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CS Professional · Drafting, Pleadings and Appearances · Art of Opinion Writing

Meridian Textiles Ltd asks its company secretary, Ms. Kavya Rao, whether the board may approve a related party loan without shareholder approval. She gives a written view after studying the facts, the Companies Act provisions and the articles. What best describes her written view?

Her written view is a legal opinion: a reasoned professional assessment of how the law applies to the facts supplied. It is advisory in nature and does not bind like a court judgment or statutory notice, and it must contain analysis rather than only a summary of facts.

  1. AA legal opinion, being a reasoned professional view on a legal question based on facts and lawCorrect
  2. BA binding judgment enforceable against the company
  3. CA statutory notice requiring compliance within a fixed period
  4. DA mere summary of facts with no analysis

Explanation

A legal opinion is a reasoned professional view on how law applies to given facts. It is advisory, not a judgment, notice or plain factual summary. A judgment is passed only by a court or tribunal.

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