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.
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.
This ppt. includes brief about the Memorandum of Association (MOA) and Clauses of Regulatory Framework of Companies :-
1.Introduction, meaning and importance of MOA
2.Purpose of MOA and Contents
3 Clauses of MOA well defined and tuned
This ppt. includes brief about the Memorandum of Association (MOA) and Clauses of Regulatory Framework of Companies :-
1.Introduction, meaning and importance of MOA
2.Purpose of MOA and Contents
3 Clauses of MOA well defined and tuned
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.
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.
2. Partnership is the relation between persons who
have agreed to share the profits of a business carried
on by all or any one of them acting for all
Partnership Act 1932
3. Content
Essentials element of partnership.
Kinds of partners
Types of partnership
Rights of partner
Duties of partner
Dissolution of partnership and partnership firm.
Winding up of partnership and partnership firm.
Advantage of winding up
Reconstitution of a firm.
4. Partnership Deed :
Partnership Deed is the document that defines the
rights and obligations of partners. Besides names,
address and occupation of partners it lays down the
duration of partnership, nature of business, profit
sharing ratio, right to interest, salary, commission
etc.
5. Essential elements of
partnership:
(1) Association of two or more persons;
(2) Existence of a contract;
(3) Carrying on a business;
(4) Sharing of profits; and
(5) Prevalence of mutual agency.
Section 4 of the Partnership Act, 1932 defines
‘partnership’ as follows: “a business carried on by all or
any of them acting for all.”
6. Kinds Of Partners
There may be different kinds of partners in a partnership firm.
The important classification of partners is given below:
Actual or active partners,
Dormant or sleeping partner,
Nominal partner,
Partner in profits only,
Sub-partner,
Partner by estoppel or by holding out.
7. Types Of Partnership
oPartnership at will- (Sec. 7)where time is not mentioned in
agreement
oParticular partnership - (Sec. 8)partner in a specific venture
only
oPartnership for fixed term - (Sec. 7)
8. Rights Of Partners.section 12 & 13 of the
partnership act
Rights to take part in management
Every partner has a right to take part in the conduct of the business.
Rights to inspect books
Every partner has a right to check the books of account of the firm
and to get the copies.
Rights to be consulted
Every partner has a right to be consulted and heard before any matter
is decided.
Rights to share profit
Every partner has a right to share equally in the profits earned by the
firm, irrespective of his amount of capital contribution.
9. Rights to interest on capital
A partner is not entitled to receive interest on capital contributed by him..
Right to use property
Every partner of the firm is co-owner in the property of firm and he has a right
to use it for the best benefit of the business of the allowed.
Rights to admit and expel partner
A new partner cannot be admitted in the firm and an old partner cannot be
expelled from the firm without the prior consent of all the partners.
Right to give opinion
Nature of the partnership business cannot be altered without the prior approval
of all the partners.
10. Right to collect debts
A partner has an implied right to collect partnership debts and to give
receipts for payments.
Right to act as agent
Every partner can act as an agent on behalf of the remaining partners
and bind the other partners to his act.
Rights of retirement
Every partner has a right of retirement from the firm with the mutual
consent of all other partners. But when the partnership is at will, he
can leave the firm at any time while giving a due notice of his
retirement from the firm.
Right of competing business
Any outgoing partner has a right to start a business competing with that
of the firm but he cannot use the name of the firm.
11. Duties Of Partners:
To work for common advantage
To be faithful
Render true account
To indemnify for fraud
Not to claim remuneration
To share profits and losses
To act within authorities given
12. Dissolution Of A Firm
Dissolution of a firm means an end of the firm. The
Indian Partnership Act distinguishes between:
(a) Dissolution of firm, and
(b) Dissolution of partnership.
Section 39 provides that the dissolution of
partnership between all the partners of a firm is
called the “dissolution of the firm”.
13. Compulsory dissolution :
1. When all the partners or all except one partner becomes
insolvent or of unsound mind.
2. When the business becomes unlawful.
3. When all the partners or all except one decide to retire from the
firm.
4. When all the partners or all except one partner die.
5. A firm is also dissolved compulsorily if the partnership deed
includes any provision regarding the happening of the following
events
(a) expiry of the period for which the firm was formed,
(b) completion of the specific venture or project for which the
firm was formed.
14. Dissolution by Agreement :
1. All the partners give consent or
2. as per the terms partnership agreement .
Dissolution by notice : In case of a partnership at will, the
firm may
be dissolved if any one of the partner gives a notice in writing to the
other partners.
Dissolution by Court :
1. When a partner becomes of unsound mind.
2. When a partner becomes permanently incapable of performing his/her
duties as a partner,
15. Partnership Is Dissolved In The
Following Circumstances:
Partnership is dissolved in the following circumstances:
1) At the time of admission of a new partner;
2) On the retirement/death of an old partner;
3) At the time of change in profit sharing ratio among existing partners;
4) If any partner is declared insolvent;
5) On the expulsion of any partner;
6) On the expiry of the period of partnership.
Thus this is clear from the above discussion that in the case
of dissolution of the partnership the firm may continue under a new
agreement whereas in the case of dissolution of partnership firm the business
of the firm comes to an end.
16. There are two basic ways that
the partnership can be wound
up:
Creditor’s Petition
Partner’s Petition
17. Creditor’s Petition
A creditor can petition to wind up the partnership
but not issue bankruptcy petitions against the
individual partners. Or the creditor can issue a
petition to wind up the partnership concurrently
with a bankruptcy petition against one or more of
the individual partners.
18. Partner’s Petition
The partners can petition to wind up the partnership
but not issue bankruptcy petitions against the
individual partners. Or the partners can issue a
petition to wind up the partnership concurrently
with a bankruptcy petition against the individual
partners.
19. Partnership Winding Up
Where the partners have decided that the partnership
has no viable future or purpose then a decision may
be made to cease trading and wind up the
partnership. Clearly such a decision should not be
taken lightly and is recommended that all other
options are carefully considered and compared to
the objectives of the partnership and the individual
partners.
20. The Winding-Up Process
The partnership is treated much like an unregistered company and is wound up in
the same way as a company. The tasks of the liquidator are therefore to
Realise the assets in the partnership including any deficiencies due on the
partner’s individual capital accounts (the partners will have to pay such
deficiencies if required). All debtors, property and other assets will be collected
by the liquidator.
Investigate the conduct of the "officers of the partnership" just as the liquidator
in a company liquidation must do.
Interestingly the liquidator can initiate actions against the partners to seek to
disqualify them as partners in a partnership (Insolvent Partnerships Order 1994)
2.2. The liquidator must also ascertain whether any transactions have taken place
that put the partners (individually or collectively) into a better position than they
should be then such transactions (known as preferences or transactions at
undervalue). If such transactions have been completed before the winding up,
they can be un-done. The court can order that the partners reverse the
transaction.
21. The Advantages of Winding up
By initiating such action themselves the partners as
individuals may avoid the disqualification of the partners and
as company directors, however this will depend on their
actions pre the failure and whether they had acted at all times
correctly and in the creditor’s interests.
The creditors will know that an insolvency practitioner must
be appointed where the winding up process is used. This can
ensure (sometimes) a better return, investigation into the
officers conduct pre insolvency and the knowledge that the
partnership will not increase debts.
22. Liabilities of a Partner to Third
Parties:
The following are the liabilities of a partner to third parties:
Liability of a partner for acts of the firm
Liability of the firm for wrongful act of a partner
Liability of the firm for misutilisation by partners
23. Liability of an incoming partner:
An incoming partner is liable for the debts and acts of the firm from
the date of his admission into the firm. However, the incoming
partner may agree to be liable for debts prior to his admission. Such
agreeing will not empower the prior creditor to sue the incoming
partner. He will be liable only to the other co-partners.
Liability of a retiring partner:
A retiring partner is liable for the acts of the firm done before his
retirement. But a retiring partner may not be liable for the debts
incurred before his retirement if an agreement is reached between the
third parties and the remaining partners of the firm discharging the
retiring partner from all liabilities. After retirement the retiring
partner shall be liable unless a public notice of his retirement is given.
No such notice is required in case of retirement of a sleeping or
dormant partner.
24. Reconstitution Of A Firm
A change in the constitution of the firm occurs when a new
partner is admitted or an old partner retires or dies. The
partnership is reconstituted on:
Admission
Retirement
Death of a partner.
Amalgamation of two partnership firms.
Change in the profit sharing ratio between the partners.