at least seventy five percent of the remaining directors (rounded off to next higher figure in case of a fraction) consent to such request. Q. No. Answer Q. No. Answer Q. No. Answer 6 (c) 7. (c) 8. (b) Meetings of Board and its Powers 2.3 ? Question 9: [SECTION 184][ICAI BoS Portal] Zinkoo Made-Ups Private Limited, having committed no default in filing its financial statements or annual returns, has six directors of which Roshni looks after different kinds of operations including sourcing of raw materials from other companies/firms. Recently, she convinced other Board Members to enter into a long-term contract with Joktaa Fine Clothing Limited for the supply of diverse varieties of unstitched clothes worth Rs. 90.00 lakh in a span of next three years. However, it was disclosed by her that she was a shareholder of Joktaa Fine Clothing Limited holding five percent of its paid-up capital. Of the following four options, which one is applicable in the given scenario: (a) Being interested director, she cannot participate in the Board Meeting in which such contract with Joktaa is deliberated upon. (b) Despite being interested director, she can still participate in the Board Meeting in which such contract with Joktaa is deliberated upon. (c) Being interested director, she can participate in the Board Meeting in which such contract with Joktaa is deliberated upon if minimum two directors of the company give consent for such participation. (d) Being interested director, she can participate in the Board Meeting in which such contract with Joktaa is deliberated upon if minimum three directors of the company give consent for such participation. ? Question 10: [SECTION 173] [ICAI BoS Portal] A meeting of the Board may be called by giving not less than 7 days notice in writing. However, the meeting may be called at shorter notice to transact urgent business subject to the condition that ______ if any, shall be present at the meeting: (a) A woman director (b) A nominee director (c) A whole-time director (d) At least one independent director ? Question 11: [SECTION 173] [ICAI BoS Portal] A One Person Company, small company and dormant company shall be deemed to have complied with the provisions of section 173 if at least one meeting of the Board of Directors has been conducted in each half of a calendar year and the gap between the two meetings is: (a) not less than 60 days (b) not less than 90 days (c) not less than 120 days (d) not less than 180 days Q. No. Answer Q. No. Answer Q. No. Answer 9. (b) 10. (d) 11. (b) Meetings of Board and its Powers 2.4 ? Question 12: [SECTION 173] [ICAI BoS Portal] A meeting of the Board shall be called by giving not less than 7 days notice in writing to every director notice shall be sent by hand delivery or by post or by electronic means: (a) at his last known address (b) at his address registered with the company (c) at his address where he usually resides (d) at his permanent address ? Question 13: [SECTION 174] [ICAI BoS Portal] ABC Ltd. is having 10 directors in its Board. What shall the quorum for the Board Meeting: (a) 2 directors (b) 3 directors (c) 4 directors (d) 5 directors ? Question 14: [SECTION 173] [ICAI BoS Portal] In ABC Ltd a resolution by circulation was circulated among the directors. However, some of the director expressed that the resolution should be decided at the meeting of the Board. How many directors are required to put the resolution in a Board Meeting, if the number of directors in the company are 15: (a) Two Directors (b) Five Directors (c) Eight Director (d) Ten Directors ? Question 15: [Section:197] [ICAI Module Paper 4 Law MCQs] Lockworth Safety Gears Limited which pays remuneration to its directors on yearly basis, has Harsha as Whole-time Director (WTD). Recently, the company appointed Mr. Raviyansh as Managing Director (MD). While paying remuneration, Lockworth Safety Gears Limited needs to keep in view that the overall remuneration payable to the Directors including Managing Director, Whole-time Director and Manager shall not exceed maximum limit prescribed under the relevant provisions. After the appointment of Mr. Raviyansh as Managing Director, since the company has both Whole- time Director as well as Managing Director, select the appropriate option from those given below which indicates the maximum remuneration that is allowed in a FY: a) 3% of net profits. b) 5% of net profits. c) 10% of net profits. d) 11% of net profits. Q. No. Answer Q. No. Answer Q. No. Answer Q. No. Answer 12. (b) 13. (c) 14. (b) 15. (c) Meetings of Board and its Powers 2.5 ? Question 16: [SECTION 174] [ICAI BoS Portal] A seven days notice of the Board Meeting was served on all the ten directors of Goodluck Publishers Limited by sending it on their registered postal addresses. However, before the holding of scheduled Board Meeting, some unavoidable happenings took place. Mr. M was hospitalised because of serious stomach pain just two days before the Meeting. Mr. Y proceeded to London since his son met with an accident and the incidence required his immediate presence. As scheduled earlier, Mr. X and Mr. B went to Australia for attending a technical seminar that would help improving the existing publishing techniques. Mr. A, extremely busy in finalizing the arrangements relating to his daughter s marriage, was also unable to attend the impending board meeting. A day before the board meeting, Mr. Es grand-mother got hospitalised and therefore, he was involved in taking care of her but he assured to attend the meeting through video conferencing. Mr. P was scheduled to arrive for the meeting by 2 p.m. on the same day of the meeting but his flight got delayed by eight hours. Mr. D, Mrs. G and Mr. H were in the town and were available for the Board Meeting. Could the Board Meeting be held as per the scheduled time? (a) The Board Meeting cannot be held because minimum sixty percent directors (i.e. 6 out of 10) must attend it at the scheduled time to complete the quorum. (b) The Board Meeting cannot be held because minimum fifty percent directors (i.e. 5 out of 10) must attend it at the scheduled time to complete the quorum. (c) Since the quorum is complete, the available directors can hold the Board Meeting as per the schedule. (d) The Board Meeting cannot be held because minimum seventy percent directors (i.e. 7 out of 10) must attend it at the scheduled time to complete the quorum. Answer- ? Question 17: [SECTION 184] [ICAI BoS Portal] Reeta, one of the directors of Lima SuperMarts Limited altered her declaration regarding shareholding in Sunehri Supplies Limited which after alteration stands at 2% and along with co- director Soumesh, it is 2.75%. It so happened that recently Sunehri Supplies proposed to enter into a supply contract worth Rs. one crore with Lima SuperMarts which shall continue for next two years. Which of the following options is applicable in the given situation: (a) Reeta and Soumesh cannot participate in the Board Meeting in which the supply contract is being discussed. (b) Reeta and Soumesh can participate in the Board Meeting in which the supply contract is being discussed since their individual shareholding in Sunehri Supplies does not exceed 2%. (c) Reeta and Soumesh can participate in the Board Meeting in which the supply contract is being discussed since their combined shareholding in Sunehri Supplies does not exceed 3%. (d) Reeta and Soumesh can participate in the Board Meeting in which the supply contract is being discussed since their combined shareholding in Sunehri Supplies does not exceed 4%. Q. No. Answer Q. No. Answer 16. (c) 17. (a) Meetings of Board and its Powers 2.6 ? Question 18: [SECTION 173] [ICAI BoS Portal] Every director shall at the first meeting of the Board in which he participates as a director disclose: (a) His Director’s Identification Number (b) His Permanent Account Number (c) His Bank Account details for credit of sitting fees (d) His concern or interest in any company Answer- ? Question 19: [SECTION 182] [ICAI BoS Portal] Which of the following statement is correct: (a) A Government Company may contribute any amount to any political party (b) A company which was incorporated a year before can contribute any amount to any political paty (c) A public company may contribute any amount to the any political party (d) A Private Company is not allowed to contribute any amount to any political party Answer- ? Question 20: [SECTION 173] [ICAI BoS Portal] In the very first Board Meeting held in the Financial Year 2022-23, Prerna, Sandhya, Jay and Rhitam being directors in Star Traders Limited gave separate notices dated 15th April, 2022 in the specified Form disclosing their shareholding interest in different body corporates. Rhitam, also the Managing Director of the company, wants them to be kept at his residence. Select the suitable option from those stated below as to where to keep such notices disclosing the interest of directors: (a) Such notices shall be kept at the Registered Office of the company. (b) As per the direction of Rhitam, Managing Director of the company, such notices shall be kept at his residence. (c) Prerna’s notice shall be kept at the Branch Office of the company where she is working and all other notices shall be kept at the Registered Office. (d) Such notices shall be kept at the Head Office which is located at a place different from Registered Office of the company. Q. No. Answer Q. No. Answer Q. No. Answer 18. (d) 19. (c) 20. (a) Meetings of Board and its Powers 2.7 ? Question 21: [SECTION 173] [ICAI BoS Portal] Seafood Marketing Limited, incorporated on 1st April, 2019, conducted four Board Meetings during the Financial Year 2019- 20 i.e. on 6th April, 2019, 28th August, 2019, 30th September, 2019 and 30th March, 2020. Select the correct option from those given below as to whether there is contravention of provisions or not regarding frequency of holding the Board Meetings by Seafood Marketing Limited: (a) There is no contravention of the provisions relating to holding of Board Meetings because four Board Meetings have been held by Seafood Marketing Limited during the FY 2019-20. (b) There is no contravention of the provisions relating to holding of Board Meetings by Seafood Marketing Limited because the first Board Meeting was held within 30 days of the incorporation of the company. (c) There is contravention of provisions in respect of conduct of the Board Meetings by Seafood Marketing Limited because gap between initial two consecutive Board Meetings (held on 6th April, 2019 and 28th August, 2019) is 143 days and further, gap between next two consecutive Board Meetings (held on 30th September, 2019 and 12th March, 2020) is 163 days. (d) There is contravention of provisions in respect of conduct of the Board Meetings by Seafood Marketing Limited because gap between initial two consecutive Board Meetings (held on 6th April, 2019 and 28th August, 2019) is 123 days and further, gap between next two consecutive Board Meetings (held on 30th September, 2019 and 12th March, 2020) is 143 days. ? Question 22: [SECTION 184] [ICAI BoS Portal] Supriya holds shares worth Rs. 13,50,000 in the capacity as one of the directors of Paridhi Tours and Travels Limited (PTTL) whose paid-up share capital is Rs. 4,50,00,000. Swikriti Bus Suppliers Limited (SBSL) with paid-up capital of Rs. 2,00,00,000 is in the business of supplying tourist buses. Being in need of adding three more tourist buses in its existing fleet of ten buses, PTTL through Supriya approached SBSL for the purpose of purchasing the required buses knowing fully well that Supriya holds certain amount of shares in SBSL making her an interested director. Requirement: Out of the following four options, which one is applicable in the given situation: (a) Supriya, as interested director, holds shares of SBSL of the value exceeding Rs. 1,00,000 but not exceeding 1,50,000. (b) Supriya, as interested director, holds shares of SBSL of the value exceeding Rs. 1,50,000 but not exceeding 2,00,000 (c) Supriya, as interested director, holds shares of SBSL of the value exceeding Rs. 2,00,000 but not exceeding 3,00,000 (d) Supriya, as interested director, must be holding shares exceeding Rs. 4,00,000 Q. No. Answer Q. No. Answer 21. (c) 22. (d) Meetings of Board and its Powers 2.8 ? Question 23: [SECTION 182] [ICAI BoS Portal] Chetan Motorboats Limited, incorporated on 25th June, 2019 is desirous of making donations to a reputed political party. Out of the following options, choose the one which correctly depicts as to when Chetan Motorboats Limited shall be eligible to make such donations to a political party: (a) Chetan Motorboats Limited shall be eligible to make donations to a political party after one year from the date of its incorporation. (b) Chetan Motorboats Limited shall be eligible to make donations to a political party after two years from the date of its incorporation. (c) Chetan Motorboats Limited shall be eligible to make donations to a political party after three years from the date of its incorporation. (d) Chetan Motorboats Limited shall be eligible to make donations to a political party after five years from the date of its incorporation. ? Question 24: [SECTION 184] [ICAI BoS Portal] Neelima was an interested director when her company Sagar Suppliers Limited entered into a supply contract worth Rs. 20,00,000 with Sriniwas Tubes and Pipes Limited under which the latter company would supply requisite items for full one year to the former company. However, Neelima did not disclose her interest at the time when Board Meeting of Sagar Suppliers Limited where the issue of supply contract was discussed and even participated in the discussion. Which of the following options is applicable in the given situation: (a) Since Neelima did not disclose her interest, the contract is voidable at the option of Sriniwas Tubes and Pipes Limited. (b) Since Neelima did not disclose her interest, the contract is voidable at the option of Sagar Suppliers Limited. (c) Since Neelima did not disclose her interest, the contract can be enforced only upto 50% of its value i.e. maximum upto Rs. 10,00,000. (d) Since Neelima did not disclose her interest, the whole contract is void and cannot be enforced. ? Question 25: [SECTION 177] [ICAI BoS Portal] Which of the following company is not required to establish a vigil mechanism: (a) Companies which accept deposits from public (b) Companies which have borrowed from banks in excess of 50 crore rupees (c) A Listed Public Company (d) A Private Limited Company Q. No. Answer Q. No. Answer Q. No. Answer 23. (c) 24. (b) 25. (d) Meetings of Board and its Powers 2.9 ? Question 26: [SECTION 2] [Section:2(54)] [ICAI Module Paper 4 Law MCQs] The Board of Directors of Capable Hospitality Services Limited has entrusted Mr. Vikas, the newly appointed Managing Director (MD) of the company, with some powers. However, Mr. Vikas is not interested in discharging administrative functions as authorised by the Board of Directors, since he is of the view that he should have been entrusted with substantial powers of the management. Out of the following four options, which one is correctly applicable in relation to the functions which Mr. Vikas, the MD of Capable Hospitality Services Limited, can undertake: a) To draw and endorse any cheque on the account of Capable Hospitality Services Limited maintained with National Commercial Bank Limited, the main banker of the company. b) To sign the financial statements of Capable Hospitality Services Limited. c) To draw and endorse any bill of exchange when it exceeds R s 1,00,000. d) To draw and endorse any bill of exchange when it exceeds R s 5,00,000. ? Question 27: [Section: 196 and 203] [ICAI Module Paper 4 Law MCQs] Murlidhar Masala Enterprises Limited, incorporated under the Companies Act, 2013, is into the business of trading of different kinds of spices used in the cooking of daily food items. Mr. Vinayak was appointed as the Chief Financial Officer (CFO) of the company on July 2, 2018 by the Board of Directors for a period of five years. In the Board Meeting held on July 30, 2021, Mr. Rinkesh aged 55 years was appointed as Managing Director of the company. In this meeting itself, the Board of Directors also made re-appointment of Mr. Vinayak as the Chief Financial Officer (CFO) for another term of 3 years and it was resolved that the new term of 3 years will start after the completion of the first term of five years. Further, in the Annual General Meeting of the company held on September 29, 2021, the appointment of Mr. Rinkesh as Managing Director was approved by the company and the members also noted the re-appointment of Mr. Vinayak as Chief Financial Officer (CFO) for another term of 3 years which would start after completion of the first term of five years. You are required to choose the correct option from the following four whether the re- appointment of Mr. Vinayak is valid or not: a) The re-appointment of Mr. Vinayak as Chief Financial Officer (CFO) for another term of 3 years is valid since the Board of Directors may appoint him for any term as it may think fit. b) The re-appointment of Mr. Vinayak as Chief Financial Officer (CFO) for another term of 3 years is not valid since no Key Managerial Personnel (KMP) shall be re-appointed earlier than one year before the expiry of his term. c) The re-appointment of Mr. Vinayak as Chief Financial Officer (CFO) for another term of 3 years is not valid since his re- appointment has not been subsequently approved by the company in the Annual General Meeting held on September 29, 2021. d) Both (b) and (c) above. Q. No. Answer Q. No. Answer 26. (b) 27. (a) Meetings of Board and its Powers 2.10 ? Question 28: [Section:199] [ICAI Module Paper 4 Law MCQs] Due to non-compliance of certain requirements under the Companies Act, 2013 not amounting to fraud, Shikha Super-Market Limited was required to re-state its financial statements for the FY 2017-18 during the current year. After the financial statements were re- stated, it was found that Mr. Kumar, the Managing Director (MD) of that period, who is now retired, was paid excess remuneration to the extent of Rs. 5,00,000. In the given situation, choose the correct option out of those given below, which indicates whether such excess remuneration paid to ex-MD Mr. Kumar is recoverable or not. a) Excess remuneration of Rs 5,00,000 paid to Mr. Kumar, ex-MD of Shikha Super-Market Limited, cannot be recovered since such recovery after retirement is invalid. b) Excess remuneration of Rs 5,00,000 paid to Mr. Kumar, ex-MD of Shikha Super-Market Limited, shall be recovered irrespective of his retirement from the company. c) Only Rs 2,50,000, being 50% of excess remuneration of Rs 5,00,000, paid to Mr. Kumar, ex- MD of Shikha Super-Market Limited, is validly recoverable because no fraud implicating him is involved. d) Only Rs 1,25,000, being 25% of excess remuneration of Rs 5,00,000, paid to Mr. Kumar, ex- MD of Shikha Super-Market Limited, is validly recoverable because no fraud implicating him is involved. ? Question 29: [ Section: 203] [ICAI Module Paper 4 Law MCQs] Go Dairy Products Limited, incorporated under the Companies Act, 2013, is into the business of selling dairy products through online mode. Mr. Dhaval was holding the office of the Whole-time Director in the Company. However, by the end of the FY 2020-21, Mr. Dhaval had to vacate the office of Whole-time Director after attracting one of the disqualifications prescribed under Section 164 of the Companies Act, 2013. You are required to select the correct option from those given below as to the time period within which the Board of Directors are required to fill the vacancy of Whole-time Director created by the resignation of Mr. Dhaval considering the applicable provisions of the Companies Act, 2013: a) The vacancy of Whole-time Director created by the resignation of Mr. Dhaval shall be filled by the Board of Directors at a meeting of the Board within a period of three months from the date of creation of such vacancy. b) The vacancy of Whole-time Director created by the resignation of Mr. Dhaval shall be filled by the Board of Directors at a meeting of the Board within a period of six months from the date of creation of such vacancy. c) The vacancy of Whole-time Director created by the resignation of Mr. Dhaval shall be filled by the Board of Directors at a meeting of the Board within a period of two months from the date of creation of such vacancy. d) The vacancy of Whole-time Director created by the resignation of Mr. Dhaval shall be filled by the Board of Directors at a meeting of the Board within a period of one month from the date of creation of such vacancy. Q. No. Answer Q. No. Answer 28. (b) 29. (b) Meetings of Board and its Powers 2.11 ? Question 30: [Section:196(3)] [ICAI Module Paper 4 Law MCQs] Mr. Joseph Daniel, holding the office of Whole-time Director (WTD) in Tasty Choco-Chips Limited, is desirous of appointing Mr. Vanilla Sequera, who has attained the age of 72 years, as the Managing Director (MD) of the company. However, the Board of Directors is of the opinion that no company shall appoint or continue the employment of any person as Managing Director, Whole- time Director or Manager who is below the age of twenty-one years or has attained the age of seventy years. From the following four options, select the one which is applicable in relation to the validity or invalidity of appointing Mr. Vanilla Sequera as the Managing Director (MD) of Tasty Choco-Chips Limited: a) In spite of the fact that Mr. Vanilla Sequera has attained the age of 72 years, he can be validly appointed as Managing Director by the Board of Directors of Tasty Choco-Chips Limited when the recommendation has been made by Mr. Joseph Daniel, the Whole-time Director. b) Since Mr. Vanilla Sequera has attained the age of 72 years, he cannot be validly appointed as Managing Director of Tasty Choco-Chips Limited. c) In spite of the fact that Mr. Vanilla Sequera has attained the age of 72 years, he can be validly appointed as Managing Director by the shareholders of Tasty Choco-Chips Limited through passing a Special Resolution in general meeting. d) In spite of the fact that Mr. Vanilla Sequera has attained the age of 72 years, he can be validly appointed as Managing Director of Tasty Choco-Chips Limited if an application is made to the jurisdictional NCLT and its permission is received for such appointment. ? Question 31: [ Section:196(2)] [ICAI Module Paper 4 Law MCQs] On June, 20, 2017, Mr. Anil Mehra was appointed as Manager of PQR Music Systems Limited for a period of five years. Considering his performance and dedication towards the company, the management of PQR Music Systems Limited decided to re-appoint him as Manager before the completion of his tenure. Out of the following four options, choose the one which indicates the date on which his re-appointment will be considered valid? (a) June 24, 2021. (b) February 1, 2021. (c) March 12, 2020. (d) September 10, 2020. Q. No. Answer Q. No. Answer 30. (c) 31. (a) Meetings of Board and its Powers 2.12 ? Question 32: [Section:203] [ICAI Module Paper 4 Law MCQs] M&N Limited whose more than 51% of the paid-up share capital is held by F&I Limited. After considering the applicable provisions, you are required to choose the correct option from the following four which indicates whether Mr. Abhishek can validly proceed or not with the offer of Whole-time Director extended by M&N Limited while also continuing as Chief Financial Officer (CFO) of F&I Limited: a) Mr. Abhishek can validly proceed with the offer of Whole-time Director at M&N Limited while also continuing as Chief Financial Officer (CFO) because being a Key Managerial Personnel he shall not be disentitled from accepting the offer of Whole-time Director in any other company after obtaining the permission of Board of Directors of his parent company i.e., F&I Limited. b) Mr. Abhishek will not be able to proceed with the offer of Whole-time Director at M&N Limited since a whole time Key Managerial Personnel cannot hold office in more than one company at the same time. c) Mr. Abhishek can proceed with the offer of Whole-time Director at M&N Limited while also continuing as Chief Financial Officer (CFO) since M&N Limited is a subsidiary of F&I Limited. d) Mr. Abhishek will not be able to proceed with the offer of Whole-time Director at M&N Limited since a whole time Key Managerial Personnel cannot hold office in more than one company at the same time including its subsidiary company. ? Question 33: [ Section:196] [ICAI Module Paper 4 Law MCQs] Hasmukh Entertainment Limited, incorporated under the Companies Act, 2013, appointed Mr. Ram Kishore, a well-qualified and experienced person, as Whole-time Director (WTD) for a period of five years in the Annual General Meeting (AGM) held on August 28, 2019. In order that Mr. Ram Kishore continues with the company as Whole- time Director (WTD), he was re-appointed in advance as Whole-time Director (WTD) for another term of five years in the Annual General Meeting which was held on September 28, 2021. The second term of five years will start after the expiry of first term in August, 2024. From the following alternatives, choose the one which indicates the validity or otherwise of re-appointment of Mr. Ram Kishore for the second term of five years by the company: a) The re-appointment of Mr. Ram Kishore in advance as Whole- time Director (WTD) for another term of five years is valid because re-appointment can be made for a period not exceeding 5 years at any time provided the Articles of Association of the company provide for such re- appointment before one year from the completion of his ‘yet-to-expire’ term. b) The re-appointment of Mr. Ram Kishore in advance as Whole- time Director (WTD) for another term of five years is invalid because his re-appointment as Whole-time Director (WTD) cannot be made earlier than one year before the expiry of his first term. c) The re-appointment of Mr. Ram Kishore in advance as Whole- time Director (WTD) for another term of five years is valid provided the resolution for such re-appointment had earlier been passed with the consent of all the Directors present at the Board Meeting and thereafter, such re-appointment was taken up at the Annual General Meeting for approval. d) The re-appointment of Mr. Ram Kishore in advance as Whole- time Director (WTD) for another term of five years is invalid because no special resolution for his re-appointment was passed at the Annual General Meeting for approval. Q. No. Answer Q. No. Answer 32. (c) 33. (b) Meetings of Board and its Powers 2.13 ? Question 34: [Section:188] [ICAI Module Paper 4 Law MCQs] In case of a company where minimum________per cent members (in number) are relatives of promoters or are related parties, they are not precluded from voting on a resolution for approving any related party transaction. a) 80 b) 85 c) 90 d) 95 ? Question 35: [Section:186] [ICAI Module Paper 4 Law MCQs] Out of the total strength of six Directors of SQ Transformers Limited, five are attending a Board Meeting to consider the investment of funds of the company. The resolution relating to investment shall be taken as passed in which of the following cases: a) When all the five Directors of SQ Transformers Limited attending the meeting consent to such investment of funds. b) When any four Directors of SQ Transformers Limited out of five attending the meeting consent to such investment of funds. c) When any three Directors of SQ Transformers Limited out of five attending the meeting consent to such investment of funds. d) Investment proposal must be consented to by the total strength of six Directors of SQ Transformers Limited. ? Question 36: [Section:180] [Category B] [Section:180] [ICAI Module Paper 4 Law MCQs] In order to make Robotics Toys Private Limited as its subsidiary, Golden Rays Robots Limited raised its investment in Robotics Toys from 40% to 60% of its paid-up capital. From the options given below, choose the one which correctly indicates as to when the Robotics Toys shall be considered the undertaking of Golden Rays Robots Limited. a) In order that Robotics Toys is considered as one of its undertaking, Golden Rays is required to invest more than 10% of its ‘net worth’ calculated as per the audited balance sheet of the preceding year or the Robotics Toys must have contributed in generation of 10% of the total income of Golden Rays during the previous Financial Year. b) In order that Robotics Toys is considered as one of its undertaking, Golden Rays is required to invest more than 20% of its ‘net worth’ calculated as per the audited balance sheet of the preceding year or the Robotics Toys must have contributed in generation of 20% of the total income of Golden Rays during the previous Financial Year. c) In order that Robotics Toys is considered as one of its undertaking, Golden Rays is required to invest more than 25% of its ‘net worth’ calculated as per the audited balance sheet of the preceding year or the Robotics Toys must have contributed in generation of 25% of the total income of Golden Rays during the previous Financial Year. d) In order that Robotics Toys is considered as one of its undertaking, Golden Rays is required to invest more than 30% of its ‘net worth’ calculated as per the audited balance sheet of the preceding year or the Robotics Toys must have contributed in generation of 30% of the total income of Golden Rays during the previous Financial Year. Q. No. Answer Q. No. Answer Q. No. Answer 34. (c) 35. (a) 36. (b) Meetings of Board and its Powers 2.14 ? Question 37: [Section:173(3)] [ICAI Module Paper 4 Law MCQs] Rachit, Sanchit, Devshikha, Niharika, Vaishnavi, Mohit and Somesh are the directors of Vrinda Plants Limited. Sanchit was appointed as an alternate director on 25th August, 2021, in place of Mohit who had gone out of India for five months and also on the same date Somesh was appointed as an additional director. It is to be noted that whenever a board meeting is held after the above date it shall be the first meeting to be attended by both Sanchit and Somesh. Devshikha was an interested director who was required to disclose her interest at the immediate Board Meeting to be held any time after 25th August, 2021 though her presence would not be counted when a discussion takes place on the proposal in which she was interested. Rachit expressed his inability to attend any Board meeting if it was to be held within two months from 25th August, 2021. A Board meeting is scheduled to be held on 20th September, 2021. Legally speaking, which of the directors need not be served a notice of this Board meeting. a) Mohit need not be served a notice of the board meeting to be held on 20th September, 2021. b) Rachit need not be served a notice of the board meeting to be held on 20th September, 2021. c) Devshikha need not be served a notice of the board meeting to be held on 20th September, 2021. d) None of the above. ? Question 38: [Section:184] [ICAI Module Paper 4 Law MCQs] Roopali is one of the directors in Superfast Vehicles Limited. She gave a written notice dated 10th June, 2021 in the specified Form disclosing her shareholding interest in Vixen Traders (Pvt.) Limited and caused its disclosure at the Board Meeting held immediately thereafter on 17th June, 2021. From which of the given dates, eight years are to be counted for preserving her ‘notice of disclosure of interest’: a) From the date of notice i.e., 10th June, 2021. b) From the end of the FY 2021-22. c) From the date of the Board Meeting (i.e., 17th June, 2021) in which the interest was disclosed. d) From the date of the forthcoming Annual General Meeting AGM) to be held on 27th September, 2021. ? Question 39: [Section:173] [Rule 3 (Meeting of board & its powers)] [ICAI Module Paper 4 Law MCQs] In case of a Board Meeting which is conducted through the means of video conferencing, the draft minutes shall be circulated among all the Directors within ___ days of the meeting either in writing or in the electronic mode as may be decided by the Board of Directors of the company. a) 5 b) 10 c) 15 d) 20 Q. No. Answer Q. No. Answer Q. No. Answer 37. (d) 38. (b) 39. (c) Meetings of Board and its Powers 2.15 ? Question 40: [Section:177] [ICAI Module Paper 4 Law MCQs] Audit Committee may make omnibus approval for: a) Making of investment in other companies. b) Related party transactions proposed to be entered into by the company. c) Transferring of non-functional undertaking. d) All of the above. ? Question 41: [Section: 177(8)] [ICAI Module Paper 4 Law MCQs] Ruby Diamonds Limited is required to establish ‘Vigil Mechanism’ though it is neither a listed company nor a company which has accepted deposits from the public. Name the third criterion because of which it is necessitated that the company needs to create ‘Vigil Mechanism’. a) As per the last audited financial statements, Ruby Diamonds Limited has borrowed money from banks and public financial institutions in excess of Rs.50 crores. b) As per the last audited financial statements, the subscribed capital of Ruby Diamonds Limited is in excess of Rs.50 crores. c) As per the last audited financial statements, the paid-up capital of Ruby Diamonds Limited is in excess of Rs.50 crores. d) As per the last audited financial statements, the turnover of Ruby Diamonds Limited is in excess of Rs.50 crores. ? Question 42: [Section: 173] [ICAI Module Paper 4 Law MCQs] Three directors, namely Samiksha, Santosh and Samta intimated PlutoPlastic & Mechanical Toys Limited about their participation in the Board Meetings through video conferencing at the appropriate time of the year. However, after attending the first Board Meeting held in the FY 2021- 22 by means of video conferencing, Santosh wants to participate in the next Meeting to be held at a future date in person. Is it possible for him to do so when consent given for participation in meetings through video conferencing remains valid for full one year? Choose the correct A Answer from the options stated below: a) Santosh cannot attend future Board Meetings in person even if the company is intimated of such intention sufficiently in advance. b) Santosh can attend future Board Meetings in person if he intimates the company of his intention sufficiently in advance. c) Santosh can attend future Board Meetings in person only if all the remaining directors consent to such request. d) Santosh can attend future Board Meetings in person but at least seventy five percent of the remaining directors (rounded off to next higher figure in case of a fraction) consent to such request. Q. No. Answer Q. No. Answer Q. No. Answer 40. (b) 41. (a) 42. (b) Meetings of Board and its Powers 2.16 ? Question 43: [Section:182] [ICAI Module Paper 4 Law MCQs] Chetan Motorboats Limited, incorporated on 25th June, 2019 is desirous of making donations to a reputed political party. Out of the following options, choose the one which correctly depicts as to when Chetan Motorboats Limited shall be eligible to make such donations to a political party: a) Chetan Motorboats Limited shall be eligible to make donations to a political party after one year from the date of its incorporation. b) Chetan Motorboats Limited shall be eligible to make donations to a political party after two years from the date of its incorporation. c) Chetan Motorboats Limited shall be eligible to make donations to a political party after three years from the date of its incorporation. d) Chetan Motorboats Limited shall be eligible to make donations to a political party after five years from the date of its incorporation. ? Question 44: [Section 174(3)] [ICAI Module Paper 4 Law MCQs] Where at any time the number of interested Directors exceeds or is equal to ----------- of the total strength of the Board of Directors of a company, the quorum shall be the number of non- interested Directors who are present at the meeting and not less than two. (a) 1/2 (b) 2/3 (c) 1/3 (d) None of the above ? Question 45: [Section:173(1)] [ICAI Module Paper 4 Law MCQs] Seafood Marketing Limited, incorporated on 1st April, 2019, conducted four Board Meetings during the FY 2019-20 i.e., on 6th April, 2019, 28th August, 2019, 30thSeptember, 2019 and 30th March, 2020. Select the correct option from those given below as to whether there is contravention of provisions or not regarding frequency of holding the Board Meetings by Seafood Marketing Limited: a) There is no contravention of the provisions relating to holding of Board Meetings because four Board Meetings have been held by Seafood Marketing Limited during the FY 2019-20. b) There is no contravention of the provisions relating to holding of Board Meetings by Seafood Marketing Limited because the first Board Meeting was held within 30 days of the incorporation of the company. c) There is contravention of provisions in respect of conduct of the Board Meetings by Seafood Marketing Limited because gap between initial two consecutive Board Meetings (held on 6th April, 2019 and 28th August, 2019) is 143 days and further, gap between next two consecutive Board Meetings (held on 30th September, 2019 and 12th March, 2020) is 163 days. d) There is contravention of provisions in respect of conduct of the Board Meetings by Seafood Marketing Limited because gap between initial two consecutive Board Meetings (held on 6th April, 2019 and 28th August, 2019) is 123 days and further, gap between next two consecutive Board Meetings (held on 30th September, 2019 and 12th March, 2020) is 143 days. Q. No. Answer Q. No. Answer Q. No. Answer 43. (c) 44. (b) 45. (c) Meetings of Board and its Powers 2.17 ? Question 46: [Section:181] [ICAI Module Paper 4 Law MCQs] The Board of Directors of Very Well Hospitality Services Limited is desirous of contributing certain amount to Janta Vikas Sewa Samiti, a bona fide charitable organization operating in the National Capital Region, during the FY 2020-2021. The profits and losses of the earlier five FYs are as under: Year Profit/ (Loss) 2019-2020 (30,00,000) 2018-2019 1,80,00,000 2017-2018 2,10,00,000 2016-2017 1,85,00,000 2015-2016 1,40,00,000 From the following four options, select the appropriate one which indicates the amount that the Board of Dirs. of Very Well Hospitality Services Limited can contribute to Janta Vikas Sewa Samiti: a) The Board of Directors of Very Well Hospitality Services Limited cannot contribute any amount to Janta Vikas Sewa Samiti in the FY 2020-2021 since it suffered losses of Rs. 30,00,000 in the immediate previous FY 2019-2020. b) The Board of Directors of Very Well Hospitality Services Limited can contribute maximum of Rs. 9,00,000 to Janta Vikas Sewa Samiti in the FY 2020-2021. c) The Board of Directors of Very Well Hospitality Services Limited can contribute maximum of Rs. 6,00,000 to Janta Vikas Sewa Samiti in the FY 2020-2021. d) The Board of Directors of Very Well Hospitality Services Limited can contribute maximum of Rs. 3,00,000 to Janta Vikas Sewa Samiti in the FY 2020-2021. ? Question 47: [Section:174] [ICAI Module Paper 4 Law MCQs] A 7 days’ notice of the Board Meeting was served on all the 10 directors of Goodluck Publishers Limited by sending it on their registered postal addresses. However, before the holding of scheduled Board Meeting, some unavoidable happenings took place. Mr. M was hospitalised because of serious stomach pain just two days before the Meeting. Mr. Y proceeded to London since his son met with an accident and the incidence required his immediate presence. As scheduled earlier, Mr. X and Mr. B went to Australia for attending a technical seminar that would help improving the existing publishing techniques. Mr. A, extremely busy in finalizing the arrangements relating to his daughter’s marriage, was also unable to attend the impending board meeting. A day before the board meeting, Mr. E’s grand-mother got hospitalised and therefore, he was involved in taking care of her but he assured to attend the meeting through video conferencing. Mr. P were scheduled to arrive for the meeting by 2 p.m. on the same day of the meeting but his flight got delayed by eight hours. Mr. D, Mr. G and Mr. H were in the town and were available for the Board Meeting. Could the Board Meeting be held as per the scheduled time? a) The Board Meeting cannot be held because minimum sixty percent directors (i.e., 6 out of 10) must attend it at the scheduled time to complete the quorum. b) The Board Meeting cannot be held because minimum fifty percent directors (i.e., 5 out of 10) must attend it at the scheduled time to complete the quorum. c) Since the quorum is complete, the available dirs can hold the Board Meeting as per the schedule. d) The Board Meeting cannot be held because minimum seventy percent directors (i.e., 7 out of 10) must attend it at the scheduled time to complete the quorum. Q. No. Answer Q. No. Answer 46. (c) 47. (c) Meetings of Board and its Powers 2.18 ? Question 48: [Section:173(5)] [ICAI Module Paper 4 Law MCQs] In the F.Y. 2021-22, Roshni Electricals Private Limited for the first time is treated as a ‘small company’ according to the prescribed norms. It held its first Board Meeting on 15th June, 2021 and another one on 9th July, 2021. As two board meetings have already been held in Ist half and IInd half of the calendar year, 2021, the directors do not intend to hold any other Board Meeting during rest of the year 2021-22. Select the correct statement from those given below as to whether the directors Roshni Electricals Private Limited are at fault or not. a) A ‘small company’ needs to hold only two Board Meetings in a calendar year and therefore, the directors of Roshni Electricals Private Limited are absolutely not at fault. b) As the gap between two Board Meetings should be ‘not less than 60 days’, the directors of Roshni Electricals Private Limited need to hold another Board Meeting on a date which must be after 60 days from 15th June 2021, so that no fault is committed. c) As the gap between two Board Meetings should be ‘not less than 90 days’, the directors of Roshni Electricals Private Limited need to hold another Board Meeting on a date which must be after 90 days from 15th June 2021, so that no fault is committed. d) There is no need to observe gap of more than 60 or 90 days if the directors of Roshni Electricals Private Limited hold another board meeting in the month of July, 2021 itself, totalling number of meetings to three. ? Question 49: [Section:182] [ICAI Module Paper 4 Law MCQs] Jupiter Shopping Mall Limited was incorporated on 3rd December, 2019. As on 31st March 2021, it had free reserves of Rs 50.00 lacs and its Securities Premium Account showed a balance of Rs 7.50 lacs. One of its Directors Raha has a leaning towards a particular political party in which his other family members are actively involved. Raha convinced the other two Directors of the company i.e. Promila and Rana to contribute a sum of Rs. 10.00 lacs to this political party. Accordingly, the Board of Dirs. held a meeting on 16th December, 2021 and passed a resolution to contribute the decided amount. Out of the following four options, select the appropriate one, which indicates the amount that Jupiter Shopping Mall Limited can contribute to a political party in the FY 2021-22. a) According to the above-stated facts, Jupiter Shopping Mall Limited cannot contribute