Contract - FAQ
1) Define Agreement
According to Section 2 (e) of Indian contract Act, 1872 Every promise and every set of promises forming the consideration for each other is an agreement.
Example: A promise to deliver 100 bags of wheat and in return C agreed to pay a sum of Rs.10000/- . This is said to be an agreement between A and C
2) Define Contract
According to Section 2 (h) of Indian Contract Act, 1872, “ The agreement enforceable by law is a contract”
All agreements are not contracts but all contracts are agreement.
Example: The agreement which is enforceable by law is only contract. The agreements which are not enforceable by law is not a contract. For example, an agreement to go to shopping is a mere agreement which is not binding on both the parties if they are not agree and accepted the same.
3) Void Agreements:
According to Section 2 (g) , an agreement not enforceable by law is said to be void.
Example Agreements with Minor
4) Voidable Contracts:
According to Section 2 (j), an agreement which is enforceable by law at the option of one or more of the parties thereto, but not at the option of the other is a voidable contract.
Example: while executing the contract that one of essential is that there should be free consent among parties to the contract. When the consent of a party to a contract has been obtained by coercion, undue influence, fraud or misrepresentation, the contract is voidable at the option of the party whose consent has been so obtained.
5) Essentials of valid contract:
1) There should be an agreement between the parties. An agreement is the result of a proposal or an offer by one party and the same has been accepted by the other.
2) Agreement between persons who are competent to contract
3) There should be a lawful consideration and lawful object in respect of that agreement
4) There should be free consent between the parties while entering into the agreement
5) The agreement must not be one which have been expressly declared to be void
6) Define proposal
According to Section 2 (a) of the Indian Contract Act, 1872 defines when one person signifies to another for willingness to do or abstains from doing anything with a view to obtaining the assent of that other to such act or abstinence he said to make a proposal.
7. What is cross offers?
When the offers made by two persons to each other containing similar terms and conditions of bargain cross each other to post, they are known as cross offers.
Example: Whenever any offer is known to other parties then the other parties to accept the offer. Otherwise it is not a contract. On 25th November, 2009 A wanted to sell 1000 sugar bags for Rs.50000/- and posted the same to B. On the same day B also writes to A making an offer to purchase 1000 sugar bags for Rs.50000/-/ Both of them not aware of the each others offer even though the amount is same. The cross offers are not constituted as contract.
8. Specific and General offers”
When the offer is made to a specific or ascertained or identified persons then it is called as Specific offer
When the offer is made to public at large, it is known as General offers.
9. Standing offers or open offer or Continuing offer
An offer which is allowed to remain open for acceptance over a period of time is known as a standing offer or open offer or Continuing offer.
10> Acceptance
According to Section 2 (b) defines when the person to whom the proposal is made signifies his assent thereto, the proposal is said to be accepted. A proposal when accepted becomes a promise.
11.Essentials of valid acceptance:
The acceptance must satisfy the following conditions.
a) The acceptance should be communicated by the offeree to the offeror
b) There should be an absolute and unqualified acceptance
c) The acceptance should be made in some usual or reasonable manner unless the proposal prescribes the manner of acceptance.
d) Acceptance should be made while the offer is still subsisting.
12. What is mode of revocation of offer?
According to Section 6 of the Indian Contract Act, 1872 provides various modes of revocation of offer. The details are as under
A proposal or offer is revoked
a) by the communication of notice of revocation by the proposer or offeror to the other party
b) by the lapse of the time described in such proposal for the acceptance or if the time is no prescribed, by the lapse of reasonable time, without communication of the acceptance.
c) By the failure of the acceptor to fulfill a condition precedent to acceptance or
d) By the death or insanity of the proposer, if the fact of the death of insanity comes to the knowledge of the acceptor before acceptance.
13. Define consideration
According to Section 2 (d) of the Indian Contract Act, 1872, “ when at the desire of the promisor, the promise or any other person has done or abstained from doing, or does or abstains from doing or promise to do or to abstain from doing something, made not or abstinence or promise is called a consideration for promise.
14. Privity of Contract:
The idea behind doctrine of privity of contract is that only those persons who are parties to the contract can enforce. The stranger to the contract cannot enforce a contract.
A and B is entered into a contract and some benefit have been conferred upon C. Here A and B are the parties to enforce the contract or sue each other. C is a stranger to the contract and he cannot sue to enforce the contract.
15. Doctrine of promissory estoppel
There is an equitable estoppel preventing a person from denying what he asserted earlier. The person making the promise is bound by the same. This is due to that other person has acted on the faith of such promise or representation.
Example: The state government has announced tax holiday for five years to the new industries in the state. The industrialists set up the industries based on the promise of the state government for five year tax holiday, Here the state is bound by estoppel and cannot be allowed to withdraw the tax holiday earlier than promised by it.
16. Who is minor?
According to Section 3 of the Indian Majority Act, 1875 provides abut the age of majority. The section says that a person deemed to have attained the age of majority only when completes the age of 18 years. Thus a person who has not attained the age of majority is a minor.
17. Competent to Contract:
According to Section 11 of Indian Contract Act, 1872, Every person is competent to contract who is of the age of majority according to the law to which he is subject and who is of sound mind and is not disqualified from contracting by any law to which he is subject.
18. Briefly explain persons who are not competent to contract
a) a person who has not attained the majority
b) a person who is of unsound mind
c) A person who has been disqualified from contracting by any law.
19. What is free consent?
The parties to the contract to give free consent for the arrangement. According to Section 14 of the Indian Contract Act, 1872, consent is said to be free when it is not caused by
a) coercion as defined in section 15, or
b) undue influence as defined in section 16 or
c) Fraud as defined in section 17, or
d) Misrepresentation as defined in section 18 or
e) Mistake subject to the provisions of sections 20, 21 and 22
20. Define Coercion?
According to Section 15 of the Indian Contract Act, 1872 coercion is the committing or threatening to commit, any act forbidden by the Indian Penal Code or unlawful detaining or threatening to detain, any property to the prejudice of any person whatever, with the intention of causing any person to enter into an agreement.
21. Define undue influence:
According to Section 16 of the Indian Contract Act, 1872, A contract is said to be induced by “undue influence” which the relations subsisting between the parties are such that one of the parties is in a position to dominate the will of the other and uses that position to obtain an unfair advantage over the other.
Saturday, November 28, 2009
Frequently asked questions in company law
Frequently asked questions: (FAQ)
1) What is minimum paid up capital of private limited company
Rs. 1 lakh
2) What is minimum paid up capital of Public limited company
Rs.5 lakhs
3) What is industrial undertaking
Sub section 19AB of Section 2 of Companies Act, 1956 defines industrial undertakings means any undertaking pertaining to any industry carried on in one or more factories or units by any company, as defined in clause (aa) of Section 3 of the Industries (Development and Regulations) Act 1951 65 of 1951 but does not include a small scale industrial undertakings as defined in clause (j) of that section
4. What is meant by limited company?
Sub section 23 of Section 2 of Companies Act, 1956 defines a company limited by shares or by guarantee
5. Define Managing Director?
Sub section (26) of Section of 2 of Companies Act, 1956 means a director who, by virtue of an agreement with the company or of a resolution passed by the company in general meeting or by its Board of directors or, by virtue of its memorandum or articles of association, is entrusted with ( substantial powers of management) which would not otherwise be exercisable by him, and includes a director occupying the position of a managing director , by whatever name called.
Provided that the power to do administrative acts of a routine nature when so authorized by the Board such as the power to affix the common seal of the company to any document or to draw and endorse any cheque on account of the company in any bank or to draw and endorse any negotiable instrument or to sign any certificate of share or to direct registration of transfer of any share, shall not be deemed to be included within substantial powers of management: Provided further that a managing director of a company shall exercise his powers subject to the superintendence, control and direction of its Board of directors;]
6. Define Member?
Sub section 27 of Section 2 of Companies Act, 1956, member in relation to a company does not include a bearer of a share warrant of the company issued in pursuance of Section 114 of the Companies Act, 1956
7. Define Memorandum?
Sub section 28 of Section 2 of the Companies Act, 1956 means the memorandum of association of a company as originally framed or as altered from time to time in pursuance of any previous companies law or of this Act.
8. Define net worth
Sub Section 29A of Section 2 of the Companies Act, 1956 net worth" means the sum total of the paid-up capital and free reserves after deducting the provisions or expenses as may be prescribed. Explanation.-For the purposes of this clause, "free reserves" means all reserves created out of the profits and share premium account but does not include reserves created out of revaluation of assets, write back of depreciation provisions and amalgamation
9. Define officer?
Sub section (30) of Section 2 of the Companies Act, 1956 "officer" includes any director, manager or secretary, or any person in accordance with whose directions or instructions the Board of directors or any one or more of the directors is or are accustomed to act;]
10. Define Operating Agency
Sub section [(31AA) of Section 2 of the Companies Act, 1956 "operating agency" means any group of experts consisting of persons having special knowledge of business or industry in which the sick industrial company is engaged and includes public financial institution, State level institution, scheduled bank or any other person as may be specified as the operating agency by the Tribunal;]
11. Define Public Holiday?
Sub section 38 of Section 2 of the Companies Act, 1956, "public holiday" means a public holiday within the meaning of the Negotiable Instruments Act, 1881 (26 of 1881): Provided that no day declared by the Central Government to be a public holiday shall be deemed to be such a holiday, in relation to any meeting, unless the declaration was notified before the issue of the notice convening such meeting;
12. Define Secretary?
Sub section [(45) of Section 2 of the Companies Act, 1956 "secretary" means a Company Secretary within the meaning of clause (c) of sub-section (1) of section 2 of the Company Secretaries Act, 1980 (56 of 1980) and includes any other individual possessing the prescribed qualifications and appointed to perform the duties which may be performed by a secretary under this Act and any other ministerial or administrative duties;]
13 Define Share with differential rights?
Sub section [(46A) of Section 2 of the Companies Act, 1956 "share with differential rights" means a share that is issued with differential rights in accordance with the provisions of section 86;]
14 Define Sick Industrial company?
Sub section [(46AA) of Section 2 of the Companies Act, 1956 "sick industrial company" means an industrial company which has-
(i) the accumulated losses in any financial year equal to fifty per cent, or more of its average net worth during four years immediately preceding such financial year; or(ii) failed to repay its debts within any three consecutive quarters on demand made in writing for its repayment by a creditor or creditors of such company;
15. Define State Level Corporation?
Sub Section (46AB) of Section 2 of the Companies Act, 1956 "State level institution" means any of the following institutions, namely:-
(a) the State Financial Corporations established under section 3 or section 3A and institutions notified under section 46 of the State Financial Corporations Act, 1951 (63 of 1951); (b) the State industrial Development Corporations registered under this Act;]
16. Define Total Voting power?
Sub Section (48) of Section 2 of the Companies Act, 1956 "total voting power", in regard to any matter relating to a body corporate, means the total number of votes which may be cast in regard to that matter on a poll at a meeting of such body, if all the members thereof and all other persons, if any, having a right to vote on that matter are present at the meeting, and cast their votes
17. Define Company?
As per clause (i) of sub section 1 of Section 3 of the Companies Act, 1956 "company" means a company formed and registered under this Act or an existing company as defined in clause (ii);
18. Define Existing company?
As per clause (ii) of sub section 1 of Section 3 of the Companies Act, 1956 "existing company" means a company formed and registered under any of the previous companies laws specified below:
19 Define Private company?
Sub section iii) of Section 3 of the companies Act, 1956 "private company" 5[means a company which has a minimum paid-up capital of one lakh rupees or such higher paid-up capital as may be prescribed, and by its articles,-]
(a) Restricts the right to transfer its shares, if any;(b) limits the number of its members to fifty not including-
(i) persons who are in the employment of the company, and(ii) persons who, having been formerly in the employment of the company, were members of the company while in that employment and have continued to be members after the employment ceased; and
(c) prohibits any invitation to the public to subscribe for any shares in, or debentures of, the company;
6[(d) prohibits any invitation or acceptance of deposits from persons other than its members, directors or their relatives:]Provided that where two or more persons hold one or more shares in a company jointly, they shall, for the purposes of this definition, be treated as a single member;
20 Define Public company?
Sub section [(iv) of Section 3 of the Companies Act, 1956 "public company" means a company which-
(a) is not a private company;(b) has a minimum paid-up capital of five lakh rupees or such higher paid-up capital, as may be prescribed;(c) is a private company which is a subsidiary of a company which is not a private company.]
21. What is minimum paid up capital of companies registered Section 25 of the Companies Act, 1956
Sub section (6) of Section 3 of the Companies Act, 1956 A company registered under section 25 before or after the commencement of Companies (Amendment) Act, 2000 shall not be required to have minimum paid-up capital specified in this section.]
22.What is the status of private company subsidiary of body corporate incorporated outside India?
Sub section[(7) of Section 4 of the companies act, 1956 A private company, being a subsidiary of a body corporate incorporated outside India, which, if incorporated in India, would be a public company within the meaning of this Act, shall be deemed for the purposes of this Act to be a subsidiary of a public company if the entire share capital in that private company is not held by that body corporate whether alone or together with one or more other bodies corporate incorporated outside India.]
23.Who are all officers in default as per Section 5 of the Companies Act, 1856
(a) the managing director or managing directors;(b) the whole-time director or whole-time directors;(c) the manager;(d) the secretary;(e) any person in accordance with whose directions or instructions the Board of directors of the company is accustomed to act;(f) any person charged by the Board with the responsibility of complying with that provision:Provided that the person so charged has given his consent in this behalf to the Board;(g) where any company does not have any of the officers specified in clauses (a) to (c), any director or directors who may be specified by the Board in this behalf or where no director is so specified, all the directors:
Provided that where the Board exercises any power under clause (f) or clause (g), it shall, within thirty days of the exercise of such powers, file with the Registrar a return in the prescribed form.]
24. What is jurisdiction of court under section 10 of the Companies Act, 1956
Sub section a) section 10 the companies Act, 1956 provides the High Court having jurisdiction in relation to the place at which the registered office of the company concerned is situate, except to the extent to which jurisdiction has been conferred on any District Court or District Courts subordinate to the High Court in pursuance of sub-section (2); and
Sub section (b) of Section 10 of the companies Act, 1956 where jurisdiction has been so conferred, the District Court in regard to matters falling within the scope of the jurisdiction conferred, in respect of companies having their registered offices in the district.
25. Whether Central Government has the power to confer jurisdicition of courts by way of notification.?
Sub section (2) of the Section 10 of the Companies Act, 1956 provides The Central Government may, by notification in the Official Gazette and subject to such restrictions, limitations and conditions as it thinks fit, empower any District Court to exercise all or any of the jurisdiction conferred by this Act upon the Court, not being the jurisdiction conferred -
(a) in respect of companies generally, by sections 237, 391, 394, 395 and 397 to 407, both inclusive;
(b) in respect of companies with a paid-up share capital of not less than one lakh of rupees, by Part VII (sections 425 to 560) and the other provisions of this Act relating to the winding up of companies
26. In case of winding up of companies, on what basis jurisdiction of court will be determined?
Sub section (3) of Section For the purposes of jurisdiction to wind up companies, the expression "registered office" means the place which has longest been the registered office of the company during the six months immediately preceding the presentation of the petition for winding up.
27. How many maximum no of members to constitute company law board
As per Sub section 2 of the Section 10 E of the Companies Act, 1956 the central government appoint not exceeding 9 members by way of notification in the official gazette.
28. What are the matters to be taken up at company law board?
Sub section (4C) of Section 10 B of the Companies Act, 1956 provides that Every Bench referred to in sub-section (4B) shall have powers which are vested in a Court under the Code of Civil Procedure, 1908 (5 of 1908), while trying a suit, in respect of the following matters, namely:-
(a) discovery and inspection of documents or other material objects producible as evidence;(b) enforcing the attendance of witnesses and requiring the deposit of their expenses;(c) compelling the production of documents or other material objects producible as evidence and impounding the same;(d) examining witnesses on oath;(e) granting adjournments;(f) reception of evidence on affidavits.
29. What is the judicial status of Company Law Board?
Sub section 4D) of Section 10 B of the Companies Act 1956 provides that Every Bench shall be deemed to be a Civil Court for the purposes of section 195 and 9[Chapter XXVI of the Code of Criminal Procedure, 1973 (1 of 1974)] and every proceeding before the Bench shall be deemed to be a judicial proceeding within the meaning of sections 193 and 228 of the Indian Penal Code (45 of 1860) and for the purpose of section 196 of that Code.]
1) What is minimum paid up capital of private limited company
Rs. 1 lakh
2) What is minimum paid up capital of Public limited company
Rs.5 lakhs
3) What is industrial undertaking
Sub section 19AB of Section 2 of Companies Act, 1956 defines industrial undertakings means any undertaking pertaining to any industry carried on in one or more factories or units by any company, as defined in clause (aa) of Section 3 of the Industries (Development and Regulations) Act 1951 65 of 1951 but does not include a small scale industrial undertakings as defined in clause (j) of that section
4. What is meant by limited company?
Sub section 23 of Section 2 of Companies Act, 1956 defines a company limited by shares or by guarantee
5. Define Managing Director?
Sub section (26) of Section of 2 of Companies Act, 1956 means a director who, by virtue of an agreement with the company or of a resolution passed by the company in general meeting or by its Board of directors or, by virtue of its memorandum or articles of association, is entrusted with ( substantial powers of management) which would not otherwise be exercisable by him, and includes a director occupying the position of a managing director , by whatever name called.
Provided that the power to do administrative acts of a routine nature when so authorized by the Board such as the power to affix the common seal of the company to any document or to draw and endorse any cheque on account of the company in any bank or to draw and endorse any negotiable instrument or to sign any certificate of share or to direct registration of transfer of any share, shall not be deemed to be included within substantial powers of management: Provided further that a managing director of a company shall exercise his powers subject to the superintendence, control and direction of its Board of directors;]
6. Define Member?
Sub section 27 of Section 2 of Companies Act, 1956, member in relation to a company does not include a bearer of a share warrant of the company issued in pursuance of Section 114 of the Companies Act, 1956
7. Define Memorandum?
Sub section 28 of Section 2 of the Companies Act, 1956 means the memorandum of association of a company as originally framed or as altered from time to time in pursuance of any previous companies law or of this Act.
8. Define net worth
Sub Section 29A of Section 2 of the Companies Act, 1956 net worth" means the sum total of the paid-up capital and free reserves after deducting the provisions or expenses as may be prescribed. Explanation.-For the purposes of this clause, "free reserves" means all reserves created out of the profits and share premium account but does not include reserves created out of revaluation of assets, write back of depreciation provisions and amalgamation
9. Define officer?
Sub section (30) of Section 2 of the Companies Act, 1956 "officer" includes any director, manager or secretary, or any person in accordance with whose directions or instructions the Board of directors or any one or more of the directors is or are accustomed to act;]
10. Define Operating Agency
Sub section [(31AA) of Section 2 of the Companies Act, 1956 "operating agency" means any group of experts consisting of persons having special knowledge of business or industry in which the sick industrial company is engaged and includes public financial institution, State level institution, scheduled bank or any other person as may be specified as the operating agency by the Tribunal;]
11. Define Public Holiday?
Sub section 38 of Section 2 of the Companies Act, 1956, "public holiday" means a public holiday within the meaning of the Negotiable Instruments Act, 1881 (26 of 1881): Provided that no day declared by the Central Government to be a public holiday shall be deemed to be such a holiday, in relation to any meeting, unless the declaration was notified before the issue of the notice convening such meeting;
12. Define Secretary?
Sub section [(45) of Section 2 of the Companies Act, 1956 "secretary" means a Company Secretary within the meaning of clause (c) of sub-section (1) of section 2 of the Company Secretaries Act, 1980 (56 of 1980) and includes any other individual possessing the prescribed qualifications and appointed to perform the duties which may be performed by a secretary under this Act and any other ministerial or administrative duties;]
13 Define Share with differential rights?
Sub section [(46A) of Section 2 of the Companies Act, 1956 "share with differential rights" means a share that is issued with differential rights in accordance with the provisions of section 86;]
14 Define Sick Industrial company?
Sub section [(46AA) of Section 2 of the Companies Act, 1956 "sick industrial company" means an industrial company which has-
(i) the accumulated losses in any financial year equal to fifty per cent, or more of its average net worth during four years immediately preceding such financial year; or(ii) failed to repay its debts within any three consecutive quarters on demand made in writing for its repayment by a creditor or creditors of such company;
15. Define State Level Corporation?
Sub Section (46AB) of Section 2 of the Companies Act, 1956 "State level institution" means any of the following institutions, namely:-
(a) the State Financial Corporations established under section 3 or section 3A and institutions notified under section 46 of the State Financial Corporations Act, 1951 (63 of 1951); (b) the State industrial Development Corporations registered under this Act;]
16. Define Total Voting power?
Sub Section (48) of Section 2 of the Companies Act, 1956 "total voting power", in regard to any matter relating to a body corporate, means the total number of votes which may be cast in regard to that matter on a poll at a meeting of such body, if all the members thereof and all other persons, if any, having a right to vote on that matter are present at the meeting, and cast their votes
17. Define Company?
As per clause (i) of sub section 1 of Section 3 of the Companies Act, 1956 "company" means a company formed and registered under this Act or an existing company as defined in clause (ii);
18. Define Existing company?
As per clause (ii) of sub section 1 of Section 3 of the Companies Act, 1956 "existing company" means a company formed and registered under any of the previous companies laws specified below:
19 Define Private company?
Sub section iii) of Section 3 of the companies Act, 1956 "private company" 5[means a company which has a minimum paid-up capital of one lakh rupees or such higher paid-up capital as may be prescribed, and by its articles,-]
(a) Restricts the right to transfer its shares, if any;(b) limits the number of its members to fifty not including-
(i) persons who are in the employment of the company, and(ii) persons who, having been formerly in the employment of the company, were members of the company while in that employment and have continued to be members after the employment ceased; and
(c) prohibits any invitation to the public to subscribe for any shares in, or debentures of, the company;
6[(d) prohibits any invitation or acceptance of deposits from persons other than its members, directors or their relatives:]Provided that where two or more persons hold one or more shares in a company jointly, they shall, for the purposes of this definition, be treated as a single member;
20 Define Public company?
Sub section [(iv) of Section 3 of the Companies Act, 1956 "public company" means a company which-
(a) is not a private company;(b) has a minimum paid-up capital of five lakh rupees or such higher paid-up capital, as may be prescribed;(c) is a private company which is a subsidiary of a company which is not a private company.]
21. What is minimum paid up capital of companies registered Section 25 of the Companies Act, 1956
Sub section (6) of Section 3 of the Companies Act, 1956 A company registered under section 25 before or after the commencement of Companies (Amendment) Act, 2000 shall not be required to have minimum paid-up capital specified in this section.]
22.What is the status of private company subsidiary of body corporate incorporated outside India?
Sub section[(7) of Section 4 of the companies act, 1956 A private company, being a subsidiary of a body corporate incorporated outside India, which, if incorporated in India, would be a public company within the meaning of this Act, shall be deemed for the purposes of this Act to be a subsidiary of a public company if the entire share capital in that private company is not held by that body corporate whether alone or together with one or more other bodies corporate incorporated outside India.]
23.Who are all officers in default as per Section 5 of the Companies Act, 1856
(a) the managing director or managing directors;(b) the whole-time director or whole-time directors;(c) the manager;(d) the secretary;(e) any person in accordance with whose directions or instructions the Board of directors of the company is accustomed to act;(f) any person charged by the Board with the responsibility of complying with that provision:Provided that the person so charged has given his consent in this behalf to the Board;(g) where any company does not have any of the officers specified in clauses (a) to (c), any director or directors who may be specified by the Board in this behalf or where no director is so specified, all the directors:
Provided that where the Board exercises any power under clause (f) or clause (g), it shall, within thirty days of the exercise of such powers, file with the Registrar a return in the prescribed form.]
24. What is jurisdiction of court under section 10 of the Companies Act, 1956
Sub section a) section 10 the companies Act, 1956 provides the High Court having jurisdiction in relation to the place at which the registered office of the company concerned is situate, except to the extent to which jurisdiction has been conferred on any District Court or District Courts subordinate to the High Court in pursuance of sub-section (2); and
Sub section (b) of Section 10 of the companies Act, 1956 where jurisdiction has been so conferred, the District Court in regard to matters falling within the scope of the jurisdiction conferred, in respect of companies having their registered offices in the district.
25. Whether Central Government has the power to confer jurisdicition of courts by way of notification.?
Sub section (2) of the Section 10 of the Companies Act, 1956 provides The Central Government may, by notification in the Official Gazette and subject to such restrictions, limitations and conditions as it thinks fit, empower any District Court to exercise all or any of the jurisdiction conferred by this Act upon the Court, not being the jurisdiction conferred -
(a) in respect of companies generally, by sections 237, 391, 394, 395 and 397 to 407, both inclusive;
(b) in respect of companies with a paid-up share capital of not less than one lakh of rupees, by Part VII (sections 425 to 560) and the other provisions of this Act relating to the winding up of companies
26. In case of winding up of companies, on what basis jurisdiction of court will be determined?
Sub section (3) of Section For the purposes of jurisdiction to wind up companies, the expression "registered office" means the place which has longest been the registered office of the company during the six months immediately preceding the presentation of the petition for winding up.
27. How many maximum no of members to constitute company law board
As per Sub section 2 of the Section 10 E of the Companies Act, 1956 the central government appoint not exceeding 9 members by way of notification in the official gazette.
28. What are the matters to be taken up at company law board?
Sub section (4C) of Section 10 B of the Companies Act, 1956 provides that Every Bench referred to in sub-section (4B) shall have powers which are vested in a Court under the Code of Civil Procedure, 1908 (5 of 1908), while trying a suit, in respect of the following matters, namely:-
(a) discovery and inspection of documents or other material objects producible as evidence;(b) enforcing the attendance of witnesses and requiring the deposit of their expenses;(c) compelling the production of documents or other material objects producible as evidence and impounding the same;(d) examining witnesses on oath;(e) granting adjournments;(f) reception of evidence on affidavits.
29. What is the judicial status of Company Law Board?
Sub section 4D) of Section 10 B of the Companies Act 1956 provides that Every Bench shall be deemed to be a Civil Court for the purposes of section 195 and 9[Chapter XXVI of the Code of Criminal Procedure, 1973 (1 of 1974)] and every proceeding before the Bench shall be deemed to be a judicial proceeding within the meaning of sections 193 and 228 of the Indian Penal Code (45 of 1860) and for the purpose of section 196 of that Code.]
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