What is Corporate Law

In India, laws governing Companies are mainly to be found in the Companies Act, 1956. Voluminous and containing 658 Sections, 15 Schedules and several Rules, the Companies Act, 1956 is modeled on the English Companies Act. Any entrepreneur desirous of doing business in India has an option to form a Company, Private or Public with limited liability under the provisions of the Companies Act. A Private Limited Company must have a minimum number of 2 and a maximum number of 50 shareholders whilst a Public Company needs a minimum number of 7 shareholders with no upper limit. Before commencing any business, a Public Company is obliged to obtain a certificate from the Registrar of Companies, whilst a Private Company can commence its business and exercise borrowing powers immediately upon its incorporation. The shares of a private limited company are not freely transferable and it cannot offer its shares or debentures to public for subscription. However, there are major exemptions and privileges enjoyed by a Private Limited Company under the Companies Act, 1956. Exemptions To Private Limited Companies  1) Financial assistance can be given for the purchase of or subscribing for its own shares or shares in its holding company - Sec. 77 (2). 2) Further shares can be issued without passing a special resolution or obtaining the Central government's approval and without offering the same necessarily to existing share holders - Sec.81 (3). 3) Provisions as to the kinds of share capital (Sec. 85), the further issue of share of capital (Sec.86), voting rights (Sec.87), the issue of shares with disproportionate rights (Sec.88) and the termination of disproportionate excessive rights (Sec.89), do not apply to private companies - Sec. 90 (2). 4) Business can be commenced immediately on incorporation without obtaining a certificate of commencement from Registrar - Sec.149 (7). 5) It is not necessary to hold a statutory meeting and to send a statutory report to shareholders and file the same with the Registrar - Sec.165 (10). 6) Articles of a private company may provide for regulations relating to general meetings which need not conform to the provisions of Sec 171 to 186 - Sec.170 (1). 7) Any amount can be paid to the directors as remuneration and the same is not restricted to any particular proportion of the net profits - Sec.198 (1). 8) A private company need not have more than two directors - Sec.252 (2). 9) A proportion of directors need not retire every year - Sec.255 (1). 10) Statutory notice etc., is not required for a person to stand for election as a director - Sec.257 (2). 11) The Central Government's sanction is not required to effect an increase in the number of directors beyond 12 or the number fixed by the articles of association-Sec. 259. 12) The Central Government's sanction is not required to modify any provision relating to the appointment of managing, whole-time or non-rotational directors - Sec.268. 13) The Central Government's approval is not required for appointment of managing or whole-time director or manager - Sec. 269 (2). 14) Directors of a private company need not possess any share qualifications, in terms of section 270- Sec. 273. 15) Restrictive provisions regarding the total number of directorships which any person may hold do not include directorships held in private companies which are not subsidiaries of public companies - Sec. 275 to 279. 16) Certain restrictions on powers of board of directors do not apply - Sec. 293(1). 17) The prohibition against loans to directors does not apply - Sec. 295 (2). 18) The prohibition against participation in board meetings by interested directors does not apply - Sec. 300 (2). 19) The date of birth of director need not be entered in the register of directors - Sec. 303(1). 20) There is no restriction on the remuneration payable to directors - Sec. 309 (9). 21) There is no restriction on any change in remuneration of directors - Sec. 310. 22) Any increase in the remuneration not being sitting fees beyond the specified limit of directors on appointment or reappointment does not require the Central Government's approval - Sec. 311. 23) There's also no restriction on the appointment of a managing director - Sec. 316(1) and 317 (4). 24) There is no restriction on making loans to other companies - Sec. 370 (2). 25) There is no prohibition against the purchase of shares, etc. in other companies - Sec. 372 (14). 26) The Central Government cannot exercise its power to prevent change in the board of directors, which is likely to affect the company prejudicially - 409 (3). FOREIGN COMPANIES Part XI of the Companies Act, 1956 containing Section 591 to 608 deals with the Companies incorporated outside India i.e. a "Foreign Company." The provisions of this part of the Companies Act, 1956 prescribes that its Sections 592 to 602 shall be applicable to Companies who are incorporated outside India which after the commencement of the Companies Act, 1956 establishes a place of business within India and Companies incorporated outside India having established place of business within India prior to the commencement of the Companies Act, 1956 and continue to have the said establishment. It says that a Company incorporated outside India and having an established place of business in India in which 50% or more paid up share capital is held by Indians then provisions of those sections shall apply to such Companies also. Sections 592 to 602 applicable to such Foreign companies provide that they have to file with the Registrar of Companies: - Various documents giving particulars, - Returns regarding any alterations in the company, - Balance-sheet and Profit & Loss Accounts of the company, - Charges on any of the Companies' properties in India. It also provides that the following provisions shall apply to Indian business of a Foreign Company: - Registration of charges, - Right to obtain copies of and inspect the trust deed, - Books of account to be kept by the Company, - Annual returns to be made by the Company, - Inspection of books of accounts, - Power of Central Government to direct special audit, - Audit of cost accountants, -Power of Registrar to call for inspection and investigation (Contained in Sections 124 to 145, 125, 127, 118, 209, 159, 209-A,, 233-A, 233B, and 234 to 246 of the Companies Act) Section 603 of the said part XI puts certain restriction on a foreign company offering documents for subscriptions in India. Though under the Companies Act, 1956, no formalities are required to be carried out for a Foreign Company establishing place of business in India except the filing of the documents provided for in Part XI; under the provisions of Section 29 of the Foreign Exchange Regulation Act, 1973 general or special permission of the Reserve Bank of India for continuing any place of business or establishing any place of business for carrying on activities of trade and Commercial nature by a foreign company is required. General: The limit of the foreign equity in an Indian Company is now increased up to 51% from the earlier 40%. In certain cases 100% foreign equity participation is also now allowed. The Government of India has entered into agreements with major foreign countries including USA for avoiding double taxation. List of Countries with whom India has Double Taxation Agreements A: Austria · Australia B: Belgium · Bangladesh · Brazil C: Canada · Czechoslovakia D: Denmark F: FRG · Finland · France G: Great Britain · Greece H: Hungary I: Indonesia · Italy J: Japan K: Kenya · Korea(South) L: Libya M: Malaysia · Mauritius N: Nepal · Netherlands · New Zealand · Norway P: Poland R: Romania S: Singapore · Spain · Sri Lanka · Sweden · Syria T: Tanzania · Thailand U: United Arab Emirates · USA Z: Zambia

What is Rent Control

The practice of imposing a legal maximum (rent ceiling) upon the rent in a particular housing market, below the equilibrium rent is called rent control. If this maximum is above that market’s equilibrium rent (different rental housing markets may have different equilibrium rents), then the control is null and void. But if the rent is set at a level below the equilibrium rent, it will necessarily lead to a situation of excess demand or shortage. In a free market, prices (here, rents) would rise automatically filling the gap between the demand and the supply. But rent controls prevent prices from rising up to the equilibrium level and thus, alternative rationing mechanisms such as black and uncontrolled markets evolve.

A raging debate has been going on over the years over the pros and cons of rent control. While the proponents of rent control laws suggest that they prevent landlords from charging exorbitant rents and evicting tenants at will, the opponents suggest that rent control laws, by distorting incentives, lead to deterioration of existing housing stock, increased pullout of apartments from the rental housing market and thus reduced overall supply.

Murphy’s law of Economic Policy states that “Economists have the least influence on policy where they know the most and are most agreed; they have the most influence on policy where they know the least and disagree most vehemently”.¹ While most economists agree that rent controls are bad², nothing of note has been done towards deregulating rents, especially in India. Also, the sheer diversity of rent control laws existing in various states and countries, coupled with phenomenal economic diversity makes it very difficult to generalize the argument across borders, and thus makes the task of policy makers that much more difficult.

A 1986 U.N. study estimated that about 42 percent of the world’s urban dwellers were renters. It was not known how many of those 150 million households lived under rent control regimes, but preliminary research suggested that the proportion is as high as 30 percent.These numbers can reasonably be expected to have increased with the passage of time. Thus, the motivation of a project on rent control is clear and needs little elaboration.

what is M.A.C.T.

Motor Accidents Claims Tribunal MACT deals with matters related to compensation of motor accidents victims or their next of kin .The Tribunal deal with claims relating to loss of life/property and injury cases resulting from Motor Accidents.

MACT Courts are presided over by Judicial Officers from the State Higher Judicial Service. Now these Courts are under direct supervision of the Hon’ble High Court of the respective state

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Who can report to MACT in case of accident ?

Victim himself or through Advocate,in the case of personal injury. Through advocate in case of minor applicant below the age of 18 years. Legal heirs themselves or through advocate in the case of death.The owner of the vehicle in the case of property damage.

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What all documents should accompany the petition ?

1. Copy of the FIR registered in connection with said accident, if any.

2. Copy of the MLC/Post Mortem Report/Death Report as the case may be.

3. The documents of the identity of the claimants and of the deceased in a death case.

4. Original bills of expenses incurred on the treatment alongwith treatment record.

5. Documents of the educational qualifications of the deceased, if any.

6. Disability Certificate, if already obtained, in an injury case.

7. The proof of income of the deceased/injured.

8. Documents about the age of the victim.

9. The cover note of the third party insurance policy, if any.

10.An affidavit detailing the relationship of the claimants with the deceased.

What is Criminal Law

Criminal law is a branch of law which concerns crimes which are committed against the public authority. It is distinct from civil law, which involves crimes which people commit against each other, not not necessarily against the public as a whole. Murder, for example, is covered under criminal law, because although there is a specific victim, murder in general runs against the interests of the public. By contrast, if someone fails to honor a contract, this is a matter for civil law.
Substantive criminal law deals with the definitions of various crimes which are covered by the criminal code, while procedural criminal law is concerned with the prosecution of said crimes. Procedural law may also include sentencing recommendations which are designed to be used in the event that a victim is convicted of committing a crime. Under many criminal codes, convictions can only be obtained when the prosecution proves beyond a reasonable doubt that the accused did indeed commit the crime.

Three broad types of crimes appear in the criminal code: misdemeanors, felonies, and treason. Treason is of particular concern because it not only violates the public interest, but also threatens national security and the welfare of the nation itself, which is why treason is accompanied with such severe penalties. Misdemeanors are relatively minor crimes under criminal law, while felonies are more serious crimes which may accompanied with severe mandatory sentences.

Useful Links Of Law of India

★Supreme Court of India:-

http://www.supremecourtofindia.nic.in/

★Delhi High Court:-

http://delhihighcourt.nic.in/index.html

★Delhi District Courts:-

http://delhicourts.nic.in/

★IPR OFFICE: DWARKA SEC.14:-

http://www.ipindia.nic.in

★CopyRight Office

http://copyright.gov.in/

★Directorate General of Foreign Trade

http://dgft.delhi.nic.in/

★Department of Trade And Taxes

http://www.dvat.gov.in/dvatonline/index.php

★Ministry Of Corporate Affairs

http://www.mca.gov.in/

★National Consumer Disputes Redressal Commission

http://ncdrc.nic.in/

★SSI (Department of Industries Delhi)

http://www.delhi.gov.in/wps/wcm/connect/doit_industry/Department+of+Industries/Home/

★Service Tax

http://www.servicetaxdelhi.gov.in/

Central Administrative Tribunal (CAT),

http://cgat.gov.in/

Bare Acts

http://www.vakilno1.com/bareacts.htm