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Business Law

Book Description

This book is primarily for the undergraduate students of commerce and business management. It can also be used for the post graduate students of management. It makes readers familiar with the concepts and procedures of business law. The text is written and presented in simple and easy to comprehend way.

Table of Contents

  1. Cover
  2. Title Page
  3. Contents
  4. About the Author
  5. Preface
  6. 1. The Indian Contract Act 1872: Nature and Kind of Contracts
    1. 1.1 Scope of the Act
    2. 1.2 What is a Contract?
    3. 1.3 Essential Elements of Valid Contracts—Section 10
    4. 1.4 Distinguish Between an Agreement and a Contract
    5. 1.5 Types of Contract or Classification of Contract
    6. 1.6 Distinguish Between Void and Voidable Contract
    7. 1.7 Distinguish Between Void and Illegal Agreement
    8. 1.8 Similarities Between Void and Illegal Agreements
    9. List of Landmark Judgements
    10. Test Your Knowledge
    11. Multiple Choice Questions
  7. 2. The Indian Contract Act 1872: Offer and Acceptance of an Offer
    1. 2.1 Essential Elements of an Offer (Proposal)
    2. 2.2 Legal Rules as to Offer
    3. 2.3 Distinguish Between Invitation to Offer and an Offer
    4. 2.4 Classification of Offers or Kinds of Offers
    5. 2.5 Distinguish Between General Offer and specific Offer
    6. 2.6 Lapse of Offer or When Offer Comes to an End
    7. 2.7 Legal Rules for the Acceptance
    8. 2.8 General Rules as to Communication of Acceptance
    9. 2.9 Communication of Offer and Acceptance—Sections 4 and 5
    10. List of Landmark Judgements
    11. Test Your Knowledge
    12. Multiple Choice Questions
  8. 3. The Indian Contract Act 1872: Capacity of Parties and Consideration
    1. 3.1 Capacity of Parties
    2. 3.2 Minor
    3. 3.3 Effect of Minor's Agreement
    4. 3.4 Different Position of a Minor
    5. 3.5 Minor's Liability for Necessities
    6. 3.6 Person of Unsound Mind
    7. 3.7 Person Disqualified by Law
    8. 3.8 What Is Consideration?
    9. 3.9 Type of Consideration
    10. 3.10 Essentials of Valid Consideration
    11. 3.11 Stranger to Contract and Stranger to Consideration
    12. 3.12 Exception to the Rule of Stranger to Contract
    13. 3.13 Exception to Rule ‘No Consideration No Contract’—Section 25
    14. List of Landmark Judgements
    15. Test Your Knowledge
    16. Multiple Choice Questions
  9. 4. The Indian Contract Act 1872: Free Consent
    1. 4.1 Meaning of a Consent—Section 13
    2. 4.2 Free Consent—Section 14
    3. 4.3 Coercion
    4. 4.4 Certain Threats Do Not Amount to Coercion
    5. 4.5 Undue Influence
    6. 4.6 When a Person Is Deemed to Be in Position to Dominance of Will of Others?
    7. 4.7 Distinguish Between Coercion and Undue Influences
    8. 4.8 Fraud
    9. 4.9 Essential Elements of Fraud
    10. 4.10 Exception to the Rule—Silence Is Not Fraud
    11. 4.11 Contract of Ubberimae Fidei
    12. 4.12 Effects of Fraud
    13. 4.13 Misrepresentation
    14. 4.14 Essential Elements of Misrepresentation
    15. 4.15 Distinguish Between Fraud and Mispresentation
    16. 4.16 Similarities Between Fraud and Misrepresentation
    17. 4.17 Mistake
    18. 4.18 Distinguish Between Unilateral Mistake and Bilateral Mistake
    19. List of Landmark Judgements
    20. Test Your Knowledge
    21. Multiple Choice Questions
  10. 5. The Indian Contract Act 1872: Void Agreement and Contingent Contract
    1. 5.1 When an Object or a Consideration is Unlawful?—Section 23
    2. 5.2 An Agreement Opposed to Public Policy
    3. 5.3 Agreements in Restraint of Trade—Section 27
    4. 5.4 Agreement in Restraint of Legal Proceedings—Section 28
    5. 5.5 Agreements Unlawful in Parts
    6. 5.6 Wagering Agreement—Section 30
    7. 5.7 Essentials of Wagering Agreement
    8. 5.8 Effects of Wagering Agreement
    9. 5.9 Distinguish Between a Wagering Agreement and an Insurance Contract
    10. 5.10 Distinguish Between a Wagering Agreement and a Contigent Contract
    11. 5.11 Illegal Agreement
    12. 5.12 Contigent Contract—Section 31
    13. 5.13 Essential Features of Contigent Contract
    14. 5.14 Rules Regarding Enforcement of Contingent Contract
    15. 5.15 Uncertain Agreement
    16. 5.16 Distinguish Between a Void Agreement and a Void Contract
    17. List of Landmark Judgements
    18. Test Your Knowledge
    19. Multiple Choice Questions
  11. 6. The Indian Contract Act 1872: Performance of Contract
    1. 6.1 Essentials of a Valid Tender
    2. 6.2 Effects of a Valid Tender
    3. 6.3 Types of Tenders
    4. 6.4 Contracts Which Need Not to Perform
    5. 6.5 Who Can Perform Contract?
    6. 6.6 Performance of Joint Promise—Sections 42–45
    7. 6.7 Time and Place for Performance of Promise—Sections 46–50
    8. 6.8 Who Can Demand Performance of Promise?
    9. 6.9 Kinds of Reciprocal Promise
    10. 6.10 Rules Regarding Performance of Reciprocal Promises
    11. 6.11 Time Is the Essence of a Contract
    12. 6.12 Appropriation of Payments—Sections 59–61
    13. 6.13 Assignment and Succession of a Contract
    14. List of Landmark Judgements
    15. Test Your Knowledge
    16. Multiple Choice Questions
  12. 7. The Indian Contract Act 1872: Discharge of a Contract
    1. 7.1 Discharge of a Contract
    2. 7.2 Discharge of a Contract on Performance
    3. 7.3 Discharge of a Contract by a Mutual Agreement or by an Implied Consent
    4. 7.4 Distinguish Between a Novation and an Alteration
    5. 7.5 Distinguish Between a Rescission and an Alteration
    6. 7.6 Discharge of a Contract by Impossibility of Performance
    7. 7.7 Specific Grounds of Subsequent Impossibilities
    8. 7.8 Cases Where a Contract is Not Discharged on the Ground of Supervening Impossibility
    9. 7.9 Discharge of a Contract by Lapse of Time
    10. 7.10 Discharge of a Contract by Operation of Law
    11. 7.11 Discharge of a Contract by Breach of Contract
    12. List of Landmark Judgements
    13. Test Your Knowledge
    14. Multiple Choice Questions
  13. 8. The Indian Contract Act 1872: Remedies for Breach of Contract and Quasi-contract
    1. 8.1 Rescission of a Contract—Section 39
    2. 8.2 Suit for Damages
    3. 8.3 Kinds of Damages
    4. 8.4 Suit for a Specific Performance
    5. 8.5 Suit for Injunction
    6. 8.6 Quantum Meruit
    7. 8.7 Quasi-contract—Sections 68–72
    8. 8.8 Distinguish Between a Quasi-contract and a Contract
    9. List of Landmark Judgements
    10. Test Your Knowledge
    11. Multiple Choice Questions
  14. 9. The Indian Contract Act 1872: Indemnity and Guarantee
    1. 9.1 Indemnity Contract
    2. 9.2 Essential Elements of an Indemnity Contract
    3. 9.3 Right of an Indemnity Holder—Section 125
    4. 9.4 Guarantee
    5. 9.5 Essential Elements of Contract of Guarantee
    6. 9.6 Kinds of Guarantee
    7. 9.7 Revocation of a Continuing Guarantee
    8. 9.8 Surety's Liability—Section 128
    9. 9.9 Rights of Surety
    10. 9.10 Discharge of a Surety
    11. 9.11 Difference Between a Contract of Indemnity and a Contract of Guarantee
    12. List of Landmark Judgements
    13. Test Your Knowledge
    14. Multiple Choice Questions
  15. 10. The Indian Contract Act 1872: Bailment and Pledge
    1. 10.1 What is a Bailment?
    2. 10.2 Essentials of a Valid Bailment
    3. 10.3 Types of Bailment
    4. 10.4 Duties of a Bailee
    5. 10.5 Duties of a Bailor
    6. 10.6 Bailee's Rights
    7. 10.7 Bailor's Rights
    8. 10.8 Termination of a Bailment
    9. 10.9 Lien
    10. 10.10 Difference Between a General Lien and a Particular Lien
    11. 10.11 Finder of Goods
    12. 10.12 Pledge
    13. 10.13 Rights of a Pawnee
    14. 10.14 Rights of a Pawnor
    15. 10.15 Pledge by a Non-owner
    16. 10.16 Distinguish Between a Bailment and a Pledge
    17. List of Landmark Judgements
    18. Test Your Knowledge
    19. Multiple Choice Questions
  16. 11. The Indian Contract Act 1872: Agency
    1. 11.1 Contract of Agency
    2. 11.2 Essentials for a Valid Agency
    3. 11.3 Test of an Agency
    4. 11.4 Difference Between an Agent and a Servant
    5. 11.5 Difference Between an Agent and an Independent Contractor
    6. 11.6 Different Kinds of Agents
    7. 11.7 Mode of Creating an Agency
    8. 11.8 Requisites of a Valid Ratification—Sections 198–200
    9. 11.9 Husband and Wife
    10. 11.10 Extent of an Agent's Authority
    11. 11.11 Delegation of Authority by an Agent
    12. 11.12 Sub-agent—Section 191
    13. 11.13 Substituted Agent or Co-agent—Section 194
    14. 11.14 Difference Between a Sub-agent and a Substituted Agent
    15. 11.15 Duties of an Agent
    16. 11.16 Rights of an Agent
    17. 11.17 Position of a Principal and an Agent in Relation to Third Parties
    18. 11.18 Principal Relationship Where an Agent Contracts for a Named Principal
    19. 11.19 Principal's Relation Where an Agent Contracts for an Unnamed Principal
    20. 11.20 Principal's Relation Where an Agent Contracts for an Undisclosed Principal
    21. 11.21 Personal Liabilies of an Agent
    22. 11.22 Termination of an Agency
    23. 11.23 Termination of an Agency by the Act of Parties
    24. 11.24 Termination of an Agency by the Operation of Law
    25. 11.25 Irrevocable Agency
    26. List of Landmark Judgements
    27. Test Your Knowledge
    28. Multiple Choice Questions
  17. 12. The Partnership Act 1932
    1. 12.1 Applicability of the Act
    2. 12.2 Definition of Partnership—Section 4
    3. 12.3 Essential Characteristics of Partnership
    4. 12.4 True Test of Partnership
    5. 12.5 Cases Where No Partnership Exists—Section 6
    6. 12.6 Distinguish Between a Partnership and a Hindu Undivided Family
    7. 12.7 Distinguish Between a Partnership and an Association
    8. 12.8 Distinguish Between a Partnership and a Co-ownership
    9. 12.9 Distinguish Between a Partnership and a Club
    10. 12.10 Registration of Firm—Sections 56–71
    11. 12.11 Registration of Alterations—Sections 60–63
    12. 12.12 Time for Registration
    13. 12.13 Effects of Non-registration—Section 69
    14. 12.14 Types of Partners
    15. 12.15 Position of a Minor Partner After Attaining Majority
    16. 12.16 Who Can Be a Partner in the Firm?
    17. 12.17 Rights of a Partner
    18. 12.18 Partner's Optional Duties
    19. 12.19 Partner's Compulsory Duties
    20. 12.20 Partnership Property—Section 14
    21. 12.21 Authority of Partner—Sections 19 and 22
    22. 12.22 Acts Within the Implied Authority of a Partner
    23. 12.23 Acts Outside the Implied Authority of a Partner
    24. 12.24 Restriction on an Implied Authority
    25. 12.25 Liability of a Partner
    26. 12.26 Partner's Authority in Emergency
    27. 12.27 Reconstitution of a Firm
    28. 12.28 Distinguish Between Dissolution of a Partnership and Dissolution of a Firm
    29. 12.29 Dissolution Without the Order of Court—Sections 40–43
    30. 12.30 Dissolution with the Order of Court—Section 44
    31. 12.31 Rights of Partners on Dissolution
    32. 12.32 Liabilities of Partners on Dissolution
    33. 12.33 Settlement of Accounts
    34. 12.34 Garner Versus Murray Rule
    35. 12.35 Mode of Giving a Public Notice
    36. List of Landmark Judgements
    37. Test Your Knowledge
    38. Multiple Choice Questions
  18. 13. Sales of Goods Act 1930
    1. 13.1 Applicability
    2. 13.2 Definition
    3. 13.3 Essentials of Valid Sales
    4. 13.4 Distinguish Between a Sale and an Agreement to Sell
    5. 13.5 Distinguish Between a Sale and a Hire-purchase
    6. 13.6 Distinguish Between a Sale and a Bailment
    7. 13.7 Contract for Work and Skill
    8. 13.8 Types of Goods
    9. 13.9 Price of Goods—Sections 9 and 10
    10. 13.10 Consequences of Destruction of Specific Goods—Sections 7 and 8
    11. 13.11 Conditions and Warranties
    12. 13.12 Implied Conditions
    13. 13.13 Implied Warranties
    14. 13.14 Distinguish Between a Condition and a Warranty
    15. 13.15 Doctrine of Caveat Emptor
    16. 13.16 Transfer of Ownership of Specific Goods—Sections 20–22
    17. 13.17 Transfer of Ownership in the Case of Unascertained Goods—Sections 18 and 23
    18. 13.18 Transfer of Ownership in Case of Goods Sale on Approval or on Sale or Return Basis—Section 24
    19. 13.19 Passing of Risk
    20. 13.20 Rules Regarding Delivery of Goods—Sections 32–39
    21. 13.21 Unpaid Seller
    22. 13.22 Rights of Unpaid Seller
    23. 13.23 Right of Lien
    24. 13.24 Right of Stoppage in Transit—Sections 50–52
    25. 13.25 Right of Resale
    26. 13.26 Right to Withhold Delivery of Goods
    27. 13.27 Delivery to Carrier
    28. 13.28 Buyer's Right Against the Seller or Remedies Against Seller—Sections 55–61
    29. 13.29 Sale by Non-owners or Transfer of Title by Non-owners—Sections 27–30
    30. 13.30 Auction Sale—Section 64
    31. 13.31 Delivery of Goods in Contract by Sear Route
    32. List of Landmark Judgements
    33. Test Your Knowledge
    34. Multiple Choice Questions
  19. 14. The Negotiable Instrument Act 1881
    1. 14.1 Introduction to Negotiable Instruments
    2. 14.2 Essentials or Characteristics of a Negotiable Instrument
    3. 14.3 Presumptions as to Negotiable Instruments
    4. 14.4 Promissory Note—Section 4
    5. 14.5 Essentials Characteristics of a Promissory Note
    6. 14.6 Bill of Exchange—Section 5
    7. 14.7 Difference Between Promissory Note and Bill of Exchange
    8. 14.8 Cheque—Section 7
    9. 14.9 Difference Between Bill of Exchange and Cheque
    10. 14.10 Difference Between Electronic Cheque and Trancated Cheque
    11. 14.11 Capacity of a Person to be a Party to a Negotiable Instrument
    12. 14.12 Classification of Negotiable Instruments
    13. 14.13 Distinguish Between Inland and Foreign Bills
    14. 14.14 Incomplete Instrument or Inchoate Instrument—Section 20
    15. 14.15 Distinguish Between Ambiguous Instrument and Inchoate Instrument
    16. 14.16 Maturity of a Negotiable Instrument—Sections 22–25
    17. 14.17 A Negotiable Instrument Made Without Consideration
    18. 14.18 Negotiation—Section 14
    19. 14.19 Endorsement—Sections 15 and 16
    20. 14.20 Kinds of Endorsements—Sections 16, 50, 52 and 56
    21. 14.21 Negotiation Back
    22. 14.22 Distinction Between Negotiation and Assignment
    23. 14.23 Crossing of Cheque
    24. 14.24 Bouncing or Dishonour of Cheques—Sections 31 and
    25. 14.25 Holder—Section 8
    26. 14.26 Privileges of a Holder in Due Course
    27. 14.27 Difference Between Holder and Holder in Due Course
    28. 14.28 Payment in Due Course—Section 10
    29. 14.29 Protection to Paying Banker—Section 85
    30. 14.30 Liability/Duty of the Paying Banker and Collecting Banker—Section 129
    31. 14.31 When Banker Must Refuse to Honour a Customer's Cheque
    32. 14.32 Banker May Refuse to Honour a Customer's Cheque
    33. 14.33 Effect of Non-presentment of Cheque Within Reasonable Time
    34. 14.34 Material Alteration—Sections 87–89
    35. 14.35 Acceptance of Bill
    36. 14.36 Dishonour by Non-acceptance
    37. 14.37 Acceptance for Honour
    38. 14.38 Payment for Honour
    39. 14.39 Dishonour by Non-payment
    40. 14.40 Notice of Dishonour
    41. 14.41 Noting and Protesting—Sections 99–104a
    42. 14.42 Drawee in Case of Need
    43. 14.43 Discharge of a Negotiable Instrument
    44. 14.44 Discharge of a Party
    45. 14.45 Hundi
    46. List of Landmark Judgements
    47. Test Your Knowledge
    48. Multiple Choice Questions
  20. 15. Consumer Protection Act 1986
    1. 15.1 Object of the Act
    2. 15.2 Extent and Coverage of the Act
    3. 15.3 Rights of Consumer
    4. 15.4 Definition
    5. 15.5 Who Can File a Complaint
    6. 15.6 Redressal Machinery Under the Act
    7. 15.7 How to File a Complaint
    8. 15.8 Relief Available to the Consumers
    9. 15.9 Procedure for Filing the Appeal
    10. 15.10 Speedy Disposal
    11. 15.11 Powers of the Dispute Redressal Agencies
    12. List of Landmark Judgements
    13. Test Your Knowledge
    14. Multiple Choice Questions
  21. 16. Foreign Exchange Management Act 1999
    1. 16.1 Application of Act—Section 1
    2. 16.2 Fera vs. Fema
    3. 16.3 Definition
    4. 16.4 Authorized Persons
    5. 16.5 Current Account Transaction
    6. 16.6 Export of Goods and Services
    7. 16.7 Capital Account Transactions—Section 2(e)
    8. 16.8 Acquisition and Transfer of Immovable Property in india
    9. 16.9 Acquisition and Transfer of Immovable Property Outside India
    10. 16.10 Establishment in India of Branch or Office or Other Place of Business
    11. 16.11 Acceptance of the Deposit
    12. 16.12 Export and Import of Currency
    13. 16.13 Possession and Retention of Foreign Currency
    14. 16.14 Realization, Repartiation and Surrender of Foreign Exchange
    15. 16.15 Enforcement Directorate
    16. 16.16 Departmental Adjudication—Section 16
    17. 16.17 Compounding of Offence
    18. 16.18 Liberalized Remittance Scheme for Resident Individuals
    19. Test Your Knowledge
    20. Multiple Choice Questions
    21. Answers—Multiple Choice Questions
  22. 17. Information Technology Act 2000
    1. 17.1 Introduction
    2. 17.2 Objective of the Act
    3. 17.3 Scope of the Act
    4. 17.4 Definitions
    5. 17.5 Digital Signature
    6. 17.6 Electronic Governance
    7. 17.7 Digital Signature Certification
    8. 17.8 Cyber Regulations Appellate Tribunal
    9. 17.9 Penalties and Adjudication
    10. 17.10 Offences
    11. 17.11 Liability of Body Corporate
    12. 17.12 Duties of Controllers of Certifying Authority
    13. 17.13 Duties of the Certifying Authorities
    14. 17.14 Duties of the Subscriber
    15. 17.15 Power of the Central Government to Make Rules—Section 87
    16. 17.16 Issue Not Covered in Information Technology Act
    17. List of Landmark Judgements
    18. Test Your Knowledge
    19. Multiple Choice Questions
  23. 18. Companies Act 1956: Types of Company and Its Characters
    1. 18.1 Definition of a Company
    2. 18.2 Characteristics of a Company
    3. 18.3 Body Corporate
    4. 18.4 Lifting of the Corporate Veil
    5. 18.5 Illegal Association
    6. 18.6 Effects of an Illegal Association
    7. 18.7 Advantages of Incorporation
    8. 18.8 Definition of a Public Company
    9. 18.9 Definition of a Private Company
    10. 18.10 Distinction Between Private and Public Company
    11. 18.11 Limited Liability Companies
    12. 18.12 Unlimited Liability Company
    13. 18.13 Conversion of a Private Company into a Public Company
    14. 18.14 Government Companies
    15. 18.15 Foreign Company—Section 591
    16. 18.16 Holding and Subsidiary Companies
    17. 18.17 Promotor
    18. 18.18 Legal Position of Promoters
    19. 18.19 Duties of Promoter
    20. 18.20 Preliminary Contracts or Pre-incorporation Contract
    21. 18.21 Effects of Pre-incorporation Contracts
    22. 18.22 Steps to Obtain Certificate of Incorporation
    23. 18.23 Certificate of Commencement of Business
    24. List of Landmark Judgements
    25. Test Your Knowledge
    26. Multiple Choice Questions
  24. 19. Companies Act 1956: Memorandum, Article of Association and Prospectus
    1. 19.1 Define the Memorandum of Association
    2. 19.2 Purpose of Memorandum of Association
    3. 19.3 Provisions Relating to Printing and Signature of Memorandum
    4. 19.4 Form of Memorandum of Association—Section 14
    5. 19.5 Contents of the Memorandum—Section 13
    6. 19.6 Legal Requirements as to the Name Clause
    7. 19.7 Legal Requirements as to the Registered Office Clause
    8. 19.8 Display of Registered Office Address
    9. 19.9 Legal Requirements as to the Objects Clause
    10. 19.10 Legal Requirements as to the Liability Clause
    11. 19.11 Capital Clause
    12. 19.12 Association or Subscription Clause
    13. 19.13 Provisions for Change in the Name Clause of Memorandum of the Company or Alteration of Name Clause
    14. 19.14 Procedure to Change Registered Office from One Place to Another Within the Same City
    15. 19.15 Procedure to Change Registered Office from One City to Another Within Jurisdiction of the Same ROC Within the Same State
    16. 19.16 Procedure to Change the Registered Office from the Jurisdiction of One ROC to the Jurisdiction of Another ROC Within the Same State (Section 17a)
    17. 19.17 Procedure to Change the Registered Office from One State to Another
    18. 19.18 Procedure for Changing the Objects Clause of the Memorandum
    19. 19.19 Alteration of Liability Clause
    20. 19.20 Doctrine of Ultra Vires
    21. 19.21 Effects of Ultra Vires Transaction
    22. 19.22 Articles of Association
    23. 19.23 Distinguish Between Memorandum and Articles of Association
    24. 19.24 Provision Relating to Printing and Signature of Article
    25. 19.25 Contents of the Articles of Association
    26. 19.26 Procedure for the Alteration of the Articles of Association
    27. 19.27 Limitations on Alteration of Articles
    28. 19.28 Binding Effects of Memorandum and Articles of Association
    29. 19.29 Doctrine of Constructive Notice
    30. 19.30 Doctrine of Indoor Management
    31. 19.31 Exceptions to the Doctrine of Indoor Management
    32. 19.32 Prospectus
    33. 19.33 Circumstances When the Prospectus Is Not Required to Be Issued
    34. 19.34 Abridged Prospectus
    35. 19.35 Statutory Requirements in Relation to a Prospectus
    36. 19.36 Red Herring Prospectus
    37. 19.37 Contents of a Prospectus—Section 56/Schedule II
    38. 19.38 Refusal to Register Prospectus by ROC
    39. 19.39 Statement in Lieu of Prospectus
    40. 19.40 Shelf Prospectus and Information Memorandum
    41. 19.41 Mis-statement in Prospectus
    42. 19.42 Liability for Mis-statement in Prospectus
    43. 19.43 Defenses Available to Directors in case of Misleading Prospectus
    44. 19.44 Defenses Available—to Experts in case of Misleading Prospectus
    45. List of Landmark Judgements
    46. Test Your Knowledge
    47. Multiple Choice Questions
  25. 20. Companies Act 1956: Share Capital
    1. 20.1 Share Capital
    2. 20.2 Nature of Shares
    3. 20.3 Equity Shares
    4. 20.4 Preference Shares
    5. 20.5 Kinds of Preference Shares
    6. 20.6 Redemption of Redeemable Preference Shares
    7. 20.7 Equity Shares with Differential Rights or Non-voting Shares
    8. 20.8 Voting Rights to Shareholders—Section 87
    9. 20.9 Allotment of Shares
    10. 20.10 General Provisions to the Allotment of Shares
    11. 20.11 Legal Rules as to Allotment—Sections 69–75
    12. 20.12 Minimum Subscription
    13. 20.13 Irregular Allotment
    14. 20.14 Return of Allotment
    15. 20.15 Underwriting Agreement
    16. 20.16 Brokerage
    17. 20.17 Alteration of Share Capital Clause—Section 94
    18. 20.18 Reduction of Share Capital
    19. 20.19 Procedure to the Reduction of Share Capital
    20. 20.20 Diminution of Share Capital
    21. 20.21 Issue of Shares at Premium
    22. 20.22 Utilization of Securities Premium Amount
    23. 20.23 Conditions for the Issue of Shares at Discount
    24. 20.24 Stock or Stock Certificate
    25. 20.25 Distinguish Between ‘Share’ and ‘Stock’
    26. 20.26 Forfeiture of Shares
    27. 20.27 Legal Requirements for the Forfeiture of Shares
    28. 20.28 Effect of Forfeiture of Shares
    29. 20.29 Surrender of Shares
    30. 20.30 Lien on Shares
    31. 20.31 Bonus Shares
    32. 20.32 Pre-emptive Right or Right Shares—Section 81
    33. 20.33 Call on Shares
    34. 20.34 Requisite of Valid Calls
    35. 20.35 Calls in Arrear
    36. 20.36 Calls in Advance
    37. 20.37 Buy-back of Shares
    38. 20.38 Member
    39. 20.39 Who Can Become a Member of Company—Section 42
    40. 20.40 Minor as Member of Company
    41. 20.41 Termination of Membership
    42. 20.42 Rights of a Member of the Company
    43. 20.43 Rights of Members as a Group
    44. 20.44 Transfer of Shares
    45. 20.45 Procedure of Transfer—Section 108
    46. 20.46 Nomination
    47. 20.47 Transmission of Shares
    48. 20.48 Share Certificates
    49. 20.49 Distinction Between Share and Share Certificate
    50. 20.50 Duplicate Share Certificate
    51. 20.51 Debenture
    52. 20.52 Types of Debentures
    53. 20.53 Rights of Debenture Holder
    54. 20.54 Debenture Trustee
    55. 20.55 Functions of Debenture Trustees—Section 117B
    56. 20.56 Provisions for Creation of DRR
    57. List of Landmark Judgements
    58. Test Your Knowledge
    59. Multiple Choice Questions
  26. 21. Companies Act 1956: Meeting
    1. 21.1 Kinds of Company Meetings
    2. 21.2 Requisites of a Valid Meeting
    3. 21.3 Different Manner of Serving Notice to Members
    4. 21.4 Provisions Regarding Notice of a General Meeting
    5. 21.5 Statutory General Meeting (SGM)—Section 165
    6. 21.6 Statutory Report
    7. 21.7 Contents of Statutory Report
    8. 21.8 Annual General Meeting (AGM)—Section 166
    9. 21.9 Notice of the AGM
    10. 21.10 Default in Holding an AGM
    11. 21.11 Usual Business at an AGM
    12. 21.12 Extra Ordinary General Meeting—EGM
    13. 21.13 EGM on Requisition
    14. 21.14 EGM by CLB/Tribunal
    15. 21.15 Proxy
    16. 21.16 Revocation of Proxy After Appointment
    17. 21.17 Alternate Proxy
    18. 21.18 Quorum for General Meeting
    19. 21.19 Chairman of a General Meeting
    20. 21.20 Powers of the Chairman of a General Meeting
    21. 21.21 Poll
    22. 21.22 Postal Ballot
    23. 21.23 Procedure for Passing Resolution by Postal Ballot
    24. 21.24 Business Passing Resolution Through Postal Ballot
    25. 21.25 Adjournment of a Meeting
    26. 21.26 Meeting of Debenture Holders
    27. 21.27 Meeting of Creditors
    28. 21.28 One-man Meeting
    29. 21.29 Motion
    30. 21.30 Kinds of Resolutions
    31. 21.31 Resolution Requiring a Special Notice
    32. 21.32 Circulation of Member's Resolution
    33. 21.33 Minutes of Proceedings of the General Meeting
    34. 21.34 Meaning of Board of Directors
    35. 21.35 Classify the Type of Powers that Can Be Exercised by the Board
    36. 21.36 Powers of the Board of Directors Which Can Be Exercised at Their Meeting
    37. 21.37 Powers that Can Only be Exercised by the Board of the Directors of a Public Company with the Consent of the Company in a General Meeting
    38. 21.38 Frequency of Board Meetings—Section 285
    39. 21.39 Board Meeting on a Public Holiday—Section 288
    40. 21.40 Place and Time of Board Meeting
    41. 21.41 Notice of Board Meeting—Section 286
    42. 21.42 Content of Board Meeting Notice
    43. 21.43 Quorum for a Board Meeting—Section 287
    44. 21.44 Chairman of a Board Meeting
    45. 21.45 Voting at a Board Meeting
    46. 21.46 Minutes of Board Meeting
    47. List of Landmark Judgements
    48. Test Your Knowledge
    49. Multiple Choice Questions
  27. 22. Companies Act 1956: Management of the Company
    1. 22.1 Definition of a Director
    2. 22.2 Who Can Be Appointed as Director?
    3. 22.3 Disqualification of the Director—Section 274
    4. 22.4 Legal Position of a Director
    5. 22.5 Appointment of Directors
    6. 22.6 Appointment of the First Directors
    7. 22.7 Appointment of Directors at a General Meeting
    8. 22.8 Appointment of Director Other Than a Retiring Director—Section 257
    9. 22.9 Consent of the Director with ROC and Company—Section 264
    10. 22.10 Director Identification Number—Section 266
    11. 22.11 Appointment of Director by Board of Directors (BOD)
    12. 22.12 Appointment of Additional Director—Section 260
    13. 22.13 Filling Up Casual Vacancy—Section 262
    14. 22.14 Alternate Director—Section 313
    15. 22.15 Appointment of Director by Central Government—Section 408
    16. 22.16 Appointment of Directors by the Third Party—Nominee Director
    17. 22.17 Assignment of Office by Director—Section 312
    18. 22.18 Minimum and Maximum Number of Directors
    19. 22.19 Small Shareholders Directors (SSD)—Section 252
    20. 22.20 Maximum Number of Directors
    21. 22.21 Number of Directorship—Section 275
    22. 22.22 Vacation of the Office of a Director—Section 283
    23. 22.23 Removal of a Director
    24. 22.24 Removal of Director by a Shareholder—Section 284
    25. 22.25 Compensation for the Loss of Office—Section 318
    26. 22.26 Removal by Central Government—Section 388B
    27. 22.27 Removal of the Director by CLB/NCLT—Section 402
    28. 22.28 Resignation by the Director
    29. 22.29 Validity of the Acts of the Director Where His Appointment Is Invalid—Section 290
    30. 22.30 Power of the Board of Directors
    31. 22.31 Manner of Exercise of BOD Power
    32. 22.32 Restriction on the Powers of Directors—Section 293
    33. 22.33 Political Contributions by the Directors—Section 293A
    34. 22.34 Interested Director
    35. 22.35 Disclosure of the Director's Interest—Sections 299 and 300
    36. 22.36 Loans to Directors—Section 295
    37. 22.37 Managing Director—Section 2(26)
    38. 22.38 Disqualification of a Managing Director—Section 267
    39. 22.39 Manager—Section 2(24)
    40. 22.40 Disqualification of a Manager—Section 385
    41. 22.41 Distinction Between a Managing Director and a Manager
    42. 22.42 Managerial Remuneration
    43. 22.43 Salient Features of Sch-XIII
    44. 22.44 Office or Place of Profit—Section 314
    45. List of Landmark Judgements
    46. Test Your Knowledge
    47. Multiple Choice Questions
  28. 23. Payment of Bonus Act 1965
    1. 23.1 Introduction
    2. 23.2 Application of the Act
    3. 23.3 Act Not to Apply to Certain Classes of Employees—Section 32
    4. 23.4 Definition
    5. 23.5 Who Is Entitled to Bonus?
    6. 23.6 Disqualification for Bonus—Section 9
    7. 23.7 Computation of the Number of Working Days
    8. 23.8 Who Is Liable to Pay Bonus?
    9. 23.9 Payment of Minimum Bonus—Section 10
    10. 23.10 Payment of Maximum Bonus—Section 11
    11. 23.11 Calculation of Bonus with Respect to Certain Employees—Section 12
    12. 23.12 Adjustment of Customary or Interim Bonus—Section 17
    13. 23.13 Set On and Set Off of Allocable Surplus—Section 15
    14. 23.14 Liability of the New Firm to Pay Bonus—Section 16
    15. 23.15 Presumptions About the Accuracy of Balance Sheet and Profit and Loss Account of the Company—Section 23
    16. 23.16 Procedure as Regards the Recovery of Bonus—Section 21
    17. 23.17 Time Limit for the Payment of Bonus—Section 22
    18. 23.18 Powers of Inspectors—Section 27
    19. 23.19 Application of the Act to Establishment in Public Sector—Section 20
    20. 23.20 Bonus Linked with Production or Productivity—Section 31A
    21. 23.21 Power of Exemption—Section 36
    22. List of Landmark Judgements
    23. Test Your Knowledge
    24. Multiple Choice Questions
  29. 24. The Payment of Gratuity Act 1972
    1. 24.1 What is Gratuity?
    2. 24.2 Scope of Payment of Gratuity Act 1972
    3. 24.3 Definition
    4. 24.4 Circumstances in Which the Gratuity Becomes Payable
    5. 24.5 To Whom Is the Gratuity Payable?
    6. 24.6 Calculation of the Amount of Gratuity Payable
    7. 24.7 Forfeiture of Gratuity—Section 4(B)
    8. 24.8 Rules for the Nomination of Gratuity
    9. 24.9 Rules as to Determination of the Amount of Gratuity
    10. 24.10 Payment of Gratuity in Case of a Dispute—Section 7(4)
    11. 24.11 Rules for the Recovery of Gratuity—Section 8
    12. 24.12 Compulsory Insurance of the Employee
    13. 24.13 Rules Regarding Appointment of an Inspector Under the Act
    14. 24.14 Powers of Inspectors
    15. 24.15 Provisions Relating to Penalties—Sections 9–12
    16. 24.16 Appeal for Payment of Gratuity
    17. List of Landmark Judgements
    18. Test Your Knowledge
    19. Multiple Choice Questions
  30. Copyright