Q. What is a one-person business? Explain the different types of companies under the Companies Act, 2013.2015, 2019SN However, if the company continues to keep its promoter`s unsecured loan after the repayment of the credit facility, it will be treated as a down payment. A debenture that does not set a deadline for the company to repay the money is a sunk obligation. The bondholder cannot demand payment as long as the company is a current company and does not default on the payment of interest. But all debt securities, whether redeemable or irrecoverable, become due when the company is put into liquidation. Question 2The issue of unsecured debt securities by one company to another company, where the bonds have the possibility of being forcibly converted into equity within seven years, cannot be qualified as a deposit. (December 2016) (5 points) Therefore, a public limited company cannot issue sunk bonds. A private company can only issue debt securities through a private placement. It may not make public the issue of debt securities. Thus, the Company has accepted an advance for the delivery of goods for more than 365 days and therefore constitutes a „deposit“ under Article 2 (31) in conjunction with Rule 2 of the Corporate Rules (Acceptance of Deposit), 2014. The company has not accepted a deposit without complying with the provision and, therefore, the remark adopted by the internal auditor is correct and the statement of the administrator is not sufficient. Answer: Section 73 deals with the acceptance of deposits Under subsection 73(1), no corporation may invite, accept or renew deposits from the public under this Act except in a manner provided for in this Chapter.
Answer: Although unsecured debt securities are considered deposits. However, pursuant to section 2(31) of the Companies Act, 2013, in conjunction with Rule 2(c) of the Companies Rules, 2014 (Acceptance of Deposits), no amount received by a corporation from another corporation is considered a deposit. Therefore, the company cannot refuse to add the name of the spouse of the deposit holder. In accordance with Rule 2 of the Companies Rules, 2014 (acceptance of deposit), the deposit does not include an amount received in connection with or for the purposes of the Company`s business as an advance for the delivery of goods or services, provided that such advance is used for the delivery of goods or services within 365 days of the acceptance of such an advance. CS Executive Corporate Law Important Questions with Answers from Debt Capital (Chapter 4). These questions have been asked by ICSI in previous reviews. Therefore, these issues are important from an audit perspective. We have provided the answers carefully and all responses include amendments up to the Companies (Amendment) Act, 2020. Question 4Fun and Frolic Limited received INR 5,000,000 from its promoters in the form of an unsecured loan under the Bank`s credit facility.
Can the company accept the unsecured loan? What would be your answer if the company has fully repaid the amount of its loan and after such repayment, the company continues this unsecured loan? With reference to the provisions of the Companies Act 2013. Advice to the Company (June 2018) (4 marks) In addition, an amount raised through the issuance of bonds or debentures if bonds/debentures can be forcibly converted into shares of the Company within 10 years will not be considered a contribution. In V.K.R.S.T Firm v. Oriental Investment Trust Ltd., AIR 1944 Mad 532 under the supervision of the company, the managing director borrowed large sums of money and misappropriated it. The company`s liability was held liable on the ground that if the loan falls within the company`s jurisdiction, the lender is not disadvantaged simply because its manager applied the loan to unauthorized activities, unless the lender was aware of the intended abuse. Q. Who can be appointed auditor of a company and who cannot? 2019 According to the facts set out in the case, Prism Ltd. accepted INR 10 lakh as an advance for the delivery of goods to certain parties. According to the agreement, the company will deliver the goods after two years from the date of filing. Q.
Define private company and public company. According to the agreement, the company will deliver the goods after two years from the date of filing. The internal auditors qualified their report on the grounds that the company had violated the provisions of the Companies Act, 2013. The administrators stated that this was necessary to complete the order. A review of the relevant provisions of the Companies Act, 2013 will determine whether the directors` declaration is justified.