CA Final SPOM Set-A Past Paper PDF

FIFTH EDITION (~30,000+ Users) DECODING CA FINAL SPOM SET-A Corporate & Economic Laws COVERED 300+ REPEATEDLY ASKED QUESTIONS WITH ANSWERS (~85% Strike Rate of ~18-22 questions in exam) SureShot Way to Score 50+ Marks !! Join Telegram Group for Additions and...

FIFTH EDITION (~30,000+ Users) DECODING CA FINAL SPOM SET-A Corporate & Economic Laws COVERED 300+ REPEATEDLY ASKED QUESTIONS WITH ANSWERS (~85% Strike Rate of ~18-22 questions in exam) SureShot Way to Score 50+ Marks !! Join Telegram Group for Additions and More Such Useful Content for CA Final. By SPOM Decoders CA Vikalp Gupta CA Manmohan Gupta TESTIMONIALS FOR SURESHOT COMPILER - SET A Ace Your Exams, Good Luck !! After your exams, kindly update the questions in the google form to make this compiler more resourceful. And do share your reviews and suggestions as well. Google Form Link- Additions, Reviews and Feedback Thanks (Vikalp and Manmohan Gupta) RESOURCES REVISION VIDEOS BY SHUBHAM SINGHAL ICAI STUDY MAT: HTTPS://T.ME/CAFINALQUERIE/16 SEBI AMENDMENT: HTTPS://T.ME/CAFINALQUERIE/14 (ALSO COVERED IN SHUBHAM SINGHAL PLAYLIST) HARSH GUPTA COMPACT BOOK: HTTPS://T.ME/CAFINALQUERIE/13 MCQ TIME LIMIT BY HEMANTSOMANI: HTTPS://T.ME/CAFINALQUERIE/11 MCQ COMPILER BY PANKAJ GARG: HTTPS://T.ME/CAFINALQUERIE/8 MCQ QB BY SANDHIYA SARAF: HTTPS://T.ME/CAFINALQUERIE/7 MCQ BOOK BY SHUBHAM SINGHAL: HTTPS://T.ME/CAFINALQUERIE/9 SPOM BOOK BY SHUBHAM SINGHAL: HTTPS://T.ME/CAFINALQUERIE/20 SUMMARY OF RESOLUTIONS AND EFORM LIST: HTTPS://T.ME/CAFINALQUERIE/15 GUIDELINES ISSUED BY ICAI RELATED TO SPOM LAW: HTTPS://T.ME/CAFINALQUERIE/12 DON’T MISS THIS STUDY GUIDE- YOU NEED ONLY THIS!! SET-A exam doesn’t have any fixed topic wise weightage, thus need to cover atleast 80% of portion. This compilation is designed in such as way that it is useful at own for ~60+ marks, but it is advised to read Hemant Somani Sir’s time limits and penalties compilation also to prepare for any adverse situation. If you have enough time to prepare, it is advised to first go through the revision lectures of Shubham Singhal Sir or Harsh Gupta Sir then read the above two compilers. Link for all the required materials for SET A & B (Books, Revision Videos, Latest Compilers, Strategy) is available in the pinned message of telegram group. Telegram Group Link-Join  Join telegram channel for exclusive CA Final content Company Law Sr No. Questions Answers 1 Can a SSD eligible for reappointment Not Eligible 2 Can SSD be appointed in a competing business No Whether SSD appointed in one company for period of 3 years ad he was Yes, he can apointed in Maximum 2 3 appointed also in another company for the period of 2 year. Can he appointed to companies provided other company should do so? not in compete business with first company 4 Can a SSD appointed as Human resource manager during the cooling period? No a) How many Small share holders should apply to appoint Small share holder either 1000 small shareholders or 1/10th of 5 director the small shareholders whichever is lower 6 b) and time limit of notice of intention? at lease 14 days before meeting Can CFLO be given in case of Removal of MD during Winding Up due to 7 No default of director 8 Is Quorum of Directors should be present in the beginning.(174) No. through out the meeting Normal: 1/3rd or 2 director 9 Section 174, Quorum vs SEBI Quorum SEBI: 1/3rd or 3 director including 1 ID 10 Quorum of Sec 8 Company 8 member or 25% of total W.E. lower Listed; PUSC>=50Cr; 11 Applicability of Secretarial audit (204) T/O>=250Cr; O/s Loan/Borrowing>=100cr A person is a qualified Company Secretary, can he be cfo and compliance 12 Yes officer at the same time? Removal of Director & Special Notice at 13 Circumstances where Special Notice by members is required (169) least 14 days before meeting Is it mandatory for private company to maintain sec 189 register even if it 14 Yes complied with AR & FS? which resolution pass to increase limit of max no of directors (more than 15 15 Special Resolution director) 16 SR to increase limit of max no of directors not applicable to Govt co & Sec 8 co By which resolution, board can exercise power related to sell, lease or dispose of undertaking of company (180) or 17 Special Resolution for both A company wishes to dispose of part of its undertaking under two different schemes: Dispose of 6% undertaking and Dispose of 22% undertaking under a compromise scheme. 18 Can Women director sitting fees lower from other directors? No 19 Approval regarding borrowing by director. (185) Member's Special Resolution 20 When RBC considered as deemed passed? (175) Approved by majority of Directors >=1/3 of total director require that 21 When resulution of RBC put up in meeting? (175) resolution decided in meeting Whether Political contribution can be approved by board through resolution by No, only board resolution through Board 22 circulation? (175) meeting how much Director can require to discuss matter in BM instead of Resolution 23 1/3rd of all director (VR/No VR) by circulation ? 24 Question related to Proportional representation (163) 2/3 and 3 years 25 Question related to Proportional representation on removal of directors. cannot be removed Question related to Proportional representation 26 Valid It has done through SYSTEM OF CUMULATIVE 27 Penalty on contravention of duties of Directors(166) Rs. 1 lakh to 5 Lakh 28 Penalty if director continue to function when office if vacated (167) Rs. 1 lakh to 5 Lakh 29 No. of days in which office need to vacated from the date of order 30 days CA Vikalp Gupta and CA Manmohan Gupta Page 4  Join telegram channel for exclusive CA Final content Company Law Sr No. Questions Answers No unless a proposal is passed without any 30 Can 2 or more director be appointed by single resolution in GM? (162) vote caste against it for that resolution Whether appointment of 3 directors via single resolution is valid if around 90% Yes, as complied "without any vote being 31 of members who were present at meeting voted in favour & balance 10 % case against it" abstained from voting? (162) 32 Validity of Resolution passed in contravention of sec 162 Void Always Sec 162 applicable to which of these Companies : 33 a)Sec 8 Co., b) Govt Co., Section 8 Company c) Subsidiary of govt co, d)Pvt co. Notice for meeting sent 15 days before date of meeting & it mentioned the invalid because timelimit is 1 month & 34 options to vote as - vote by self / proxy - whats validity of notice? notice didn't mention option of post ballot Whether Waiver of the excess remuneration paid is possible & whats time limit By passing Special Resolution & within 2 35 ? years 36 Can director hold excess remuneration without necessary approval? Yes & hold it in trust of Company Case Study-: Tribunal ordered that a person is not fit & proper person to hold 37 office. Further it ordered for termination of some agreements & made alteration in MOA a) Whether such person not fit under sec 242(4) be appointed by CG again in cannot be appointed without leave of 38 same company within 5 yrs. tribunal b) Can Company make alteration in MOA which is inconsistent with alteration 39 yes with leave of tribunal already made by tribunal- options c) W.r.t. the manner of utilisation of undue gain recovered which of these is Order for repay money to Company in 40 NOT power of tribunal? which person was employed 41 Class Action (sec 245) is not applicable to whom? Banking Company If company removed such employee without getting permission from tribunal, is 42 Not valid as the investigation is pending the act valid? PQR Limited contention regarding no PQR Limited filed with NCLT to terminate an employee during proceedings. approval received within 30 days then 43 No objections were received within 30 days, and now the company is debating company can proceed to take proposed if they can proceed with the termination. action against the employee is correct BCL Limited received an objection from the NCLT under section 218 for taking Company or person concerned may, within 44 action against an employee. The company is considering appealing the a period of 30 days of receipt of notice of objection objection, prefer an appeal to NCLAT Normally appeal against order of NCLT to whom & within how many days ? To NCLAT within 45 days (+45 days 45 (other than section 218) extention) Mr. A is director of ABC Ltd. Brother of Mr A holds exactly 2% of PUSC in 46 No another company. Whether another company is related party to ABC Ltd? 47 Can ID be appointed for 3rd term, any cooling period applicable ? No & Cooling Period: 3 Years Whether a person related to promoter of a company be appointed as ID in that 48 No co. or its subsidiary. 49 Calculation of donations to Charitable funds limit 5% of avg 3 yr net profit 50 Minimum no. of director in Top 2000 listed entities 6 Directors 1/3 or 3 directors whichever is higher and 51 BM Quorum of a TOP 2000 Listed Entity? shall include 1 ID Report of Registrar u/s 208, SR by Co., 52 Sec 212,Cases when CG will appoint SFIO for investigation Public Interest, Request by CG SG Dep. Yes only info related to Co/BC which is 53 Is banker bound to give information required to the Central Government under investigation Period of custody of Inspection books vested by civil court or 54 180 days How many days inspector can keep records and documents during inspection/ inquiry? 55 Period of custody of books and papers in case of investigation till conclusion of investigation CA Vikalp Gupta and CA Manmohan Gupta Page 5  Join telegram channel for exclusive CA Final content Company Law Sr No. Questions Answers Sec 219, whose prior permission is required for inspector to investigate 56 Central Government subsidiary co.? Having Share Capital: Lower of - 100 members or 1/10th of total members;or 1/10th of total 57 Sec 244, minimum requirement for application to Tribunal issued capital Not having share capital: - 1/5th of total members The Registrar of Companies (RoC) suspects a company of fraudulent activities. 58 What powers does the RoC have to conduct an investigation, and where can the Central Government RoC approach if further investigation is required? Dormant company accepting advances for future contracts. Can it still be calked 59 SAT, so active company a inactive company. ? Payment made to fullfill requirement of 60 whether O/s GST Paid is SAT (Significant accounting transaction) or not? other law = not a SAT 61 Min. No. Of directors in dormant public co 3 Director 62 Form for Getting status of active co. MSC 4 Company didn't have any SAT (ROC fees is not SAT) during last 2 years. Is it 63 Inactive Company active/inactive/ dormant/defunct company? ROC to strikeoff name of dormant co from register if it remains dormant for 64 5 years how many year? Fail to file of financial statements/annual reports for how many consecutive 65 2FY years to consider as dormant company Company didn't file FS & AR for FY 18-19 & 19-20, not doing any accounting transactions. 66 Dormant Co. Q. whether co to be called, a)dormant co b)inactive ….......... If co got the status of Dormant co on 30th September 2020, after much time ROC will strike off the name of co from register of cos. 67 d) A) 30th September 2021 b)30th September 2022 c) 30th September 2023 d)30th September 2025. 68 Is ROC need CG permission to strikeoff Company No If company making regular ROC payment, no any significant transaction 69 Inactive Company Is inactive or active company? Penalty: 50,000 70 Sec 247 - Registered Valuer penalty in both cases In case of defraud: Jail upto 1 year & fine: 1 lakh to 5 lakh 45 days (+45 extension) & 60 days (+60 71 Sec 421, No. of days in which Appeal can be made to NCLAT & SC extension) respectively 72 One can appeal to the Supreme Court when it is a question of Law or fact? Question of Law sec 420, whether rectification can made by NCLT within 2 year if any appeal is 73 No, Tribunal cannot amend order preferred in NCLAT 74 NCLT rectification of order limit 2 year from date of order 75 Submission of report by Company Liquidator to tribunal within 60 days Who may be appointed as provisional liquidator or company liquidator by 76 IP required under IBC tribunal? Liability of contributories who transferred partly paid up shares before 1 yr of the company has to duly notify the amount 77 WUP due on shares/debentures to the transferee Who can be appointed as RV out of 4 options 78 a). PROI b). imprisoned for 2 months, imprisoned for 2 months c). imprisoned for 7 months, d). valuation exam passed beyond 3 yrs related Sec 236, If Minority shareholder offered a price for purchase of share & not 79 Disbursement shall continue for 1 year disposed within stipulated time, he will able to receive the amount upto? If the director is removed by a tribunal considered unfit, the period for 80 5 years or less than 5 years as specified. disqualification CA Vikalp Gupta and CA Manmohan Gupta Page 6  Join telegram channel for exclusive CA Final content Company Law Sr No. Questions Answers 81 Whether NR can be a Registered valuer Inspection of company subsidiary No, only resident in India 82 Sec 230- How many days in which order of tribunal file with roc 30 days 83 No. Of Directors to be retire by rotation 1/3rd out of Rotational Director AA Ltd. had its name removed by the ROC. The stakeholders want to know the Yes, Person aggrieved by order of ROC 84 time limit for filing an application for restoration with the NCLT. within 3 years 85 Under compromise, who ordered for the meeting of creditors Tribunal Objection to compromise raised by a shareholder holding 15% & creditor Valid because sh holder has 10% or more 86 holding 9% debt - whether valid? or creditor has 5% or more 87 Tenure of FD Granted by Nidhi Co. 6month to 60 month 88 Pvt co. Can become member of nidhi co? No, only individuals are allowed 89 Amount of Loan that can be given by Nidhi Co. if deposit is less than 2 crore 2 lakh 90 Amount of Deposits that can be accepted by Nidhi co. Not more than 20 times of NOF X & Y have shares of nidhi company jointly in their names and in the Y, because his name appear first in Register 91 application X name appears first while in the register of members Y name of member appears first. To whom the loan can be given? 92 In case of Nidhi company dividend paid should be___ not more than 25% Nidhi Co & Officer in default 93 Nidhi company penalty Fine upto Rs. 5,000 & further fine of Rs. 500/day 94 Reappointment of Nidhi company directors only after Cooling period of 2 years Case Study related to Nidhi Company: Paid up SC: 23Lakh Free Reserves: 2 Lakh A1: 3.5Cr 95 Assets : 10 Lakh A2: 2Lakh Deposit accepted till now: 1.5 Cr Q1: Maximum additional deposit it can further accept Q2. Amount of loan it can be given if deposit of member are 1.5Cr Case Study:XYZ Nidhi Company has the following financial details: Paid-up Share Capital: INR 10 crores Net Owned Funds: Free Reserves: INR 2 crores Paid-up Share Capital + Free Reserves - 96 Accumulated Losses: INR 1 crore Accumulated Losses Investments in other Nidhi Companies: INR 1 crore NOF: 11 Crore Question:Based on the above information, calculate the Net Owned Funds and Effective Capital: 10 crore Effective Capital. What a nidhi co can do? 97 A) Open savings acc with members b)open current acc with members, Open savings acc c) accept deposit from non members, d) Buy secturies of body corporates CA Vikalp Gupta and CA Manmohan Gupta Page 7  Join telegram channel for exclusive CA Final content Company Law Sr No. Questions Answers Case Study:ABC Ltd. has the following financial details: Equity Share Capital: INR 50 crores Preference Share Capital: INR 10 crores Effective Capital = Free Reserves: INR 30 crores INR 60 crores + INR 30 crores + INR 20 98 Securities Premium: INR 20 crores crores - INR 5 crores - INR 2 crores = INR Accumulated Losses: INR 5 crores 103 crores Preliminary Expenses not written off: INR 2 crores Question:Based on the above information, calculate the effective capital for determining managerial remuneration as per the Companies Act, 2013. Case Study:XYZ Ltd. has provided the following details: Net Profit (as per Section 198 of the Companies Act, 2013): INR 200 crores Net Profit: INR 200 crores Managerial Remuneration limit as per Section 197 of the Companies Act, 2013: 99 Permissible Managerial Remuneration: 11% of the Net Profit 11% of INR 200 crores = INR 22 crores Question: Determine if the provided profit is correct and calculate the permissible managerial remuneration. Case Study:PQR Ltd. has incurred a loss and provided the following details: Effective Capital: INR 50 crores As per Schedule V of the Companies Act, 2013, the remuneration can be paid 100 up to INR 60 lakhs if effective capital is between INR 5 crores to INR 100 84Lakh crores. Question:Based on the above information, calculate the permissible managerial remuneration. A director has the following directorships: Maximum directorships in public 7 public companies companies (including Pvt Co. which are 2 unlisted companies subsidiaries/ holding of public companies): 101 3 private listed companies 10 Question: Maximum directorships in private How many directorships can he accept in public and private companies as per companies: 20 Section 165 of the Companies Act, 2013? 102 Can a Non resident person become MD of Indian Company? Yes with approval of CG Legal position of Mr. Jack (NR) for being appointed as MD of company which Valid, as condition of resident of india not 103 is in SEZ applicable to SEZ company Co: 5X amount contributed 104 Penalty in case of violation of provision of political contribution (182)? Officer in default: Jail 6 Month and 5X amt contributed 105 Non Executive Managerial Remuneration if Effective capital is 245 crs 24 Lakhs Case Study: ABC Ltd. has reported a net profit of Rs 80,20,000 for the financial year. However, this figure includes an amount received from the sale of old office furniture. The management needs to determine the correct profit as per Section 198 of the Companies Act, 2013, which involves adjusting for 106 certain specified items. The details provided are as follows Cost of Furniture: 2,00,000 WDV: 1,00,000 Sale Proceed: 4,50,000 Profit: 3,50,000 107 a) What is the correct amount of Profit? 77,70,000 b) Given a net profit of Rs 80,20,000 108 Sale Proceed of Old furniture: 70,000 in place of Rs. 4,50,000 80,50,000 What is the correct amount of Profit? In case of Material Subsidiary, what is requirement for the appointment of 109 At lease 1 ID shall be appointed Independent Director? 110 Can Charitable Trust contribute Rs. 4,80,000 if it exceed 5% of Avg Profit? Yes by passing Ordinary Resolution As per Sec 197(3), is the sum payable to director exclusive or inclusive of Exclusive of sitting fee but according to 111 sitting fee? Schedule V CA Vikalp Gupta and CA Manmohan Gupta Page 8  Join telegram channel for exclusive CA Final content Company Law Sr No. Questions Answers 112 Can MD Claim Compensation if they refuse to join amalgamated company? No, cann't claim compensation 113 Whether write off debt and not payment of dividend is oppression of member? No Is Directors or employees liable to provide info during Investigation even if they 114 Yes, they are liable to provide information left before? An employee is posting on social media about profits of the company but in 115 Liable under Section 447 reality company in under losses. Liable under which act? Whether a foreign subsidiary of a Co incorporated in India is resident in India 116 Resident in India or outside India Yes, audited within 30 days from end of FY 117 Can Dormant co have auditors & if yes is rotation applicable? & rotation not applicable Representation of notice of striking off of name by Company to ROC within 118 30 days how many days? 1)a past member shall not be liable to contribute if he has ceased to be a member for one year or upwards before the C.S. from winding up commencement of the winding up Eg: How much amount can be realized from the following past members to pay 119 dues at the time of winding up of co as on 01-04-2023 2)No contribution shall be required from any past or present member exceeding the amount, if any, unpaid on the shares in respect of which he is liable as such member There were 3 shareholders with unpaid call amounts. a) Ram was member till march 2023, had unpaid call of 5 lakh. At the time of him leaving the company, the liability of company was 3 lakh. b) Shyam was a member till may 2023, had unpaid call of 10 lakh. At the time of him leaving the company, the liability of company was 8 lakh. c) Mohan was a member till july 2023, had unpaid call of 15 lakh. At the time of him leaving the company, the liability of company was 12 lakh. A. Ram is liable for 3, Shyam - 8, Mohan - 120 In april 2024, application for liquidation was filed against the company. 12. In June 2024, tribunal ordered liquidation Q. Who is liable for how much ? A. Ram is liable for 3, Shyam - 8, Mohan - 12. B. Ram is liabile for 5, Shyam - 10, Mohan - 15 C. Ram is not liable. Shyam is liable for 8, mohan - 12 D. Ram is not liable. Shyam is liable for 10, mohan 12 A person resident in India earned in foreign as salary to years back. Now he 121 No permission required wants to utilize this amount in India, is any permission required 122 Can IRP maintain bank accounts of Co? Yes No, discretion of CG to investigate untill 123 Is Investigation under Sec 210 (CG power to Investigation) is mandatory? received from tribunal court 124 Who have the power to investigate under 210 Central Government 125 Govt Co. amalgamated into Non govt Co. what is status of New Co.? Government Company No, RV shall make valuation as per 126 Is RV has to make valuation as per contract? valuation standard The appointment of MD who is ineligible to appoint is Oppression or 127 Mismanagement Mismanagement? 128 Whether minorirty Director can claim Oppression by Majority Director? No, only Member can T Ltd is Listed entity and Wholly Owned Subsidiary of A Ltd, So whether ID to Yes, ID is appointed as it is listed company 129 be appointed or not? also CA Vikalp Gupta and CA Manmohan Gupta Page 9  Join telegram channel for exclusive CA Final content Company Law Sr No. Questions Answers H ltd has Wholly owned subsidiary S ltd. Both are listed. 'A' is No, bcz ID should not be related to P/D of 130 promoter/director of H ltd. 'B' is related to 'A'. CASH Can 'B' be ID of any of these Cos Case Study: GlobalTech Inc., a U.S.-based technology company, seeks to merge with Innovate Solutions Pvt. Ltd., an Indian software development firm. Both companies see strategic benefits in this merger, such as expanded market 131 reach and enhanced technological capabilities. However, during an internal board meeting at Innovate Solutions, the CEO, Mr. Rajesh Mehta, contends that the merger cannot proceed, even with the approval of the Central Government (CG). No, the CEO is incorrect because cross- a) Is the CEO's contention that an Indian company cannot merge with a foreign 132 border mergers are allowed with the company, even with the approval of the Central Government, correct? approval of the Reserve Bank of India. b) Who must approve a cross-border merger involving an Indian and a foreign 133 RBI company? How much Security Deposit of Candidature is required for proposal to appoint 134 1,00,000 & prior 14 days notice himself as a director? Penalty on officer whose duty to send 135 Failed to send Board meeting notice, Penalty ______ notice, ₹25000 whether same ID can be appointed for listed entity and its wholly owned 136 Yes, no restriction subsidiary ID appointed from data bank maintained by CG such appointment needs to be 137 approved at board meeting as well as general meeting , or only general meeting only General Meeting ? Reappointment of ID for 3rd term as it has served 1 st term of 3 yrs and 2 nd 138 No term of 4 yrs , whether allowed Yes NCLT has authority to windup a 139 Do NCLT has power to windup?? company Mr. X is MD of XYZ company, he mismanaged the affairs of company and he was removed from the company. CG has power to allow him 140 a) To work in any company including XYZ company b) b) To work in any company excluding XYZ c) To work anywhere YES bcz LLP is Body corporate & sec 234 141 Can a foreign LLP be merged with listed co. RATA ltd? (Sec 234) covers amalg, merger of foreign Body corporate 142 Draft minutes will be circulated within____ 15 days to all directors 143 and draft minutes approved by director in__ 7 days In which situations are managing directors or whole-time directors not eligible Detained for any period under conservation 144 to be appointed by the company? of foreign exchange and prevention ROC has send a notice and no information is received or Inadequate may call the company for another notice in 145 information is received or information is received is unsatisfactory writing then______________ Case Study: XYZ Ltd. has the following financial details: Authorized Share Capital: ₹40 crore, 146 Paid-up Share Capital: ₹40 crore, Debenture Redemption Reserve: ₹40 crore, Revaluation Reserve: ₹20 crore, and Profit and Loss Account: (₹20 crore). 147 a) What is the Effective capital? 60 Crore b) Based on the above computation, what is the yearly remuneration in case of a 60 lakh in case of MD/WTD/Mgr 148 managerial person? 12 lakh in case of NED CA Vikalp Gupta and CA Manmohan Gupta Page 10  Join telegram channel for exclusive CA Final content Company Law Sr No. Questions Answers Case Study: An unlisted public company with a turnover of ₹420 crore has 7 directors, including Satish (Chairperson) who is an independent director, and Veena (Woman Director). 1 independent directors and no other 149 woman director as already 1 is appointed. a)How many additional independent directors need to be appointed to fulfill regulatory requirements? b) If all directors are members of the audit committee, including Satish 150 (Chairperson) and Veena (Woman Director), how many other independent 3 Director directors need to be appointed to fulfill regulatory requirements? For the quarter ended 30th June 2023, ABC Ltd. needs to file its compliance 15th August 2023, unaudited report is also 151 report. The management is determining whether an audited or unaudited report allowed. is allowed and by what deadline. SWL Ltd. held a Board of Directors (BoD) meeting to fix remuneration. There are 7 directors, 2 participated personally, and 3 participated via video Not valid, the quorum requirement was not 152 conferencing. At 2 PM, 2 directors left the meeting and 1 leaving via video met after the directors left conferencing. What is the implication for the validity of the Board of Directors meeting? ABC Limited has the following shareholding: Central government: 24%, State No, because the combined government 153 government: 25%, Government company: 22%. shareholding does not exceed 50%. ABC Ltd. has a subsidiary whose income is 12% and net worth is 18% of No other appointments required as already consolidated. Mr. Abhay, an independent director of ABC Ltd., is a director of 154 one independent director is on the board of the subsidiary. the subsidiary Is this in accordance with corporate governance requirements? Case Study: ABC Limited, a company facing financial difficulties, has a diverse group of shareholders. One of these shareholders, Mr. Sharma, holds partly paid shares in the company. Mr. Sharma has been a shareholder for over a year and is concerned about the company's ongoing viability. He is contemplating filing a petition for the winding up of ABC Limited. The legal 155 team at ABC Limited is reviewing the eligibility criteria for shareholders to file No, as shares are not fully paidup such petitions, specifically focusing on whether holders of partly paid shares have the right to initiate winding up proceedings. They are particularly considering the duration of shareholding and the payment status of the shares Can a person holding partly paid shares file for the winding up of ABC Limited? Member having>= 10% PUSC or 156 Who can raise Objection to compromise scheme Crs having O/s debt>=5% of total Objections raised by shareholders and creditors will sustain under Section 230 of Will objections raised by shareholders and creditors sustain under Sec 230 or the Companies Act, 2013, provided they 157 231? meet the specified thresholds (at least 10% of the shareholding or 5% of the total outstanding debt). Yes, co is allowed to take copies of 158 Whether Company can take copies in case of Book seized? documents seized Inspector can enter and seized books and paper after obtaining permisiion 159 Special Court of________ the Central Government shall appoint the required number of directors who shall hold 160 Where all the directors of a company resign from their offices then ___ office till the directors are appointed by the company in general meeting First BOD meeting 161 Independence director declaration of Independence_ First BOD meeting of every year any change in circumstances 162 Can ID have stock option? No CA Vikalp Gupta and CA Manmohan Gupta Page 11  Join telegram channel for exclusive CA Final content Company Law Sr No. Questions Answers A director going abroad. Can his son appoint as alternative director if earlier Yes if Board is authorised by articles / 163 appointment is rejected resolution by GM 164 Punishment for not complying order under section 206 Co. & OID: ₹1L + add fine ₹500/day Case Study: When the tribunal terminates a director of X Ltd , who's not fit 165 and proper on the application of CG (Sec 243) Within 30 days from tribunal order ( not 166 a) When Tribunal order shall file with RoC? from receipt of order by co) Terminate from all companies for a period of 5 yrs from date of order and No 167 b) Will he get terminated from all companies or X ltd only? compensation of loss even if there is an agreement between co and director, coz tribunal order overrides agreement. CG may, with leave of the tribunal (not suo 168 c) Can CG permit him again to hold the office? moto), permit him to hold all the offices (not just X ltd) before 5 yrs. 169 Case Study: related to Removal of directors Special notice for removal sent to 170 a) Whether Notice is send to all director? concerned director only (not to all directors) hold for remaining period for which 171 b) Term of new director in place of removed director removed director would have been held if he had not been removed. 172 Corporate debt restructuring approval required by 75% of secured creditor 173 how much consent of creditors to dispense with meeting of creditors? Sec 230 90% of Crs in value Condition 1- Public prosecutor has been given the opportunity to oppose the application to release the accused person. Condition 2- Special Court is satisfied that there is reasonable ground to believe 174 that the accused is not guilty of offense and that he is not likely to commit offense while on bail Which of these conditions are to be satisfied under section 212(6)? Both Normally upto 7 listed entities 175 Limit on director to serve as Independent director in listed entity? if ID is MD/ WTD then upto 3 listed entities Answer depend on question, check limit of Case study related to Vacancy of ID by death ID after death: a)Same as the appointment of New ID b) By BOD in their meeting, c) No if listed - 1/3rd or 176 need to appoint as existing ID are as per Co. act, if Unlisted Public Co whose: d) It depends on BOD to appoint or not to appoint a director in case of death PUSC: >=10cr, T/O:>=100 cr, O/s loan, deposit,debenture>50cr - 2ID Refer Proviso of sec 188, Ans: If another Co is Public co then such Mr A is director of ABC Ltd. Brother of Mr A hold 2% of PUSH in another Co. 177 company is not related party to ABC ltd whether another co. is related party to ABC Ltd? If another Co is Pvt Co. then such company is related party to ABC Ltd Case Study: TNOD = 20 - 2 = 18 Number of directors 20, some ID, 1 nominee by SBI, 2 nominee by FI setup Rotational D = 18*2/3 = 12 178 under parliament act, 1 additional director and 1 managing director.. required Non Rotational D = 18-12 = 6 Rotation and retired. calculate Rotational & non rotational D , how many will Retiring D = 12/3 = 4 be retired ? [figures changed] Yes as per 164(2) Can Ashu( director) be appointed as director in other Co. if his Co. failed to file disqualified if not filed FS/AR for 3 179 FS for 2 consecutive years & fails to repay loan from FI for 2 years ? consecutive year and loan from FI not consider in 164(2) CA Vikalp Gupta and CA Manmohan Gupta Page 12  Join telegram channel for exclusive CA Final content Company Law Sr No. Questions Answers Sec 230: Voting by proxy, postal ballot (1 month from doron), in person...time 180 No time limit limit of sending notice to shareholders 181 Sec 244: Right to apply u/s 241 (oppression) in case of no share capital 1/5th of person on register of member who all are liable to contribute to the capital in case contributries fail to directors /managers whose liability is 182 contribute the unpaid amount ? unlimited. Yes Bcz shares originally allotted / Two sons got shares equally from decesed father. Can they sign WUP petition held+regd in his name for 6 months in last 183 and will they be contributaties? (Sec 272) 18 months before WUP/devolved on him on death of former SH ROC to submit its view in 60 days, tribunal When a copy of Petition is submitted to ROC u/s 272 in how many days shall ot 184 to dismiss/ int order/wup order within 90 submit its view to NCLT ?. In how many days shall Tribunal reply ? days from date of presentation of petition. Liability of unpaid shareholders. Can they choose not to pay if asset is 185 Yes sufficient. 186 Time Limit on AA to admit the application of winding up 90 days 187 who can be contributories in case of winding up (272) Holder of fully paidup share 188 Advisory committee consitute how many number of members in Winding Up Maximum 12 member Cost and expenses of winding up fall in which sequence of payment as per first payment: Workmen dues 189 winding up Second payment: Cost & Expense A bank has a claim on company's assets of Rs 10 cr (Secured creditor). The workmen dues are 2.5 cr. Liquidator realised 8 cr from company's asset. The workmen due's are parri pasu with secured creditors due's. 190 1.6 Cr Q. How much compensation is available to workmen ? A. 1.6 cr B. 1.5 cr Ask company to send representation within 191 If company is applying to Tribunal for winding up then tribunal____ 30 days (+30 days ext) via preparation of Statement of affairs, 192 When can ROC give application for winding up When authorised by CG Disposal of books and papers as per the When the affairs of a company have been completely wound up and it is about directions of Tribunal. Such BOA to be 193 to be dissolved: preserved for 5 years from Date of dissolution. 194 Time to respond to Form STK 1 within 30 days from date of notice 195 Can a Cancelled COR co. can recover its dues? Yes Before applying to NCLT for removal of name, can Co. continue the existence 196 No, liability should extinguish first of the liability ? Section 248(5) Once the name of co. is strike off, then also do Tribunal have 197 Yes right to wound up the co. First meeting: within 30 days of Incorporation Subsequent Meeting: 4 meeting in each 198 Time limit for Board Meeting F.Y. & maximum gap of 120 days Small & Dormant Co.: One meeting in each half calender year 199 What is the Director Age limit without shareholder approval 70 years Time limit within which director casual vacancy to be filed including managing Filed by BOD at the Board meeting & need 200 director to approve by menber in subsequent GM Bonafede trust , A/c payee cheque, ECS 201 Approved method of payment incase of donation to Political party method CA Vikalp Gupta and CA Manmohan Gupta Page 13  Join telegram channel for exclusive CA Final content Company Law Sr No. Questions Answers No limit on payment ot defence fund and Limit for Bonafide donation to national defence fund and approval from approval required from person exercising 202 shareholders criteria power of BOD or power of the company in G.M. Every director except the director who is 203 Who shall evaluate the independence of the independent director? subject to evaluation There will be a case study where list of directors and the type will be mentioned All the independent directors including 204 and question will be "Who is required to give independence declaration in the small share holder director first BM of the next FY? Case Study: Paavan Nidhi Limited having registered office at karol 205 bagh…..............click for whole case study 1) From the case scenario, it is observed that PQR Traders Private Limited has PQR Limited cannot become member of 206 applied for becoming a member of Paavan Nidhi Limited. What is applicable in Paavan Nidhi Limited this situation 2) Piyush, one of the Directors of Paavan Nidhi Limited has raised objection on Paavan Nidhi Limited may accept deposit acceptance of deposit amounting to ` 1,00,000 in the name of Rudra, a minor, in the name of Rudra, a minor, since it is 207 and negotiations initiated by his father Mr. Kshitij to make him a member of made by Mr. Kshitij, a member and the the Paavan Nidhi. From the following options choose the one which is father of Rudra but being minor, he cannot applicable in the given situation: be made a member. 3) From the case scenario, it is evident that Padam, the senior-most Director, Padam shall be eligible for re-appointment has been honoured by Paavan Nidhi Limited to hold Directorship for a term up 208 only after the expiry of two years of ceasing to ten consecutive years. After relinquishing his office as Director at the expiry to be a Director. of ten years, when can Padam be re-appointed as Director of the company. If M/s A & A Associates, a firm of auditors, has been appointed as auditors of M/s A & A Associates can be re-appointed Paavan Nidhi Limited for a term of five years commencing from FY 2016-17 to as auditors for another term of five years 209 FY 2020-21 and if the company is desirous of re-appointing the said firm of since a Nidhi company is permitted to auditors for another term of five years commencing from FY 2021-22. then appoint or reappoint any auditing firm for what is applicable in such case two terms of five consecutive years. Seven and half per cent above the highest rate of interest offered on deposits by Nidhi 210 The rate of interest charged on loan given by Nidhi can be; and shall be calculated on reducing balance method J, member wanted to see the agreement of MD but they excused that they didn't Yes we can consider this is remuneration & 211 have written agreement and co is paying for his insurance. Can we consider this Company can deny for agreement checking in remuneration and can co denies for agreement checking with MD with MD 212 Can BOD appoint a managing director for lifetime. Whether OR / SR? No MD cannot appointed for life time 213 Penalty of not having DIN. upto ₹50,000 + 500 per day No Quorum required for Circular 214 Qurom required for meeting conducted through circular resolution? resolution. Only majority of director required to approve any resolution A women director was paid 60k while all other male directors were paid 70k. Is No. Women director can't be paid less than 215 this vaild ? other directors. The company will be hiring Mr greg aged 75 years old for his expertise. Q. Is it vaild ? 216 A. With permission of members by SR A. With permission of members by SR B. With permission of members by OR C. By approval by the board CA Vikalp Gupta and CA Manmohan Gupta Page 14  Join telegram channel for exclusive CA Final content Company Law Sr No. Questions Answers Q. In WHICH OF THE following situation central government may not do a SIFO investigation. A. When board passes a resolution requesting investigation. When board passes a resolution requesting 217 B. When required number of members under the law, request investigation investigation. C. When state government / central government requests it. D. When ROC files a written report after inspecting companies books of accounts, requesting CG for an investigation MD of the company wants to buy a machine from director, Mr A. He appoints Mr. B as registered valuer. Mr. A bought the same machine from a partnership 218 No, Cannot appointed firm 48 months ago in which spouse of Mr. B was a partner. Q. Is appointment of Mr B as registered valuer vaild ? For political parties, donation can be made A company in its article writes that it can't donate more than 5 lakh to a national through any instrument specified for this 219 defence fund. Company's articles are silent on donation to charitable trusts. purporse or accout transfer, for national Q. Through which mode donations can be made ? defense and charitible funds donation can be made through bank. A company has 1000 members. 201 members file application to tribunal for mismanagement and oppression. 220 Yes appeal is valid Q. Asked about limit of members required to file such an appeal. Is this appeal valid ? A company has taken a loan from bank for 4 crore in 2019. Due to deteriorating condition, the company defaulted. In 2023, the bank filed for liquidation to AA(adjudicating authority). The bank sent notice to company's registered office only. Q. Is the notice valid ? No, Bank needs to send notice to both 221 A. No, Bank needs to send notice to both registered office and Board of registered office and Board of directors. directors. B. No, Bank needs to send notice to both registered office and ROC. C. No, Bank needs to send notice to both registered office and Central Goverment. D. Yes, only registered office needs to be served the notice. Tribunal appointed liquidator without notice or oppurtunity of being heard to the company. Q. Is it vaild ? A. Yes. If the tribunal has special reasons to 222 A. Yes. If the tribunal has special reasons to do so recorded in writing. do so recorded in writing B. Yes. If the tribunal has special reasons to do so in writing or oral. C. No. Oppurtunity of being heard has to be given in all cases. D. No. Tribunal can't appoint liquidator without notice. Other Questions - Company Law RV has to passed the valuation exam within 3 years proceedings the date of making application for registration Powers of RV Power of registrar to remove name of Company from ROC (Secc248) Sec 212, Offence Covered under section 447: "Cognizable & Non-Bailable Bail provision under section 212 Can Tribunal give order of winding up if it feels it to be just and equitable without notice or calling of representation from company? If no information or explanation is furnished to the Registrar within the time specified or Read Section 206(4), ROC is satisfied of info available…..... Sec 186 : to invest funds of co board resolution passed with consent of all directors Section 237 CG has power to amalgamate companies in public interest Sec 277: With respect to all companies - On receipt of the copy of order of appointment of provisional liquidator or winding up order, Inactive company when applys for obtaining status of DC , it becomes DC. CA Vikalp Gupta and CA Manmohan Gupta Page 15  Join telegram channel for exclusive CA Final content SEBI ACT, LODR, Insider Trading Sr No. Questions Answers 1 Sebi due date for submitting corporate Governance report 21 days Intimation to SEBI before ______days of BoD meeting in case of 2 11 days alteration of share holders rights 3 Filing of investor grievances within ___ 21 days 4 Prior intimation of Board meeting for buyback 2 days Before how many days one has to intimate to RSE about convening 5 11 days BM if the purpose of BM is to alter Rate of interest of securities Chairperson of Sebi Can be Removed by whom and for how much CG can remove any time by giving 3 6 time prior notice is required month notice or salary 7 Period of Custody of books of account in case of investigation 6month SEBI needs to obtain confirmation of an attachment from a special 8 90 days court within a specified period. 9 Confirmation of attachment of Bank Account or property taken from Special Court 10 Validity of appointment of Chairman & members 5 year, Max at the age of 65 year Min 3 member 11 Composition of audit committee in LODR at least 2/3rd Independent All financial literate & 1 expert In case of changes to annual report, time limit to report to Stock 12 48 hours of AGM exchange Min ₹1L to Max. 5 times of excess 13 Penalty on Stockbroker for excess charges brokerage charged 14 Penalty on Stockbroker for non delivery/non payment Min 1L & 1L/day Upto Max. ₹1 cr Min ₹10L to Max. Higher of 15 SEBI insider trading penalty ₹25Cr or 3x profit made Min ₹5L to Max. Higher of 16 Penalty for unfair Trade practices? ₹25Cr or 3x profit made A person is found guilty of insider trading. What actions can SEBI take against them? 17 a) Impose penalties. b) Debar from holding All of the above directorial positions. c) Initiate prosecution. d) All of the above. No. of ID required on board of listed co if chairperson is NED who 18 1/2nd is related to promoter Director (Not ID), Employee, 19 What does "related to promoter" means in case of listed company Nominees 20 LODR: Minimum No. of BoD in case of Top 2000 listed companies 6 directors 21 Lockin for Promoters contribution post IPO 20% post capital & for 3 years Lockin for promoters holding in excess of minimum promoters 22 1 year contribution 23 Min & max no of days for which IPO to be kept open 3 to 10 Working days 24 Penalty for failure to address grievances Min 1L & 1L/day Upto Max. ₹1 cr Insider trading disclosures are to be maintained by company for 25 5yrs minimum how many years Lead manager to submit post issue report as given in which part & report - PART A of sch XVII, DD 26 which schedule along with DD certificate in which format & within certf - Form F, 7 days how many days of allotment? CA Vikalp Gupta and CA Manmohan Gupta Page 16  Join telegram channel for exclusive CA Final content SEBI ACT, LODR, Insider Trading Sr No. Questions Answers When issuer shall arrange for CRAs to monitor the usage of issue 27 issue size > 100 crore proceeds? Yes but Co should give such details Grievance redressal - Company filed with RSE a statement giving the AT EACH STAGE of the quarter - 28 no of investor complaints remaining unresolved AT THE END OF like pending at the beginning, the quarter. Is it right? received & disposed of during the quarter & pending at the end Case Study: A CA, who is an auditor of DEF Ltd., learns of significant unpublished price-sensitive information (UPSI) about the company. Yes, this action constitutes insider He passes this information to his friends before it is made public. trading. 29 Question: Penalty: Rs 10 lakh upto higher of: Determine if this action constitutes insider trading and state the 25 crore or 3X profit made penalty as per SEBI (Prohibition of Insider Trading) Regulations, 2015. For a company to be eligible to make an Initial Public Offering 30 3 Crore in each of 3 preceeding year (IPO), what should be the minimum net tangible assets? Case Study: the price offered to anchor investors ABC Ltd. is planning to make a public issue and is considering 31 should be the same as offered to the offering shares to anchor investors. As per SEBI regulations, what public. should be the price offer to anchor investors? Mr. X is a director in several companies and is also a member of various committees in these companies. He is currently a member of 12 committees across different companies. 32 10 committee Question: As per SEBI regulations, what is the maximum number of committees a director can be part of? Case Study: SEBI has ordered the attachment of bank accounts of XYZ Ltd. due to non-compliance with regulatory requirements. 33 For failure to pay fines Question: Under which circumstances can SEBI attach the bank accounts of a company? PQR Ltd., a listed company, is preparing its quarterly compliance report for submission to SEBI. 34 Question: Within 15 days of the quarter end By what date must the quarterly compliance report be submitted to SEBI? By what date must the quarterly compliance report be submitted to 35 Within 45 days of the quarter end Stock Exchange Penaly of Section 15EB, Where Investment/ research analyst failed 36 Min 1L & 1L/day Upto Max. ₹1 cr to comply regulation legal representatives shall only be Is a legal representative of deceased person liable as an heir to liable to pay when a penalty has been 37 provide for penalty under sec 15H & Insider Trading imposed before the death of an accused person which act applicable in rocovery of amounts by attaching Property, 38 Income tax Act bank acc etc us 28A? CA Vikalp Gupta and CA Manmohan Gupta Page 17  Join telegram channel for exclusive CA Final content SEBI ACT, LODR, Insider Trading Sr No. Questions Answers Officer of Board empower through 39 How to appoints recovery office to recover claim? Order Recovery can be made from: Minor child, Son's wife, Son's child and Deceased person transferred FD to his married Son, Car to son's wife 40 Spouse, other than for adequate and property to sister. What all can be utilized to pay penalty? consideration (Major Child & Sister not include) 41 Minimum application value under SEBI (ICDR) Regulations Not less than 25% of issue price XYZ Limited, a publicly listed company, is planning a new share issue to raise capital for its upcoming projects. The company initially set the issue price based on market conditions and regulatory guidelines. However, due to recent market volatility, XYZ Limited is considering adjusting the issue price to make the shares more The company can adjust the issue attractive to potential investors. The company wants to understand 42 price both upward and downward the regulatory requirements and constraints on adjusting the issue within 3 days. price after it has been initially set. The management is particularly concerned with the time frame within which these adjustments can be made, especially in terms of upward and downward adjustments What are the regulatory guidelines regarding the adjustment of the issue price after it has been initially set? at any time up to 3 working days 43 How many days revision of price can be made prior to the opening of the offer. 44 Minimum value of application money to be set during IPO 10K to 15K CS related to Book Building (BB) Issue 1) not more than 50% allocate to 45 1) In case of Voluntarily BB Process? QIB 2) In case of Compulsory BB Process? 2) at least 75% allocate to QIB at the time of Public Issue or Rights 46 When to appoint Credit rating Agency Issue within 7 days of the date of 47 finalization of basis of allotment or Time limit to submit a final post-issue report by the lead managers within 7 days of refund of money Not be member of more than 10 committee or Chairperson of more 48 Member and chairperson limits for committees of listed company? than 5 committee 10/5 limit include public company only (whether listed or not) Make a public announcement to 49 Which of the following does not amount to insider trading acquire shares at a minimum price AC of listed entity review FS of material subsidiary, what are the Particularly Investment made by 50 matter they review? subsidiary Co 51 No. of Copies of draft offer documents 3 copies When a company is eligible for IPO? (Net tangible asset criteria >= 3 crores with atleast 50% 52 related question) monetary assets 53 Can a company issue IPO if ESOP’s are outstanding? Yes Every co shall notify the particulars of "trading by Promoter/PG/D" 54 to SE on which Securities are listed within ____ days of receipt of disclosure or from becoming aware of such information. 2 trading days CA Vikalp Gupta and CA Manmohan Gupta Page 18  Join telegram channel for exclusive CA Final content SEBI ACT, LODR, Insider Trading Sr No. Questions Answers Case Study: A company defaulted to pay penalty, SEBI attached 2 bank account out of 4. 55 Out of 2 Bank account, 1 account was already defaulted (or not involved in fraud) not correct bcz only attach acc which Is this attachment valid? is involved in fraud. NOT VALID, bcz Notes of any examination shall be taken down in Officer took note of examination.but DID NOT READ IT TO other writing and shall be read over to, or 56 person. Valid?? by, and signed by, the person examined, and may thereafter be used in evidence against him. Magistrate or Judge of such 57 Person to order for impounding designated court in Mumbai Code of Criminal Procedure, 1973 (2 58 of 1974) relating to searches or Which code applicable for Search & seizure seizures made under that Code. SEBI can pass these order during What can be SEBI action in case of insider trading including, inspection or inquiry & need to 59 suspension of trading of stock, attaching bank account, impounding obtain confirmation from special & retain of money and securities court within 90 days. Period of attachment incase of attachment of bank account during 60 insider trading Inspection/ Inquiry by SEBI upto 90 days A company has 1 chairperson, 2 executive director and 3 independent MALE director. The company will be listed on the stock exchange and will come under top 2000 listed company. 3 independent directors including a 61 Q. Suggest ideal combination of directors ? woman independent director. A. 3 independent director including a women executive director B. 3 independent director including a women independent director C. 2 independent director CA Vikalp Gupta and CA Manmohan Gupta Page 19  Join telegram channel for exclusive CA Final content FCRA Sr No. Questions Answers Charitable trust applied for registration. Certificate of registration issued 1 on 15.9.23. It is sent via post. Trust received it on 17.9.23. This Reg 14.09.2028 (5 year from the date of issue) Certificate is valid upto ? 2 Cooling period in case of surrender/cancellation of COR 3 years FC from relatives more than 10Lakh in FY then inform to CG in which 3 FC-1 & within 3 months form? 4 Certificate of registration valid for 5 years 5 Scholarship received from foreign university for studying abroad Exempt from obtaining permission In case of emergency medical aid of more than 1Lakh then intimate to CG 6 1 month within___ 7 FCRA Account open in which bank for receiving FC SBI, New Delhi 8 Period of Suspension of COR 180 Days (+180 days extended) 9 Renewal of Certificate of Registration within_______ 6month before expiry Person aggrieved from confiscation of FC of more than 10 lac may appeal 10 High court within 60 days to ____ 11 Fee of compounding or revision of order (only online mode) Rs. 3000 Case Study: Y (India) sold goods to X (Singapore). X came to India. X bought a ring in India for RS 90,000. Y called X for dinner, and X gave 12 that ring to Y. X made payment to Y for the goods, and Y gave a cheque to X for the travel cost. X took that ring to market for its valuation and it was 1,10000. X's wife is using that ring. Yes. as per its market value it is more than 13 Qs 1. Ring given by X to Y is foreign contribution? 1,00,000 and he did the valuation the same day. No, as it is payment in normal course for 14 Qs 2. Money Paid by X to Y is a foreign contribution. goods and services No as FH is in cash or kind taken outside 15 Qs 3. Is the cheque given by Y Foreign Hospitality? India Sec 4, Is scholarship provided by foreign university to PRI comes under 16 Yes FC Sec 14A, If FCRA registration is surrendered, it is deemed to have 17 Date of acceptance by CG. expired/effective date of surrender on___ Sec 14A, cooling period for fresh reg. once existing registration is 18 3 year surrendered Yes, if it considers necessary and in public interest, the activities of the person, as the Sec 15, Upon Surrender/Cancellation Whether banking authority can Central Government may direct ,may utilise 19 utilize/dispose the assets of FC. the foreign contribution or dispose of the assets created out of it in case adequatefunds are not available for running such activity 20 Bank shall report receipt of FC to whom to within how many hours? CG (Not RBI) within 48hr 21 Bank report to CG of transaction relating to_ Receipt & utilisation of FC A person received 25 lakh FC in FCRA acc in delhi sbi & then transferred Can receive FC only in FCRA Acc - so 25 10 lakh to his non fcra acc for utilization. He also received 5 lakh FC in lakh valid, but 5 lakh violates Act and one 22 his non fcra acc with canara bank. Which of these 3 transactions are can transfer money to Non FCRA Acc for violates FCRA Act? utilization. So 10 lakh valid Mr. X received FC in personal Capacity and used it for Gold Deposit 23 No scheme. Can he use? Can religious trust receive donation from foreign source without FCRA No, trust receive funds from foreign sources 24 accou