ECO 08 Solved Assignment 2023-24


ECO 08 Solved Assignment 2023-24

Company Law

ECO 08 Solved Assignment 2023-24 : All assignments are in PDF format which would be send on email/WhatsApp (9958676204) just after payment.

Assignment Code: ASST/ ECO 08/2023-24

Marks: 100

Attempt all the questions.

Q1. a) Describe the characteristics of a company.

A company is a business organization engaged in commercial, industrial, or professional activities with the aim of making a profit. Here are some key characteristics that define a company:

Legal Entity: A company is a legal entity that is separate and distinct from its owners. It has its own legal rights and responsibilities, allowing it to enter into contracts, own property, and be subject to legal actions.

Ownership: Companies are owned by shareholders or members who contribute capital to the business. The ownership structure can vary, with some companies being privately owned by a small group of individuals or families, while others are publicly traded on stock exchanges.

Limited Liability: One of the advantages of forming a company is the concept of limited liability. This means that the personal assets of the owners (shareholders) are generally protected from the company's debts and liabilities.

Purpose: Companies are established with a specific purpose, whether it's to provide goods, services, or both. The purpose is usually outlined in the company's articles of incorporation or memorandum of association.

Profit Motive: The primary goal of most companies is to generate a profit. Profitability ensures the company's sustainability, growth, and ability to reward its shareholders.

Management Structure: Companies typically have a formalized management structure, with a board of directors overseeing high-level decisions and executives responsible for day-to-day operations. The structure may vary depending on the size and complexity of the company.

Regulation: Companies are subject to various laws and regulations, which may include company law, tax laws, labor laws, environmental regulations, and industry-specific regulations. Compliance with these regulations is essential for the company's legal standing.

Financial Reporting: Companies are required to maintain accurate financial records and provide regular financial statements to stakeholders. This transparency is crucial for investors, creditors, and government authorities.

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Capital Structure: Companies raise capital through various means, including equity (selling shares) and debt (borrowing money). The composition of a company's capital structure influences its financial health and risk profile.

Continuous Existence: Unlike sole proprietorships or partnerships, companies have a perpetual existence. Changes in ownership or management do not affect the company's existence, providing continuity and stability.

These characteristics collectively define the nature and functioning of a company in the business world.

b) Explain the statement that "Promoter is not a trustee or an agent of the company but he stands in a fiduciary position towards it."

Q2. a) What do you mean by incorporation' of a Company? What are the effects of registration of Company?

b) What is the purpose of Memorandum of Association?

Q3. a) Describe the procedure for alteration of the objects clause of a company.

b) What is the purpose of a prospectus? Enumerate some of the particulars which are required to be included in a prospectus.

Q4. a) Explain the procedure of forfeiting the shares. What is the effect of forfeiture'? How forfeiture is different from surrender of shares?

b) Explain briefly the rights and liabilities of a member.

Q5. a) Who are the directors of a company? How are they appointed?

b) Discuss the legal position of a company secretary and state his main function.

ECO 08 Solved Assignment 2023-24 : All assignments are in PDF format which would be send on email/WhatsApp (9958676204) just after payment.

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