Assertion (A): Shareholders are not, in the eye of law, part owners of a company. The company is something different from the totality of the shareholders.
Reason (R) : Shareholders are collective owners of the company.
Codes :
Shareholder Status: Assertion A Analysis
Assertion (A) states that shareholders are not part owners of a company in the eyes of the law, and the company is separate from its shareholders. This aligns with the established legal principle of a company being a separate legal entity. Therefore, Assertion (A) is correct.
Shareholder Role: Reason R Analysis
Reason (R) claims that shareholders are collective owners of the company. While shareholders collectively own the company's shares and have control rights, they do not directly own the company or its assets. The company itself, as a separate legal entity, owns its assets. Thus, describing them as "collective owners of the company" is legally inaccurate. Therefore, Reason (R) is wrong.
Conclusion: Assertion and Reason Evaluation
Based on the analysis:
- Assertion (A) is correct.
- Reason (R) is wrong.
This corresponds to Option 3: (A) is right, but (R) is wrong.
Important Questions from Company law
Arrange the following as per sections of the Companies Act, 2013 in descending order :
A. Execution of Bills of Exchange, etc.
B. Punishment in case of repeated default
C. Annual reports on Government Companies
D. Petition for winding up
E. Functions of Company Secretary
Choose the correct answer from the options given below:
Match List I with List - II.
List - I
List - II
(A)
Producer companies
(I)
Do not necessarily require Memorandum of Association
(B)
Statutory companies
(II)
Association not for profit
(C)
Section 8 company
(III)
Formed to convert cooperative into a company
(D)
Small company
(IV)
Paid up share capital is between 50 lakh-5 crore and turnover is between 2 crore - 20 crore
Choose the correct answer from the options given below:
Red herring prospectus is a prospectus issued:
- The problem of double taxation in international transactions can be reduced by:
i. Market agreement
ii. Multilateral agreement
iii. Bilateral agreement.
iv. Trade agreement - Given below are two statements: one is labelled as Assertion A and the other is labelled as Reason R
Assertion A: Every company having net worth of rupees five hundred crores or more or turnover of rupees one thousand crore or more or a net profit of rupees five crore or more during the immediately preceding financial year shall constitute a Corporate Social Responsibility Committee (CSRC).
Reason R: The CSR Committee monitors CSR policy of the company.
In the light of the above statements, choose the most appropriate answer from the options given below
