I.D. No.
Mid Term Examination, September 2018
B.A. LL.B. (HONS.)
SEMESTER V Corporate Law-I
Max. Marks: 20 Max. Time: 1:30 Hrs.
Note: Answer any TWO questions out of three.
The number of marks carried by each question is indicated at the end of the question.
1. From the juristic point of view, a company is a legal person distinct from its members [Salomon v. Salomon and Co. Ltd. (1897) A.C 22]. This principle may be referred to as the 'Veil of incorporation'. The courts in general consider themselves bound by this principle. The effect of this Principle is that there is a fictional veil between the company and its members. Thus, the company has a corporate personality which is distinct from its members. But, in a number of circumstances, the Court will pierce the corporate veil or will ignore the corporate veil to reach the person behind the veil or to reveal the true form and character of the concerned company. Elaborate? (Marks 05)
Shri Harilal, wants to establish a new Business. However, selecting a Business structure is a challenge. In this context draw a distinction between Company and Partnership firm. (Marks 05)
2. Explain the following:-- (Marks 2.5 ×4=10)
a. Foreign Company
b. Government Company
c. One Person Company
d. Association not for profit
3. M/s ABC by articles dated December 2014, agreed to form a Company. As early as November 17, 2014 it had been advertised, stating that the company was about to acquire oil lands from the original owners. Advertisements were issued on January 13, 2015. Between December, 2014, and January, 2015, the promoters acquired various lands, which they resold to the company at greatly advanced prices, though the deeds purported to be from the original owners at such prices. In fact the owners were paid much less. The promoters contended that the price paid by them was the price demanded by the original owners. Decide in context of liability of promoters? (Marks 10)