Q.(a) Give short notes on :

(a) Class meeting = meeting of one class of shareholders about their own rights; Meeting of creditors = meeting to approve schemes/compromise and during winding up. (b) Negotiable instruments are presumed to be for consideration, properly dated, timely accepted/transferred, endorsed in order, duly stamped, and held by a holder in due course.

(a) Short notes:

1. Class Meeting: A class meeting is a meeting of the members of a particular class of shares — for example, only the preference shareholders or only a specific class of equity shareholders. It is held when a decision affecting the rights of that class alone has to be taken, most importantly the variation (alteration) of their rights. Only members of that class attend and vote, and such changes usually require a special resolution of that class.
2. Meeting of the Creditors: A meeting of creditors is called to seek the approval of the company's creditors, not its members. It is convened chiefly when the company proposes a compromise, arrangement or reconstruction affecting creditors' claims, and also during the winding up of the company, so that creditors can consider and consent to the proposals concerning their dues.

(b) Presumptions of Negotiable Instruments (Sections 118 and 119):

Unless the contrary is proved, it is presumed that:

1. Every negotiable instrument was made or drawn for consideration.
2. It bears the date on which it was made or drawn.
3. A bill of exchange was accepted within a reasonable time of its date and before maturity.
4. Every transfer was made before maturity (before the instrument was overdue).
5. The endorsements appear in the order in which they were actually made. …