JUNE 2013 EXAMINATION

GM06

Business Law & Corporate Governance

Time: Three Hours Maximum Marks: 100

Note:

1. The paper is divided in three sections: Section-A, Section-B and Section-C.

2. There are seven questions in Section-A. Students are required to attempt
any four.
3. Section-B has 5 questions, attempt any three.
4. All the questions of Section-C (Case Study) are compulsory.

SECTION-A (10 Marks each)

1. “All contracts are agreements, but all agreements are not contracts.” Discuss the
statement explaining essentials of a valid contract.
2. Explain the term consideration & state the exceptions to the rule – ‘No
Consideration No Contract’.
3. What is an endorsement? Explain and illustrate the different kinds of
endorsement?
4. What is the object clause of the MOA? Set out the steps to be followed by a
Company which desires to alter the object clause of its MOA.
5. A holder in due course gets a title free from equities. Explain the statement &
discuss the various privileges of a holder in due course.
6. What is meant by ‘irregular allotment’ of shares? State the effects of irregular
allotment.
7. (a) Explain Clause 49 of listing agreement?
(b) What are the circumstances when banker may refuse to honour a
customer’s cheque?

SECTION-B (15 Marks each)

8. What is negotiation? How is it different from assignment? Discuss various modes
of negotiation.

9. a. Discuss the requisites of a valid general meeting as per Companies Act.

1956.
b. Differentiate between Void agreements Vs Void Contracts. (10+5)

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10. a. Differentiate between Shareholders Vs Members.
b. When consent is said to be free? Explain its elements with examples.
(5+10)

11. What do you understand by corporate governance and discuss the role of audit
committee in the corporate governance.
12. What are the ways by which a contract can be discharged and discuss the
remedies for breach of contract?

SECTION-C (15 Marks)

Case Study (Compulsory)
M/S Dubious textile enters into a contract with Retail Garments Show Room for supply
of 1,000 pieces of Cotton Shirts at Rs. 300 per shirt to be supplied on or before 31st
December, 2011. However, on 1st November, 2011 Dubious Textiles informs the Retail
Garments Show Room that he is not willing to supply the goods as the price of Cotton
shirts in the meantime has gone up to Rs. 350 per shirt.

Questions:

13. Examine the rights of the Retail Garments Show Room in this regard. Further will
your answer be changed if there was strike at M/S Dubious textile for 20 days.

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