The document discusses the concept of corporate veil, which separates a company from its members as a separate legal entity. While a company cannot act on its own and needs members to function, the corporate veil can be lifted in certain circumstances defined by statute or courts. These include misrepresentation to investors, fraudulent conduct, tax evasion, and when considering a company's public interest, sham status, or avoiding legal obligations. The corporate veil protects members from a company's liabilities but is pierced in cases of wrongdoing.
MEANING AND DEFINITION OF COMPANY, IT'S CHARACTERISTICS AND TYPES OF COMPANYKhushiGoyal20
This slide share is of subject company law . In this you will learn about meaning and definition of company , types / kinds of company (private , public , holding , subsidiary , limited liability and unlimited liability company etc.) , and its characteristics.
corporate law (CL) Under company act 2013.
What is corporate law? The background of Companies Act 1956. What is the importance of this Act?
Memorandum of association. Doctrine of ultra vires. Articles of association. Doctrine of indoor management.
Introduction
Definition of company
Characteristics of company
Types of company
Formation of company
Memorandum of association
Article of association
Prospectus
Public deposits
Share & Share capital
Allotment of Shares
Members
Meetings
Winding up
MEANING AND DEFINITION OF COMPANY, IT'S CHARACTERISTICS AND TYPES OF COMPANYKhushiGoyal20
This slide share is of subject company law . In this you will learn about meaning and definition of company , types / kinds of company (private , public , holding , subsidiary , limited liability and unlimited liability company etc.) , and its characteristics.
corporate law (CL) Under company act 2013.
What is corporate law? The background of Companies Act 1956. What is the importance of this Act?
Memorandum of association. Doctrine of ultra vires. Articles of association. Doctrine of indoor management.
Introduction
Definition of company
Characteristics of company
Types of company
Formation of company
Memorandum of association
Article of association
Prospectus
Public deposits
Share & Share capital
Allotment of Shares
Members
Meetings
Winding up
Legal Forms of Business PaperWhen an entrepreneur decides t.docxMARRY7
Legal Forms of Business Paper
When an entrepreneur decides to start a business there are several options that need to be considering before forming an organization. The entrepreneur needs to look at what liability and risks may the business encounter in the future. The entrepreneur needs to look at personal assets that may be at risk if the company gets sued and how to protect those assets in case of a lawsuit. The author of the paper will create scenarios that establish why an entrepreneur would create a corporation, S corporation, franchise, limited liability company, limited liability partnership, partnership, and sole proprietorship.
Corporation
An entrepreneur is planning on starting a service company such as a construction company, auto repair, auto detailing, or cleaning service. The potential for lawsuits is very high and any customer can file a lawsuit at any time for a variety of reasons. The entrepreneur is working with a team that is knowledgeable in how to run a service company and business law. The entrepreneur has found individuals that are willing to invest in the company and believe in the entrepreneur’s vision. The entrepreneur needs to protect personal assets of everyone involved in the company.
In the above scenario the entrepreneur would set up a corporation because the corporation is a separate entity from its owners. The corporation will give the entrepreneur, shareholders, and owner’s protection from loosing personal assets in a lawsuit. In order to maintain the protection of the corporation needs to be run as a separate entity. The corporation needs to be well organized and managed. The organization needs to be maintained with care by everyone in the organization. The corporation needs to operate within the law and not give a court an excuse to pierce the corporate veil. If the corporate veil is pierced by the court the owner’s and shareholders personal assets are vulnerable in a lawsuit. The benefits of a corporation are that it can raise capital through the selling of stocks. The company can benefit from corporate deductions from employee benefits and health plans. The corporation provides the owners with more credibility than other types of organizations.
S Corporation
The entrepreneur is thinking of starting a bakery and has only ten employees. The entrepreneur is a United States Citizen and is worried about double taxation. The owners due want to have the protection that a corporation provides without having to deal with double taxation. The owners would like to right off the start up cost of starting the business.
In the above scenario the entrepreneur would start an S corporation. The Small business corporation status allows an entrepreneur to start a corporation without having to worry about the corporate tax structure and double taxation. The business taxes pass through to the owner’s individual taxes which allow the owners to avoid double taxation. The owners would be allowed to deduct start up cos ...
Unit I
Company: Meaning, features, types, Incorporation advantages & disadvantages, privileges of
private company, lifting of corporate veil, formation of company, Doctrine of ultra-vires,
Constructive notice and doctrine of indoor management.
Unit – II
Documents of Company: Memorandum of Association: meaning, importance, clauses of
memorandum of association and their alteration, Articles of Association: meaning, contents,
alteration of articles of association Prospectus: Definition, contents of prospectus, Statement in
lieu of prospectus; Share Capital: Types of share capital, alteration of share capital, reduction of
share capital, share and stock, share certificate and share warrant
Types of Fraud While there are many types of fraud, the most com.docxmarilucorr
Types of Fraud
While there are many types of fraud, the most common fraud schemes that organizations must prevent include employee embezzlement, vendor fraud, customer fraud and financial statement fraud. Of these four types, employee embezzlement is the most common type of fraud. Employee embezzlement is the process where employees intentionally deceive their employers and take company assets. Examples of employee embezzlement include company workers who intentionally take cash, inventory, tools or other supplies from the organization.Vendor fraud , on the other hand, is the process by which vendors, or suppliers, take advantage of the firm. Vendor fraud often results in an overcharge for purchased goods, the shipment of inferior goods or the nonshipment of goods even though payment has been made. The United States government has often been in the news because major government vendors such as defense and other government contractors have significantly overcharged for goods and services. For example, United States suppliers have been accused of charging more than $20 for a single nail. Often vendor fraud is perpetrated through collusion between buyers and vendors. Once these vendors have overcharged for goods, they will often kickback , or return, a portion of the fraudulent funds to a purchasing agent who represents the organization.
When customer fraud takes place, customers either do not pay for goods purchased or get something for nothing. For example, in one case, a bank customer walked into a branch of a large bank and convinced the branch manager to give her a $525,000 cashier's check, even though she had only $13,000 in her bank account. The manager believed she was a very wealthy customer and didn't want to lose her business. Unfortunately for the bank, she proceeded to defraud the bank of over $500,000. Financial Statement Fraud , also often referred to as management fraud , involves situations where company management intentionally makes the company appear more profitable than it actually is. For example, over the last two decades, management teams at Enron, WorldCom, Parmalat, Adelphia, Waste Management and a number of other companies have intentionally manipulated the financial statements to deceive the public into believing that their respective organizations were more successful than they actually were. These executives engaged in financial statement fraud to increase the company's stock price, which increased their own net worth (as a result of stock options that each executive possessed). In each of these situations, executives were manipulating the financial statements on behalf of the organization instead of directly stealing from the organization.
Fraud Perpetrators
Those customers, employees and vendors who engage in fraud are often referred to as fraud perpetrators. Unfortunately, research suggests that anyone can commit fraud and become a fraud perpetrator. In fact, most fraud perpetrators are good people who, becaus ...
NATURE, ORIGIN AND DEVELOPMENT OF INTERNATIONAL LAW.pptxanvithaav
These slides helps the student of international law to understand what is the nature of international law? and how international law was originated and developed?.
The slides was well structured along with the highlighted points for better understanding .
ALL EYES ON RAFAH BUT WHY Explain more.pdf46adnanshahzad
All eyes on Rafah: But why?. The Rafah border crossing, a crucial point between Egypt and the Gaza Strip, often finds itself at the center of global attention. As we explore the significance of Rafah, we’ll uncover why all eyes are on Rafah and the complexities surrounding this pivotal region.
INTRODUCTION
What makes Rafah so significant that it captures global attention? The phrase ‘All eyes are on Rafah’ resonates not just with those in the region but with people worldwide who recognize its strategic, humanitarian, and political importance. In this guide, we will delve into the factors that make Rafah a focal point for international interest, examining its historical context, humanitarian challenges, and political dimensions.
PRECEDENT AS A SOURCE OF LAW (SAIF JAVED).pptxOmGod1
Precedent, or stare decisis, is a cornerstone of common law systems where past judicial decisions guide future cases, ensuring consistency and predictability in the legal system. Binding precedents from higher courts must be followed by lower courts, while persuasive precedents may influence but are not obligatory. This principle promotes fairness and efficiency, allowing for the evolution of the law as higher courts can overrule outdated decisions. Despite criticisms of rigidity and complexity, precedent ensures similar cases are treated alike, balancing stability with flexibility in judicial decision-making.
RIGHTS OF VICTIM EDITED PRESENTATION(SAIF JAVED).pptxOmGod1
Victims of crime have a range of rights designed to ensure their protection, support, and participation in the justice system. These rights include the right to be treated with dignity and respect, the right to be informed about the progress of their case, and the right to be heard during legal proceedings. Victims are entitled to protection from intimidation and harm, access to support services such as counseling and medical care, and the right to restitution from the offender. Additionally, many jurisdictions provide victims with the right to participate in parole hearings and the right to privacy to protect their personal information from public disclosure. These rights aim to acknowledge the impact of crime on victims and to provide them with the necessary resources and involvement in the judicial process.
A "File Trademark" is a legal term referring to the registration of a unique symbol, logo, or name used to identify and distinguish products or services. This process provides legal protection, granting exclusive rights to the trademark owner, and helps prevent unauthorized use by competitors.
Visit Now: https://www.tumblr.com/trademark-quick/751620857551634432/ensure-legal-protection-file-your-trademark-with?source=share
WINDING UP of COMPANY, Modes of DissolutionKHURRAMWALI
Winding up, also known as liquidation, refers to the legal and financial process of dissolving a company. It involves ceasing operations, selling assets, settling debts, and ultimately removing the company from the official business registry.
Here's a breakdown of the key aspects of winding up:
Reasons for Winding Up:
Insolvency: This is the most common reason, where the company cannot pay its debts. Creditors may initiate a compulsory winding up to recover their dues.
Voluntary Closure: The owners may decide to close the company due to reasons like reaching business goals, facing losses, or merging with another company.
Deadlock: If shareholders or directors cannot agree on how to run the company, a court may order a winding up.
Types of Winding Up:
Voluntary Winding Up: This is initiated by the company's shareholders through a resolution passed by a majority vote. There are two main types:
Members' Voluntary Winding Up: The company is solvent (has enough assets to pay off its debts) and shareholders will receive any remaining assets after debts are settled.
Creditors' Voluntary Winding Up: The company is insolvent and creditors will be prioritized in receiving payment from the sale of assets.
Compulsory Winding Up: This is initiated by a court order, typically at the request of creditors, government agencies, or even by the company itself if it's insolvent.
Process of Winding Up:
Appointment of Liquidator: A qualified professional is appointed to oversee the winding-up process. They are responsible for selling assets, paying off debts, and distributing any remaining funds.
Cease Trading: The company stops its regular business operations.
Notification of Creditors: Creditors are informed about the winding up and invited to submit their claims.
Sale of Assets: The company's assets are sold to generate cash to pay off creditors.
Payment of Debts: Creditors are paid according to a set order of priority, with secured creditors receiving payment before unsecured creditors.
Distribution to Shareholders: If there are any remaining funds after all debts are settled, they are distributed to shareholders according to their ownership stake.
Dissolution: Once all claims are settled and distributions made, the company is officially dissolved and removed from the business register.
Impact of Winding Up:
Employees: Employees will likely lose their jobs during the winding-up process.
Creditors: Creditors may not recover their debts in full, especially if the company is insolvent.
Shareholders: Shareholders may not receive any payout if the company's debts exceed its assets.
Winding up is a complex legal and financial process that can have significant consequences for all parties involved. It's important to seek professional legal and financial advice when considering winding up a company.
In 2020, the Ministry of Home Affairs established a committee led by Prof. (Dr.) Ranbir Singh, former Vice Chancellor of National Law University (NLU), Delhi. This committee was tasked with reviewing the three codes of criminal law. The primary objective of the committee was to propose comprehensive reforms to the country’s criminal laws in a manner that is both principled and effective.
The committee’s focus was on ensuring the safety and security of individuals, communities, and the nation as a whole. Throughout its deliberations, the committee aimed to uphold constitutional values such as justice, dignity, and the intrinsic value of each individual. Their goal was to recommend amendments to the criminal laws that align with these values and priorities.
Subsequently, in February, the committee successfully submitted its recommendations regarding amendments to the criminal law. These recommendations are intended to serve as a foundation for enhancing the current legal framework, promoting safety and security, and upholding the constitutional principles of justice, dignity, and the inherent worth of every individual.
DNA Testing in Civil and Criminal Matters.pptxpatrons legal
Get insights into DNA testing and its application in civil and criminal matters. Find out how it contributes to fair and accurate legal proceedings. For more information: https://www.patronslegal.com/criminal-litigation.html
2. Company is a artificial Person
Having saparate legal entity
Saparate from its members
Can sue if someone is wrongful
Can be sued if it is doing wrongful acts
Hence there is a veil in between company and
the members
3. Company cannot act on its own
Company is unable to undersatand What is
Right or Wrong
of course there is some human agncy
(Members of the co.) functioning on the
behalf of the company.
Hence for the wrongful act of the company its
members are picked and punished in other
words
CORPORATE VEIL IS LIFTED
4. Circumstances when the corporate veil is lifted
is covered under two heads
Statutory Provisions
Judicial Provisions
5. Misstatement in the prospectus
Failure to return the application money
Misdescription of company’s name
For investigation regarding the ownership of
the company
Fraudulent conduct
Inducing persons to invest money in the
company
Furnishing false ststement
6. Tax Evasion
Prevention of Fraud
Determination of enemy character
Ultra vires act
Agency Companies
Public interest
Sham Companies
Companies avoiding the legal obligations
