Business Organizations and Corporate Governance

 In order that a public company must become a private company, it is not necessary that the permission of court must be taken. The conversion can take place without the approval of court. 

Dividend clause is not a clause of Memorandum of Association. The provision relating to payment of dividends to shareholders is mentioned in the Articles of Association.  

 Holding and subsidiary company is the type of classification on the basis of control of management. A company is a Holding Company in relation to another company if it possesses control over another company. A company is said to be a subsidiary company if the other controls its composition of Board of Directors, or when the other company holds more than half of its nominal value of equity shares.

 A shelf prospectus is issued when a public company intends to raise money for one or more securities. It is a difficult and expensive task to issue a prospectus every time it seeks to raise money from the public. So a shelf prospectus is issued which allows for more than issue of securities within a year from the date of its first offer.

 To vote in general meetings is a collective right of a member, as this is a right in which many members vote collectively according to Sec. 87. So it is not an individual right of a member.

 An offer to public would not be there if it is made to the friends or relatives of the company management. In this the offer is circulated not to the public but to the friends and relatives of company management.

A company enjoys status of a separate legal entity if it issues share certificates to its shareholders within three months after the allotment of shares according to Sec 113. The corporate veil is not lifted.

 According to Sec. 274 of the Companies Act,  a person is eligible to be appointed as a director if he is solvent, that is not insolvent. This means that the person is not bankrupt and can pay his liabilities, so he is eligible to be appointed as a director.

PIL stands for Public Interest Litigation - a legal mechanism where any citizen can approach the court for matters of public interest. The term 'Litigation' refers to legal proceedings, not 'Limited'. Options A and C incorrectly use 'Private' and 'Limited'.

The first directors of the company are appointed by promoters....................

Class meeting is a meeting of shareholders. 

Partnership firm

The correct answer is 'In' because 'In business' is the correct phrase meaning 'in the field of business' or 'in the context of business.' 'At' would need to specify a particular location. 'The' is an article, not a preposition that fits here. 'On' is used for surfaces or specific days, not for general fields or domains.

NSDL (National Securities Depository Limited) was appointed as the Central Recordkeeping Agency for the New Pension System. NSDL maintains records of all NPS accounts, transactions, and provides statement services to subscribers. The CRA is crucial for the operational efficiency of the pension system.

LLP has a separate legal entity, liable to the full extent of its assets. The liability of the partners would be limited to their agreed contribution in the LLP. Further, no partner would be liable on account of the independent or unauthorised actions of other partners and thus, allowing individual partners to be shielded from joint liability created by another partner’s wrongful business decisions or misconduct.