Answer Writing Practice DAY7 - CS Executive Session 1

Day 7

Today's questions (share capital)

Q1. Aniket has fraudulently sold his shares to two different transferees. Who will be  

entitled to the shares in priority?

Q2. A company has issued a prospectus to the public stating that the company has paid dividend regularly and the prospectus is silent relating to the sources of profits, i.e., whether trading profits or capital profits. The fact is that the company has incurred losses for all the last 5 years, but the dividend is paid out of realised capital profits (i.e.,  

secret reserves), Y, a shareholder, claimed that the prospectus is false. Whether Y’S contention is correct? Discuss.

Q3. Public companies can issue ‘shelf prospectus’. Comment

Ans 1

Jo pehle Aaya (who claims 1st ) shares Uske

Ans 2

Prospectus me Kuch jutna (false info) nhi chaiye + Kuch chutna nhi chaiye (material info.)

Divided can't be issued out of capital profit/ capital reserve

Ans 3

Shelf prospectus - 1 Baar issue kro or 1saal tak shelf pr Rakh do (i.e. no need to issue further prospectus for a year)

😊😊😊

Sabhi k answers almost right the & please try to write in points