Case Study No.3: Merger & Amalgamation
AB Company has decided to merge with YZ Company. This decision of merger has been taken in the board of directors of both these companies. The employees of AB Company are resenting this merger and are planning to take up this matter in court of law.
Question: What the key provisions of Indian Companies Act regarding merger which has not been complied in this case and what steps you would suggest so that this merger could be completed?
Case Study No.4: Wrong Declaration of Dividend & Divisible Profits
ABC & Company has recently declared dividend @ 15% on the basis of net profit certified by the auditors. This rate of dividend was proposed by manager finance and approved by board. Net profit certified by auditor was found to be incorrect and inflated. The amount of share capital was Rs. 1 crore. Subsequently, during special audit it was revealed that real net profit is Rs. 40 lakhs as against 1.20 crores earlier certified by auditors.
Questions:
- What were main legal lapses in this case?
- What was the excess amount distributed in the form of dividend?
- How you are going to fix liability for lapses in this case?
Case Study No.5: Lease, Hire purchase and installment sale
Fill in the blanks in respect of above 3 items
- In case a lease, numbers of parties are ___________ (2).
- In lease, ownership remains with _________ (lessor).
- Operating lease is for _______ term period (short term).