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Urgent help in CS Executive

Hardik Dave (IPCC and CS Professional(FINAL) Student) (15533 Points)

27 January 2011

Helo friends, pls Give me answers of Company law of CS Executive = help . . . . . . COMMENT on the following in Details= (1)A company cannot ratify a pre-incorporation contract thought it is open to it to enter into fresh contract, (2) An allotment is acceptance of an offer to take shares by an applicant and like any other acceptance it must be communicated, . . (3)Cosent of the Board of Directors is required for certain contracts in which particular directors are interested. (4) Preference shares similar to debentures and its differences with shares are many.

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CA SURENDRA KUMAR RAKHECHA (Practising CA at Surat) (26263 Points)
Replied 27 January 2011

Originally posted by : Hardik Dave

Helo friends, pls Give me answers of Company law of CS Executive = help . . . . . . COMMENT on the following in Details=

The following is the clarification showing concepts about it :

(1)A company cannot ratify a pre-incorporation contract thought it is open to it to enter into fresh contract,

It is alike a person cannot give a gift to a child who is not born.

However; when a child is born, he can make a gift to him.

(2) An allotment is acceptance of an offer to take shares by an applicant and like any other acceptance it must be communicated, . .

Suppose you sent some money to a merchant for buying some goods.

If he does not convey you back in a reasonable time; you will ask him to refund the money.

But if he says, I am sending the goods, then you will be assured to have goods from him.

(3)Cosent of the Board of Directors is required for certain contracts in which particular directors are interested.

Otherwise the Directors will enter into in transactions in which they have vested benefits and harm the interest of other shareholders.

(Company un-ke baap ki nahi hai - you have read about separate legal entity concept).

(4) Preference shares similar to debentures and its differences with shares are many.

Preference shares are not similar to debentures ( Otherwise why two different names ?)

These also differ from Equity Shares.

Regarding repayment, it can be said that Pref. Shares and Debentrues are similar because these can be repaid during the lifetime of the company.

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Sunshine (Helping All) (10575 Points)
Replied 27 January 2011

agree with Surendra sir....

2 Like

SANYAM ARORA (“It's hard to beat a person who never gives up.”) (20168 Points)
Replied 27 January 2011

agree with sir.......!!!!!

1 Like

Hardik Dave (IPCC and CS Professional(FINAL) Student) (15533 Points)
Replied 27 January 2011

Thanku very Much Surendra sir.smile. , also thanku Sneha and Sanyam bhai.smile.

1 Like

CMA. CS. Sanjay Gupta ("PROUD TO BE AN INDIAN") (114225 Points)
Replied 27 January 2011

Dear Hardik Please see below files. Here you will find compilation of Company Law Objectives.

CS EXECUTIVE PROGRAM-COMPANY LAW OBJECTIVE COMPILATION

Corporate Law Notes

Corporate Law Objectives

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Santhosh Poojary (SIEMPRE AHÍ PARA TI) (15607 Points)
Replied 27 January 2011

Very Well Explained by Surendra Sir.Smile

2 Like

gautam.k.r (PCC) (78 Points)
Replied 27 January 2011

BASIC DIFFERENCES

1) preferance shares are owners of the company without voteing rights

2) debentures are creditors of the company third party

3) debentures interest is a charge against profits hence, provision is created because future liability with certainity must be evaluated and provided for

4) normally except cumulative shares dividend is declared when profit available, and its treated as a contengent liability until paid off hence dose not affect accounts.

1 Like

Hardik Dave (IPCC and CS Professional(FINAL) Student) (15533 Points)
Replied 28 January 2011

Thanku Very much Sanjay sir.smile. Thanku SAN bhai and gautam

swathi (student pcc) (584 Points)
Replied 28 January 2011

Very well explained by surender sir !!

1 Like

Shahbaj Akhtar (PCC STUDENT) (50 Points)
Replied 28 January 2011

Nice explanation by CA Surendra Sir......

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CA NISHANT SAURABH (cs) (457 Points)
Replied 28 January 2011

Originally posted by : CA SURENDRA KUMAR RAKHECHA
	Originally posted by : Hardik Dave Helo friends, pls Give me answers of Company law of CS Executive = help . . . . . . COMMENT on the following in Details= The following is the clarification showing concepts about it : (1)A company cannot ratify a pre-incorporation contract thought it is open to it to enter into fresh contract, It is alike a person cannot give a gift to a child who is not born. However; when a child is born, he can make a gift to him. (2) An allotment is acceptance of an offer to take shares by an applicant and like any other acceptance it must be communicated, . . Suppose you sent some money to a merchant for buying some goods. If he does not convey you back in a reasonable time; you will ask him to refund the money. But if he says, I am sending the goods, then you will be assured to have goods from him. (3)Cosent of the Board of Directors is required for certain contracts in which particular directors are interested. Otherwise the Directors will enter into in transactions in which they have vested benefits and harm the interest of other shareholders. (Company un-ke baap ki nahi hai - you have read about separate legal entity concept). (4) Preference shares similar to debentures and its differences with shares are many. Preference shares are not similar to debentures ( Otherwise why two different names ?) These also differ from Equity Shares. Regarding repayment, it can be said that Pref. Shares and Debentrues are similar because these can be repaid during the lifetime of the company.

nicely explained sir .... thanks

Yash Sharma (CA - FINAL) (138 Points)
Replied 29 January 2011

well explained by surender sir ..............thanx

Mohammed (CS, Mcom, LLB) (857 Points)
Replied 11 February 2011

Very well explained by Surendra Sir, and thanks Hardik for putting such interesting question

Vinoth Kumar (CA Final & CS INTER) (22 Points)
Replied 20 May 2011

Friends... I'm a CS Executive Programme student... I'm Going to appear for 2nd Group only this June.2011. I ve not yet started preparation bcos my auditor is not giving study leave... So can any pls give a simple notes with which i can do my 2nd group well.. My mail id is vinothvnc @ gmail.com