ICAP Past 20 Attempts Questions - Topic Wise

8/9/2019 ICAP Past 20 Attempts Questions - Topic Wise

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Module E

Atif Abidi

www.canotes.net

August 25, 2013

Corporate Laws

Question Bank

Revision Kit - Winter 2003 to Summer 2013(Topic wise collection of ICAP past papers 20 attempts)


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Corporate Laws (Topic Wise) Tabe of Contents

www.canotes.net Taib e doa! Atif Abidi

Table of ContentsTable of ContentsTable of ContentsTable of Contents

MODULE D

Incorporation and MOA / AOA etc (Sec 1 51) 1

Share Capital & Debentres (Sec 5! 1"1) 2

Mana#e$ent & Ad$inistration (Sec 1"! !%!) 5

ADVANCED AREAS

Inesti#ation and related $atters' 13

Arbitration arran#e$ents and reconstrction' 1"

reention of oppression & $is$ana#e$ent' 1"

*indin#+p 15

Co$panies established otside a,istan 1#

RULES

Capital Isse of Share Capital -les 1..% 1$

0+bac, of Shares -les 1...' 20

Co$panies -les 1.5 21

Share Capital (2ariation in -i#hts & riile#es) -les !333 22

Appoint$ent of 4e#al Adisors -les 1.5' 23

6on an,in# 7inance Co$panies (67C) 2"

SECRETARIAL PRACTICES

Secretarial ractices 2#

OTHER LAWS

Stoc, 89chan#e 4istin# -e#lations 2%

Code of Corporate :oernance 30

78-A 32an,in# Co$panies 32

CDC 33

Insrance 33

Modarba 3"

S8C Ordinance & insider tradin# 3"

Co$petition Ordinance and -e#lations 3&

Sbstantial Ac;isition 35


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Corporate Laws (Topic Wise) 1 ' a g e odue *


Incorporation and MOA / AOA etc (Sec 1 51)

+n 2% Apri 2012, a eorandu of association of A- Liited was fied for registration in te office of

/egistrar. oweer, on 25 a 2012, a etter fro te registrar office was receied b te subscribers to te

eorandu in wic te registration was refused on te ground tat te obects stated in te eorandu

were inappropriate.

*escribe wat course of action is aaiabe to A- Liited in te aboe situation, according to te Copanies

+rdinance, 1%$". (05)

4.12

(.1)

6n te annua genera eeting of 4ab7a7ar Liited ed on 4epteber 2%, 200% soe of te sareoders ae

raised te foowing obections!

8otice of te annua genera eeting was not receied b te atoug te are resident in a9istan and

teir registered addresses ae aso been proided to te copan. (02)

W.0%(.11)

Cannon 6ndustries Liited, a isted copan, wises to cange its nae to /eiance :oods Liited because te

anageent fees tat te cange in nae woud ep in re; branding and rebuiding te iage of te

copan and in attracting ore custoers.

pain te re=uireents of te Copanies +rdinance, 1%$" wic te copan is

re=uired to cop wit, in tis regard. Aso describe te effect of suc cange on te rigts and obigations of

te copan. (0%)

4.0%

(.2)

Te ebers of ?pand its scope of actiities.

>pain te procedure tat te copan wi ae to foow. (03)

W.0#(.&)

(a) r. ang and is wife oint ac=uired 23B sares in 4unsine Liited. Te copan is isted on te Laore

4toc9 >cange. Te transfer deeds odged b r. ang did not ention is address and tis was aso not

noted b te corporate affairs departent wie deaing wit te registration of transfer. At te tie of giing

notice to ebers for annua genera eeting were eection of directors are aso scedued to be ed, te

fact cae to igt and now te Cief >ecutie is worried as to ow te notice a be sered, to aoid an

itigation wic a be initiated b r. ang, due to non serice of notice.

As te secretar of te copan, adise te cief e>ecutie as to ow te copan soud dea wit te

aboe situation. (03)

4.0#

(.5)

A prospectie indiidua sponsor as re=uested our adice weter copan aw perits an indiidua to

incorporate a wo owned copan. -rief describe te reeant ega proisions. (05)

W.0&

(.1)

Te -oard of *irectors of a pubic copan is desirous to estabis an association

for prootion of carit and oter usefu obects on a non profit basis. *escribe te conditions for grant of

icence under te Copanies +rdinance, 1%$". (0#)

W.05

(.%)

A copan was incorporated in *eceber 2003. *ue to an error, reguations reating to te conduct of

eetings of ebers were not incuded in te Artices of Association subitted b te Copan to

te /egistrar for registration. ow can te ebers eeting woud be reguated in te absence of sucreguations in copans articesD Can suc reguations be incuded now in te Artices of Association and

if so, ow and wat wi be te status of suc an additionD (0&)

W.0"(.1)

Wat sorts of businesses re=uire specia resoutionsD *iscuss, in igt of te proisions of te Copanies

+rdinance, 1%$". (0&)

4.0"

(.2)


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Share Capital & Debentres (Sec 5! 1"1)

Prospectus (52-66)

Te prospectus of :C Te>ties Liited incuded a stateent wic was iseading in its for and content. +n

te fait of te prospectus and beieing it to be true, Asif subscribed for sares and sustained osses. Can

Asif fie a suit for copensation of te oss incurred b iD 6f so, wo a be sued for suc a ossD (0&)

W

.0%

(

.1)

Certificates of Shares and debentures (!" 5" #$-$%)

An inestor purcased soe sares fro te stoc9 ar9et in good fait and got te registered in is

nae. 4ubse=uent, te copan receied a notice fro te origina eber reporting tese sares as

ost. *iscuss te rigt of suc an inestor as we as te origina owner under te aw. (05)

4.05

(.5)

&ssue of Share Capital (62'" #2-##" %2)

Te 4ecretar of A-C Liited is in te process of preparing te prospectus for pubic issue. Te copan as

obtained oans fro two financia institutions and as granted option to tese institutions to conert up to

20B of te outstanding baance of te oans into ordinar sares.

4tate te inforation re=uired to be discosed in te prospectus under te Copanies +rdinance, 1%$"

regarding te option gien to te financia institutions. (05)

W.12(.1)

ega roects Liited is present facing financia crunc. 6n order to oercoe tis crisis and to iproe

profitabiit, te -oard of *irectors is considering to raise funds troug capita inection. Te e>isting

sareoders and te potentia inestors a not be wiing to inest at par aue wic is /s.10 per sare.

oweer, it is estiated tat te copan coud get ust about /s. # per sare. Te directors ae terefore

decided to issue sares at discount.

-eing a Copan 4ecretar, ou are re=uired to adise te directors about te procedure to

be foowed in tis regard, under te Copanies +rdinance, 1%$". (10)

W.0$(.#)

-osso Te>ties Liited, a isted copan, is in urgent need of increasing its paid up capita to iproe

baance seet ratio and satisf teir ban9ers. Te response fro te e>isting sareoders and te

underwriters is =uite discouraging.

r. aeed, an e>isting sareoder as sown is intention to purcase te woe issue at par. *escribe te

steps tat te copan wi need to ta9e if it wants to accept te offer b r. aeed.

W.0#(.1)

Can te bonus issue be ade out of 4are reiu accountD (0")W.0#

(.#)

Eeangir Liited a pubic isted copan ae incurred osses during te past two ears, as a resut of wic,

1#B of teir e=uit as been wiped out. Te board of directors wants to issue sares wort /s. 100 iion,

being 25B of te present sare capita at a discount of 20B.


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(a) Wat restriction te Copanies +rdinance paces on redeeing te preference saresD (01)

(b) Wat are te perissibe odes for redeeing te preference sares and wat are te conditions

attaced to suc odesD (0&)

4.0"(.1)

A copan is re=uired to issue sares to a financia institution under te ters of agreeent witin te

ne>t tree da of te appening of certain eent. 8ow te eent as appened and te copan as

to issue te sares but te autori7ed capita is fu subscribed. Adise te copan to aoid non

copiance wit te ters of te agreeent as we as te proisions of Copanies +rdinance, 1%$".(0")

4.0"(

.11)

Wat is te difference between aotent and psica issue of sare certificateD (03) W.03

(.%)

'lteration and eduction of Share Capital $2-%

Te -oard of *irectors of G Liited ae decided to bu;bac9 one iion of its ordinar sares.

tie is Liited for te ear ended Eune 30, 200$ sows te non;currentiabiities as under !

Non-current liabilities Rupees

Long ter finance fro 4ponsors N *irectors &1,000,000

Long ter finance fro reated part 150,000,000

Long ter finance fro -an9s 5#2,000,000

783,000,000

To iproe te debt e=uit ratio, te copan wants to conert a non;current iabiities into e=uit b te

issuance of ordinar sares.

/e=uired!

(a) *iscuss te proisions contained in te Copanies +rdinance, 1%$" under wic te copan a proceed

to issue sares against te aboe non;current iabiities.

(b) Wit reference to te aboe proisions, adise te e>tent to wic te aboe iabiities a be conerted into

e=uit. (0#)

4.0%(.#)

?pain to te sareoders, aggrieed wit te aboe canges, on te foowing!

(a) Wat reed is aaiabe to te aggrieed sareodersD (03)

(b) Mnder wat conditions can te decision of te copan be canceedD (0")

4.0#(.2)

List tree 9e differences between proisions reating to increase and reduction of sare capita of a copan

iited b guarantee aing a sare capita as copared to a copan iited b sares. (03)

W

.0"(.")


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*ebentures (%%+-%%$)

A-C Liited as appointed r. 4aee as a trustee, under a trust deed, for securing an issue of debentures.

4ubse=uent to is appointent, r. 4aee is of te opinion tat A-C Liited as faied to eet its obigations

under te trust deed, wereas te anageent denies an wrong doings. Conse=uent, r. 4aee intends to

ta9e appropriate action against te copan.

8arrate te circustances specified under te Copanies +rdinance, 1%$" on account of wic r. 4aeea initiate ega action against te copan. (0&)

W.11(.3)

Mort,a,es and Char,es (%2%-%+6)

Te Copan 4ecretar of A Liited reai7ed on 2% a 2012 tat particuars of carge created on te

Copans properties in faour of A -an9 Liited on 2 a 2012 ae not been fied for registration wit te

/egistrar of Copanies.

>pain te procedure tat woud be re=uired to be foowed b A Liited in te aboe situation, for

registration of carge wit te /egistrar of Copanies. (0&)

4.12(.2)

r. tie is Liited (4TL). 6n a

eeting of te board of directors of 4TL, te copan secretar was not abe to offer satisfactor

carifications in respect of te foowing atters!

(a) 4TL ad receied a oan of /s. 1.5 biion fro Trust -an9 Liited wic was secured b a first ortgage on

te copans fi>ed assets. Te copan ad repaid te oan to te e>tent of /s. 250 iion but did not send

an intiation to te registrar as regards te partia re;paent of te oan. (02)

(b) A foreign currenc oan of M4 P #5 iion was obtained fro Ape> -an9 Liited wic was secured b a first

ortgage on copans fi>ed assets ran9ing pari passu wit te carge created in faour of Trust -an9 Liited.

Te foreign currenc oan as been paid in fu but te copan as not approaced te registrar for acating

te carge because confiration of repaent as not been receied fro Ape> -an9 Liited. (03)

+n beaf of r.t of Copanies +rdinance 1%$".

4.10(.11)

Te C:+ of A-C Liited reai7ed on 23rd +ctober tat particuars of carge created on 13t +ctober in faour of

a ban9 were not fied wit te /egistrar of Copanies for registration. *escribe te procedure te copan

soud foow to get te carge registered wit te /egistrar of Copanies. Woud te procedure be different if

te carge was created on 2%t 4epteberD (0&)

W.0#(.2)

r. an, cief e>ecutie of rosperous ngineering Liited, is assessing te possibiit of setting up a new

proect in Gwadar in coaboration wit a prospectie foreign inestor. e is confident tat te proposed proect

wi reap significant benefits to te copan. 4ince e does not wis to diute is oding and oting rigts, e is

panning to issue cass - sares to te inestor aong wit 1&B T:Cs wit a foating carge on te boo9 debts of

te copan and a fi>ed carge on its aciner in te anufacturing departent. e wants to ae our

adice on te issue.

/e=uired! >pain te iportant caracteristics of a fi>ed carge and foating carge and teir registration

re=uireents. (05)

W.0$(.")

-rief discuss te foowing wit reference to te registration of ortgages and carges under te Copanies

+rdinance, 1%$"!

(a) Te conse=uences if te carge is not registered on tieD (03)

(b) 4teps to be underta9en on ac=uiring a propert tat is aread cargedD (05)

W.05(.$)


7/38



Mana#e$ent & Ad$inistration (Sec 1"! !%!)

Meetin,s (%5-%+)

+n decaration of te resut of oting in te Annua Genera eeting (AG) b te cairan of A4 Liited, a

pubic copan, few sareoders deanded a po. Te cairan refused to od te po and decared te

resut of oting on sow of ands. 6n te igt of Copanies +rdinance, 1%$",

(a) ow woud ou assess weter or not te Cairans decision of not oding a po was aidD (0")

(b) >pain weter te Cairan can dea te oding of po to a date subse=uent to te date of AG. (03)

4.13(.%)

Te Annua Genera eeting of Trade Liited was ed at %!15 a. on 31 +ctober 2012. Certain sareoders of

te copan ae odged foowing copaints wit te copans secretar.

(i) 4ince te eeting coud not coence at te scedued tie i.e. %!00 a.Q it becae inaid and soud be

caed again.

(ii) A resoution passed in te eeting was approed b a sow of ands. oweer, a po soud ae been

carried out.

(iii) r. A wo oted for a resoution was represented troug a pro> wic was deposited at 5!01 p.. i.e. after

office ours on 2% +ctober 2012. :urter, since 30 +ctober 2012 was a pubic oida, te condition of depositing

te pro> at east "$ ours before te coenceent of te eeting, was not et.(i) r. G wo ods 50,000 sares was represented b two pro>ies i.e. r. C (30,000 sares) R r. * (20,000

sares). +n pro> wit 30,000 sares was counted for te purpose of oting.

() E Liited oding 20,000 sares of te copan was represented b r Waeed, wo is neiter a director

nor an epoee of E Liited.

(a) Coent on te aidit of eac of te aboe copaints in te igt of Copanies +rdinance, 1%$". (0#)

(b) *escribe te circustances under wic a court a decare te resoution passed in te aboe eeting or

te entire proceedings of te eeting as inaid under te Copanies +rdinance, 1%$". (0")

W.12(.#)

Te genera eeting of S? Liited, a isted copan, was conened on 30 a 2012. oweer, on four

sareoders turned up to attend te eeting.

>pain ow S? Liited soud dea wit te aboe situation in te igt of Copanies +rdinance, 1%$". (0&)

4.12(.12)

A nuber of sareoders of 8a7eer 6ndustries Liited want to od an e>traordinar genera eeting to discuss

an iportant atter reating to te copan.

6n iew of te proisions contained in te Copanies +rdinance, 1%$" e>pain!

(a) Te conditions under wic it woud becoe andator for te copan to conene te eeting. (03)

(b) Te rigts of te concerned sareoders in case te copan fais to conene te eeting. (05)

W.11(.&)

An >traordinar Genera eeting of asterind Tecnoogies Liited (TL), a isted copan, was scedued

to be ed on +ctober 31, 200%. Te directors adourned te eeting for te ne>t wee9 as te =uoru was not

present witin fifteen inutes of te scedued tie.

-ased on te proisions of te Copanies +rdinance, 1%$", ou are re=uired to coent on te foowing!

(a) Te decision of te directors to adourn te eeting, assuing!

(i) te eeting was caed upon te re=uisition of te ebers.

(ii) te eeting was caed b te directors. (03)

(b) Te ipact of te adournent on te aidit and rigts of pro>ies wic were deposited wit te copan

before adournent. (02)

(c) Te aidit of te resoution passed at te adourned eeting. (02)

4.10(.")

araci Teecounication (riate) Liited (TL) was incorporated on 1st arc, 200% under te Copanies

+rdinance, 1%$". 6ts directors ae decided to od first Annua Genera eeting (AG) of copan on August

10, 2010, for pacing te first audited financia stateents for period ended arc 31, 2010, for approa.

Coent on decision of te directors, in te igt of proisions contained in te Copanies +rdinance, 1%$".

4.10(.5)


8/38



Te annua genera eeting (AG) of 8i7a 6ndustries Liited was ed on 8oeber 1&, 200%. 4oe of te

sareoders are not satisfied wit te decisions ta9en at te eeting and are of te opinion tat te directors

ae anipuated te situation in order to obtain certain approas in te annua genera eeting.

pain ow and under wat conditions can te proceedings of te AG be decared as

inaid. (05)

W.0%(.&)

(a) Mnder te Copanies +rdinance, 1%$" describe te circustances in wic proceedings of a genera eetinga be decared inaid b te court. Wo is eigibe to a9e petition in tis regard. (03)

(b) >pain te proisions of te Copanies +rdinance, 1%$" wit regard to te =uoru of a genera eeting

of a copan isted on stoc9 e>cange. (03)

4.0%(.11)

Arif R Co., Cartered Accountants were to be re;appointed as auditors at te Annua Genera eeting of /ose

Liited, an unisted copan. Te eeting was ed on +ctober 31, 200# but stood adourned witout

discussing te appointent of auditors. >pain te ega position of te auditors in suc a situation. (02)

4.0$(.2)

(a) 4ee;green Liited, a pubic iited copan, ad conened a genera eeting at %!00 a.. on arc 25, 200$

to consider and if deeed fit, pass a specia resouution approing te disposa of a part of te copans

underta9ing. Te eeting coenced at %!1& a.. as te =uoru was not present at te scedued tie and was

attended b 100 ebers (incuding 10 ebers represented troug pro>ies) oding 1,000,000 sares in

aggregate. After a eated debate, oting was ed troug sow of ands and te cairan decared resoutionsuccessfu as #$ otes were casted in faour of te resoution.

+n arc 31, 200$, te sareoders wo gae a dissenting ote in te eeting, odged a protest wit te

copan caiing tat te resoution was inaid on account of te foowing reasons!

(i) r. A wo oted for te resoution was represented troug a pro> wic was deposited at 5!01 p.. i.e. after

office ours on arc 22, 200$. oreoer, since arc 23rd was a pubic oida, te condition of depositing te

pro> ateast "$ ours before te eeting, coud not be et.

(ii) r. - a sareoder wit a oding of 50,000 sares was represented b two pro>ies i.e. r. C (30,000 sares)

R r. * (20,000 sares). -ot pro>ies were counted for te purpose of oting.

(iii) E (t) Liited oding 20,000 sares of te copan , were represented b r 4aeer, wo is neiter te

director nor te epoee of te copan. e aso oted in faour of te resoution.

(i) Te sareoders wo odged te protest od 300,000 sares and terefore te resoution was approed bsareoders oding #0B oting rigts on.

() 4ince te eeting coud not be ed on tie, it becae inaid and soud be caed again.

*iscuss te aidit of te resoution under te Copanies +rdinance 1%$", in iew of te copaint odged b te

dissenting sareoders. (10)

4.0$(.12)

A resoution was put before te ebers in an Annua Genera eeting, for oting on a sow of ands. -efore te

announceent of te resut, r. 4aab an, a sare oder, deanded a po, wic was refused b te

Cairan.

*iscuss te egait of te cairans decision in te igt of te Copanies +rdinance, 1%$". (05)

4.0#(.$)

A eber of a copan see9s our guidance regarding te procedure for inspection of te inutes boo9 of te

genera eetings. *iscuss te re=uireents reating to te aintenance of inutes and its inspection b teebers. (0&)

W

.0&(.2)

ebers of ?traordinar

genera eeting of te copan to reoe te auditor of te copan. Te copan did not ca te e>tra

ordinar genera eeting and aso did not aow te oding of te eeting at te registered office of te

copan. Te said eeting was ed at soe oter pace and resoution for te reoa of te auditor was

passed. >aine te re=uireents and discuss te aidit of te said eeting and resoution passed. (10)

W.0&(.%)

A genera eeting of a isted copan was adourned b te cairan for want of =uoru. :res notice was not

sered for te adourned eeting.

pain te foowing!

I Weter a noJce is re=uired to be sered for te adourned eeting.

I Te iniu nuber of ebers re=uired to be present in a genera eeting.

I Wat sa be te re=uireent in case of an adourned eetingD (0&)

4.0&(.")


9/38



Annua Genera eeting of a ubic Copan was scedued to be ed on arc 15, 200&. r. A, a sareoder,

issued two ro>ies in respect of te sares ed b i in faor of r. O? and r. O in faor of O? was

odged on arc 12, 200& and te one in faor of r. O in faor of r. Opain weter te reection b te copan is in orderD (0#)

4.0&(.&)

4tate te proisions contained in te Copanies +rdinance 1%$" reating to e>tension in te date of oding

te Annua Genera eeting. (03)

4.05(.%)

Te Copanies +rdinance, 1%$" contains certain safeguarding proisions for inorit sareoders. Two of

tese proisions proide ecanis for proiding reief and safeguarding teir interests proided te

sareoders own certain percentage of oting sares. -rief describe suc proisions. (0%)

W.0"(.2)

(a) Weter it is possibe under te proisions of artices of association to proide for a sorter or arger nuber of

ebers to be a =uoru for a eetingD (01)

(b) Can proceedings of a genera eeting a be decared inaid. 6f so under wat circustances and wo

a initiate tis. 6s tere an tie iitation for tisD (03)

W.03(.&)

*irectors (%!-%$'" 2%!-22!" %%%-%%2)

Te eection of directors of 8ia otors Liited (8L), a isted copan, was ed at te >traordinar Genera

eeting were seen out of nine candidates were to be eected as directors. After te eeting was oer, an eai

was receied at 8L tat r. 8ia ad e>pired in a ospita in ngand.

oweer, te tie of r. 8ias deat was not entioned. Te resut of te eeting sows tat r. 8ia ad

receied te si>t igest nuber of otes in te eection. 6n te igt of Copanies +rdinance, 1%$" state ow

te directors soud dea wit te aboe situation (0&)

4.13(.10)

8ew Ceicas Liited (8CL) is a isted copan. Te copan is in te process of finai7ation of a financing

faciit wit a ban9. Te ban9 re=uires a cop of te board resoution for approa of te ters of te financing.

4ince fie out of seen directors of te copan are current out of te countr, it is not possibe for te secretar

to conene te eeting of te board of directors.

(a) 6n te igt of te proisions of te Copanies +rdinance, 1%$" e>pain wat aternatie course of action is

aaiabe to te copan. (03)

(b) List te steps tat 8CL woud be re=uired to ta9e, if noting in tis regard is stated in te Artices of Association

of te Copan. (03)

W.1

2(.&)

(a) 8ia Liited (8L) is a isted copan. 8arrate te conditions wic a director of 8L woud be re=uired to

cop wit under Copanies +rdinance, 1%$" in case eNse a9es a gain on te sae of copans sares. (03)

(b) 6dentif te persons oter tan te directors, to wo te aboe proisions are aso appicabe. (03)

W.12(.5)

r. -ia is te cief e>ecutie of ower 4ipping Liited (4L), a isted copan. e as agreed to proide a

persona oan of /s. 5 iion to is cousin for purcase of 4Ls sares. Te oan wi be repaid after two ears and

woud carr a ar9;up of 5B per annu. 4uggest te actions wic r. -ia soud ta9e to ensure tat te

proisions of Copanies +rdinance, 1%$" and te Code of Corporate Goernance, 2012 are copied wit. (0#)

W.12(.3)

(a) r. -abar is current wor9ing as a ar9eting anager in 4T Liited (4TL). Te anageent intends to

appoint i as te Cief >ecutie of te copan. e is wiing to accept te offer and as re=uested for a oan of

/s. 10 iion. oreoer, e ad aso ta9en a oan in 200%, of wic /s.1 iion is sti outstanding.

4tate te conditions as specified in te Copanies +rdinance, 1%$" wic 4TL woud need to cop wit, in

respect of te aboe oans. (05)

W.11(.12)

As on Apri 1, 2010 r. :aisa owned one iion sares in *eton Ceicas Liited (*CL), a isted copan. e

as ade te foowing transactions in te sares of *CL during te ear ended arc 31, 2011!

S. No. Date Aition!"Deletion# No. o$ s%ares "&illion# Re&ar's

1. 31.05.2010 "5 urcased fro te ar9et

2. 15.0#.2010 15 urcased fro te ar9et

3. 30.0$.2010 (5) 4od in te ar9et at a profit

". 15.0%.2010 (1)( 4od in te ar9et at a profit

5. 20.11.2010 5 -onus sares

Tese sares were ac=uired on arc 15, 2010 in good fait fro r.


10/38



Te paid;up capita of *CL is 500 iion sares.

/e=uired!

(a) *iscuss r. :aisas responsibiities under te Copanies +rdinance, 1%$" in respect of te aboe

transactions. (0$)

(b) -rief discuss te powers of te 4C in case r. :aisa fais to carr out is responsibiities as referred to in

(a) aboe. (0")r. aeed, wo is a director in A-C Liited, a isted copan, is panning to oe to urope for one ear to set

up is own business. 6n te igt of Copanies +rdinance, 1%$" ou are re=uired to!

(a) /espond to is re=uest for adice, as regards is responsibiities, under te Copanies +rdinance 1%$", in

respect of!

(i) attending te annua genera eeting of te copan. (02)

(ii) attending te board eetings of te copan. (0")

(b) *iscuss te conditions under wic e a be aowed to assign is office to anoter person. (0")

(c) 4tate te procedure and te conditions to be copied wit if te copan wants to reoe

r. aeed fro te directorsip of te copan, under eac of te foowing assuptions!

(i) e was eected as a director of te copan.

(ii) e becae te director of te copan b subscribing to te eorandu of te copan. (0&)

W.10(.2)

An e=uitabe ortgage was created on te factor buiding of Asif Te>tie is Liited, a isted copan, to secure

a ong ter oan obtained fro rs. Wasif, wo is te spouse of a director of te copan. A te eigt directors

of te copan were infora aware about r. Wasifs interest in te transaction. Te board of directors

approed te transaction in teir eeting wic was attended b fie directors.

Mpon inspection of te register of contracts in wic directors are interested, a eber of te copan fied an

appea wit te 4C, caiing tat te ortgage is inaid because r. Wasif, wo is an interested director, ad

aso oted on te atter and terefore te contract is oid.

6n te igt of te proisions of Copanies +rdinance, 1%$" ou are re=uired to!

(a) auate te aboe situation and coent tereon in te igt of te proisions of te Copanies +rdinance,

1%$". (0#)

(b) >pain te anner in wic a genera notice, regarding discosure of interest in a contract, a be gien b

directors of a copan. (05)

4.10(.1)

r. Waeed as ac=uired 3 iion ordinar sares of Ac=uired Liited wose paid up sare capita consists of 22

iion ordinar sares of /s. 10 eac. Te eection of te directors of te copan as recent been concuded.

r. Waeed, being confident of oding a sufficient nuber of sares to be eected as a director, as re=uested te

anageent to arrange a fres eection.

-ased on te proisions contained in te Copanies +rdinance, 1%$" e>pain weter and under wat conditions

a fres eection of te directors a be ed. (0$)

W.0%

(.")

*uring te past 12 onts r. 4oais oding in sares of A-C Ltd (a isted copan) as increased to 13B.

/ecent, e as written a etter to te copan see9ing appointent on its -oard of *irectors. Te copan

secretar ad adised tat since te eection of directors was ed in te preceding annua genera eeting, e

cannot be aditted on te board ti te ne>t eections becoe due. r. 4oai is not satisfied wit te response

and as sougt our adice on te atter.


11/38

Corporate Laws (Topic Wise) ) ' a g e odue *


(a) A-C Liited, a isted copan, is entering into a contract to purcase aciner wort /s. 50 iion fro ?ecutie of A-C iited is aso a director. Te contract for

purcase of said aciner is to be paced before te board of directors of te copan for approa.

4tate te reeant rues as gien in te Copanies +rdinance, 1%$" and describe te procedure wic A-C Liited

soud foow wie entering into te contract.

(b) >pain weter ?t of a isted copan!

Mnder te Copanies +rdinance, 1%$"!6n addition to te directors eected to te -oard of *irectors, wo is

entited to attend te -oard eetings and wat woud be teir oting rigts tereatD (05)

4.0"(.3)

Wo is considered to be a beneficia owner of sares under te proisions of te Copanies +rdinance, 1%$"D

Wat obigations do te reeant proisions of aw pace on i and te tie period in tis regardD+bigation of te copan and penaties under aw are not re=uired to be repied. (12)

W.03(.1)

(a) ow a director of a copan a a9e an assignent of officeD 6s it possibe for a director to appoint is

aternate and if so under wat conditionsD (05)

(b) List an fie contents of report of board of directors re=uired under Copanies +rdinance, 1%$". (05)

(c) Wo can sign te report of directors. (02)

W.03(.3)

(c) r. 6brai is te Cief >ecutie of L8 Liited, a isted copan. e as re=uested te copan for a oan

of /s 30.0 iion. is annua reuneration is /s 2$ iion. 4tate te conditions entioned in te Copanies

+rdinance, 1%$", under wic suc a oan a be adanced b te copan. (0&)

4.0#(.5)


12/38



Chief Eecuti.e" Secretar/ and Mana,in, ',ent (%$#-2!'" 26" 2)

(a) 6n te first eeting of -oard of *irectors of aid Te>tie is Liited (TL), a isted copan, te nae of

r. 6ran was proposed for appointent as cief e>ecutie of te Copan. r. Eaa opposed te proposa on

te foowing grounds!

(i) rs. 6ran is te Cief >ecutie +fficer of :aad Te>tie is (riate) Liited.

(ii) r. 6ran is inoed in te business of stoc9 bro9erage.

(iii) r. 6ran is not a eber of TL. Coent on te obections raised b r. Eaa in te igt of teproisions of te Copanies +rdinance, 1%$". (05)

(b) ?< Liited (?


13/38



'ccounts (2+-2!)

List te conditions specified under te Copanies +rdinance, 1%$" wic a isted copan is re=uired to cop

wit before paceent of its =uarter accounts on its website. (0#)

4.12(.3)

Tere are aegations in te press and serious carges ae been eeed against 4T/ etroeu Liited about

isuse of pubic funds b te anageent. @afar, a director of te copan wants to inspect te boo9s ofaccount, in order to ascertain weter te aegations are true. As @afar does not ae ade=uate 9nowedge of

accounting, e intends to e>aine te boo9s of account in te presence of is friend Arif, wo is a cartered

accountant.

cange is scedued to be ed on +ctober

31, 200" in wic besides oter businesses eection of directors woud be ed and diidend woud be approed

b te ebers. Te secretar is tin9ing to cose register of ebers eiter fro +ctober 2& to 31st or

aternatie fro +ctober 13 to 31st and noted in is diar tat in eiter case e wi infor ebers, 4C

and stoc9 e>canges on %t +ctober, 200" aong wit te notice of eeting about boo9 cosure. Te secretar

is see9ing our opinion as regards te aboe. Adise in te igt of proisions of te Copanies +rdinance,

1%$" and Listing /eguations. (05)

W.0"(.&)


14/38



Mied Questions

/ Liited (/L), a isted copan, ods &.3 iion ordinar sares of T (riate) Liited (TL) wose paid;

up capita consists of 10 iion ordinar sares of /s. 10 eac. Te reaining sares are ed b r. Adnan and

is fai. Te -oard of TL consists of eigt directors of wic fie directors represent /L wie te

reaining tree directors, incuding te cief e>ecutie, are representaties of r. Adnan and is fai.

/L is present considering te foowing proposas!

(a) to appoint one of te directors representing /L, as te cief e>ecutie of TL, in pace of te e>isting

cief e>ecutie. (05)

(b) to appoint -L R Co., Cartered Accountants, as auditors of TL in te fortcoing annua genera eeting.

Te spouse of one of te partners of -L Associates ods one undred tousand sares in TL. (03)

(c) to pedge TLs inentories as securit against a oan to be obtained b an associated copan of TL. (03)

Coent on te aboe proposas in te igt of proisions contained in te Copanies +rdinance, 1%$".

4.11(.5)

6n te annua genera eeting of 4ab7a7ar Liited ed on 4epteber 2%, 200% soe of te sareoders ae

raised te foowing obections!

(c) 4areoders were not aowed to a9e e>tracts fro te register of ebers on te da on wic te

eection of directors was ed.

(d) 10,000 sares of a subsidiar, wic are te propert of te copan, are ed in te nae of a director of

te copan.

(e) 4urpus on reauation of fi>ed assets was credited to te reseres of copan and ater used to pa

diidend

(f) +ne of te directors is not a eber of te copan.

paining te reeant proisions, if an, as contained in te

Copanies +rdinance, 1%$".

(cange. 6ts financia ear ends on *eceber 31.

Te fina diidend for te ear 200# was approed in te AG ed on arc 31, 200$. To aintain its good

paout ratio, te copan decared two interi diidends of 10B and 12B in Eanuar and :ebruar 200$

respectie. Te boo9s were cosed for a period of 12 das and 1$ das respectie. Te directors of 4iga

6ndustries Liited ae now proposed a fina diidend of 20B wic is to be approed in te fortcoing AG

of te copan. Te directors intend to cose te sare transfer register fro arc 25, 200% for deterining

sareoders entiteent for te purpose of diidend, eeting, etc.

6n te igt of Copanies +rdinance, 1%$" ou are re=uired to adise te directors as regards te foowing !

(a) Te a>iu period for wic te boo9s of 4iga 6ndustries Liited can be cosed and te procedure tat

soud be foowed in tis regard.

(b) Te ast date up to wic 4iga 6ndustries Liited can od its AG.(c) Te procedure reating to sending of notices, annua report and audited accounts to te ebers and

concerned autorities.

W.0$(.%)


15/38

ast apers (Topic Wise) 13 ' a g e Adanced Areas


Inesti#ation and related $atters'

(a) 4C as te powers to appoint one or ore persons as inspector(s) to inestigate te affairs of a copan.

4uc inestigation a be initiated on receiing a re=uest fro an concerned person(s) or b te 4C on its

own otion. 6n te igt of Copanies +rdinance, 1%$" ou are re=uired to!

(i) List te parties on wose re=uest 4C a appoint a person as inspector to inestigate te affairs. (03)

(ii) 8arrate te circustances in wic 4C a appoint an inspector on its own otion. (0#)

(b) r. Eaee was appointed as an inspector to carr out te inestigation into te affairs of A Liited. After

preiinar inestigations, r. Eaee is of te iew tat in order to erif certain reated atters, it is

necessar to e>tend te scope of inestigation into te affairs of certain oter reated entitiesNpersons. 6n te

igt of Copanies +rdinance, 1%$" identif te entities or te indiiduas wo te inspector a incude in

is inestigations and wat easures woud be re=uired to be ta9en prior to issuance of notices in tis regard.

(05)

4.13(.$)

As a resut of an appication fied b te ebers of - Liited, its affairs are under inestigation

b te 4ecurities and >cange Coission of a9istan (4C). Te ebers cai tat te copan ad

aotted sares to an inestor against inade=uate consideration and tat te ad not receied te notice of

eeting in wic te decision was approed. Te ae re=uested 4C to restrict te transfer of tese sares

ti suc tie tat te inestigation is in process.

6n te igt of te proisions of te Copanies +rdinance, 1%$" ou are re=uired to state!

(a) Weter and under wat conditions te 4C a ipose restrictions on te transfer of saresD (0")

(b) Wat woud be te effects of suc restrictions on te copan and te concerned inestorsD (0&)

W.11

(.1)

+n subission of te report b te inspector appointed b 4C to inestigate te affairs of ?cange Coission of a9istan (4C), on its own otion, is contepating

appointent of an 6nspector to inestigate te affairs of Crown roperties Liited and as issued a notice for

te sae narrating te reasons tereof. Te directors of te copan are contending tat te said action is

witout an ustified cause.


16/38


17/38



*indin#+p

:or te ast tree onts, A8: Liited (A8:L) as been e>periencing i=uidit crisis and is unabe to eet its

financia obigations witin te due date. 6n te igt of Copanies +rdinance, 1%$" narrate te circustances

under wic A8:L woud be deeed to be unabe to pa its debts. (05)

4.13(.#)

Te ebers of Taau riate Liited (TL) ae decided to go into ountar winding;up.Adise TL about te proisions of te Copanies +rdinance, 1%$" pertaining to!

(a) :i>ation of te reuneration to be paid to te i=uidator. (0")

(b) :iing of acanc in te eent of resignation of te i=uidator. (0")

W.12(.")

Te *irectors of -* Liited intend to wind up te copans business ountari. 6n te conte>t of te

Copanies +rdinance, 1%$" ou are re=uired to e>pain te foowing!

(a) Te re=uireent to fie a decaration of soenc. (0$)

(b) Te contents of decaration of soenc. (02)

4.12(.5)

4ubstantia operating osses sustained b Legend Ceraics Liited (LCL) ae forced its directors to proceed for

copans ountar winding up. According, a genera eeting of LCL was ed on Eu 1, 2010 and r. Atee=

was appointed as te Li=uidator.

6n te conte>t of te proisions contained in te Copanies +rdinance, 1%$" ou are re=uired to e>pain tefoowing!

(a) Te steps tat r. Atee= soud ta9e if te winding up is not copeted ti Eune 30, 2011.(05)

(b) r. Atee=s responsibiities as regards fina eeting and dissoution of te copan. (05)

4.1

1(.2)

A foreign inestor ad ac=uired aorit sares in arine 4tee 4erices Liited (44L) in te ear 200&. *ue to

goba recession, 44L as incurred ea osses and a aor portion of its e=uit as been wiped out.

Conse=uent, te inestor intends to wind up te operations of te copan ountari.

(a) 6n te igt of te Copanies +rdinance, 1%$", adise te anageent as regards te foowing!

(i) Wen woud te ountar winding up process be deeed to coence and wat woud be its effect on te

operations of 44L. (03)(ii) ow coud te directors ensure tat te re=uireents of a9ing a decaration of soenc ae been

copied witD (0&)

(b) 6n order to inii7e te winding up e>penses, te -oard wants to appoint one of te directors as te

i=uidator, on a ont reuneration of /s. 50,000. Adise te -oard as regards te re=uireents of

Copanies +rdinance, 1%$" wit respect to te appointent and reuneration of i=uidator, in te aboe

situation. (0")

4.10(.2)

(a) After incurring continuous osses 4aeen riate Liited ad decided to go into ebers ountar

winding up. r. 4aad was appointed as a i=uidator on a reuneration of /s. 200,000 of wic 25B was paid at

te tie of is appointent. oweer, in Eune 200%, r. 4aad tendered is resignation as a i=uidator.

6n te igt of te proisions contained in te Copanies +rdinance, 1%$" e>pain te rigts and iabiities of r.4aad, in te aboe situation. (05)

(b) 6dentif te persons wo are eigibe to fie a petition for winding up of a iited copan in te Court. (0")

W.0%

(.3)

:riends Te>ties Liited as suffered ea osses and as aost ceased its operations due to goba recession.

Te directors foresee no iproeent in te copans financia eat and are of te opinion tat te

copan soud be i=uidated now, as oterwise, in iew of te deepening econoic crises, it woud be difficut

for te copan to fetc a good aue for its assets.

/e=uired!

(a) 8arrate te circustances in wic a copan a be wound up ountariD (03)

(b) Adise te directors of te copan about te steps tat need to be ta9en to wind up te copan

ountari. (10)(c) 4tate te re=uireents and te procedure to be foowed for a9ing a *ecaration of 4oenc under

ebers ountar winding up. (05)

W.0$(.1)


18/38



4ntetic odings Liited wises to cose down one of its subsidiar copanies isted on te Laore 4toc9

>cange, as it is no ore a iabe unit. Teir ega counse as adised te preparation of a *ecaration of

4oenc as a starting point to wind up te subsidiar. 6n tis conte>t, ou are re=uired to e>pain!

(a) Wat is a decaration of soenc and wat ust it containD (03)

(b) Wen is it ade and wat is its purposeD (02)

(c) Wat conse=uences a foow if te decaration is subse=uent found to be incorrectD (02)

W.0#(.5)

Copan A s n t e process o e ng woun up. T e o ow ng s a st o aounts paa e t!

"Rs.000s#

4aaries and wages (staff strengt %#Q paabe for ast si> onts) 3,000

Mtiit bis 200

ropert ta>es (paabe to Cit Goernent) 150

:ue e>penses paabe to epoees 150

Lega and professiona fees 250

4aes ta> paabe 500

enat paabe under te 6ncoe Ta> Act 2001 100

Contributions to epoees proident fund 200

Leae encasent 200

*isabiit insurance receied fro insurance copan and paabe to staff 100

4ecured oan paabe to 8ationa -an9 of a9istan U rincipa 1,200; 6nterest 250

4ecured trade creditors "00

Mnsecured trade creditors 1000

6n te igt of winding up proisions contained in te Copanies +rdinance, 1%$", ow woud te aboe

aounts be ran9ed for paentD Assuing tat te funds aaiabe wit te copan are /s. 1.#5 iion on,

ow woud te distribution ta9e paceD (10)

W.0#(.12)

+n a petition fied b affected inorit sareoders, te court as directed a copan to be wound up and

as aso appointed a i=uidator. Te e>isting anageent coprising te cief e>ecutie and oter board

ebers, is resisting te oe and is e>pected to create urdes in te winding up proceedings incuding

refusa to and oer custod of boo9s and records and properties to te i=uidator. 8arrate te powers

conferred on te i=uidator and te court, in te aboe situation and wat actions can be ta9en to proceed witte winding up.

4.0#(.3)

As used in te conte>t of winding up of copanies, discuss wen a copan is deeed unabe to pa its debtsD

(05)

W.0&

(.3)

Te *irectors of Genetics (t.) Ltd. ad started ountar winding up proceedings b fiing a decaration of

soenc about 15 onts ago. Te copan sti owes substantia aount to te financia institutions. Te

*irectors ae assured te financia institutions tat teir debts woud be setted witin te ne>t & onts and

ae fied anoter decaration of soenc wit te /egistrar and copied it to te financia institutions. Wat are

te ega ipications if an, on te copan or its directors for!

(i) defaut in paent.

(ii) issue of second decaration of soenc.

Aso e>pain wat reed is aaiabe to te financia institutions in case of defaut b te directors. (0#)

W.0&(.")

Wat is te status of a copan, its cief e>ecutie and its directors wic as coenced winding up

proceedingsD (03)

4.0&

(.1)

Wat is te effect of appointent of i=uidator, on te powers of directors and cief e>ecutieD (03)W.05

(.2)

(a) -rief describe te contents, signatories and oter re=uireents reating to ebers ountar winding;

up. (0$)

(b) *iscuss powers of te Li=uidator of a copan in a ountar winding;up proceedings to a9e a coproise

wit te creditors tat te soud accept

fort paisas in te rupee i.e. "0B of teir tota dues as fu and fina setteent. (0")

4.05(.2)

List preferentia paents aid down in te aw at te winding;up stage of te copan. (0$)4.05

(

.#)

4tate te e>tent of iabiit of a director aing uniited iabiit weter past or present, in case of

ebers ountar winding up of a iited iabiit copan. (0#)

W.0"

(.2)


19/38



A copan as resoed to wind up ountari. igt onts after te decaration of soenc, te copan

as receied a notice of ega suit of a ateria aount, wic woud a9e te copan insoent.

>pain, b reference to te reeant copan aw proisions, te ipications of te aboe;entioned

situation on te winding;up process and te directors. (0%)

4.0"(.&)

Co$panies established otside a,istan

+n Eanuar 1, 2011 Landar9 Liited (LL), a copan incorporated in auritius, estabised a branc office

in a9istan and coenced its business wit te perission of te -oard of 6nestent, a9istan.

+n :ebruar 10, 2011 LL receied a notice fro te registrars office for non;fiing of certain docuents.

6n te igt of te proisions contained in te Copanies +rdinance 1%$", ou are re=uired to!

(a) gie a ist of te docuents tat LL was re=uired to subit to te /egistrar before copetion of

30 das fro te date of estabisent of te branc. (05)

(b) e>pain te effect of non;fiing of tese docuents on te aidit of te agreeents or contracts entered

into b LL during te aboe period and on te rigts of te respectie parties to initiate ega proceedings

against eac oter. (0")

4.11(.3)

A-@ Liited, a copan incorporated in a foreign countr, as estabised an office in a9istan b te nae of

4earc 6nternationa. pain te re=uireents of te Copanies +rdinance, 1%$" as

regards fiing of te annua baance seet and profit

and oss account of A-@ Liited and 4earc 6nternationa. (10)

W.0%(.5)

(a) ioneer 4erices 6nc., a branc office of a M4 copan engaged in software business as decided to wind;up

its operations in a9istan. pain te effect of non;fiing of te aboe docuents on te foowing!

(i)

Saidit of te contract.

(ii)

/igt of eac part to sue eac oter. (05)

4.0&

(.1)

*iscuss te re=uireents of aw reated to fiing of accounts of copanies operating in a9istan but

incorporated outside a9istan. (0#)

4.05(.1)

A copan incorporated abroad wises to set up a branc office in a9istan. *escribe te corporate and

secretaria foraities re=uired to be copeted under te Copanies +rdinance, 1%$". (05)

W.0"

(.2)


20/38


21/38

ast apers (Topic Wise) 1) ' a g e /ues


G ara Liited, a fai owned copan wit 7ero debt, as witnessed rapid growt during te past 5

ears. 6n order to carr on te successfu growt pattern and fufi te eer increasing custoers deand, te

board of directors of te copan is panning to estabis anoter anufacturing faciit at a cost of /s. 200

iion. To eet te cost of te proect, te copan needs to raise capita and terefore as decided to go

pubic.

/e=uired!

Adise te -oard about te conditions to be copied wit for te issuance of capita underte Copanies (6ssue of Capita) /ues, 1%%&. (0%)

W.0$(.5)

6n its eeting ed on +ctober 10, 200# te -oard of *irectors of 4now Wite Liited, a isted copan,

decided to offer a &0B rigt issue at par aue. pain!

(a) Te conditions tat te -oard wi ae to cop wit in tis regard. (0#)

(b) Te additiona conditions wic te -oard wi ae to cop under eac of te foowing situations!

(i) 6f te copans sares ae been traded beow par aue during te past one ear.

(ii) 6f te sares are to be issued at a preiu of /s. 5 per sare. (03)

4.0$(.")

:G is a isted copan and as not decared an diidend or bonus sares during te past few ears. Te

board of directors is now considering distribution of bonus sares.

Te -aance 4eet of te copan prior to te issuance of bonus sares depicts te foowing position!

/s. in iion

4are Capita &0

( &.0 iion sares of /s. 10 eac)

Genera /eseres "0

4are reiu 30

/eauation /eseres 20

6ntangibe Assets 10

Tangibe Assets 200

Adise te copan weter it can issue 25B bonus sares out of te Genera /eseres, a part of wic was

accuuated in prior ears. (0")

W.0#(.#)

(a) Wat do ou understand b te ter FGreen;soe +ptionHD (02)

(b) An unisted copan wants to issue sares to a aciner suppier as consideration for supp of te

pant for its e>pansion progra.

Wat are te 9e re=uireents under te Copanies +rdinance 1%$" and Copanies (6ssue of Capita) /ues

1%%& tat te copan ust fufi in tis regardD (0$)

4.0&(.3)

A director of a profitabe pubic copan wises to offoad is 15B sareoding b eans of an offer for sae

to te genera pubic at a preiu. -rief discuss te re=uireents for suc an offer under te Copan

(6ssue of Capita /ues), 1%%&. (0#)

W.05(.5)

A copan wit a 5 ear profitabe trac9 record is panning to go pubic b offering sares at a preiu.

*iscuss te re=uireents contained in te Copanies 6ssue of Capita /ues, 1%%& wit respect to te

copans pans. (0$)

4.05(.")

Mnder te proisions of te Copanies (6ssue of Capita) /ues, 1%%& define F:ree /eseresH. (0#)W.03(.")


22/38

ast apers (Topic Wise) 20 ' a g e /ues


0+bac, of Shares -les 1...'

anet 6nternationa (6), a isted copan, as panned to bu;bac9 10B of 6s outstanding sares fro its

inorit sareoders. Te board of directors as approed te bu;bac9 of sares at a preiu of 10 per cent

aboe te current ar9et price of /s. "0 per sare. Te suari7ed stateent of financia position as on 31

arc 2013 is as foows!

2013 2012 2013 2012

Rs in *illion Rs in *illion

4are capita (/s. 10 eac) 11,500 11,500 8on;current assets 35,1%5 3","$&

Accuuated profit 10,%&0 ",$%% Current assets "0,%%0 2$,12"

22,460 16,3))

Long ter iabiities 20,"2$ 1%,2%2

Current iabiities 33,2%# 2&,%1%

76,185 62,610 76,185 62,610

/e=uired!

6n te conte>t of Copanies (-u;bac9 of sares) /ues, 1%%% and Copanies +rdinance, 1%$"!

(a) auate and e>pain weter anet 6nternationa is eigibe to bu;bac9 te sares ed b te inorit

sareoders. (05)

(b) 4tate te re=uireents wit regard to auditors certification in te aboe situation. (03)

4.13(.&)

Te -oard of *irectors of G Liited ae decided to bu;bac9 one iion of its ordinar sares.

tie is Liited, a isted copan, pans to bu;bac9 10B sares of te

copan. 6n te igt of te proisions contained in te Copanies (-u;bac9 of 4ares) /ues,

1%%%, specif te conditions tat te copan soud be in copiance wit, before it proceeds to bu;bac9te sares. (0")

4.11

(.&)

: Te>ties Liited is a copan isted on te araci 4toc9 >cange. 6ts directors ae decided tat te

copan woud bu bac9 20B of its sares.

List down te steps to be ta9en for te bu;bac9 of sares as specified in te Copanies

(-u;bac9 of sares) /ues, 1%%%. (10)

4.10(.%)

>press Liited, a copan isted on te araci 4toc9 >cange as a paid;up capita of /s. 100 iion diided

into 10 iion sares of /s. 10 eac. Te -oard of *irectors ae approed te purcase of 100,000 treasur

stoc9s at /s. 15 eac witin 30 das, b a tender. As te Copan 4ecretar, wat procedure woud ou foow

in tis regardD (11)

4.0$(.%)

A arge group of copanies is panning a bu bac9 of sares in soe of its copanies. Te Group

anageent Coittee (GC) as arious aternaties and options for buing bac9 of sares b consideringte groups future strategies. After a detai reiew te GC as infored te Group Copan 4ecretar as

under!

(a) 8A 4oft (riate) Liited is a er we 9nown software ouse and as a paid up sare capita of /s. 100

iion. Te copan woud i9e to bu bac9 25B of its paid up capita. Te debt e=uit ratio of te copan is

#5!25 and te current ratio is 1!1.

(b) A4L Ltd., a paraceutica copan, is isted on araci 4toc9 >cange. 6t as a sare capita of /s. 500

iion and retained earnings of /s. 100 iion. Te board of directors of te copan as decided in teir

eeting to bu bac9 sares of /s. 200 iion. Te copan as sufficient cas resources for purcase of

sares.

(c) CL4 Te>tie is Ltd., is a isted copan aing a registered office in te proince of unab. r. Ai, a

oder of 20B sares, as sown is interest in seing is oding direct to te copan. Te anageent of

te copan is wiing to accept is proposa.

As a Group Copan 4ecretar, ou are re=uired to adise te GC on te egait of transactions wic te

group is panning to underta9e. (10)

4.0&(.5)


23/38



Wat inforation is re=uired to be incuded in te tender notice for purcase of own sares under te

Copanies (-u;bac9 of sares) /ues, 1%%%D (05)

W.05(.10)

Te Cief :inancia +fficer of a pubic unisted copan pans to se sares ed as inestent on its baance

seet to a financia institution Vto raise funds it needs for sort ter use and bu te bac9 at te agreed

price on e>pir of te ter of agreeent. e see9s our adise on te 9e differences between te

contepated bu;bac9 and te one perissibe under te Copanies -u;bac9 of 4ares /ues 1%%%. (0&)

W.0"

(.3)

Co$panies -les 1.5

r. Asif is a director of Arif Te>ties Liited (ATL), a isted copan. e as entered into te foowing

transactions in te sares of ATL!

6n te igt of te proisions of te Copanies (Genera roisions and :ors) /ues 1%$5, ou are re=uired to!

(a) Copute te aount of gain or oss to be tendered to te copan b r. Asif. (0&)

(b) Te treatent of te aount paid b r. Asif on account of bro9erage, stap dut etc. (02)

W.11(.2)

8ia Associates is an association of persons and is inoed in caritabe and oter socia actiities for te

wefare of te genera pubic. 6t intends to register itsef as a iited copan but does not want to incude te

word FLiitedH in its nae.

6n iew of te proisions of te Copanies (Genera roisions and :ors) /ues 1%$5, ou are re=uired to

identif te conditions tat 8ia Associates woud need to fufi in order to get te re=uired perission fro

te 4ecurities and >cange Coission of a9istan. (0&)

W.11(.5)

Te copan secretar of 8aar Te>ties Liited, a isted copan, as resigned. Te directors are in te

process of appointing a new secretar and few candidates wit aried bac9grounds ae been sort isted forte position.

Adise te directors as regards teir responsibiit wie appointing te Copan 4ecretar, in te igt of te

proisions of te Copanies (Genera roisions and :ors) /ues 1%$5. (0")

4.10(.$)

Te ebers of ?pand its scope of actiities.

List te inforation wic wi be re=uired to be subitted in te appication to te concerned autorit. (0#)

W.0#(.&)


24/38



Share Capital (2ariation in -i#hts & riile#es) -les !333

Goba 6ndustries Liited (G6L) is a isted copan wic as a paid;up sare capita consisting of 100 iion

sares of /s. 10 eac. G6L is panning to purcase ea e=uipent costing /s. 250 iion fro Word

acineries Liited (WL) for its new proect. 6n a eeting of G6Ls -oard of *irectors, it was proposed to

finance te cost of te e=uipent b issuing 20 iion sares to WL at a preiu of /s. 2.50 per sare.

oweer, since a nuber of directors were of te opinion tat te issuance of sares woud enabe WL to

e>ercise significant infuence on G6Ls poicies, te -oard adised te C+ to oo9 into te possibiit of issuing

non;oting ordinar sares.

/e=uired! 6n our capacit as Corporate Consutant of te copan, adise te -oard of *irectors of G6L as

regards te re=uireents of te Copanies 4are Capita (Sariation in /igts and riieges) /ues, 2000 and

Copanies (6ssue of Capita) /ues, 1%%& wic G6L needs to cop wit, in reation to te issuance of non;

oting ordinar sares to WL. (10)

W.12(.%)

Te paid;up capita of Eupiter Tecnoogies Liited consists of 100 iion ordinar sares of /s. 10 eac. Te

directors are now panning to issue 2 casses of preference sares to e>isting sareoders, for /s. 100 iion.

6n te igt of te proisions of te Copanies 4are Capita (Sariation in /igts and riieges) /ues, 2000 ou

are re=uired to adise te directors, as regards te foowing!

(a) Te conditions wic ust be copied wit, for issuing different casses of preference sares.

(b) Te nature of ariation in rigts and priieges tat can be associated wit different casses of sares. (11)

W.10(.")

r. an, cief e>ecutie of rosperous ngineering Liited, is assessing te possibiit of setting up a new

proect in Gwadar in coaboration wit a prospectie foreign inestor. e is confident tat te proposed

proect wi reap significant benefits to te copan. 4ince e does not wis to diute is oding and oting

rigts, e is panning to issue cass - sares to te inestor aong wit 1&B T:Cs wit a foating carge on te

boo9 debts of te copan and a fi>ed carge on its aciner in te anufacturing departent. e wants to

ae our adice on te issue.

(a) >pain to r. an arious rigts and priieges wic sareoders a ae in case of ore tan one

cass of sare capita, under te Copanies 4are Capita (Sariation in /igts and riieges) /ues, 2000. (0&)

W.0$(.")

(b) An e=uit inestent of /s. 2#5 iion as been offered b A group of copanies to /ose Liited. 6norder to e>pand te business actiities of te copan, te anageent is incined to accept te proposa.

oweer, te sares to be issued woud not ran9 pari passu wit te current sares and sa be tered as

Cass F-H sares.

Te current position of te copans capita and reseres is as under!

4are Capita! /upees(in iion)

4are Capita!

Autori7ed 500

6ssued, subscribed R paid up 330

Capita /eseres!

4are preiu account "5

/eenue /eseres!

Mn;appropriated profit 20

6dentif te reeant proisions wic /ose Liited wi ae to cop wit and describe

brief te steps it woud need to ta9e, for issuance of sares. (10)

4.0$(.2)

Te anageent of a isted copan wants to ipeent an epoee sare option scee. Te *irectors

representing aorit sareoding of 51B oweer ae concerns tat teir aorit oding igt get

diuted to beow 50B in te ong run. 6n ters of te preaent corporate aws, suggest an aternatie soution

tat coud address te concern of te aorit sareoders. Aso e>pain te conditions re=uired to be

copied wit and te arious options aaiabe to te directors. (0%)

W.0&(.#)


25/38



A copans sare capita coprises ordinar sares and $B cuuatie preference sares wit no oting

rigts. 6t now proposes to increase te preference sares b anoter 25B to fund ac=uisition of ong;ter

strategic assets. *escribe te 9e ega re=uireents tat wi ae to be copied wit to gie effect to te

aboe proposa. (0&)

W.05(.3)

A group of sponsors want to incorporate a copan into wic te wi transfer a business unit te are

ac=uiring fro anoter group of copanies. Te intend to induct anoter group of inestors as e=uit

partners. Tese are financiers and are not interested in oting rigts, rater teir principa ai is

te return on inestent.

>pain ow te obectie of te financiers can be acieed in igt of te proisions of te Copanies

+rdinance and an reated rues. (10)

4.05(.")

(a) Can a copan ae ore tan one cass of sare capitaD, and (01)

(b) Wat ariations are possibe wit regards to te rigts and priieges of different casses of sare

odersD (03)

(c) Wat conditions app to suc furter issueD (0&)

4.0"(.$)

Appoint$ent of 4e#al Adisors -les 1.5'

(a) *escribe te re=uireents to be fufied b a copan under te Copanies (Appointent of Lega

Adisers) Act, 1%#" as regards te appointent of ega adisers. (03)

(b) +n 01 *eceber 2012, *eta Cotton is Liited (*CL) appointed etab R Co. as ega adiser of te

copan in pace of *iawer R Co. >pain te ega foraities wic *CL woud be re=uired to cop wit

under te Copanies (Appointent of Lega Adisers) /ues, 1%#5. (0")

W.12(.$)

4tate te proisions contained in te appointent of Lega Adisers Act, 1%#" reating to te eigibiit for

appointent as ega adisers. (03)

W.10

(.3)

is Liited is an unisted pubic copan. 6t intends to appoint Associates, a registered fir of awers

wit two partners, as its ega adisers. Associates are aread te ega adisors of te foowing &

copanies!

(i) A-C Liited and ?


26/38



6on an,in# 7inance Co$panies (67C)

4tate te criteria wic te e >ecuties of 8on;-an9ing :inance Copanies are re=uired to fufi under te

8otified ntities /eguations, 200$ wit regard to!

(a) Copetence and capabiit. (05)

(b) Confict of interest. (0&)

4.13(.11)

-rief e>pain te restrictions iposed under 8-:C /ues, 2003 as regards!

(a) urcase or sae transaction wit a director.

(b) 4ae or transfer of ownersip of sares in subsidiar or associated copan.

(c) 6nestent in subsidiar.

(d) Transactions wit a bro9er. (0$)

4.13(.5)

A;4aad 6nestent Liited (A46L) is a non;ban9ing financia copan (8-:C) isted on a te stoc9 e>canges in

a9istan. A46L as been incurring substantia osses and its sareoders, not being satisfied wit te

perforance of te Cief >ecutie, ae referred te atter to te Coission for reoa of te Cief>ecutie. oreoer, te sareoders ae aso e>pressed te appreension tat te tie re=uired to cop

wit te necessar procedures woud dea te atter wic woud be detrienta to teir interests. 6n te

igt of Copanies +rdinance, 1%$" ou are re=uired to state!

(a) Te grounds on wic te Coission a order reoa of te Cief >ecutie. (0")

(b) Te course of action aaiabe to te Coission if it wants to address te sareoders appreension

regarding procedura deas. (0")

4.13(.2)

A;/ean group coprises of te foowing copanies!

(i) A;/ean Leasing Copan Liited

(ii) A;/ean 6nestent :inance 4erices Liited

(iii) A;/ean ousing :inance 4erices Liited

Te aorit sareodersNdirectors of te group ae decided to erge a te aboe copanies and bringte under te ubrea of a singe corporate entit. 6t is enisaged tat te decision to erge te indiidua

copanies into a singe entit woud ep to aciee snergies, cost efficiencies and better utii7ation of te

resources.


27/38



:L as recent been incorporated as a non;ban9ing financia institution and pans to carr out ore tan one

for of business. pain te restrictions tat ae been paced on te 8-:Cs under te 8-:C /ues, 2003 in respect of

te foowing!

(i) appointent of directors fro te sae faiQ

(ii) transfer of ownersip of controing saresQ and (iii) epoing a person as a bro9er. (0#)

W.0%(.10)

(a) @ Liited, an 8-:C engaged in easing business, is current facing serious financia crisis. 4C is not

satisfied wit te financia anageent of te copan and as ordered a specia audit of te copan. 6n

te igt of te reeant proisions of te Copanies +rdinance, 1%$" reating to 8-:Cs ou are re=uired to

e>pain weter te Coission is epowered to a9e suc an order. Aso describe te rigts of te

Coission in tis regardD (0&)

(b) *escribe te conditions appicabe to a 8-:C reating to te appointent of interna auditor, under te

8-:Cs (stabisent And /eguation) /ues, 2003. (05)

4.0%(.12)

(a) List te tpes of businesses tat 8-:Cs are peritted to carr out under te reeant proisions of

Copanies +rdinance 1%$". (03)

(b) 6n order to reap benefits of arge scae operations, te -oard of *irectors of oonigt Leasing Liited and

*rea Leasing Liited intend to aagaate te operations of te two copanies.

4tate te procedure wic soud be foowed for te erger of te two copanies and te approas re=uired

to be obtained for tis purpose, under te proisions reating to estabisent and reguation of 8-:Cs. (0$)

W.0$(.3)

:iber Leasing Liited as recent ost one of its *irectors and te Cief >ecutie in a tragic car accident. Te

copan wants to appoint r. -ig and r. 4art in pace of its ate director and cief e>ecutie respectie.

Wit reference to 8-:C and 8otified ntities /eguations, 200#, state te considerations wic 4C woud

ta9e into account wie assessing teir copetence and capabiit as *irector and Cief >ecutie. (0%)

W.0$(.&)

A arge group based in *ubai wises to set up a copan for carring out a ast spectru of inestent;reated

actiities in a9istan.

(a)


28/38



(a) / Liited, an 8-:C, as a icense to underta9e 6nestent :inancia 4erices. List soe of te

serices tat it a perfor wie carring out!

; roect financing.

; Corporate finance serices. (10)

(b) 4tate te conditions wic / Liited sa ae to cop wit, if it desires to

issue Certificates of *eposits wort /s. 100 iion. (0")

W.0&(.$)

(b) A group of inestors want to incorporate a copan wic wi be engaged in easing and enture capitabusiness. pain te iniu capita re=uireent of running tese businesses under 8-:C

/ues 2003. (03)

(c) Wat restrictions ae been paced on te scope of business actiities of a easing copan under te 8-:C

/ues 2003D (0&)

4.0&(.&)

*iscuss te proisions of 8on -an9ing :inance Copan /ues 2003, in respect of te foowing!

(a) *ifference between securities issued b an asset anageent copan and an inestent copan(0")

(b) >posure iits on an 8-:C underta9ing inestent finance serices to a singe issuer and te e>posure

iit if te 8-:C is engaged in ousing finance sericesD (03)

W.05(.&)

aorit sareodersNdirectors of a group of copanies in te financia serices sector coprising a cosed end

utua fund, easing, and ousing finance copan beiee tat tese actiities need to be erged and brougt

under te ubrea of a singe corporate entit. Te fee tat in tis anner te woud be abe to aciee

snergies and te cobined capita can be utii7ed in a ost efficient anner.

Wat steps and ega foraities need to be copied wit to gie effect to te aboe conceptD (10)

4.05(.3)

Wat is te singe ost distinguising factor between te business actiities tat a ban9ing copan can

underta9e as copared to a non;ban9ing financia institutionD List te broad business actiities tat an 8-:C

can underta9e and state te icensing re=uireents for an e>isting inestent ban9 wic aso intends to

do business besides inestent ban9ing, easing and ousing finance serices. (0%)

W.0"(.3)

A diersified financia serices group is panning to enture into e=uit inestent wit a strategicfocus on copanies isted on te stoc9 e>cange.


29/38

ast apers (Topic Wise) 27 ' a g e 4ecretaria racices


Secretarial ractices

8ationa Traes Liited (8TA), is a isted copan, and operates trougout a9istan. 6n order to finai7e a

running finance arrangeent wit a ban9, it re=uires a cop of te board resoution approing te ters of

financing. 4ince fie out of eigt directors are current out of te cit, it is not possibe for te secretar to

conene te eeting of te board of directors.

6n igt of te proisions of Copanies +rdinance, 1%$" ou are re=uired to state, weter te aboe resoution

can be passed b circuation and te steps re=uired to be ta9en to pass suc a resoution (0$)

4.0%(.

10)

Te -oard of *irectors of Gareeb Liited as decided to contribute a fi>ed aount eer ear to a caritabe

organi7ation. Te copan secretar notified tat a cause needs to be inserted in te obect cause of te

eorandu of Association for te sae. *raft a cause to be incuded in te eorandu coering te

perissibiit of te proposed actiit. (02)

4.0$(.%)

Te board of directors of a isted te>tie weaing unit (W Weaing is Liited) as approed a scee of

aagaation wit its fu owned subsidiar, * *eing is Liited. Te erger wi resut in econoies of

scae wic woud eentua increase te profitabiit of te copan in te coing ears. isting copan.

(i) Appointent and reuneration of cief financia officer approed.

() Capita e>penditure of up to 10B of e=uit.

(i) -onus issue utii7ing a aaiabe reseres

(ii) 6ncrease in paid up capita troug furter issue to e>isting sareoders.

*raft a notice for te fortcoing Annua Genera eeting (AG) of te copan and te agenda containing

ites tat are nora incuded in an AG for ebers approa. Aso coent on an aspect tat is not in

accordance wit te proisions of te copan aw or reated rues. (10)

4.05(.5)

A isted scedue ban9 is panning to raise its paid up capita to cop wit te 4tate -an9 of a9istans

iniu paid up capita re=uireents. 6t as re=uested ou to identif options aaiabe to it for

increasing its paid up capita and te 9e corporate and secretaria re=uireents it woud need to

cop wit. (12)

W.0"(.1)

*raft a notice of an annua genera eeting of a isted copan. Apart fro te usua ites tat are incuded

in te agenda of suc a eeting, te sareoders approa is aso to be obtained for inestent in an

associated copan. Aso ist ites tat woud be incuded in te stateent of ateriafacts about tis inestent. (0$)

W.0"

(.5)


30/38

ast apers (Topic Wise) 28 ' a g e 4ecretaria racices


A copan recent pubised a prospectus. Te subscription date as passed and baoting on account of oer

subscription as been carried out. List te subse=uent corporateNsecretaria action re=uired for obtaining te

coenceent of business certificate. (0")

4.0"(.2)

Te Artices of Association of a pubic isted copan proides tat in case of an e=uait of otes in a -oard

eeting, te Cairan sa ae and e>ercise a second or casting ote. Te -oard of *irectors coprises %

ebers incuding te Cairan. 6n te ast eeting of te -oard, te Cairan was not present and te

eeting was presided b r. T wo is te Cief >ecutie of essrs A (riate) Liited and ods &0B of itssares. 6n te sae eeting -oard as to consider te renewa of contract wit essrs A (riate) Liited for

supp of pac9ing ateria at reised ters. :our directors opposed te renewa at te reised ters wereas

reaining four incuding r. T were in faour of approing te renewa at te reised ters. At te first

instance r. T tried to conince te oter directors but on teir refusa due to e=ua diision of -oard e

e>ercised te casting ote as a Cairan of te eeting and decared te renewa as approed. ind

coent e>paining te reeant proisions of te Copanies +rdinance, 1%$". (0#)

4.0"(.%)


31/38

ast apers (Topic Wise) 2) ' a g e +ter Laws


Stoc, 89chan#e 4istin# -e#lations

(a) >pain te ters F-oo9 buiding processH and F:ree foatH as defined in te Listing /eguations of te

araci 4toc9 >cange (Guarantee) Liited. (0")

(b) >pain te foowing under te Listing /eguations of te araci 4toc9 >cange!

(i) 6ssue of bonus sares (05)

(ii) 4ae or purcase of te copans sares b its cief e>ecutie. (03)

4.13(.3

)

Te eeting of te -oard of *irectors of A@ Liited woud be ed on 25 Eanuar 2013 to consider

decaration of fina cas diidend. Te Annua Genera eeting in wic te cas diidend is to be approed

woud be ed on 0" arc 2013.

List te inforation wic A@ woud be re=uired to proide to te concerned stoc9 e>cange(s) in a9istan as

regards te aboe eetings, and te tiings tereof, according to te Listing /eguations. (0&)

W.12(.12)

-ased on te Listing /eguations of te araci 4toc9 >cange, state te foowing!

(b) /eguations reating to transfer of sares and cosure of sare transfer boo9s. (05)

4.12(.&)

/an 6ndustries Liited (/6L) as been incurring osses for te ast few ears and as terefore not decared an

diidends. Conse=uent, te ar9et price of its sares as decined and tis as aso aderse affected teprices of sares of oter group copanies. Te directors of /6L ae terefore decided to opt for

ountar de;isting of te sares of /6L and to offer te purcase of sares fro te ar9et.

Wo wi deterine te offer price and wat woud be te basis for deterination of te offer price under te

isting reguationsD (05)

W.11(.#)

4tate te conditions specified under te isting reguations in respect of eac of te foowing!

(a) *ecaration of financia resuts and announceent of diidend. (0&)

(b) 6ssuance and despatc of diidend warrants and paent of diidend. (0&)

4.11(.10)

cange. As te C:+ of te Copan, ou are cogni7ant of

te fact tat te responsibiities of te copan woud increase significant after it gets itsef isted.Conse=uent, ou are re=uired to a9e a report for presentation to te directors as regards te foowing!

(a) Conditions re=uired to be copied wit b cange, to be eigibe for isting. (0$)

W.10(.#)

List te circustances, as referred to in te Listing /eguations of te araci 4toc9

>cange (Guarantee) Liited, under wic a isted copan a be paced in!

(a) *efauters segent. (0#)

(b) 8on;Copiant segent. (03)

4.10(.3)

Certain transactions ae been carried out troug a stoc9 e>cange, in securities not isted on te e>cange at

te tie te transactions too9 pace. Mnder wat

circustances are suc transactions aidD (03)

W

.05(.")


32/38

ast apers (Topic Wise) 30 ' a g e +ter Laws


Code of Corporate :oernance

(a) AS@ Liited as recent been conerted into a isted copan. r. a=, representing inorit sareoders,

as subitted is papers to contest te eection of te directors to be ed after 30 das. -ased on te

reguations of te Code of Corporate Goernance, 2012 ou are re=uired to adise te copan in respect of!

(i) Coposition of te -oard. (05)

(ii) 4teps tat te copan soud ta9e wit regard to te re=uest subitted b r. a=. (03)

(b) 4tate te circustances specified under te Code of Corporate Goernance, 2012 in wic a director is not

considered as an independent director. (0")

4.13

(.1)

*iscuss te proisions of te Code of Corporate Goernance, 2012 in respect of!

X :re=uenc of eetings of te audit coittee (0")

X Attendance in te aboe eetings (0")

W.12(.13)

-ased on te Listing /eguations of te araci 4toc9 >cange, state te foowing!

Weter an audit fir a be appointed as te auditor of a isted copan, if one of its partners is found guit

of professiona isconductD (0")

4.12(.&)

Mnder te Code of Corporate Goernance, wat are te conditions under wic a person becoes ineigibe to be

appointed as te director of a isted copanD (0")

4.11(.11)

8arrate te proisions contained in te Code of Corporate Goernance reating to!

(a) +rientation Courses N *irectors ducationa rogra. (03) (b) Te responsibiit of C+ and C:+ of a isted

copan as regards endorseent and approa of financia stateents prior to teir circuation. (03)

(c) 4ecretaria Copiance Certificate. (03)

W.10(.&)

cange. As te C:+ of te Copan, ou are cogni7ant of

te fact tat te responsibiities of te copan woud increase significant after it gets itsef isted.

Conse=uent, ou are re=uired to a9e a report for presentation to te directors as regards te foowing!

(b) Additiona inforation to be discosed in te *irectors report of a isted copan. (0$)

(c) Circuation of =uarter accounts. (0")

W.10(.#)

>pain te proisions of te Code of Corporate Goernance in respect of te foowing!

(a) Appointent of te cairan of te copan. (02)

(b) eeting of te board of directors and inutes tereof. (0&)

4.10(.#)

>pain te proisions contained in te Code of Corporate Goernance as regards te appointent of e>terna

auditors. (05)

W.0%(.#)

Te -oard of *irectos of 6=ra 6ndustries Liited, a new incorporated isted copan, is in te process offoruating significant poicies to goern te operations of te copan.

As a eber of te -oard, identif te significant poicies wic soud be foruated, as adised under te

Code of Corporate Goernance. (0&)

4.0$(.#)

(a) FAn e>ecutie director cannot becoe te Cairan of te audit coitteeH. *o ou agree wit te

stateentD >pain. (03)

(b) >pain te proisions of te Code of Corporate Goernance reating to audit

coittee in respect of foowing!

I oding of eeJngs

I AYendance at eeJngs (0#)

4.0#(.%)


33/38



(a) Write sort notes on te proisions of te Code of Corporate Goernance in respect of te foowing!

(i) :re=uenc of board eetings, notice of eetings and te cairan of a eeting.

(ii) *issenting ote of a director.

(iii) ersons aowed to attend -oard eetings oter tan te directors of te copan and te tpe of oting

rigts suc persons can e>erciseD (0%)

W.0&(.%)

Te Code of Corporate Goernance is a set of recoendations for onitoring and superision of copaniesincorporated under te Copanies +rdinance, 1%$" b te 4ecurities and >cange Coission of a9istan. 6s

tis stateent trueD *iscuss in te igt of te undering egisation N Code. (05)

Code of Corporate Goernance aso contains soe eigibiit criteria for te directors. *escribe tese criteria. (05)

W.05(.1)

Wat is te roe and responsibiit of Audit Coittee under te Code of Corporate Goernance notified

b te 4ecurities and >cange Coission of a9istanD (0#)

W.0"(.&)

Mnder te Code of Corporate Goernance!

(i) ow an ties is -oard of *irectors re=uired to eet and wat is te notice period for suc eetingsD (02)

(ii) Wat additiona pre;re=uisites e>ist wit regard to paceent of financia stateents before te -oard of

*irectorsD (03)

4.0"(.3)

Mnder te Code of Corporate Goernance!

(a) Wat powers are re=uired to be e>ercised b te board of directors and docuented b a resoution

passed at a eetingD (05)

(b) List an fie significant issues to be paced before te board of directors to strengten and forai7e

corporate decision;a9ing process. (05)

W.03(.#)


34/38



78-A

ein Eason is a M nationa but is residing in Austraia. e intends to inest in securities isted at araci 4toc9

>cange. 6n te conte>t of te proisions of :oreign >cange /eguations, adise i in respect of te

procedure to be foowed for purcase and sae of sares of copanies isted in a9istan.

(0&)

4.12(.#)

a9istan is a branc of G (a copan registered in Geran) and is engaged in te software e>port

business. 6t re=uires wor9ing capita finance to support its operations and intends to borrow funds fro its

ead office i.e. G on a repatriabe basis.

pain te conditions wic a9istan woud ae to cop wit under te

:oreign >cange /eguations of te 4tate -an9 of a9istan. (0%)

W.0%(.$)

(a) 6n iew of arge decine in te aue of sares in Asian ar9ets, a group of M4 inestors beiee tat now is

te opportune tie to inest in suc ar9ets as te ae aost reaced teir owest iits. +ne suc

inestor, r. 8/ is interested in buing securities isted on araci 4toc9 >cange. Wit reference to reeant

proisions of :oreign >cange anua, ou are re=uired to adise r. 8/ on te foowing!

(i) Te procedure to be foowed in order to trade in isted sares in a9istan.

(ii) Weter r. 8/ woud be entited to receie diidends on suc securities and are tere an restrictions on

repatriation of funds outside a9istanD (0%)

(b) >pain te eaning of Fa person resident outside a9istanH as referred to in te :oreign >cange

/eguations. (03)

W.0$(.$)

>pain ter ter F:oreign Controed CopanH as referred to in te :oreign >cange

/eguations.

4.0$

(.&)

apes of suc situations. (0#)

W.0"(.&)

an,in# Co$panies

.$ 4tate te autori7ed persons wo can sign te annua accounts of te foowing copanies under te

respectie proisions of te aws appicabe to suc copanies!

(b) a ban9ing copan (0")

4.05(.$)


35/38



CDC

Mnder te proisions of te Centra *epositor Act, 1%%# no director or officer of a centra depositor sa

discose an inforation or docuent reating to te affairs of an of te accountoders to an oter

person. List te e>ceptions to te aboe proision of te Centra *epositor Act, 1%%#. (0%)

W.12(.11)

-ased on te proisions of te Centra *epositories Act, 1%%#!

(a) -rief e>pain te ter FarticipantH. (03)

(b) 6dentif te purposes for wic issuer of a securit a re=uest te Centra *epositor Copan

to proide a ist of te naes and oter reeant detais of te account oders and

sub;account oders of its securities. (0&)

W.11(.")

Te -oard of *irectors of odern Te>tie is Liited (TL) recoended te issue of 20B bonus sares

for te ear ended 4epteber 30, 2010. Te register of ebers for deterining te entiteents was

cosed fro +ctober 22, 2010 to +ctober 2%, 2010 (bot das incusie). Te copan is isted on araci

and Laore 4toc9 >canges and its securities are entered in te Centra *epositor 4ste.

4tate te responsibiit of TL and te Centra *epositor upon issuance of bonus sares under teCentra *epositories Act, 1%%#. (0")

W.10(.$

)

(b) >pain te ter FarticipantH as defined under Centra *epositor Act, 1%%#. (02)

Te 4ecurities of 4aiar 6nestent Copan Liited (46CL) are registered in te nae of Centra

*epositor Copan (C*C). List te steps wic te C*C wi ae to ta9e were a bonus issue is decared b

46CLD (05)

4.0$(.11)

F+nce a copans sares are decared eigibe securities wit te Centra *epositar 4ste and a

sareoder registers is or er psica scripts wit te C*4, te sareoder wi stop receiing notices for

copan eetings as te C*C wi be te registered oder of sares in te copans register of ebers.H

Coent on te aboe stateent. (03)

W.0&(.11)

(b) Wat do ou understand b te ter Centra *epositor 4steD >pain te rigts of te sareoders

registered as account oders in te sste, to attend and ote at te genera eetings of te copan. (05)

W.05

(.3)

ow is a boo9 cosure of a isted copan reeant to a sareoder wit sares in te C*CD (02)

As per corporate practice, sareoders aing psica scripts are re=uired to sign against te foios prior to

attendance. Wat is te e=uiaent practice for sareoders wit C*C accountD (02)

W.03(.%)

Insrance


36/38


37/38


38/38


A group of inestors ac=uired 20B sares of essrs as Liited fro te ar9et and got tose transferred

te sae in te nae of one of teir copan. 4ubse=uent te ac=uired additiona 2&B sares

and odged te sae wit te copan wit te intention of participating te eection of directors to be

ed ne>t ont at te annua genera eeting. -efore te copetion of transfer, te 4C issued an

order proibiting!

(a) te e>ercise of oting power in respect of 20B sares aread transferred(b) te transfer of additiona 2&B sares odged for transfer

6s 4C epowered to a9e suc an order and for wat periodD Wat reed is aaiabe to te aggrieed

against tis orderD (0#)

4.0"(

.")

Co$petition Ordinance and -e#lations

According to te Copetition +rdinance, 2010!

(a) 8o underta9ing sa enter into deceptie ar9eting practices.

List te practices wic are deeed to fa under te puriew of deceptie ar9eting practices. (03)

(b) 8o underta9ing or association of underta9ings sa enter into an agreeent wic ae te obect or

effect of preenting, restricting or reducing copetition witin te reeant ar9et.

>pain ow and under

ICAP Past 20 Attempts Questions - Topic Wise

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