Paper: Corporate & Allied Law - November 2013 - CA Final.
Level of paper - Average.
Paper has total seven questions out of which question no 1 was compulsory. Along with option, paper was of 122 Marks, out of which 80 marks of questions were from company law and 42 marks questions were from allied law.
Analysis of Question no -1 (a)
Question is from pidend. Most of students reading pidend focus on provision of pidend like transfer to reserve, process of declaration of pidend and declaration of pidend out of reserve. But question was on % of penalty which is required to be paid on default to pay pidend within stipulated time. Most of students were not aware about %. It is very routine tactics on part of ICAI to keep tricky question as first question. More over question demands directors' liability in this regard. I observed that majority of students fail to remember consequences in such case. Number of coaching class and faculties are omitting to teach on pidend. Students will cost only 5 marks.
Analysis of Question no -1 (b)
Question demand drafting aspect. Question is designed to test drafting skill of students. Most of students never thought that they can be asked such question. Moreover students get confused that whether they should draft resolution under Sec 293(1) or Sec 372A......Students can't make gossip here while writing answer.
Analysis of Question no -1 (c)
Cracking question. Never thought of asking list of documents required for DIN. But those who are doing and who have done work of DIN (i.e. Practical knowledge) can write answer. In my opinion there is little error in drafting question too. How person can be appointed as director without DIN now. Earlier position was different at the time when the provision of DIN was introduced first time.
Analysis of Question no -1 (d)
Question on SCRA. Most of students wrote on Sec 9. But provisions regarding Sec 10 is also mentioned. Question in last two line asked about power of SEBI....Students who are clearly understanding difference between Sec 9 and Sec 10 of SCRA can write perfect answer otherwise mark will be written off....
Analysis of Question no -2 (a)
Question from director - Sec 314. If limit and procedure are remembered, it can be attempted. Again ICAI in last line of question asked about consequences which can be attempted only if you are having through knowledge of Sec 314. (Mark allocation should be as 5 marks for Legal formalities and 3 Marks for Consequences)
Analysis of Question no -2 (b)
Again ordinary question from Director chapter regarding resignation of director and MD. Most of students know that in case of director it can take place immediately. Most of students fails to add provisions that resignation will take effect subject to agreement, provision of AOA and resignation letter.
Analysis of Question no -3 (a)
Routine question on audit. Sec 619B. Question also trigger about consequences. Same type of question was asked in past. No comment. Students happy....
Analysis of Question no -3 (b)
Students who are reading old books and handbook (which never hold your hand in exam) missed question. It is about SEBI (ICDR) IIP guideline. Those who read from bulky book never understood it. 8 Marks at stake....
Analysis of Question no -4 (a)
Question from SSA. Sec 294. Need assumption about government approval. I think it is last time ICAI asked question about SSA. Under New Companies Act, 2013, provisions relating to SSA is omitted. 8 Marks easy question, students were comfortable and enchased mark.
Analysis of Question no -4 (b)
Question from Banking Reg. Act. Sec 30. It is theoretical question. Most of students forget to mention that auditor of bank has extra duty to follow director of RBI and submit his report to RBI in addition to normal duty, liability and functions.
Analysis of Question no -5 (a)
Question from winding up. Mixed question where students need to write on theory portion (4 marks) and about legal mortgage (4 marks). Every time ICAI in its RTP write that only provision of 5.3 in module will be applicable for winding up in exam but asking anything else. Students should read all provision of winding up....otherwise you won't be able to wind up 8 marks in your account.
Analysis of Question no -5 (b)
Good practical question on Oppression - mismanagement. Most of students are aware about basic provision. sub-question ask about majority complaining against minority. Those students who had read case law and judgments on above issue could write down in nut shell.
Analysis of Question no -6 (a)
Theory question from producer company. Sec 581ZS. Students happy....Producer company can produce anything or not but by attempting this question, students produced favourable mark in their account.
Analysis of Question no -6 (b)
Most of students were not knowing exact steps to be taken for takeover. Writing steps is pure theory question...
Analysis of Question no -7 (a)
Practical question on FEMA. Those students who had remembered limit on various transaction could write down it. Others are in search of it....yet...continuous...hahaha...
Analysis of Question no -7 (b)
Very good practical question from Competition Act. Question is based upon case of Telco ...which was decided when MRTP Act was in application. I like this question from entire paper. Most of students could not understand it and those who understood could not write correct answer.
Analysis of Question no -7 (c)
Very good Question from Sec 12 of AMLA. Sec 12 is recently amended. Updated students could write it to the point...
Analysis of Question no -7 (d)
Past question again asked from Insurance Act regarding Nomination provision. Students did well for this question.
Analysis of Question no -7 (e)
Good question from Interpretation of statue in which students are good in rote and poor in understanding. Those who can connect the interpretation with definition of MD. could write it.
At the outset I can suggest to May 2014 students that:
1. Do not just focus on director and Board meeting provision.
2. Do winding up provision in details
3. Students can't omit FEMA, SEBI and SCRA at all.
4. Questions are triggered from corner. Minute details about penalty, consequences, compounding possibility and validity should be kept in mind....
5. Practise new application oriented questions.
Soon, I will upload the solution of same here.
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