Corrigendum in the Practice Manual of Paper No.

4, Corporate and Allied laws [Final Level] in the printed

copy (Edition: January, 2016)
Students are advised to take the note of the following-
1. Question No. 4 on Page No. 2.3, may be ignored.

2. Answer to Question 6 on Page no. 2.5, last para should be replaced with the following-

“Therefore, Gujarat Textiles Ltd. has contravened the provisions of Section 129 of the Companies Act,
2013 by not furnishing the consolidated financial statements of its foreign subsidiary on the one hand and
not attaching with its financial statements a separate statement of the foreign subsidiary giving the salient
features thereof”.

3. Answer to question no. 8, on Page no. 2.6, Point no. (b), ignore the usage of word “other” after the
word “and”.

4. Question no. 17 on Page no. 2.14, may be ignored. 

5. Question no. 8 on page no. 3.8, given question shall be read as follows:

“The Articles of Association of a company have fixed the maximum strength of the board as 12
directors. At present the Board has 9 directors. The Board wishes to appoint 3 additional directors.
Can they appoint as desired as per provisions of the Companies Act, 2013?”

6. Answer to question no. 3 on page no. 4.2, In the last para the words ”by passing a board resolution”
shall be replaced with the following-
“By alteration of article by passing of special resolution”.

7. Answer to question no. 14 on page no. 5.12, Last para containing the words “However, the power
to borrow……………. of branch office.” To be deleted.

8. Question no. 18 on page no. 17.17, figure “90,000” given in the question and answer shall be read
as “90,00,000”.
 

9. Answer to question no. 9(b)(ii)(b) on Page no.19.12, is to be replaced with the following answer:
“The type of payment as envisaged in item (b) is covered under Third Schedule to the Foreign
Exchange Management (Current Account Transactions) Rules, 2000 and for withdrawing foreign
Exchange exceeding USD 25,000 or 5% of the inward remittance whichever is more as commission
to agent abroad for sale of commercial plot in India. As the amount to be remitted is only USD10,
000 authorized person, Mr. Atul will not require the approval of RBI”.
10. Answer to question no. 23 on page no. 19.25 , part second relating to the foreign exchange for
studies abroad, given answer to be replaced with the following-
According to Schedule III read with Rule 5 of the Foreign Exchange Management (Current Account
Transactions) Rules, 2000, individuals can avail of foreign exchange facility for the studies abroad
within the limit of USD 2,50,000 only. Any additional remittance in excess of the said limit shall
require prior approval of the RBI. In this case the foreign exchange required is only USD 55,000 per
academic year and hence approval of RBI is not required.
11. Answer to question no. 30(ii) on Page no. 19.29, to be replaced with the following-
“Remittance of foreign exchange for medical treatment abroad requires prior permission or approval
of RBI where the individual requires withdrawal of foreign exchange exceeding USD 2,50,000. The
Schedule also prescribes that for the purpose of expenses in connection with medical treatment, the
individual may avail of exchange facility for an amount in excess of the limit prescribed under the
Liberalized Remittance Scheme, if so required by a medical institute offering treatment.
Therefore, Mr. Z can draw foreign exchange up to the USD 2,50,000 and no prior permission/
approval of RBI will be required or he may avail of exchange facility for an amount in excess of the
limit prescribed under the Liberalized Remittance Scheme, if so required by a medical institute
offering treatment.
12. Question no. 15 on page no. 21.11, 2nd line, month “January, 2012”shall be read as “February,
2012”.