This document provides answers to legal questions asked by State Bank of India's Learning Centre in Bangalore. It discusses key contents of a company's Memorandum of Association and Articles of Association, including the name, place of business, objects, share capital, directors, procedures for meetings and share transfers.
It also addresses documents needed to prove a public company's legal status, such as the Certificate of Incorporation and Certificate to Commence Business. Borrowing powers, authority to sign documents, and affixing the common seal are covered regarding board resolutions. Formalities for proper use of the common seal are outlined. Other topics covered include statutory borrowing limits for companies, corporate guarantees, filing of charges, partnership authority and
The document discusses the Memorandum of Association and Articles of Association for companies. It notes that the Memorandum of Association is the main document that defines a company's constitution, objects, and scope of activity. It must include clauses for the company's name, registered office, objectives, liability, and capital. The Articles of Association contain the rules and regulations governing a company's management and the relationship between the company and members. Together, the Memorandum and Articles form the contract between a company and its members.
Format of moa new companies act 2013 ( moa as per companies act 2013 )mystartupvakil.com
Format of Memorandum of Association as per New Companies Act 2013. For more please visit my blog : http://newcompaniesact2013.blogspot.in/
MOA as per companies act 2013
This document provides an overview of company law and secretarial practice in India. It defines a company and outlines its key characteristics such as separate legal identity, limited liability, transferable shares, and perpetual existence. It then classifies companies based on liability, members, control/holding, and other categories. The document also discusses company promotion, registration procedures, memorandum and articles of association, and the differences between private and public limited companies.
This document discusses the Memorandum of Association (MOA) and Articles of Association (AOA), which are the key legal documents that establish a company.
The MOA defines the objectives, activities, and framework of a company. It must be filed with the Registrar of Companies when incorporating. The AOA defines the internal regulations and management structure of the company. It addresses issues like shareholder voting, board appointments, financial procedures.
Together, the MOA and AOA provide transparency to investors on how the company will operate and achieve its goals. They establish the relationship between the company and external parties and restrict the company's actions to only those outlined in the documents.
The document discusses the definition and types of companies under Indian law. It defines a company as an artificial person with separate legal identity regulated by the Companies Act. Companies are classified as private limited or public limited, with minimum requirements for each type outlined. The key steps for incorporating a new company in India are also summarized, including registering with various regulatory authorities and filing required forms and documents.
This document provides an overview of the memorandum of association for companies in India. It discusses that the memorandum of association is one of the key documents filed during company incorporation and defines the scope and powers of a company. It outlines the various clauses that must be included in the memorandum of association such as the company name, registered office, objects, liability, and capital. It also discusses how the memorandum of association can be altered through special resolutions for changes like the company name, registered office, objects, and capital structure. The purpose of the memorandum is to define the limits of a company's operations and make them known to shareholders and external parties.
The document discusses the doctrine of ultra vires in company law. It explains that [1] the doctrine originated to limit companies to activities stated in their memorandum and protect investors and creditors, as companies could now have limited liability; [2] an ultra vires act is beyond a company's powers while an illegal act can still be intra vires; and [3] the 1875 Ashbury Railway case established that unauthorized acts are void and cannot be ratified, firmly establishing the doctrine of ultra vires.
The document discusses the Memorandum of Association and Articles of Association for companies. It notes that the Memorandum of Association is the main document that defines a company's constitution, objects, and scope of activity. It must include clauses for the company's name, registered office, objectives, liability, and capital. The Articles of Association contain the rules and regulations governing a company's management and the relationship between the company and members. Together, the Memorandum and Articles form the contract between a company and its members.
Format of moa new companies act 2013 ( moa as per companies act 2013 )mystartupvakil.com
Format of Memorandum of Association as per New Companies Act 2013. For more please visit my blog : http://newcompaniesact2013.blogspot.in/
MOA as per companies act 2013
This document provides an overview of company law and secretarial practice in India. It defines a company and outlines its key characteristics such as separate legal identity, limited liability, transferable shares, and perpetual existence. It then classifies companies based on liability, members, control/holding, and other categories. The document also discusses company promotion, registration procedures, memorandum and articles of association, and the differences between private and public limited companies.
This document discusses the Memorandum of Association (MOA) and Articles of Association (AOA), which are the key legal documents that establish a company.
The MOA defines the objectives, activities, and framework of a company. It must be filed with the Registrar of Companies when incorporating. The AOA defines the internal regulations and management structure of the company. It addresses issues like shareholder voting, board appointments, financial procedures.
Together, the MOA and AOA provide transparency to investors on how the company will operate and achieve its goals. They establish the relationship between the company and external parties and restrict the company's actions to only those outlined in the documents.
The document discusses the definition and types of companies under Indian law. It defines a company as an artificial person with separate legal identity regulated by the Companies Act. Companies are classified as private limited or public limited, with minimum requirements for each type outlined. The key steps for incorporating a new company in India are also summarized, including registering with various regulatory authorities and filing required forms and documents.
This document provides an overview of the memorandum of association for companies in India. It discusses that the memorandum of association is one of the key documents filed during company incorporation and defines the scope and powers of a company. It outlines the various clauses that must be included in the memorandum of association such as the company name, registered office, objects, liability, and capital. It also discusses how the memorandum of association can be altered through special resolutions for changes like the company name, registered office, objects, and capital structure. The purpose of the memorandum is to define the limits of a company's operations and make them known to shareholders and external parties.
The document discusses the doctrine of ultra vires in company law. It explains that [1] the doctrine originated to limit companies to activities stated in their memorandum and protect investors and creditors, as companies could now have limited liability; [2] an ultra vires act is beyond a company's powers while an illegal act can still be intra vires; and [3] the 1875 Ashbury Railway case established that unauthorized acts are void and cannot be ratified, firmly establishing the doctrine of ultra vires.
The document discusses the Doctrine of Indoor Management, also known as Turquand's Rule. This doctrine protects third parties who transact with a company in good faith. It states that outsiders are not required to investigate a company's internal management processes and will not be affected by irregularities they were not aware of.
The doctrine originated from the 1856 case Royal British Bank v. Turquand, where the court held that a bank was entitled to assume proper authorization had been given for a loan, even if internal processes were not actually followed. The Companies Act also protects valid acts by directors despite defects in their appointments. There are some exceptions, such as when the outsider knows of irregularities or a
1. The document discusses key concepts relating to maintenance of capital in company law, including reduction of share capital, redemption of preference shares, financial assistance for acquiring shares, share buybacks, dividends, and the solvency test.
2. It summarizes landmark court cases that established principles for protecting shareholder and creditor interests during capital maintenance operations.
3. The document also outlines the procedures and legal requirements for various capital maintenance activities under the Companies Act 2016 and relevant case law. It traces the evolution of the law on financial assistance through amendments to the Act.
The document discusses the duties and responsibilities of company directors under Malaysian law. It covers the following key points:
1) Directors must act in good faith and in the best interests of the company, not for their personal interests. Several cases are discussed that illustrate this fiduciary duty.
2) Directors must act within the scope of their powers and use company assets only for proper purposes. They cannot fetter their decision making and must avoid conflicts of interest.
3) Directors have a duty to avoid any conflicts between their personal interests and the interests of the company. They cannot profit personally from their position or use confidential company information for their own gain.
The document discusses the key components of a Memorandum of Association for a company. It notes that the Memorandum of Association is the first document filed and defines the company's objectives and activities. The Memorandum includes clauses for the company name, registered office location, objectives, share capital structure, liability of members, and signatures of initial subscribers. It establishes the fundamental rules and limitations governing the company.
The document discusses the key clauses and contents of a company's Memorandum of Association (MOA) according to the Companies Act of 1956. It explains that the MOA is the main constitutional document of a company that defines its objectives and scope of activities. It lays out the various standard clauses included in an MOA such as the name, registered office, objectives, liability, capital, and subscription clauses. It also discusses the process for making alterations to an MOA and situations where such alterations would or would not be permitted.
The document discusses the Companies Act of 1956 in India. It provides definitions of a company and outlines the evolution of company law in India from 1850 onward. The Companies Act of 1956 established the legal framework for incorporation of companies in India and set out provisions regarding capital raising, governance, and accounting. The Satyam fraud case is also summarized, where the chairman of Satyam Computer Services admitted to falsifying the company's accounts over several years, inflating profits and hiding losses.
Memorandum of association and Articles of association and partnership deed an...Aniruddha Dey
An study on memorandum of association and Articles of association. It contains the difference between memorandum of association and Articles of association, partnership deed and sales agency agreement and effects of registration of Memorandum of association and Articles of association while incorporating a business. All precisely.
This document provides an overview of One Person Companies (OPCs) in India. Key points:
- OPCs allow a single person to incorporate a private company with limited liability. This provides benefits like access to loans and markets.
- Only natural-born Indian citizens resident in India can incorporate an OPC. An OPC must have a nominee in case the member dies or becomes incapacitated.
- OPCs are exempt from some requirements that apply to regular private companies, like annual general meetings. But they still must file annual returns and financial statements.
- Compared to sole proprietorships, OPCs provide limited liability and allow for succession through a nominee. They also have higher tax rates but
1) To start a company in India, at least seven people must sign the memorandum of association and comply with registration requirements to form an incorporated company as either a private or public company.
2) The memorandum of association, articles of association, and director agreements must be filed with the Registrar along with the company name, registered office details, share capital, and business objectives.
3) Additional requirements include obtaining director identification numbers, declaring compliance, and obtaining certificates of incorporation and commencement of business to legally operate the company.
This document provides information about the formation and incorporation of a company as well as the winding up process of a company under Indian law. It discusses the key stages in company formation including promotion, registration, and commencement of business. It also outlines the roles and responsibilities of promoters. For winding up, it describes the different modes including compulsory winding up by tribunal order and voluntary winding up. It discusses the roles of liquidators and various procedures involved in both types of winding up.
The document discusses the key characteristics and types of companies according to the Companies Act of 1956 in India. It defines a company as an association formed to carry out business with transferable shares owned by members. The key characteristics mentioned are that a company is an incorporated legal entity separate from its members, has perpetual existence, uses a common seal, and has delegated management. The types of companies are classified based on mode of incorporation, number of members, ownership, control and nationality.
The document discusses the legal status of pre-incorporation contracts under English common law and Malaysian company law. It provides an introduction and overview of key cases.
In English common law, pre-incorporation contracts are invalid and cannot be ratified by the company after incorporation. As such, outsiders who contract with promoters cannot enforce the contract or hold the company liable. Promoters are also not personally liable as a non-existent company cannot appoint agents. However, under Malaysian company law pre-incorporation contracts can be ratified, protecting outsiders and allowing them recourse against the company or promoters. The document analyzes several important cases to illustrate how these laws are applied.
The document discusses whether a Portuguese man aged 75, named Jose, can be appointed as a director to replace Arsene on the board of PQR Sdn Bhd. It analyzes that Jose cannot be one of the first two directors as he is non-resident, but he could be appointed as an additional director if Alex and Rafael are resident directors. It also determines that, as PQR Sdn Bhd is a private company, Jose's age of 75 does not prevent him from being a director under the relevant laws.
This document discusses promoters and pre-incorporation contracts under Indian company law. It defines a promoter as a person who takes the initiative to establish a business organization. Though not defined in the Companies Act, promoters have certain fiduciary duties like disclosing profits and not making secret profits. The document discusses definitions of promoters and promoter groups under DIP Guidelines and judicial interpretations. It also outlines promoter liabilities and duties to disclose personal profits when dealing with the company. Pre-incorporation contracts are binding on companies after incorporation if adopted or ratified by them.
The document provides an overview of the Companies Act 1994 of Bangladesh. It discusses the background and history of company law in the region.
The executive summary outlines the 11 parts of the Companies Act 1994. It provides high-level descriptions of the key aspects covered in each part, including preliminary matters, company constitution/incorporation, share capital, management/administration, winding up procedures, registration office/fees, application to prior companies, registration of authorized companies, winding up of unregistered companies, foreign company registration, and supplemental legal matters.
Part II on company constitution/incorporation establishes the requirements for forming incorporated companies as public or private limited, or unlimited. It specifies the necessary contents of memorandums
The document describes an electro live music tour of Asia from 2010-2012. It provides details on sponsor partnerships, touring artists, charity involvement, tour stops, and marketing plans. Sponsorship packages ranging from $150,000 to $96,000 are outlined that provide branding opportunities at live shows and online in exchange for supporting the multi-year, multi-country tour.
The document discusses the Doctrine of Indoor Management, also known as Turquand's Rule. This doctrine protects third parties who transact with a company in good faith. It states that outsiders are not required to investigate a company's internal management processes and will not be affected by irregularities they were not aware of.
The doctrine originated from the 1856 case Royal British Bank v. Turquand, where the court held that a bank was entitled to assume proper authorization had been given for a loan, even if internal processes were not actually followed. The Companies Act also protects valid acts by directors despite defects in their appointments. There are some exceptions, such as when the outsider knows of irregularities or a
1. The document discusses key concepts relating to maintenance of capital in company law, including reduction of share capital, redemption of preference shares, financial assistance for acquiring shares, share buybacks, dividends, and the solvency test.
2. It summarizes landmark court cases that established principles for protecting shareholder and creditor interests during capital maintenance operations.
3. The document also outlines the procedures and legal requirements for various capital maintenance activities under the Companies Act 2016 and relevant case law. It traces the evolution of the law on financial assistance through amendments to the Act.
The document discusses the duties and responsibilities of company directors under Malaysian law. It covers the following key points:
1) Directors must act in good faith and in the best interests of the company, not for their personal interests. Several cases are discussed that illustrate this fiduciary duty.
2) Directors must act within the scope of their powers and use company assets only for proper purposes. They cannot fetter their decision making and must avoid conflicts of interest.
3) Directors have a duty to avoid any conflicts between their personal interests and the interests of the company. They cannot profit personally from their position or use confidential company information for their own gain.
The document discusses the key components of a Memorandum of Association for a company. It notes that the Memorandum of Association is the first document filed and defines the company's objectives and activities. The Memorandum includes clauses for the company name, registered office location, objectives, share capital structure, liability of members, and signatures of initial subscribers. It establishes the fundamental rules and limitations governing the company.
The document discusses the key clauses and contents of a company's Memorandum of Association (MOA) according to the Companies Act of 1956. It explains that the MOA is the main constitutional document of a company that defines its objectives and scope of activities. It lays out the various standard clauses included in an MOA such as the name, registered office, objectives, liability, capital, and subscription clauses. It also discusses the process for making alterations to an MOA and situations where such alterations would or would not be permitted.
The document discusses the Companies Act of 1956 in India. It provides definitions of a company and outlines the evolution of company law in India from 1850 onward. The Companies Act of 1956 established the legal framework for incorporation of companies in India and set out provisions regarding capital raising, governance, and accounting. The Satyam fraud case is also summarized, where the chairman of Satyam Computer Services admitted to falsifying the company's accounts over several years, inflating profits and hiding losses.
Memorandum of association and Articles of association and partnership deed an...Aniruddha Dey
An study on memorandum of association and Articles of association. It contains the difference between memorandum of association and Articles of association, partnership deed and sales agency agreement and effects of registration of Memorandum of association and Articles of association while incorporating a business. All precisely.
This document provides an overview of One Person Companies (OPCs) in India. Key points:
- OPCs allow a single person to incorporate a private company with limited liability. This provides benefits like access to loans and markets.
- Only natural-born Indian citizens resident in India can incorporate an OPC. An OPC must have a nominee in case the member dies or becomes incapacitated.
- OPCs are exempt from some requirements that apply to regular private companies, like annual general meetings. But they still must file annual returns and financial statements.
- Compared to sole proprietorships, OPCs provide limited liability and allow for succession through a nominee. They also have higher tax rates but
1) To start a company in India, at least seven people must sign the memorandum of association and comply with registration requirements to form an incorporated company as either a private or public company.
2) The memorandum of association, articles of association, and director agreements must be filed with the Registrar along with the company name, registered office details, share capital, and business objectives.
3) Additional requirements include obtaining director identification numbers, declaring compliance, and obtaining certificates of incorporation and commencement of business to legally operate the company.
This document provides information about the formation and incorporation of a company as well as the winding up process of a company under Indian law. It discusses the key stages in company formation including promotion, registration, and commencement of business. It also outlines the roles and responsibilities of promoters. For winding up, it describes the different modes including compulsory winding up by tribunal order and voluntary winding up. It discusses the roles of liquidators and various procedures involved in both types of winding up.
The document discusses the key characteristics and types of companies according to the Companies Act of 1956 in India. It defines a company as an association formed to carry out business with transferable shares owned by members. The key characteristics mentioned are that a company is an incorporated legal entity separate from its members, has perpetual existence, uses a common seal, and has delegated management. The types of companies are classified based on mode of incorporation, number of members, ownership, control and nationality.
The document discusses the legal status of pre-incorporation contracts under English common law and Malaysian company law. It provides an introduction and overview of key cases.
In English common law, pre-incorporation contracts are invalid and cannot be ratified by the company after incorporation. As such, outsiders who contract with promoters cannot enforce the contract or hold the company liable. Promoters are also not personally liable as a non-existent company cannot appoint agents. However, under Malaysian company law pre-incorporation contracts can be ratified, protecting outsiders and allowing them recourse against the company or promoters. The document analyzes several important cases to illustrate how these laws are applied.
The document discusses whether a Portuguese man aged 75, named Jose, can be appointed as a director to replace Arsene on the board of PQR Sdn Bhd. It analyzes that Jose cannot be one of the first two directors as he is non-resident, but he could be appointed as an additional director if Alex and Rafael are resident directors. It also determines that, as PQR Sdn Bhd is a private company, Jose's age of 75 does not prevent him from being a director under the relevant laws.
This document discusses promoters and pre-incorporation contracts under Indian company law. It defines a promoter as a person who takes the initiative to establish a business organization. Though not defined in the Companies Act, promoters have certain fiduciary duties like disclosing profits and not making secret profits. The document discusses definitions of promoters and promoter groups under DIP Guidelines and judicial interpretations. It also outlines promoter liabilities and duties to disclose personal profits when dealing with the company. Pre-incorporation contracts are binding on companies after incorporation if adopted or ratified by them.
The document provides an overview of the Companies Act 1994 of Bangladesh. It discusses the background and history of company law in the region.
The executive summary outlines the 11 parts of the Companies Act 1994. It provides high-level descriptions of the key aspects covered in each part, including preliminary matters, company constitution/incorporation, share capital, management/administration, winding up procedures, registration office/fees, application to prior companies, registration of authorized companies, winding up of unregistered companies, foreign company registration, and supplemental legal matters.
Part II on company constitution/incorporation establishes the requirements for forming incorporated companies as public or private limited, or unlimited. It specifies the necessary contents of memorandums
The document describes an electro live music tour of Asia from 2010-2012. It provides details on sponsor partnerships, touring artists, charity involvement, tour stops, and marketing plans. Sponsorship packages ranging from $150,000 to $96,000 are outlined that provide branding opportunities at live shows and online in exchange for supporting the multi-year, multi-country tour.
Javier describes his daily meal schedule which includes breakfast at 7:35 AM consisting of cereal or toast with milk, a recess snack like a sandwich around 11:10 AM, lunch at 3 PM usually including pasta, yogurt, and water, an afternoon snack of fruit or a sandwich around 5:30 PM, and dinner between 8:30-9 PM such as fish, vegetables, or chicken with water. The calorie and price breakdown shows breakfast at 250 calories for 1.50 euros, recess snack at 300 calories for 1.20 euros, lunch at 500 calories for 4 euros, afternoon snack at 300 calories for 1.20 euros, and dinner at 650 calories for 4.30 euros, totaling 1400 calories for
The document lists a person's daily meals and snacks including calorie counts. For breakfast the person had a bowl of cereal with milk totaling 472 calories. For lunch they had a sandwich with jam, cheese and orange juice totaling 864 calories. Their snack was donuts and pineapple juice totaling 420 calories. For dinner they ate fish and fried potatoes totaling 366 calories.
New York Capital Real Estate Markets LLC is a real estate company established in New York City that is focused on stability, driven by vision, and focused on success through building relationships that are essential in real estate.
Kalypso is a consulting firm exclusively focused on innovation and product development. They have over 40 proprietary tools and methods to help clients accelerate projects and increase success rates. Their services are designed to provide a systemic view of new product development. They serve clients in industries like technology, consumer goods, manufacturing, and aerospace/defense, with offices in North America, Europe and Asia.
CMCL Innovations provides modeling software and consulting services focused on predictive combustion modeling. Their modeling philosophy uses integrated data, application, and optimization models. Their software suite, SRM, can model combustion, emissions, fuels and fuel reformation, injection systems, and in-cylinder processes through integrated fluid dynamics and chemistry models. Customers choose SRM for its ability to predict emissions and combustion trends, model critical in-homogeneities faster than CFD, seamlessly couple with third party tools, and help design optimizations. CMCL provides examples of SRM helping optimize diesel engine design for emissions and efficiency.
The document discusses the importance of diversification in investments. It recommends diversifying investments across different asset classes and industries to reduce risk. This is done by mixing various investments into a portfolio that spreads out investments. Diversification protects investors from downturns in specific industries and allows them to benefit from positive market conditions. The document also discusses two case studies of the bankruptcy of Lehman Brothers and the global recession to illustrate the need for diversification on a global scale to avoid overexposure when crises occur.
SEO Analytics is complicated. In this presentation, I talk about
- My experience working on both Analytics and SEO teams
- Challenges, opportunities and SEO Analytics best practices
- How to prepare your Web Analytics tool data for integration with Brightedge Page level reporting
- How to pull different data sources together to correlate and infer keyword performance
- How to leverage data to audit and identify problem areas of your site
- How to combine data sources to understand your SEO program’s business impact
The document outlines details of the 2010 J-PLAN Electro Live Tour, a cross-continental concert series taking place in Asia between 2010 and 2012. It features American electro-master artists alongside Japanese DJ support acts. The tour makes stops in major cities across Japan, Taiwan, and Singapore, holding blockbuster shows in Kyoto each May. Typical show lineups include support DJ sets followed by performances from artists like Egyptian Lover and Arabian Prince. The tours aim to promote cross-cultural integration and support various charities through associated events and campaigns.
This short document promotes Haiku Deck, a presentation creation tool, and encourages the reader to get started creating their own Haiku Deck presentation on SlideShare. It provides a single prompt stating "Create your own Haiku Deck presentation on SlideShare!" to inspire the reader to take action.
This document provides instructions for making crepes suzette. It is a 7 step recipe that includes preparing a pancake batter with flour, eggs, milk, liqueur and butter. The batter is cooked in a skillet to make thin pancakes. Meanwhile, a sauce is made by caramelizing sugar, adding butter, orange juice and zest and boiling. The cooked pancakes are folded, placed on a plate and topped with the hot orange sauce.
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Abcbshdhdbbdd bsnsjdnndhdhdjdjdjdjdndnjdjdjdjdjjd djjdjdhdndjdndjdjdh to the company is the best friend at work and I am a little bit of a little bit of a little bit of
The Company Act of India : Articles and MemorandumsAkash Jauhari
The document provides an overview of the Memorandum of Association and Articles of Association under the Company Act of 1956 in India. It defines key clauses that must be included in the Memorandum of Association, such as the name, registered office, capital, liability, and association clauses. It also describes how the Memorandum can be altered. The document then explains the essential constituents of the Articles of Association and provisions that must be included. It concludes by describing the differences between the Memorandum and Articles of Association and the effects they have on members and the company.
The document defines key terms related to companies under the Indian Companies Act of 1956, including:
1. What constitutes a company and the characteristic features of companies like separate legal entity, limited liability, and transferability of shares.
2. The two main types of companies - private and public - and the distinguishing criteria between them like ownership and invitation of public subscriptions.
3. The process of forming a company including promotion, registration, raising capital, and commencement of business.
4. Key documents involved like the memorandum and articles of association and their contents and purposes.
The document defines key terms related to companies under the Indian Companies Act of 1956, including:
- What constitutes a company and the characteristic features of companies
- The two main types of companies - private and public
- The key requirements to form and register a company, including preparing documents, filing with the Registrar of Companies, and obtaining a Certificate of Incorporation
- How a company can raise capital through private placement of shares or public issuance of a prospectus
The document provides guidance on setting up a company in India. It discusses the roles and responsibilities of promoters, qualification shares that must be purchased by promoters and directors, the legal positions and liabilities of promoters, and the steps for incorporation including preparing required documents and submitting them to the Registrar of Companies to obtain a Certificate of Incorporation. It also briefly outlines the processes for voluntary or court-ordered winding up of a company.
The document provides guidance on setting up a company in India. It discusses the roles and responsibilities of promoters, qualification shares that must be purchased by promoters and directors, the legal positions and liabilities of promoters, and the steps for incorporation including preparing required documents and submitting them to the Registrar of Companies to obtain a certificate of incorporation. It also briefly outlines the processes for voluntary or court-ordered winding up of a company.
The document provides instructions on how to set up a company in India. It discusses the roles and responsibilities of promoters, qualifications shares that must be purchased, legal positions and liabilities of promoters, steps to incorporate like preparing Memorandum of Association and Articles of Association. It also summarizes how to obtain certificates of incorporation and commencement of business, types of contracts before incorporation, formats for Memorandum of Association, process to wind up a company voluntarily or through court orders.
This material is for PGPSE / CSE students of AFTERSCHOOOL. PGPSE / CSE are free online programme - open for all - free for all - to promote entrepreneurship and social entrepreneurship
Sunita Kumari Yadav completed a project report on the company audit of Tirtharoop Electricals Pvt. Ltd. as part of her Master of Commerce program at the University of Mumbai. The report was submitted under the guidance of Mr. Gajanan Wader in 2013-2014. Sunita declared that the work was original and carried out under supervision. It was evaluated and accepted for internal assessment by internal and external examiners. The report included chapters on the company background, accounting records, audit standards and processes, analysis of accounts, and a draft audit report.
The memorandum of association (MOA) is the primary legal document that establishes a company and defines its relationship with shareholders. It specifies the company's name, registered office location, objectives, liability of members, authorized share capital, and subscription of shares by initial members. The MOA establishes the basic framework and boundary within which a company can operate. It is a fundamental part of a company's constitution that provides transparency about its formation and objectives.
PPT on Company.pptx hi hello heeonksnskdnksndksmasurana1403
This document discusses the key stages in the formation of a private limited company and a public limited company in India.
For a private limited company, the stages are promotion, incorporation. For a public limited company, the additional stage is subscription of capital. Promotion involves identifying a business opportunity and undertaking feasibility studies. The promoters are then responsible for preparing necessary documents like the Memorandum of Association, and submitting them to the Registrar of Companies to obtain a Certificate of Incorporation. Once incorporated, a private company is formed. For a public company, an additional stage involves subscribing to the company's capital through a public issue.
Rules to follow to set up a Joint Venture with an Indian companyvakilsearch_tutorial
There are three common types of joint venture companies in India: 1) where one party transfers their business to a new company and receives shares, while the other party subscribes for shares in cash, 2) where both parties subscribe to shares in the new company in agreed proportions in cash to start a new business, 3) where an existing company collaborates with a third party who takes shares in the company through cash payment. Joint ventures are incorporated like private or public companies under Indian law. Key issues to address include foreign investment caps, agreement terms, director nominees, office location, and necessary approvals. The joint venture agreement should specify shareholding proportions, decision-making, management structure, funding, and dispute resolution
This document provides answers to various questions related to corporate laws and practices in Bangladesh. It discusses the options available to Rahman Shakil to start a business as an individual, the criteria for forming a One Person Company, and why he can initially only form a proprietorship. It also covers topics like a company paying share capital back to its parent company, legal personality of a company, displaying a company's registered office address, and liability of shareholders.
The document summarizes key aspects of the Companies Act 1984 in Pakistan. It discusses the incorporation of companies, requirements for memorandums and articles of association, management and administration of companies, and winding up or dissolution of companies. Specifically, it outlines the clauses required in a memorandum of association, contents that must be included in articles of association, grounds for compulsory and voluntary winding up of a company, and winding up under court supervision.
The Companies Act 2013 is an Act of the Parliament of India on Indian company law which regulates incorporation of a company, responsibilities of a company, directors, dissolution of a company.
This is about complete information about registration and incorporation of Companies Act. Easy understanding with keeping good thought in mind and you may not require more to search other sites.
Formation and incorporation of companyHumma Rashid
This document discusses the process of forming and registering a company in Pakistan. It explains that upon registration, a company becomes a separate legal entity with its own rights and liabilities. There are three types of companies that can be registered: limited by shares, limited by guarantee, or unlimited liability.
The registration process involves selecting a name, preparing documents like the Memorandum of Association, Articles of Association, and Form 1, paying registration fees, submitting documents to the Securities and Exchange Commission of Pakistan (SECP), and receiving a Certificate of Incorporation. Once incorporated, the company gains benefits like the ability to own property, sue and be sued, and have perpetual succession separate from its members.
The memorandum of association is the constitution or charter of a company that defines its scope and powers. It contains key details like the company's name, registered office location, objectives, liability terms, capital structure, and names of initial subscribers. The articles of association contain the internal regulations for governing a company's operations and achieving its objectives. It covers aspects like share transfers, meetings, voting, appointment of directors, borrowing powers, accounts, and winding up procedures. Together, the memorandum and articles of association form the contract between a company and its shareholders.
The document discusses key provisions of the Companies (Amendment) Act 2015 and the Companies Act 2013 regarding companies in India. Some of the key points covered include:
- The Companies (Amendment) Act 2015 removed the minimum paid up share capital requirement and made the common seal optional for companies. It also introduced penalties for accepting deposits without following proper regulations.
- A company is defined as one incorporated under the Companies Act or previous company laws. The memorandum of association outlines the company's name, objectives, and capital structure while the articles of association contain internal management rules.
- There are different types of companies like public, private, unlimited companies, etc. based on share capital and liability. Appointing at
Safeguarding Against Financial Crime: AML Compliance Regulations DemystifiedPROF. PAUL ALLIEU KAMARA
To ensure the integrity of financial systems and combat illicit financial activities, understanding AML (Anti-Money Laundering) compliance regulations is crucial for financial institutions and businesses. AML compliance regulations are designed to prevent money laundering and the financing of terrorist activities by imposing specific requirements on financial institutions, including customer due diligence, monitoring, and reporting of suspicious activities (GitHub Docs).
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Business law for the students of undergraduate level. The presentation contains the summary of all the chapters under the syllabus of State University, Contract Act, Sale of Goods Act, Negotiable Instrument Act, Partnership Act, Limited Liability Act, Consumer Protection Act.
Corporate Governance : Scope and Legal Frameworkdevaki57
CORPORATE GOVERNANCE
MEANING
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सुप्रीम कोर्ट ने यह भी माना था कि मजिस्ट्रेट का यह कर्तव्य है कि वह सुनिश्चित करे कि अधिकारी पीएमएलए के तहत निर्धारित प्रक्रिया के साथ-साथ संवैधानिक सुरक्षा उपायों का भी उचित रूप से पालन करें।
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1. STATE BANK OF INDIA, STATE BANK LEARNING CENTRE, BANGALORE
LEGAL ASPECTS
COMPANY UPDATED UPTO 15.01.2008
01. Name at least four important contents / clauses in the
Memorandum of Associations of a company and
What is your main purpose of examining the MOA ?
ANS. Memorandum of Association is the charter of the Company
which enables the shareholders, creditors and those dealing with the
Company to know its permitted range of operations
It contains,
1.Name of the Company
2.Place of business of the company
3.Objects of the company
4.Names of the first directors of the Company
5.Share Capital of the company.
purpose : To especially examine the object clause
02.Name two documents providing conclusive evidence that a
public limited company is capable of executing document with
the bank
ANS.
•Certificate of Incorporation
–is issued by the Registrar of Companies
–is the conclusive evidence of formation of the company
•Certificate of commencement of business
–Is issued only in case of public limited companies
purpose – The public limited companies become bound by any
contract from the date of commencement of business. Examine
the legal validity of the contract, if any, entered into by the bank
with the company.
03.Name at least four important contents / clauses in the Articles
of Association of a company
What is your main purpose of examining the AOA ?
HR SHANTHARAM, MANAGER (TRG) 1
2. STATE BANK OF INDIA, STATE BANK LEARNING CENTRE, BANGALORE
ANS. Articles of association are the rules and regulations governing
the internal management of the company. It contains
–No. of directors of the company
–Procedure for conducting meetings of the shareholders
–Procedure for transfer and transmission of shares
–Borrowing powers of the company
–Officers of the company and other details
purpose : Examine the borrowing powers of the company and
also to know the power for executing the documents and
creating security
04.Before executing security documents, a company passes a
board resolution. What are the three minimum clauses it should
contain ?
ANS. The board resolution passed at the board meeting and NOT by
circulation is a document empowering the company in the following
aspects :
–Powers to borrow
–Authority to sign
–Affix the common seal of the company on the security documents
05. A company executed a document with a round rubber stamp
(common seal) where one of the directors signed as ‘for and on
behalf of the company’
•Whether it is in order, if so, why
•If not in order, why?
ANS. It is not in order, because
–The common seal has to be made of a metallic substance. A round
rubber seal is not a common seal, even if the words are mentioned
thereon.
–The affixation of the common seal requires to be witnessed by at
least two persons, usually directors
–Such directors cannot sign in representative capacities. They sign in
the capacity of a witness
HR SHANTHARAM, MANAGER (TRG) 2
3. STATE BANK OF INDIA, STATE BANK LEARNING CENTRE, BANGALORE
06.ABC & Co, Private Ltd. has the following liability structure as
per the latest information:
Capital Rs. 10 lakh
Free Reserves Rs. 30 lakh
Term Loan Rs. 25 lakh
Cash Credit Rs. 20 lakh
The Statutory auditor comes to your branch and cites a
provision of Companies Act (section 293 (i) (d)) which says that
a company cannot contract liabilities in excess of its capital and
free reserves. Thus, the above contract is void ab-initio. The
loan should therefore be classified as a loss asset. How would
you respond to the situation?
ANS. Section 293 (i)(d) of the Companies Act is applicable for public
limited companies and those private companies, which are
subsidiaries of public limited companies. The section is therefore not
applicable in this case.
Secondly, the provision says that the company contract debt beyond
the level of capital + free reserves. The term debt refers to long term
debt only.
For the company to borrow beyond the above ceiling level, it would
be necessary to obtain a resolution passed in the general body
meeting of the members. The resolution must NOT be passed in
circulation
07.Your bank is considering a credit facility in favour of M/s. Son
& Co. Ltd. to the extent of Rs.10 Cr. This company is a wholly
owned subsidiary of M/s. Father & Co. Ltd. One of the
stipulations of the advance is that the parent company would
provide a corporate guarantee to the bank covering the full
advance. The parent company has a paid up capital of Rs.5 Cr.
and a total free reserve up to Rs.7 Cr.
While obtaining the documents for corporate guarantee, what
are the precautions you would like to exercise?
HR SHANTHARAM, MANAGER (TRG) 3
4. STATE BANK OF INDIA, STATE BANK LEARNING CENTRE, BANGALORE
ANS. A guarantee provided by a public limited company is clubbed
with the amount of inter-corporate deposits and loans given by it for
the purpose of section 372A.
As per the provisions of section 372A, the maximum amount
permissible under this head is 100% of the free reserves or 60% of
the aggregate of the capital and free reserves, whichever is higher.
As per the statutory provisions, therefore, the company can provide a
corporate guarantee to the maximum extent of Rs.7.00 Cr. to the
bank.
However, if the guarantee exceeds the above limit, a special
resolution would be required to be passed by the guarantor company
in a general meeting.
•In case, the guarantee has been provided but the special resolution
was not obtained beforehand, the board may be got ratified in a
general meeting within 12 months of the board resolution.
08. Who should file charge?
It is the primary duty of the company to have the charges filed with
ROC in a proper manner
However, section 134 empowers every person interested in the
charge to get it registered with the ROC
09. Section 125 of the Companies Act requires a Company to file
a charge within 30 days of creation thereof SAY YES OR NO.
10. A Partner has the implied authority as an agent of a Firm.
Say Yes or No.
Yes, act of a partner shall be binding on the firm, if it is done :
•in the usual business of the partnership,
•in the usual way of the business : and
•as a partner, i.e.on behalf of the firm and not solely on his behalf a
Firm.
That is the reason why any document executed by a Partner on
behalf of his Firm should also be executed by the Partner in his
HR SHANTHARAM, MANAGER (TRG) 4
5. STATE BANK OF INDIA, STATE BANK LEARNING CENTRE, BANGALORE
individual capacity, so that the individual estate of the Partner can
also be called upon for repayment towards the firm’s dues first,
before settling his other dues.
•In cases where different loans provided to a Firm and its partner(s)
(in individual capacities) are due, the estate of the Firm shall first be
utilized towards payment of the Firm’s dues, and thereafter towards
payment of individual dues of the partners, if the remaining balance of
the estate permits.
•
•Similarly, the estate of a partner shall first be utilized towards
repayment of his individual loan and balance if any, in repayment of
the loan provided to the Firm.
PARTNERSHIP
1.Partnership is not a legal entity. But it is a group of persons
associated for a specific objective.
02.Two partnership firms can not form a Partnership firm.
03.Two companies can form partnership firm.
04.Max for Banking activity – 10
Max for Non-banking activity – 20
As per section 11 of Company act.
05. If number of members exceeds 10/20 it is an illegal association.
06.Partnership firms are to be registered with Registrar of Firms.
07.An unregistered firm can not sue it’s debtors but it can be sued.
08.A minor can be admitted for the membership of the firm, but
he/she entitles only for the benefits of the farmer. Within 6 months
after attaining the majority, the minor should declare his/her
HR SHANTHARAM, MANAGER (TRG) 5
6. STATE BANK OF INDIA, STATE BANK LEARNING CENTRE, BANGALORE
willingness to be a partner. If he does not declare, he/she
automatically becomes a partner of the said firm.
09.On the death of partner, operation in CC a/c to be stopped
rationale : a] As per sec. 42 of Partnership act, once the partner dies,
the firm is automatically dissolved.
b] to avoid application of clayton’s rule in case of debit
balance vide sec. 59 to 61 if Indian Contract act.
c] to protect the interest of the Bank.
10. Partnership letter is necessary while opening an account.
rationale : a] partners declare in the latter that they are jointly and
severally liable
b] the undertake to inform the Bank if there is any change
in the constitution of the firm.
11. If the same documents are signed by different parties on
different dates, which date will be date of the document?
If several parties to a document sign it on different dates, the practice
is to reckon the last of such dates as the date of the document.
However, the limitation period, as far as a partnership firm is
concerned, starts from the earliest date, i.e., the date on which one of
the partners first signed the document on behalf of the firm (IBA
Bulletin, Feb 1990).
12.Can a partner delegate others for firm’s operations ?
Ans : Every partner is an accredited agent of the firm as per sec 18 of
Partnership act.
He being a delegate (of the firm and that of other partners) can not
further delegate as per sec 190 of Indian Contract act.
HR SHANTHARAM, MANAGER (TRG) 6
7. STATE BANK OF INDIA, STATE BANK LEARNING CENTRE, BANGALORE
GARNISHEE ORDER
1. Garnishee order is issued under which of the following------------
a) Civil Procedure code
b) Criminal Procedure code
c) Indian Contract Act.
d) Banking regulation Act.
a
2. A Garnishee order is issued by -------------
a) The RBI to scheduled bank for stopping payment in an
account.
b) The competent court for attaching funds due to a
judgement debtor by a third party for payment to the
judgement creditor.
c) The Income Tax Recovery Officer attaching funds in the
account maintained by the bank.
d) The district Magistrate requiring the bank to remit to his office a
certain sum of money to the debit of particular account.
b
3. In the process of issuing a Garnishee order court first
issues------------
a) Order Nisi
b) Order primary
c) Order attachment
d) Order absolute
a
4. Who is a garnishee in case of a bank account, where a
garnishee order is served?
a) Judgement debtor
b) Judgement creditor
c) Judgement debtor’s debtor
d) Cash credit customer
c
5. Your branch has received a garnishee order for the account of
Mr. ‘X’. What is the first action you are required to take?
c
HR SHANTHARAM, MANAGER (TRG) 7
8. STATE BANK OF INDIA, STATE BANK LEARNING CENTRE, BANGALORE
a) After paying the amount to the court, the customer be
informed.
b) After paying the amount to Judgement creditor, the customer
be informed.
c) Stop operations and inform customer
d) None of the above
6. If the garnishee order is received on a firm’s account, what
would be the position of individual account of partners being
maintained with same bank branch?
a) The order will be applicable
b) The order will not be applicable
c) It will be applicable through special order of court
d) None of the above
a
7. Which of the following conditions are to be fulfilled for a
garnishee order to be applicable?
(a) the debt should be due or accruing due
(b) Money should belong to the customer in his own right
(c) the amount in the account should be a credit balance
(d) all of these
d
8. The garnishee mentioned in a garnishee order served by
court under CPC, 1908 is:
(a) The customer having an account with the Bank
(b) The bank on which the order was served
(c) The court which issued the order
b
9. Mr. Sinha enjoys an overdraft limit of Rs.20,000/-. The bank
has received Garnishee order for Rs.5,000/- when the debit
balance in the account is Rs.10,000/-.
(a) Bank is bound to comply with the garnishee order as there is
an arrangement to overdraw
c
HR SHANTHARAM, MANAGER (TRG) 8
9. STATE BANK OF INDIA, STATE BANK LEARNING CENTRE, BANGALORE
(b) Bank is bound to comply with the order as even after paying
the garnishee order the balance will be within limit.
(c) Bank is not bound to comply with the order as the bank
owes no money to the customer
(d) None of the above
10. Garnishee order applies to
(a) Cheque sent for collection but proceeds not received till time
of receipt of order
(b) Sale proceeds of shares lodged with the bank proceeds of
which have not been received till the time of receipt of order
(c) Money deposited by the customer after the time of
receipt of order
(d) None of the above
d
11. Garnishee Order is issued under Provisions of
(a) Civil Procedure Code 1908, Order 21, Rule 46
(b) Criminal Procedure Code
(c) Income Tax
a
12. The garnishee mentioned in a garnishee order served by
a court under C.P.C.1908 is ___
a) The customer having an account with the Bank
b) The bank on which the order was served
c) The court which issued the order
d) None of the above
]
b
HR SHANTHARAM, MANAGER (TRG) 9
10. STATE BANK OF INDIA, STATE BANK LEARNING CENTRE, BANGALORE
13. Mr. Ram enjoys an overdraft limit of Rs. 20000/-. The
bank has received Garnishee order for Rs. 5000/- when the debit
balance in the account is Rs. 10000/-
a) Bank is bound to comply with the garnishee order as
there is an arrangement to overdraw
b) Bank is bound to comply with the order as even after
paying the garnishee order the balance will be within limit
c) Bank is not bound to comply with the order as the
bank owes no money to the customer
d) None of the above
c
14.When a ‘Garnishee Nisi’ is served, the Banker should:
a) Pay the balances to the judgment Debtor.
b) Pay the amount as the Branch Manager feels it right.
c) Stop operations in the judgment debtor’s a/c upto amount
mentioned in the garnishee order & allow the operations for
balance amount.
d) None of these.
c
15. When Court issues Garnishee Order, the Bank is known as:
a) Garnishee b) Judgment Debtor
c) Judgment Creditor d) None of these
a
16.Which of the following account is not attachable by service of
garnishee order?
a) Balance in Current account b) Balance in SB
account
c) Balance in SB account held RD
d) Balance in FOR maturing one year later.
e) Balance representing cheque sent in clearing, not yet
cleared..
e
17. A Garnishee order does not extend to the following:
a) Term Deposits maturing after 2 years
b) Credit balance in CC accounts
c) Current Account
d) None of the above.
d
HR SHANTHARAM, MANAGER (TRG) 10
11. STATE BANK OF INDIA, STATE BANK LEARNING CENTRE, BANGALORE
18. Which of the following is Garnishee under a Garnishee
Order? .
a) Judgement Creditor
b) Judgement Debtor
c) Bank
d) None of these c
19.A garnishee order has been received in the name of Mr. X who
is associated with the following accounts maintained with your
branch. In which of these accounts the order would be applicable:
A: account in the name of his minor wife under his
guardianship
B: overdraft account having un-availed limit of Rs.35000
C: account of a trust where he is the sole trustee
D: none of the above
d
20. Garnishee order can be issued by a
a. creditor
b. debtor
c. Bank
d. none
d
21. In garnishee order, the bank is a-
a. Paying Banker
b. Garnishee
c. Judgement Debtor
d. Judgement Creditor
b
22. The Garnishee Order is applicable when the relationship
between the two is-
a. Bailor- Bailee
b. Trustee-Beneficiary
c. Principal-Agent
d. Debtor-Creditor
d
HR SHANTHARAM, MANAGER (TRG) 11
12. STATE BANK OF INDIA, STATE BANK LEARNING CENTRE, BANGALORE
INDIAN STAMP ACT 1899
1. Points to remember for adjudication and higher/lower/same
stamp areas.
If there is any doubt regarding the stamp duty exeligible on a security
document, the matter should be referred to the Bank’s advocate/Law
Officer. As per Sec. 31 of Indian Stamp Act, the document may be
sent to the collector of stamps or Stamp Authority for seeking his
opinion as to the exact stamp duty payable on the document/
instrument (adjudication).
If a security document travels from higher stamp the same stamp
area or lower stamp area, no action is necessary in the second state.
But if the stamp duty in the second state is higher, the document
attracts the additional stamp duty. Such additional stamp duty should
be paid before the remaining executants in the second state put their
signatures on the documents, within 3 months of the date of receipt in
the second state. (Overstamping, if any, in the first State does not
serve the purpose in such instances).
If a document travels from the state of Jammu and Kashmir to some
other state and vice versa, the stamp) duty of both the states is
payable.
HR SHANTHARAM, MANAGER (TRG) 12
13. STATE BANK OF INDIA, STATE BANK LEARNING CENTRE, BANGALORE
2. When the bank sells gold ornaments or other valuable articles
pledged to it as security for any loan, for recovering the dues,
should it collect and remit sales tax to the Govt. ?
As per the recent amendments to the provisions of the Kerala
General Sales Tax Act, 1963 a Bank or a Financial Institution
effecting the said sale has been brought under the purview of
‘dealer’. (Amendment Act 14 of 1998 to KGST Act, 1963). As per the
amendment the bank is liable to collect and remit tax on the value
of the gold/ other valuables sold in auction to recover the dues to it.
3. Any instrument drawn and executed outside India must be
stamped within three months of entry in India
4.An unstamped or under stamped d.p.notes and bills of exchange
cannot be ‘corrected’ even if the penalty is paid.
5. Stamp paper must be purchased in the name of one of the
parties to the contract
PLEDGE
1.Pledge is defined u/s 172 of Indian Contract Act.1.Pledge is defined u/s 172 of Indian Contract Act.
2.Pledgee has the right to possession.2.Pledgee has the right to possession.
3.3.reasonable notice u/s 176 required to be given to the borrowerreasonable notice u/s 176 required to be given to the borrower
before selling the pledged goods.before selling the pledged goods.
4.The Bank is liable u/s 151 to take good care of the seized goods.4.The Bank is liable u/s 151 to take good care of the seized goods.
5.For goods and securities pledged to the Bank, there is no limitation5.For goods and securities pledged to the Bank, there is no limitation
period.period.
HR SHANTHARAM, MANAGER (TRG) 13
14. STATE BANK OF INDIA, STATE BANK LEARNING CENTRE, BANGALORE
HYPOTHECATIONHYPOTHECATION
1.Hypothecation is defined IN SEC 2 of SARFAESI ACT (1.Hypothecation is defined IN SEC 2 of SARFAESI ACT (The
Securitisation & Reconstruction of Financial Assets and Enforcement
of Security Interest Act)
2.2.it is a notional, special and equitable chargeit is a notional, special and equitable charge provisions ofprovisions of
3.The possession and ownership remains with the borrower.3.The possession and ownership remains with the borrower.
4.Transfer of Property Act and Indian Contract Act are not applicable4.Transfer of Property Act and Indian Contract Act are not applicable
5.rights can be exercised through a court of law5.rights can be exercised through a court of law
NEGOTIABLE INSTRUMENT ACT
1. The Negotiable Instruments Act, 1881 came into
effect on
(a) 1st January, 1881.
(b) 1st July, 1881.
(c) 1st March, 1881.
(d) 1st March, 1882.
d
2. The Negotiable Instruments Act, 1881 extends to :
(a) all States comprising of erstwhile British India.
(b) the whole of India excluding Jammu & Kashmir.
(c) the whole of India including Jammu & Kashmir.
(d) the whole of India except the State of Sikkim and
East Bengal.
c
3. How many sections are there in the Negotiable
Instruments Act,
1881 ?
(a) 250.
D
HR SHANTHARAM, MANAGER (TRG) 14
15. STATE BANK OF INDIA, STATE BANK LEARNING CENTRE, BANGALORE
(b) 500.
(c) 131.
(d) 147.
4. Effective from 15th March, 2003, the Information
Technology Act, 2000 has been amended so as to
bring within its purview the:
(a) bills of Exchange.
(b) cheques.
(c) promissory Notes.
(d) electronic cheques and truncated cheques.
D
5. Negotiable instruments are defined under:
(a) Section 52 of the Banking Regulation Act, 1949.
(b) Section 13 of the Negotiable Instruments Act,
1881.
(c) Section 25 of the Reserve Bank of India Act, 1934.
(d) None of these.
b
6. A negotiable instrument means:
(a) Bill of exchange; or
(b) Cheque payable to bearer; or
(c) Demand Draft; or
(d) Cheque, bill of exchange or promissory note.
d
7. Withdrawal forms used in savings accounts are:
(a) negotiable instruments.
(b) quasi negotiable instruments.
(c) not negotiable instruments.
(d) special bearer instruments.
c
8.A hundred rupee currency note issued by Reserve
Bank of India contains the following notation: "I
promise to pay the bearer the sum of one hundred
rupees." Therefore, the currency note is a :
(a) Promissory Note.
(b) Bill of Exchange.
(c) Cheque.
d
HR SHANTHARAM, MANAGER (TRG) 15
16. STATE BANK OF INDIA, STATE BANK LEARNING CENTRE, BANGALORE
(d) None of these.
9. Demand drafts issued by banks fall in the category
of:
(a) Promissory notes.
(b) Bills of Exchange
(c) Allonge
(d) Special order
b
10.Having regard to section 118 of the Negotiable
Instruments Act, 1881, consideration, in the case of a
negotiable instrument, is :
(a) waived; or .
(b) to be proved by the plaintiff; .or I
(c) immaterial; or
(d) presumed.
d
11. A minor is incompetent to be a :
(a) payee.
(b) drawer.
(c) drawee.
(d) endorser without being bound by the endorsement
himself.
c
12. A negotiable instrument cannot be enforced
against a minor when he signs it as :
(a) acceptor of a bill.
(b) maker of a promissory note.
(c) drawer of a cheque.
(d) all of these.
d
13.. In view of section 8 of the Negotiable Instruments
Act, 1881, the term "holder" would not include:
a thief in possession of an instrument payable to
bearer; or
the finder of a lost instrument payable to bearer; or
(c) even the payee himself if he cannot recover the
amount due on the instrument, as when he is
prohibited from doing so by an order of the court; or '
(d) all of these.
d
14.A bank allows a temporary overdraft only for a part
amount of a cheque sent in clearing. In the event
b
HR SHANTHARAM, MANAGER (TRG) 16
17. STATE BANK OF INDIA, STATE BANK LEARNING CENTRE, BANGALORE
of dishonour of the cheque;
b (a) Bank will not be a holder in due course since full
consideration was not parted with while allowing
overdraft against the dishonoured cheque.
(b) Bank will be a holder in due course if it took the
same under the circumstances mentioned in
Section 9 of the Negotiable instruments Act, 1881.
(c) Bank may proceed only against its customer who
was allowed the overdraft but not against
drawer/endorser.
(d) None of these.
15. A negotiable instrument payable to bearer is
negotiable by ;
delivery
endorsement
endorsement and delivery
(d) transfer deed.
a
16. Hundies are governed by :
(a) The Negotiable Instruments Act, 188!.
(b) The Banking Regulation Act, 1949.
(c) Usages and customs prevailing in various parts
of the country.
(d) None of these.
c
17. How many parties are there in a bill of exchange?
(a) Two.
(b) Four
(c) Three.
(d) None of these.
c
18. In a bill of exchange':
(a) the drawer and the drawee are the same.
(b) the drawee and payee are the same.
(c) the payee and the acceptor are the same.
(d) the drawee and the acceptor are the same.'
d
19.All types of bills of exchange are required to B
HR SHANTHARAM, MANAGER (TRG) 17
18. STATE BANK OF INDIA, STATE BANK LEARNING CENTRE, BANGALORE
be presented, either for payment or for acceptance, to
the:
(a) drawer.
(b) drawee
(c)payee.
(d) banker
20. Which of the following would constitute a cheque
within the meaning of section 6 of the Negotiable
Instruments Act, 1881?
(a) A gives C a cheque written on a blank sheet of
paper, and not on the bank's usual printed form.
(b) A cheque in the electronic form.
(c) The electronic image of a truncated cheque.
(d) All of these.
d
21. A cheque may be drawn for a maximum period of:
(a) three months.
(b) six months.
(c) nine months.
(d) none of these.
d
22.The drawee of a cheque is always a :
(a) company.
(b) firm.
(c) customer.
(d) banker.
d
23. How many parties are there to a promissory note?
(a) One.
(b) Two
c) Three. ,
(d) No limit.
b
24. An undated cheque is :
(a) not considered invalid.
(b) considered invalid.
(c) considered not negotiable.
(d) none of these
a
25.A cheque may be:
(a) ante-dated; or
(b) post-dated
c
HR SHANTHARAM, MANAGER (TRG) 18
19. STATE BANK OF INDIA, STATE BANK LEARNING CENTRE, BANGALORE
(c) both of these; or
(d) none of these.
26. Which of the following statements about post-
dated cheques are correct?
(a) A post-dated cheque is only a bill of exchange
when it is drawn and it becomes a cheque when it is
payable on demand. .
(b) A post-dated cheque becomes a cheque on the
date which is written on the cheque.
(c) Both of these.
(d) None of these.
c
27. A cheque book was issued on 16th August, 1991
to a current account holder out of which a cheque
bearing 20th June, 1991 as its date, is presented for
payment: .
(a) The cheque should be returned with the remarks
"Impossible Date"; or
(b) The cheque should be returned with the remarks
"Ante-dated cheque"; or
(c) The cheque should be returned with the remarks
"Out of date cheque"; or
(d) The cheque should be paid.
d
28. A cheque dated 31st September is presented for
payment on 30th
September:
(a) The cheque will be paid.
(b) The cheque will be returned with the remarks
"Bears impossible date".
(c) The cheque will be returned with the remarks
"Irregularly drawn".
(d) The cheque will be paid on or after 1st October.
a
29. An undated cheque is presented at the counter by
the payee:
(a) The payee should be asked to fill in the date.
(b) The banker as a holder has a right to fill in the
date.
(c) The cheque should be returned with the
remarks "Cheque is un dated."
c
HR SHANTHARAM, MANAGER (TRG) 19
20. STATE BANK OF INDIA, STATE BANK LEARNING CENTRE, BANGALORE
(d) The drawer must be contacted and his confirmation
obtained.
30.A cheque filled in with the National Calendar (Saka
Samvat) date is presented to you for payment:
(a) You will pay the cheque because an
instrument written in Hindi having Hindi date
is a valid instrument.
_ (b) You will refuse payment since under the
Negotiable Instruments Act, 1881 cheques must be
drawn in the British Calendar date.
(c) It is your discretion to pay or to dishonour the
cheque.
(d) You will delay the payment of the cheque by asking
the drawer to write the date as per British Calendar
a
31. A cheque drawn in foreign currency is :
(a) invalid.
(b) Illegal.
(c)valid
(d) subject to discretion of the paying banker.
c
32.. The amount in a cheque is written only in figures,
the column meant for amount in words having
been left blank. You will :
(a) pay the cheque because amount in words is not
required to be written under the law.
(b) return the cheque with the reason "Ambiguous
instrument."
(c) return the cheque marked "Amount in words
required" as a prudent banker.
(d) none of these.
c
33.A cheque is presented through clearing in
which the amount ex pressed in words and figures
differs. Acting strictly in accordance with the provisions
contained in the Negotiable Instruments Act, 1881, you
will: .
(a) return the cheque with the remarks "Amount in
words and figures differs." .
(b) pay the cheque for the amount expressed in
words.
b
HR SHANTHARAM, MANAGER (TRG) 20
21. STATE BANK OF INDIA, STATE BANK LEARNING CENTRE, BANGALORE
(c) pay the cheque for the amount expressed in
figures.
(d) pay the cheque for the amount expressed in words
or figures whichever is less.
34. The amount expressed in words on a cheque
is "Rupees sixty thou sand only", whereas it is written
as Rs. 600 in figures. You will:
(a) pay the cheque for Rs 600.
(b) pay the cheque for, rupees sixty thousand only.
(c) return the cheque with the remarks "amount in
words and figures differs."
(d) none of these.
c
35. A cheque payable to Lord Shiva or bearer is
presented for payment:
(a) Since the cheque is drawn in a fictitious name, it
should not be paid; or ,
(b) The cheque may be paid to the presenter
thereof; or
(c) The cheque should be paid only to the drawer; or
(d) The cheque will be paid to the presenter only after
obtaining his identification.
b
36. A cheque payable to bearer can be converted into
an order one with:
(a) Drawer's signature.
(b) Drawee's signature.
(c) No signature required.
(d) Payee's signature.
c
37. A bearer cheque contains two endorsements. The
second endorsement is irregular. The cheque in
question will be:
(a) returned with the remarks "Refer to drawer."
(b) paid on the collecting banker's guarantee.
(c) returned with the remarks "Endorsement irregular."
(d) paid in spite of irregular endorsement.
d
.
38.A cheque has been drawn favouring "Lord Brahma
a
HR SHANTHARAM, MANAGER (TRG) 21
22. STATE BANK OF INDIA, STATE BANK LEARNING CENTRE, BANGALORE
or order." It is presented for payment across the
counter by the priest of a local temple:
a)Such a cheque should not be paid except to the
drawer. Hence, it should be returned with the
remarks "Irregularly, drawn"; or
b)The cheque should be paid to the presentor after
obtaining his identification; or
(c) Since the cheque is drawn in fictitious name it
becomes payable to bearer. Therefore, it should be
paid to the presenter without insisting for his
identification.
(d) None of these.
39.A cheque is expressed to be payable to "Mr. B.K.
KULKARNI or order or bearer." The words 'or order'
have been inserted by the drawer himself while 'or
bearer' is printed on the cheque.The cheque is pre-
sented for payment by one Mr. Ram. There is no
endorsement on the cheque. In the above case:
(a) The cheque should be, returned with the remark
'irregularly drawn'.
(b) The cheque should be returned with the remark
'payee's endorsement required'.. .
(c). The cheque being a bearer one, may be paid to
the presenter
(d) The cheque should be presented through a bank;
it cannot be paid across the counter., ,
b
40.Which of the following type of crossing is not
recognised by the Negotiable Instruments Act, 1881 ?
(a) General crossing.
(b) Special crossing.
(c) 'Not negotiable' crossing.
(d) 'Account Payee' crossing.
d
41. 'Account Payee' crossing is addressed to : a
HR SHANTHARAM, MANAGER (TRG) 22
23. STATE BANK OF INDIA, STATE BANK LEARNING CENTRE, BANGALORE
(a) collecting banker.
(b) payee.
(c) drawee banker.
(d) none of these.
42. "Account Payee" crossing is :
special crossing.
general crossing
(c) restricted crossing.
(d) none of these.
b
43.. In the 'case' of a bill of exchange :
(a) general crossing means that the amount may be
paid only to a bank.
b) special crossing means that the amount may be
paid only to the bank named therein.
(c) crossing has a restricted application.
(d) crossing has no meaning
d
44. A negotiable instrument, can be endorsed by
signing the same on : (a) a slip of paper annexed to
the instrument; or
(b) the back thereof; or
(c) face thereof; or
(d) the back or face thereof or on a slip of paper
annexed thereto.
d
45. An endorsement made by affixing a facsimile or
rubber stamp is
: ( a) valid only where clearing house exists; or
(b) not legally valid;
(c) legally valid; or
(d) valid if the instrument is payable to a Government
department
c
46. When an order cheque is endorsed in blank:
(a) its further negotiation is restricted.
(b) it becomes payable to bearer and transferable
by mere delivery.
(c) it loses the characteristic of negotiability. "
b
HR SHANTHARAM, MANAGER (TRG) 23
24. STATE BANK OF INDIA, STATE BANK LEARNING CENTRE, BANGALORE
(d) None of these.
47. An endorsement in pencil is :
(a) illegal.
(b) undesirable.
(c) Specifically permissible under section 15 of the
Negotiable Instruments Act.'
(d)none of these.
b
48. Who is incompetent to endorse an instrument?
(a) Minor.
(b) Married woman.
(c) Illiterate.
(d) None of these.
d
49. In case an endorsement is not dated:
(a) it is considered invalid. ,
(b) the date of the instrument is taken to be the
date of endorsement.
(c) the date of maturity is taken to be the date of
endorsement.
(d) it is not invalid
d
50.Inchoate instrument means:
(a) a negotiable instrument which 'is incomplete
as' to its date, amount or name of the payee.
(b) an instrument which has been lost.
(c) a cheque, the payment where it has been stopped
by the drawer.
(d) a post-dated cheque
a
HR SHANTHARAM, MANAGER (TRG) 24
25. STATE BANK OF INDIA, STATE BANK LEARNING CENTRE, BANGALORE
INDIAN REGISTRATION ACT
1.The registration of Mortgages of an immovable property
should be done as per Sec 28 of Indian Registration act 1908.
According the recent court decision on fraud, the burden lay on the
plaintiff to prove that it was a fraud on registration in as much as a
non-existent tree had been included therein only to attract the
jurisdiction of the Sub-Registrar, when in fact there was none.
Ex: 01.Case of Mrs. Ramadevi v. Ram Chandra Bali Debi of Patna
High Court. In a proceeding for registration of document, the title to
property can not be gone into and that the sec 28 of the IR act does
not require anything more than the existence of a property within the
jurisdiction of a particular Sub-Registrar in order to entitle him to
register the same. (The Key word here is the Transferor should act in
perfectly bonafide manner).
2.The registration has to be done within 4 months from the date
execution of documents as per Sec 23 of Indian Registration act.
The section reads on time for presenting document : “Subject to the
provisions contained in Sec 24,25 and 26, no document other than a
will shall be accepted for registration unless presented for that
purpose to the proper officer within 4 months from the date of
execution:
Provided that a copy of a decree or order may be presented within
four months from the day on which the decree or order was made ,
or, where it is appealable, within 4 months from the day on which it
becomes final”.
3.If there is a delay in registration, the Registrar, in case where
the delay in presentation does not exceed 4 months, may direct
that, on payment of a fine not exceeding 10 times the amount of
the proper registration – fee, such document shall be accepted
for registration as per Sec 25 of IR act.
Any application for such direction may be lodged with a Sub-
Registrar, who shall forward it to the Registrar to whom his is
HR SHANTHARAM, MANAGER (TRG) 25
26. STATE BANK OF INDIA, STATE BANK LEARNING CENTRE, BANGALORE
subordinate.
4. Section 48 : Provided that the mortgage by deposit of title –
deeds as defined in Sec 58 of TOP act, 1882, shall take effect
against any mortgage deed subsequently executed and
registered which relates to the same property
5. Sec 18 : The Documents in language not understood by the
registering officer – the registering officer shall refuse to
register the document unless it be accompanied by a true
translation into a language commonly used in the district and
also by a true copy.
THE LIMITATION ACT
ACKNOWLEDGEMENT OF DEBTS AND SECURITY : RENEWAL
OF DOCUMENTS : REVIVAL LETTERS
The Limitation Act 1963 prescribes a period before expiry of which a
debt may be recovered or a right can be enforced by the Bank in a
Court under a document. The essence of the Limitation Act is that it
only bars the remedy and it does not extinguish the right under a
document. If the debt is time barred, the Bank can still exercise its
right of lien and set off and in the case of hypothecation or pledge or
mortgage in English form, a power is vested in the Bank to sell
HR SHANTHARAM, MANAGER (TRG) 26
27. STATE BANK OF INDIA, STATE BANK LEARNING CENTRE, BANGALORE
without intervention of the Court and the limitation does not apply to
such cases. However, the personal obligation of the borrower/
guarantor to pay (the dues to the Bank) could become time barred
and no suit can lie for recovering the balance from them personally.
As per The Limitation Act (Sections 18 to 20) the essential
requirements of a revival letter (acknowledgement of debt and
security) are :
(a)Consent to or admission of existing liability in respect of a right
or property.
(b)It must show jural relationship as debtor and creditor.
(c) Revival in writing should be made before the expiry of the
prescribed period.
(d)It should be made by borrower /guarantor against whom such
right or property is claimed.
(e)It should be signed by such person, i.e. the borrower /guarantor
or his duly authorised agent (e.g., Registered General Power of
Attorney Holder).
(f) There must be an identity of the debt and admission as to such
liability.
A Balance Confirmation Letter (COS48 vide Specimen No.38) is,
therefore, a valid acknowledgement of debt.
The effect of a valid acknowledgement (revival letter) is that it
commences a fresh period of limitation from the date it is executed
provided it is executed before expiry of the prescribed limitation
period.
A revival letter is sufficient and valid even if -
• It omits to specify the exact nature of the right or the property or
the exact balance.
• It states that the time for payment, delivery or performance has
not come, that is to say, that there is still time to pay.
• It is accompanied by a refusal to pay.
• It requests for set off (by the borrower/guarantor) or prays for a
compromise.
HR SHANTHARAM, MANAGER (TRG) 27
28. STATE BANK OF INDIA, STATE BANK LEARNING CENTRE, BANGALORE
REVIVAL OF THE TIME BARRED DEBT :
A remedy in respect of a debt which is time barred can be revived
only by a fresh promise to pay that debt in terms of the provisions
contained in Section 25(3) of the Indian Contract Act. The 'imperfect
right' (i.e. the right which was not exercised by the Bank within the
limitation period) can be remedied only if there is a fresh promise to
pay the debt by the borrower. Often it is observed that this procedure
may entail obtention of documents in the loan accounts, in view of
certain other legal complications. The difference between the revival
letter (i.e. the acknowledgement under Section 18 of the Limitation
Act) and Section 25(3) of the Indian Contract Act (fresh promise to
pay the time barred debt) is that a revival letter (under Section 18) in
writing (please see Specimen No.39) made before the expiry of the
prescribed period only extends the limitation from the date it is so
signed, whereas a new promise to pay a time barred document
(under Section 25(3) of Contract Act) altogether gives a fresh cause
of action and a fresh limitation period from the date of such
agreement to revive the time barred debt, is executed. In other words,
a revival letter (acknowledgement) cannot revive a time barred debt
nor it can extend its limitation and this can be done only under
Section 25(3) of the Contract Act. The Branches should, further
ensure that after the execution of the Bank's standard form of
agreement to revive the time barred debt, the subsequent revival
letters should mention not only the said agreement to revive the time
barred debt but also it should include all the loan documents which
have become time barred in respect of which the said agreement was
taken.
REVIVAL LETTER WHEN THERE ARE PRINCIPAL AND
SUPPLEMENTAL AGREEMENTS
Whenever a limit in the existing credit facility is enhanced or
additional facility is granted, the practice followed is to obtain a
supplemental set of documents for the amount by which the existing
limit is enhanced or additional facilities granted and if these advances
are supported by third party guarantees, the guarantors also join in
HR SHANTHARAM, MANAGER (TRG) 28
29. STATE BANK OF INDIA, STATE BANK LEARNING CENTRE, BANGALORE
the execution of supplemental set of documents. If there is a change
in the guarantor then an additional guarantee or a new guarantee is
also taken. A linking letter along with supplemental set of documents
is to be executed by the borrower and the guarantor declaring
thereby that the supplemental set of documents is in addition to and
not in substitution of the documents executed earlier. The linking
letter is introduced for serving additionally as a revival letter covering
the whole limit including the enhancements so that obtaining of
revival letter separately for the documents executed earlier could be
avoided. The period of limitation in respect of the earlier indebtedness
will begin to run after obtaining the revival-cum-linking letter only from
the date of execution of the linking letter subject, of course, to its
being within time on such date. The rationale for prescribing the
above procedure is to avoid the possibility of the earlier principal
documents getting barred by time. Whenever supplemental
agreement is taken it is only by way of an addition or modification of
earlier principal/general agreement for ensuring continuity of
contractual obligations and preventing any intervening charges. The
supplemental agreement is not by way of renewal or in substitution of
the earlier principal/general agreement. The supplemental agreement
cannot for any purpose be regarded as a letter of acknowledgement
of the debt. The contract between the Bank and the borrower in
respect of the loan and the security created thereto and which is
covered independently by the principal agreement and supplemental
agreement is separate and distinct.
In other words, the liability represented by/under the principal/general
agreement is one contract distinct from the liability covered by/under
supplemental agreement, which is altogether a separate contract.
Both the contracts will have to be kept alive by obtaining revival
letters duly signed by the borrower(s) and guarantor(s) within the
prescribed period. In addition to the details of the principal/general
agreement, the particulars of the supplemental agreement should
also be mentioned in the revival-cum-linking letter for extending the
period of limitation in respect of both the documents.
HR SHANTHARAM, MANAGER (TRG) 29
30. STATE BANK OF INDIA, STATE BANK LEARNING CENTRE, BANGALORE
PART PAYMENT :
A part payment in the loan account some times extends the period of
limitation for a further period. . However, such part payment should
be made before the expiry of the original limitation period and the
payment should be by the debtor or its duly authorised agent and the
documents/voucher should be in the handwriting of the debtor or his
authorised agent and duly signed by them. The part payment can be
effected either by a cheque or cash or in any other valid mode. A
post-dated cheque which is dishonoured may amount to an
acknowledgement in writing for saving the limitation. The date for
computing the limitation in that case would be the date on which the
cheque was delivered to the Bank and not the date of the cheque.
However, it should be noted that a valid cheque, which is
dishonoured, cannot be considered to be valid part payment for
purposes of Section 19 of the Limitation Act.
WHO CAN EXECUTE/MAKE ACKNOWLEDGEMENT (RENEWAL
LETTER/PART PAYMENT:
To be a valid acknowledgement and a part payment, it should be
executed/made by a person or his agent against whom the right or
property is claimed.
In the case of Hindu Undivided Family (HUF), the Karta of HUF is
competent to execute a revival letter or make part payment of the
debt, if the same is made on behalf of the HUF. It is the duty of the
creditor (Bank) to ascertain whether the person executing the revival
letter holds his representative capacity as such Karta.
On behalf of a limited company, only such person who has been
specifically authorised under a Board resolution can execute a
HR SHANTHARAM, MANAGER (TRG) 30
31. STATE BANK OF INDIA, STATE BANK LEARNING CENTRE, BANGALORE
valid revival letter and no one else can. An acknowledgement signed
by the Secretary is not valid unless authorised to that effect by a
resolution by the Board of Directors in that behalf. Statements in
correspondence by Secretary do not amount to acknowledgement of
liability.
In the case of a partnership firm, the revival letter should be signed by
all the partners of the firm. Acknowledgement by one of the partners
cannot bind the other co-partners unless he is so expressly
constituted as such Agent to do so on behalf of other partners. But
the Bank does not prefer such type of acknowledgement.
In the case of death of a borrower/guarantor, the legal heirs can execute a valid
revival letter. But each one of them would be liable to the Bank only to the extent
of the property inherited by them.
In the case of joint account, one of the borrowers cannot bind the other co-
borrowers unless he has the specific authority to bind them. In a joint account,
therefore, all the joint debtors should execute the revival letters.
An acknowledgement by a borrower will not bind the guarantor and vice-versa.
However, if the borrower has been constituted as an attorney (by means of a
Registered Power of Attorney) /agent of the guarantor, a revival letter by such
borrower will be binding on the guarantor but care should be exercised that the
borrower makes the acknowledgement not only for himself but also as an agent/
Constituted Attorney of the guarantor. The borrower should do so both in his
personal capacity and also as an agent/ Constituted Attorney of the guarantor.
ACKNOWLEDGEMENT IN A BALANCE SHEET/STOCK
STATEMENT :-
Under the law, there is no prescribed form of acknowledgement. It
need not always be in the form of a letter. An acknowledgement in a
balance sheet is valid for extending the limitation period. If a debt is
admitted in a balance sheet, duly signed by the debtor company/ firm
through its authorised directors/ partners, the balance sheet will serve
as an acknowledgement. However, it should be ensured that the
name of the Bank and the amount is specifically mentioned in the
balance sheet.
HR SHANTHARAM, MANAGER (TRG) 31
32. STATE BANK OF INDIA, STATE BANK LEARNING CENTRE, BANGALORE
A suitably worded Stock statement which contains the limit, D.P.
outstanding, etc. can also serve as an acknowledgement of debt,
provided it is signed by the authorised representative(s) of the firm
/company,
HR SHANTHARAM, MANAGER (TRG) 32