The document summarizes the key provisions of the Factories Act of 1948 in India. It defines important terms like factory, worker, and occupier. It outlines the health, safety, and welfare measures required in factories, such as provisions for clean drinking water, sanitation, ventilation, and protective equipment. It also discusses rules for working hours, annual leave, and obligations of workers and employers. The administration of the Act is left to state governments through their factory inspectors.
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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.
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Responsibilities of the office bearers while registering multi-state cooperat...Finlaw Consultancy Pvt Ltd
Introduction-
The process of register multi-state cooperative society in India is governed by the Multi-State Co-operative Societies Act, 2002. This process requires the office bearers to undertake several crucial responsibilities to ensure compliance with legal and regulatory frameworks. The key office bearers typically include the President, Secretary, and Treasurer, along with other elected members of the managing committee. Their responsibilities encompass administrative, legal, and financial duties essential for the successful registration and operation of the society.
2. LearningObjectives
The definition of of factory ,
manufacturing process, worker and
occupier under the act
The health, safety and welfare
provisions under the act
The provisions of the Act regarding hours
of work, annual leave with wages ,
obligations of a worker,obligations of an
occupier and administration of the Act
3. SYNOPSIS
Introduction
Objective of the Act
Definitions
Factory Inspectorate
Health
Safety
Additional Health and Safety Provisions
Welfare
Hours of work
4. SYNOPSIS
Annual leave with wages
Special coverage
Exemption
Abstracts and Notices
Obligations of Worker
Obligations of Employer
Offenses and Penalties
Administration
Summary
5. Introduction
The First Factories Act was passed in
1881. Its comprehensive version was
introduced in 1911. It was later amended
four times
Following the recommendations of Rege-
Committee[ Formation of Labour
Investigation Committee], the
Government of India enacted the
Factories Act 1948, a comprehensive
piece legislation which came into force
from april 1949
6. Objective
The objective the Factories Act is to
ensures the health, safety, welfare,
proper working hours, leave and
other benefits for the workers
employed in the factories
7. Definitions
The term factory means:
[A] any premises in which 10 or
more workers are employed and a
manufacturing process is carried
with the aid of the power.
[B] any premises in which 20 or
more workers are employed and a
manufacturing process is carried
without the aid of power
8. Definition
The term ‘Manufacturing process’ refers to
any form of work like:
Making, altering, repairing,
ornamenting, finishing, packing, oiling,
washing, cleaning, breaking
up,demolishing or otherwise treating or
adapting any article or substance with a
view to its use, sale, transport, delivery
or disposal
Pumping oil, water, sewage or any other
substances
Generating, transforming or
transmitting power.
9. Definition
Composing types for printing, printing
by letter press, lithography,
photogravure or other similar process or
book binding
Constructing, reconstructing, repairing,
refitting, finishing or breaking up ships
or vessels
Preserving or storing any article in cold
storage.
10. Definition
The term ‘Worker’ means
A person employed directly or by or through
any agency including a contractor, with or
without the knowledge of principal employee,
whether for remuneration or not in any
manufacturing process or in cleaning any part
of the machinery or premises used for
manufacturing process, or connected with the
manufacturing process or the subject of the
manufacturing process but doesn’t include any
member of the armed forces of the union.
11. Definition
The term ‘Occupier’ means
The person who has ultimate control
over the affairs of the factory
The partner, in the case of a firm or any
association
any director in case of a company
A person appointed to manage the affairs
of a factory in case of factory owned or
controlled by central/ state government.
12. Factory
Inspectorate
It is necessary that approval from the
chief inspector of factories is obtained for
the plans of the factory. The occupier
has also to arrange to register the
factory with the chief inspector of
factories and obtain necessary license.
Factory Inspector has authority to enter
the Factory to examine premises, plant,
machinery as well as registers &
documents maintained under the act.
13. Health
It is necessary to provide appropriate
health measures like:
To keep clean and free from Effluvia
(Bad Odours)
To dispose off waste & effluents
To maintain adequate ventilation &
reasonable temperature
To prevent inhalation of dust & fumes
and their accumulation in any room
To ensure proper standards of
humanity.
14. Health
To avoid over crowding
To provide sufficient and suitable
natural and artificial lighting
To provide sufficient supply of
drinking water
To provide sufficient latrine & urinal
accommodations separately for male
& female workers
To provide more no.of.spittoons to
maintain clean & hygienic
environment.
15. Safety
It is necessary to undertake appropriate safety
measures like:
To fence dangerous parts of machines
To prohibit employment of women and children
near cotton openers
To protect workers from repairing machinery in
motion
To maintain hosts & lifts of good mechanical
construction of sound materials & adequate
strength
To keep all floors, steps, stairs, passages &
gangway in good condition
16. Safety
To prohibit any person from carrying or
moving any load so heavy as to be likely to
cause him injury
To protect workers from injury to eyes from
particles of fragments thrown off in the
course of manufacturing process
To protect workers from dangerous fumes ,
inflammable dust, gas & such other
materials
To protect workers from fire , provide
precautionary measures .
17. Safety
In case any part of building ways, plant &
machinery is observed to be in a condition of
disrepair & is detrimental To health &
safety of workers, the Chief Inspector of
Factories can ask the occupier to take
certain measures before a specified date
The act requires factories employing 1000 or
more workers or carrying manufacturing
process that can cause hazard to health of
workers, to appoint such number of safety
officers as may be notified by the State
Government.
18. Additional
Health&Safety
Provisons
Additional provisions were added through
amendments to ensure health and safety of
workers. Suppliers to factory were
required to consider health and safety
aspects while designing, manufacturing &
delivering materials.
Special provisions were added for
compliance by Factories carrying hazardous
processes. Factories carrying hazardous
processes or handling hazardous
substances were required to set up a
“Safety Committee“ with equal
representation from workers &
management
19. Welfare
The act prescribes following welfare measures
Separate & adequate washing facilities for
male & female workers
Facilities for storing of clothes not worn
during working hours & drying of wet
clothing
Facilities for sitting of workers obliged to
work normally in standing position
Ambulance rooms in factories ordinarily
employing 500 or more workers
20. Welfare
First aid boxes or cupboards, one such
box for every 150 workers under a
separate responsible person
Canteens of prescribed standards, in
factories ordinarily employing more
than 250 workers , to be run on non
profit basis by canteen committ
A Creche is to be provided in a factory
wherein ordinarily more than 30
women workers are employed
21. Welfare
Suitable and adequate rest rooms/
shelters & lunch rooms (if canteen
is not provided) to be provided by
factories ordinarily employing 150
workers
In a factory wherein 500 or more
workers are ordinarily employed
the occupier shall employ such
number of welfare officers as may
be prescribed.
22. Hoursofwork
Rules for adult worker in a factory
A worker cannot be employed for more
than 48 hours in a week
Every worker must be given a holiday for
whole day in every week or a
compensatory holiday instead of week off
A worker cannot be employed for more
than 9 hours a day & should get an
interval of rest of at least half an hour
after maximum 5 hours of work.
23. Hoursofwork
Total period of work including rest period
cannot exceed 10 ½hours in a day
For overtime work above nine hours a day
or 48 hours a week , he shall be paid at
twice the normal rate of wages.
The state government can make rules
under certain conditions providing for
exemption but not beyond 10 hours of
work a day , 12 hours of spread over or 60
hours a week including overtime.
24. Hoursofwork
Rules for Women & Children worker in a
factory :
A women worker cannot be employed
except between the hours of six in the
morning and seven in the evening
Employment of children below 14 years
is totally prohibited
A child above 14 years but below 15
years can be employed for maximum
4½hours a day.
25. Hoursofwork
A child cannot be employed during the
night shift I.e. from 10pm to 6pm
Child worker must have a certificate of
fitness granted by a certifying surgeon.
A child above 15 years can be employed
as an adult if he has a certificate of
fitness to perform full day’s work.
A prescribed register is to be
maintained for child workers
26. Annualleave
withwages
A worker shall be allowed each year to take
annual leave with wages at the rate of one
day for every 20 days (15 days in case of
child worker) of work preformed in the
previous year
Leave can be accumulated for up to 30 days
in case of an adult and 40 days in case of a
child
The leave admissible is exclusive of all
holidays and wages for the leave are to be
paid before leave begins. On termination of
service for any reason wages are to be paid
instead of annual leave.
27. Specialcoverage
&exemption
The State Government by notification can
extend the coverage of the act & declare
that provisions of the act are applicable to
any place where manufacturing is carried
with or without power
During emergency it can exempt any
factory from any or all provisions of the act
for a period not > three months at a time
and on conditions it thinks fit
It can also exempt any workshop or a
manufacturing place attached to
educational or similar institution.
28. Abstract&
Notices
A notice containing abstracts of the
act and rules in english and the local
language understood by a majority of
workers made there under are to be
displayed in every factory at a
convenient place.
In case of accidents resulting in death
or absence of the worker for more
than 48 hours , a notice is to be sent
by the manager to appropriate
authorities.
29. Obligationsofa
worker
A worker shall not interfere with any
appliance or articles provided for
securing health, safety & welfare of
the workers.
He should not carry any act that
endangers himself or others & shall
not willfully neglect to make use of
safety appliances.
Any worker contravening above
provisions is punishable with fine or
imprisonment or both.
30. Obtain approval from the
Government regarding location, plan
and construction of factory and license
and registration certificate for
operations.
Implement all provisions of the Act
concerning health, safety and welfare.
Send a written notice with prescribed
data to Chief Inspector 15 days before
using any premises as a factory.
Obligationsofa
Employer
31. Display notices maintain registers
and records and submit returns
under the Act.
Report fatal accidents,
occupational diseases contracted by
any workman to the Government
or its specified authority in such a
form or manner as may be
prescribed.
Obligationsofa
Employer
32. Offencesand
Penalties
If in any factory, there is a contravention of
the provisions of the Act or of any rule there
under, the occupier or manager may be
punished by fine of up to one lakh rupees or
imprisonment of up to two years or both.
Greater punishments are prescribed for
subsequent contraventions.
Punishment is prescribed for obstructing
Inspector or not allowing worker to meet
Inspector or for refusing to produce records
demanded by Inspector.
If any worker contravenes any provision of
the Act he may be punished with prescribed
fine.
33. Administration
The Act is most comprehensive piece of
labour legislation.
Though it is a central legislation its
implementation is left to state governments.
They administer the Act through factory
Inspectors, certifying Surgeons and District
Magistrates who are Inspectors for their
districts.
Even though rules of the State Governments
differ their intent is uniform and
implementation varies depending upon
number of factories and their respective
strength in each state.
34. Summary
The Factories Act(1948), contains
many important provisions regarding
health, safety, welfare, employment of
young persons & women, hours of
work, for adults and children,
holidays and leave with wages.
The responsibility for administration
of the Act rests with the State
Governments who administer it
through their own factory inspectors.