Fundamentals and Processes of Corporate Law

In India, corporate affairs are controlled through numerous Company Law Acts or business laws which are applied as company laws in India and regulations enforced by the Government of India and managed by the Ministry of Corporate Affairs (MCA). Enlisted below are few regulations that are accessible in India to control fair and good competition in the market which together can be recognized as Corporate Laws in India.
  • Companies Act, 2013
  • The Companies Amendment Act, 2006
  • The Indian Partnership Act, 1932
  • The Limited Liability Partnership Act, 2008
  • Societies Registration Act, 1860 

Features of Corporate Law in India:

 1. Independent corporate existence
By registration under the Company Law Act or company law, or business law in India; a company becomes bestowed with corporate personality, which is liberated of and different from its members. A business is a legal entity under corporate law or business laws in India.

2. Limited liability
Limitation of liability is another chief benefit of incorporation under the corporate law or business law in India. The company, being a separate entity, leading its own corporate life, the members are not accountable for its debts under the corporate law or company law act.

3. Perpetual succession
As per Corporate Law India, the existence of a company stays forever till the time it winds up. People might come and leave in an organization but the company stays forever legally. The company doesn’t gets affected by the death or insolvency of business, it stays forever.

4. Transferable shares
When joint-stock companies are recognized under the company laws in India, the main objective was that the shares should be capable of being effortlessly transferred.

5. Separate property
The property of an incorporated company is bestowed in the corporate body under the company law in India. The business is proficient of holding and appreciating the property in its name. No members can entitle ownership of any item of the company’s assets.

6. Capacity for suits
A corporation can sue and be sued in its company name as given in the Company law in India. The name of its administrative personnel or members need not be added. The action against a group of persons is thus diminished to a unitary action.

7. Professional management
Company law in India offers that a company is proficient of appealing to professional managers. It is because of being involved in the management of a business gives members the status of decision-making.

8. Access to the money market
Corporations are one of the few legal institutes which are certified access to the money market for the creation of its shares and loan capital as per the provisions of Company laws in India. A corporation can gather interest-free equity and preference share capital on which dividend requires to be paid as and when there are revenues. This can be done with the assistance of a prospectus through public issue or private placement. 

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Location: India

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