101143_1075559_law_important_for_nov_2012_exam

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Siddharth Agarwal, Law SSEI

Law Preparation Strategy

IntroductionI always believe in studying complete. CA Exams cannot be gamed and you can leave your score to luck or

gas papers like B.Com.I have always been extremely exhaustive in teaching, but owing to the difficulties faced by the students

before exam where humongous syllabus has to be covered in short period of 3 days in October and then 40

hours of enervating revision before the D-day, I have prepared a list of important topics to be covered in 3

categories ABC Analysis.

AssumptionsThis is not a gas paper. It basically gives the topics which are more relevant to Nov 2012 exams.

Topics that have been asked in the last 3 terms viz. May 2011, Nov 2011 and Nov 2012 are generally less

important. They should be prepared towards the end if time permits. An appendix has been attached at the

end of these notes regarding topics asked in the last 3 terms for your reference.

Categorization in Law syllabusI usually see the entire law paper divided into 3 broad heads from exam perspective:

1. Directors

2. Other parts in Companies Act

3. Allied laws

Each of the above part constitute roughly 40 marks in the paper Directors may stoop down to 15-20 at

times more weightage being given to Other parts in Companies Act

As you can see the paper pattern has been fluctuating over last 3 terms, it is difficult to exclude any chapter

even if it has appeared in the last terms.

Revival and Rehabilitation of Sick Companies has been removed from the syllabus.

Important tips:In the Allied Laws category, 1 question for the following marks is sure:

1. Interpretation of Statutes 4 marks2. FEMA 4 marks3. Competition Act 4 marks4. SCRA Act 5 marks

5. SEBI Act/ SEBI Regulations 8 marks6. Other Allied laws remaining 16/20 marks.

In the Other Part Of Companies Act category, following chapters are more important:

1. Accounts

2. Compromises, Arrangements and Amalgamations

3. Producer Company

4. Winding up

Keep Sole Selling Agent for the last I think the chances are negligible for this chapter

In the Directors category, following 2 topics are LESS important:

1. 372A inter-corporate loans and investments.

2. 293A Donation to political parties

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Law Last 3 term papers summary

Major categories May

2012

Nov

2011

May

2011DIRECTORS 44 16 40OTHER PART OF COMPANIES ACT 34 58 39

ALLIED LAWS 42 41 41

TOTAL 120 115 120

Names of the Chapters May2012

Nov2011

May2011

Directors

Sections:

a. 295b. 293A

c. 289 & 292

d. 372A

e. 293

f. 592

g. 269

h. 299 & 300

i. Small shareholders Director Rules

j. 621A

k. 255 & 256

48

8

8

8

8

5

8

8

8

8

8

8

8

8

Accounts 13 10

Audit and Audit Committee 8 8

Inspection and Investigation 8

Sole Selling Agents 5 8

Dividend 13 5 5

Compromises, Arrangements and Amalgamations 8

Prevention of Oppression and Mismanagement 8 8

Producer Company 8

Winding up 16

Interpretation of Statutes 4 4 4

FEMA 4 4 4

Banking Act 8 8 8

SARFAESI Act 4 4Money Laundering Act 4 4

IRDA Act 4

Competition Act 4 4 4

SCRA Act 6 5 5

SEBI Act 8

SEBI Regulations 8 8

Insurance Act 4

May 2012

Question 1 Loan to Director, Sole Selling Agent, Dividend and SCRA Acta. Loan to Director and his relative Sec 295 (4 marks)

b. Appointment of Sole Selling Agent Sec 294A, AA series (5 marks)

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c. Revocation of declaration of Interim Dividend (5 marks)d. SCRA Act - Refusal of Listing by Stock Exchange without citing reasons. (6 marks)

Question 2 Donation to political parties & Passing of Resolution by Circulation

a. Donation to political parties Sec 293A (8marks)b. Passing of Resolution by Circulation Sec 289 and 292 (8marks)

Question 3 Oppression and Mismanagement & SEBI Regulations

a. Prevention of oppression and Mismanagement Section 397 Indo-French case (8marks)b. BONUS ISSUE SEBI Regulations (8marks)

Question 4 Inter-corporate Loans & Banking Act

a. Inter-corporate Investments, Loans & Guarantee Sec 372A (8marks)b. The Banking Regulation Act, 1949 - Power of Central Government to acquire theundertaking of Banking Companies in certain cases (8marks)

Question 5 Extension of time for repayment of loan given to Director & Audit

a. Extension of time limit for repayment of loan given to Director and drafting a notice to call

such meeting Sec 293 (8marks)b. Constitution of Audit Committee and Course of action in case of differing with the content of theaudit committee report Sec 292A (8marks)

Question 6 Interest out of capital (Dividend) & Foreign Companies

a. Power of company to pay interest out of capital in certain cases under the CompaniesAct, 1956 - Section 208 (8marks)

b. Documents to be furnished by foreign companies carrying on business in India Section 592(8marks)

Question 7 Write short notes on the following - (4 marks each)

a. FEMA - Exemption from realisation and repatriation of foreign exchange

b. Competition Act - Term of office as Chairperson of Competition Commission of India (CCI)under the Competition Act, 2002

c. Prevention of Money Laundering Act - Offence of Money Laundering

d. IRDA Act - Requirement of Paid Up equity capital for insurance business

e. Interpretation of Statutes - Principles of Grammatical Interpretation and Logical Interpretation

Nov 2011

Question 1 Accounts, Appointment of Managing Director, SCRA Act & Dividend (5 marks)

a. Accounts - Authentica tion of Balance Sheet and Profit and Loss A/c - Section 215b. Appointment of Managing Director without CGs approval when such approval is needed

Sec 269

c. SCRA Act - Corporatisation and demutualisation - time limit for public shareholdingd. Dividend - Investor Education & Protection Fund 205C

Question 2 Inspection and interested Directors

a. Inspection - Seizure of documents by Registrar (Sections 234 and 234A) (8 marks)b. Interested Director (Sections 299 and 300) (8 marks)

Question 3 Accounts and SEBI Regulations

a. Accounts drafting Board Resolution for charging Mr. White, Chief Accountant, with

the duty of Compliance with the requirements of Sections 209 & 211 (8 marks)b. SEBI Regulations - Book Building (8 marks)

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Question 4 Sole Selling Agent & Banking Act

a. Appointment of Sole Selling Agent Sec 294A, AA series. (8 marks)b. Banking Regulation Act, 1949 - Power of Reserve Bank of India to inspect banks andappoint Directors (8 marks)

Question 5 Oppression and Mismanagement & Producer company

a. Prevention of Oppression and Mismanagement Family Fight (8 marks)b. Producer company - Inter-state co-operative society (8 marks)

Question 6 Audit and Small Shareholders Director

a. Audit - Appointment of Auditor (8 marks)b. Manner of election of small shareholders director (8 marks)


a. Competition Act - Term of office of chairperson and other members

b. Interpretation of Statutes - importance of "Preamble" and "Proviso"

c. FEMA - Appeal to Appellate Tribunal.

d. Prevention of Money Laundering Act - Obligation of Banking Companies, Financial

Institutions and Intermediaries of securities market.e. SARFAESI Act - Procedure relating to enforcement of security interest

May 2011Question 1 Dividend, Accounts and SCRA Act (5 marks)

a. Dividend - Payment of Dividend out of the accumulated profits

b. Accounts - Adjournment of meeting as accounts were not ready

c. SCRA Act - Share Transactions by Member of Stock Exchange

d. Accounts - Right to carry out the inspection of the books of accounts

Question 2 Sec 293 and Winding up

a. Powers of directors related to borrowing funds by the company (8marks)b. Winding up - liabilities of contributories (8marks)

Question 3 Compromise, Arrangements and Amalgamation & SEBI Act

a. Compromise, Arrangements and Amalgamation Exchange Ratio (8marks)b. SEBI Act - Orders of SEBI and Remedies (8marks)

Question 4 Banking Act & Sec 293A

a. Banking Regulation Act, 1949 - Compensation to shareholders of the acquired bank(8marks)

b. Donation to Recognized Political Party Sec 293A (8marks)

Question 5 Sec 621A & Appointment of Managing Director

a. Compoundable and Non Compoundable Offences Sec 621A (8marks)b. Appointment of Managing Director - Draft of Board Resolution (8marks)

Question 6 Winding up & Rotational Directors

a. Compulsory Winding Up (8marks)b. Rotational Directors and Retirement (8marks)


a. FEMA Act - Residential Statusb. Insurance Act, 1938 - Nomination by Life Insurance Policy Holder

c. Competi tion Act, 2002 - Factors to be considered for determining Abuse of Dominant positiond. Interpretation of Statutes Rule of Noscitur A Sociise. SARFAESI Act, 2002 - Cancellation of Certificate of Registration

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101143_1075559_law_important_for_nov_2012_exam

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