Answer Writing Practice DAY8 – CS Executive Session 1

Day 8 

Today’s questions SBEC (ch.3 charter doc.)

Q1. Promoters’ rights to receive preliminary expenses should have been enshrined in the  

articles of the association. Explain.

Q2. With the approval of the board, an amount of Rs. 50 crore was spend by Speed Jet Ltd. in producing a commercial film, not covered under its object clause. The film was complete flop and the company lost the amount of Rs. 40 crore. Some of the members of the company objected to such investment not covered by the object clause of the company. They filed a suit in NCLT making the directors personally liable and to make good the loss. Will they succeed. Support your answer with reasons.

Q3. A registered office of the company was shifted from one state to another. A labour litigation was pending before the NCLT. So, the employees objected to transfer. Whether the objection of the employees is sustainable?

Answer 1

AOA me clause dalna h for compensation of  preliminary expenses incurred by promoters.

Ans 2

Members suit is sustainable

BoD acts is ultra-vires to MOA

Ans 3

Labour litigation pending

So. Employees can object.

Answer 1

Answer 2

Answer 3