Subject :Corporate Law

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Name :Veerthapa                                                                                                                              Marks : 80
Course : Masters in Business Administration (MBA 4 Sem)
Subject :Corporate Law


Answer the following question.

Question.1. Distinguish sale and hire purchase (10 marks)

Answer:Differences between Hire Purchase and Leasing

There are a number of differences between hire purchase and leasing. They are given below

1. Transfer of ownership: In Hire purchase, the agreement is entered for the transfer of ownership after a fixed period. But in Leasing it is only in financial lease, the ownership will get transferred. While in operating lease, the ownership is not transferred.



Question.2. Discuss FDI (10 marks)

Answer:A foreign direct investment(FDI) is an investment in the form of a controlling ownership in a business in one country by an entity based in another country. It is thus distinguished from foreign portfolio investment by a notion of direct control.  The origin of the investment does not impact the definition as an FDI: the investment may be made either "inorganically" by buying a company in the target country or "organically" by expanding operations of an existing business in that country.



Question.3. How issue of securities to person resident outside India take place (10 marks)

Answer:In exercise of the powers conferred by clause (b) of sub-section (3) of Section 6 and Section 47 of the Foreign Exchange Management Act, 1999 (42 of 1999), the Reserve Bank of India hereby makes the following amendments in the Foreign Exchange Management (Transfer or Issue of Security by a Person Resident Outside India) Regulations, 2000 (Notification No. FEMA 20/2000-RB dated 3rd May, 2000), namely:-

1.       Short Title and Commencement:-



Question.4. Threat to commit suicide isit coercion? (10 marks)

Answer:Threat to file a suit. To threaten a criminal or civil prosecution does not constitute coercion because it is not an act forbidden by the Indian Penal Code. But a threat to file a suit of a false charge constitutes coercion, for such an act is forbidden by the I.P.C. (AskariMirzavsBibi Jai Kishori)

Threat to commit suicide. Neither suicide nor threat to commit suicide is punishable under the Indian Penal Code: Only an attempt to commit suicide is punishable under it.

In ChikkamAmmirajuvsChikkamSeshamma, there arose a question as to whether a threat to commit suicide amounts to coercion, and the Lordships of the


Question.5. What are the Rights and liabilities of Incoming partners (10 marks)

Answer:The Partnership Deed contains the mutual rights, duties and obligations of the partners, in certain cases, the Partnership Act also makes a mandatory provision as regards to the rights and obligations of partners. When there is no Deed or the Deed is silent on any point, :ne rights and obligations as provided in the Partnership Act shall apply.


Question.6. Distinguish cheque and Bill of Exchange (10 marks)

Answer:cheque vsboe‘Cheque’ is an instrument which contains an unconditional order, drawn on a banker, directing to pay a certain sum of money to the person whose name is specified in the instrument. ‘Bill of Exchange’ is a document contains an unconditional order, directing a person, to pay a certain amount to a specified person. These two terms sound the same, which becomes the cause of confusion for many people. Come, let’s start understanding the difference between Cheque and Bill of Exchange.



Question.7. State procedure for enquiry on complaints under S 19 (10 marks)

Answer:1.     On receipt of a complaint or a reference from the Central Government or a State Government or a statutory authority or on its own knowledge or there exists a prima facie case, it shall direct the Director General to cause an investigation to be made into the matter. Information, under section 19, if the Commission s of the opinion that

2.       The Director General shall, on receipt of direction under sub-section (1), submit a report on his findings within such period as may be specified by the
3.     
4.     


Question.8. Distinguish between Managing Director and Manager (10 marks)

Answer:We know that the term ‘managing director’ is used side by side with the term ‘wholetime director’ in several Sections of the Act and most of the provisions apply to both of them equally. Obviously, this may pose a question to the mind of a careful reader as to whether these two terms—’managing director’ and ‘whole-time director—denote the same business executive under two different names or whether they denote two altogether different personalities in a company ?

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