Unit 2 of Company Law (syllabus: Module II — acceptance of deposits; registration and satisfaction of charges; company meetings and the rules of notice, quorum, proxy and resolution; declaration and payment of dividend; and accounts, audit and the auditor’s position). Below: what the unit covers, the provisions it turns on, and the cases an examiner expects you to name.
What this unit covers
- On what terms may a company take deposits?
- What happens to a charge that is not registered?
- How is an annual general meeting called, and what makes it valid?
- What distinguishes an ordinary resolution from a special resolution?
- When may a dividend be declared, and what follows if it is not paid?
- Who audits a company, for how long, and with what powers?
Treat that list as a self-test: recite each topic's rule from memory before you open its cases.
Provisions
- Companies Act, 2013, s. 73
- Companies Act, 2013, s. 77
- Companies Act, 2013, s. 96
- Companies Act, 2013, s. 114
- Companies Act, 2013, s. 123
- Companies Act, 2013, s. 139
Leading cases
- Workmen v. Associated Rubber Industry Ltd. (1985) 4 SCC 114
- Re Introductions
- Foss v. Harbottle (1843) 2 Hare 461