Introduction A company is a legal person who is living only in the eyes of law. It is a formulation of law which lacks both body and mind. It cannot act on its own. It can act only through some human agency. Directors are those persons through whom company acts and does business. They are…
Introduction A company / body corporate is not a natural person, it is an artificial person created by the law. A natural person has a mind with which it can form scienter (i.e., knowledge and intent) and a body with which it can act upon the scienter so formed. However, since a company / body…
Introduction It is common knowledge that there is risk associated with entering into a debtor-creditor relationship. This is especially true for the creditor who has to bear the risk of bad debt accruing to it due to default in payment of the loaned amount by the debtor. A contract of guarantee can prove gainful in…
Introduction The prospectus of a body corporate is principally a document mandated under law. The two major purposes sought to be fulfilled by a prospectus is firstly, to furnish requisite information about the body corporate to the public at large and secondly, to serve as an invitation to offer for purchase of its securities (ex.,…
An exclusive economic zone is basically an area of coastal water and seabed within a certain distance of a country’s coastal line, to which a country claims exclusive rights for fishing, drilling and other economic activities. The concept of exclusive economic is one of the most important pillars of 1982 conventions on the law…
The first step in the formation of a company is to prepare a document called the memorandum of association. This document contains the constitution of the company. It has to be divided into five clauses. It has to be in any of the forms specified in tables A to E in schedule 1. Name Clause:…
A public company, but not a private company, is entitled, by issuing a prospectus, to invite applications for its shares or debentures. Prospectus is defined by section 2(70) as “Prospectus means any document described or issued as a prospectus and includes a red herring prospectus referred to in section 32 or shelf prospectus…
Introduction Under the code, the personal guarantor defined u/s 5(22) of the Insolvency and Bankruptcy Code, 2016 (“IBC“). A personal guarantor is a person who acts as the surety in a contract of guarantee to a corporate debtor. Section 60(1) of the IBC 2016 deals with the provision related to the initiation of the insolvency…
Introduction The application for the initiation of the corporate insolvency resolution process by the operational creditor is addressed in Section 9 of the I&B code 2016. This section addresses the provision concerning the filing of an application by the operational creditor against the corporate debtor demanding payment of the operational debt in respect of which…
In Company Law, we come across different issues that a company or shareholders face. Therefore, to know how the courts deal with such issues and what is law and logic behind such rulings, it is important to know some landmark judgments. Salomon v Salomon & Co. Ltd; 1896 Aaron Salomon incorporated his business into a…
