Advertisements
Advertisements
Question
Study the following case/situation and express your opinion.
ZEN Limited has some investible in profits. Please guide ZEN Limited with respect to the following:
(a)Can ZEN Limited invest in the share of itself?
(b)Can ZEN Limited invest in the Shares of TEN Limited?
(c) Justify your answers in (a) & (b) in one sentence only.
Solution
(a) ZEN Limited Company cannot invest its investible profit in its own shares.
(b) ZEN Limited Company can invest its investible profit in the shares of TEN Limited Company, only if its Memorandum of Association authorises it to do so.
(c) ZEN Limited Company is a legal person, is eligible to become a member of another company by purchasing shares of that company but cannot invest its investible profit in its own shares.
APPEARS IN
RELATED QUESTIONS
Explain the following Term/Concept.
Eligibility of Membership
Study the following case/situation and express your opinion.
Mrs. & Mr. A works in a Bank. They have a daughter named Ms. 2 who is 11 years old:
(a) Can Mrs. &Mr. A invests in shares of the company? (b) Can they buy shares in the name of their daughter Ms. Z?
(c) Justify your answer in (a) & (b) in one sentence only.
Study the following case/situation and express your opinion.
M/s. ABC is a partnership firm owned by Dr. A. Dr. B and Dr. C. The doctors want to invest the profits of ABC in the shares of a company:
(a) Can M/s ABC buy the shares of the company?
(b) Can profits of M/s. ABC be invested in shares held in the names of Dr. A or Dr. B or. Dr. C?
(c) Are the doctors eligible to invest in shares of the company?
Answer in brief:
State any four ways of acquiring membership of a company.
Justify the following statement.
Co-operative Society is eligible to be a member of the company.
Answer the following question:
Explain the eligibility of memberships of a company.
