CLAW Test 1 QP
CLAW Test 1 QP
CLAW Test 1 QP
Test # 1
INSTRUCTIONS
Each new question shall be started from a new page. Otherwise Question will not be checked.
Using any pen other than black shall result in cancellation of paper.
Writing page number on top of the page is compulsory for the facilitation of marking.
Q1: The board of directors of Sapphire Limited (SL) intends to change the company’s name to Zardari
Limited (ZL). They are of the view that such a change would help in rebranding and rebuilding the image
of the company. In this regard, the board has directed the company secretary to call a general meeting
on priority basis in order to obtain members’ approval.
Considering the urgency of the matter, company secretary has advised the board that required approval
under the law may be taken from the members by getting the resolution passed through circulation.
(i) advise whether SL can get the resolution passed by its members through circulation.
(3 marks)
(ii) What other approvals are required in this regard. (3 marks)
(iii) Mr Jutt and Mr Butt having a shareholding of 8% and 11% s respectively, do not agree with
the new name of the company as they think SL has not provided the correct information to
shareholders and the old name has already establish its goodwill in the market, though
majority of the shareholders are in favor of the new name.
Advise the course of action which Mr Jutt and Mr Butt should take in respect of the above.
(3 marks)
Q2: The Annual General Meeting of Moon Limited was held at 9:10 am on 31 October 2019. Mr. A who
voted for a resolution was represented through a proxy which was deposited at 5:01 p.m. i.e. after
office hours on 29 October 2019. Further since 30 October 2019 was a public holiday, the condition of
depositing proxy at least 48 hours before the commencement of the meeting was not met.
In the light of the provisions of the Companies Act 2017, you are required to comment on the validity of
the proxy. (3 Marks)
Q3: Kohat Power Limited (KPL) was incorporated on 1 January 2020. The Statutory Meeting of KPL is
scheduled to be held on 9 June 2020. The Statutory Report to be presented to the shareholders has
been signed by the CFO and the CEO of the company on 21 May 2020. However the auditors of the
company have refused to verify the statement of receipt and payments on the grounds that a payment
of Rs.12 million dated 5 May 2020 had not been included in it. The CFO contends that the payment had
not been included because the contract against which the cheque was issued has been cancelled with
mutual consent and the party has returned the payment by way of a pay-order dated 22 May 2020.
In the light of the provisions of the Companies Act 2017, you are required to:
(a) Comment on the observations of the auditors and the contention of the CFO (3)
Q 4: Mr. Rana and Mr. Khan are partners in a firm whose sole purpose is to promote the arts and craft
for kids. None of these three partners have intended to generate profit out of this partnership nor are
they desirous of investing their surplus funds in any other venture. Mr. Rana is of the opinion that they
should be registered under the Companies Act 2017 for the purpose of getting the advantage of a
limited liability.
Whereas Mr. Khan is of the view that getting registration as a company also suits them but is not willing
to get any sort of license from any authority, except applying to registrar for registering the company.
The Company secretary in return told the partners that getting license is the basic condition for the
purpose of getting such company registered but Mr. Khan insisted that Companies Act 2017 have not
made it mandatory to get licence and the making of application for getting the said licence is a voluntary
requirement as per the wording of relevant section of Companies Act 2017.
Guidance about whether getting licence from any authority is a necessary requirement or not;
and
Relevant course of action under the requirements of Companies Act 2017 that should be
followed in respect of this organization. (05 Marks)