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Name of faculty:
Course No: MGT253 Course Title: Corporate Law Class: Semester:
Section: Batch:
Max. Marks:15 Date of Allotment : Date of Submission:

S.No Roll No Topi Objectives of Academic Topic Organizat Evaluation

c Activity ion Details
Submission of
The objective of the CASE ANALYSIS on
Assignment is as follow: the topics: written report.
a) To imbibe the 1. Memorandum
To all the habit of analysis. of Articles 5 marks for
b) Inculcate the 2. Articles of written report.
students habit of Association
interpretation and 3. Prospectus 10 marks for
decision making 15 cases are given to all home work
by doing practical the students related to based test.
analysis. the above mentioned Evaluation will
topics be on
Cases are mentioned in parameters of:
the Annexure I Analytical
Case laws
Examples etc.

Signature of COS-F Signature of Course coordinators


A Company was engaged in the business of poultry farming. Its memorandum prohibited
payment of any remuneration to the directors. When the business of the company increased it
was found that the directors could not pay sufficient attention unless some remuneration was
paid to them. Advise the company how the can increase the efficiency of their directors.

Case: 2
A company operated a rice mill beyond its powers. The company sold rice to certain persons
who had paid the price. The purchasers had to sell the rice,owing to its inferior quality,at
considerable loss. The company gave them drafts promising to pay for loss. The company went
into liquidation. Can purchasers sue the company for losses and why?

S.k. ltd has its registered office in Chennai. The company is mainly engaged in the production
and distributions of films. The company passes a special resolution for shifting its registered
office from Chennai to Mumbai .the move is opposed by the state of Tamilnadu on the ground
that it will affect the revenues of the state. Decide giving reasons.

A Company has its registered office at New Delhi. But due to some reasons favourable to the
company, it wishes to shift its registered office to Newyork. Can the company be permitted to
shift its registered office?

Xavier ltd a cotton textile company enters into a contract with Aaxis ltd an adjacent cotton
textile mill, to supply electricity from their power generation plant.after supplies have been made
for three months, it is discovered that this activity is beyond the scope of the objects clause of
memorandum of association of Xavier ltd.shareholders of Xavier ltd ratify the contract by an ex-
post facto general body resolution .Aaxis ltd refuses to make payment on the ground that the
contract is wholly null and void. Comment.

AB limited was registered with the Registrar of companies, Calcutta on 15th Jan 1975. The
registrar of companies, Bombay also registered on 15th May 1975 a company with the same
name. On coming to know of this, the first registered company wants to prevent the company
subsequently registered from continuing with the same name. Advise suitably.

A on the instruction of the promoter prepared the MOA and AOA, paid the registration fees and
got the company incorporated. A claims his cost and charges from the company. The company
refused to pay. Will a succeed?
Case:8 A company was in great need of further capital. The majority representing 98% of the
share capital were willing to provide the capital if they could buy up the two percent minority.
The majority passed a resolution altering the articles and enabling them to purchase the minority
shares. Examine the legality of the alteration.

The articles of P Ltd. contained a clause that Q would be the legal advisor of the company and
would not be removed except for misconduct. P Ltd. after sometime removed Q. Has Q a legal
right to be retained by the company?

Case: 10
A deceitful prospectus containing an untrue statement was issued by the defendant on behalf of
the company. The plaintiff received a copy of it but did not take any shares originally in the
company. The allotment was completed and several months afterwards the plaintiff bought 200
shares in the open market. The plaintiff sues the defendant for rescission on the ground of untrue
statement in the prospectus. Decide stating reasons.

A applied for some shares on the basis of a prospectus which contains a mis-statement and shares
are allotted to A, who thereafter transfers them to B. Can B bring an action for rescission on the
ground of mis-statement?

A applied for certain shares of a company on the basis of a prospectus containing the names of
the directors. Some of the directors retired before the shares could be allotted. Can A set aside
the contract?

In a prospectus issued by the managing director of a company it was stated that the company had
paid dividend every year during 1921-27 (years of depression), thus implying that the company
had been prospering. As a matter of fact the company had sustained loss during the relevant
period and had paid in dividends only out of reserves accumulated in the past. Can this
observation be constructed as a misstatement so as to render the matter criminally liable and if
so, on what ground? If not, why not?

A purchased from ‘B’ 1,000 shares of a company on the basis of a prospectus containing wrong
statement. What remedies are available to “A” against the company?

Amit is the promoter of Microsoft limited. The company issued the prospectus stating that Mr
Raman ( business Tycoon) is the other promoter of the company and also he is the shareholder of
the company. Amit was aware that Mr Raman is not the shareholder of the company but still he
signed the prospectus. Relying the above statement DLF limited entered into contract with the
company, but after becoming aware of the actual facts the DLF decided to rescind the contract?
Will the company be able to do that? What will be the liability of Mr amit?