Introduction to company law

Introduction to company law. The concept of ‘Company’ or ‘Corporation’ in business is not new but was dealt with, in 4th century BC itself during ‘Arthashastra’ days. The sources of company law.

Its’ shape got revamped over a period of time according to the needs of business dynamics. See full list on legalbites. In the leisurely past, merchants took advantage of festive gatherings, to discuss business matters. Nowadays, business matters have become more complicated and cannot be discussed at festive gatherings.

Therefore, the company form of organization has assumed greater importance. It denotes a joint-stock enterprise in which the capital is contributed by several people. Thus, in popular parlance, a company denotes an association of likeminded persons formed for the purpose of carrying on some business or undertaking. It is called a body corporate because the persons composing it are made into one body by incorporating it according to the law and clothing it with legal personality.

The word ‘corporation’ is derived from the Latin term ‘corpus’ which means ‘body’. Accordingly, ‘corporation’ is a legal person created. In the legal sense, a company is an association of both natural and artificial persons (and is incorporated under the existing law of a country). A company is not merely a legal institution. It is rather a legal device for the attainment of the social and economic end.

It is, therefore, a combined political, social, economic and legal institution. Thus, the term company has been described in many ways. It is a means of cooperation and organization in the conduct of an enterprise”. It is “an intricate, centralize economic and administrative structure run by professional managers who hire capital from the investor(s)”. The proportion of capital to which each member is entitled is his “share”.

Being the creation of law, it possesses only the powers conferred upon it by its Memorandum of Association which is the charter of the company. Within the limits of powers conferred by the charter, it can do all acts as a natural person may do. The principal points of distinction between a company and a partnership firm are as follows: 1. A partnership firm is not distinct from the several persons who form the partnership. In a partnership, the property of the firm is the property of the individuals comprising it. In a company, it belongs to the company and not to the individuals who are its members.

Creditors of a partnership firm are creditors of individual partners and a decree against the firm can be executed against the partners jointly and severally. The creditors of a company can proceed only against the company and not against its members. Partners are the agents of the firm, but members of a company are not its agents. A member of a company has no such power. A partner cannot contract with his firm, whereas a member of a company can.

INTRODUCTION TO INCORPORATION 1. A human being is a natural person. Basic American Legal Principles 1. Sources and Types of Law 1. Important Business Laws and Regulations Figure 1. When setting up a business , one of the most important considerations is what form that business should take. PLppTnglmxk1_86x3m3h-wh1mrpkb2-w-Z Book Link: CS EXECUTIVE COMPANY LAW CLASSES, CS EXECU. Characteristics of a Company 1. Limited Liability – A. When is a state economically strong or weak and what is the role of law in this determination? A Law yer Will Answer in Minutes!

What is the “rule of law”? Questions Answered Every Seconds. The book analyses the mechanisms through which the law provides an organisational structure for the conduct of business.

Unlike a sole trader or a partnership, a company is viewed as a separate legal entity to its shareholders. The five core features of company law — separate legal personality, limited liability, centralized management, shareholder control, and transferability of shares — are clearly laid out and examined in this second edition. It owns all the assets and liabilities, whereas a sole trader would own them directly. A Company has limited liability and so is liable for any debts it owes, rather than the shareholders directly.

The basics – including what companies are and how they are formed and run. Company boards – their role, duties, powers and decision-making process. Shareholders and how to manage share capital. Corporate law (also known as business law or enterprise law or sometimes company law ) is the body of law governing the rights, relations, and conduct of persons, companies, organizations and businesses. The term refers to the legal practice of law relating to corporations, or to the theory of corporations.

Extremely reader-friendly, this engaging presentation uses conversational writing to explain complex topics in easy- to -understand language. Company Law Journal : Company Law Journal (India) Pvt. Old Rajinder Nagar, Post Box No. Note: The latest edition of all the books referred to above should be read.

The Common Law and the Civil law systems converge. In the Civil Law the case law has gained in importance and in the Common law countries statutes become more numerous. Recently the British government introduced significant changes to Civil Procedure in order to reduce the adversarial character and to introduce inquisitorial elements. Used Books Starting at $3.

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