CL ppt unit 1.pptx introduction to company law with its chracteristics

Company law, also known as corporate law, is the body of legal rules that governs the rights, relations, and conduct of individuals and businesses engaged in commerce. It encompasses various aspects of business organization, including formation, management, and dissolution of companies. Types of Companies
Sole Proprietorship: A business owned and run by one individual.
Partnership: A business operated by two or more individuals who share profits and responsibilities.
Corporations: Legal entities separate from their owners, which can be further classified as:
Private Limited Companies (Ltd): Shares are not available to the public.
Public Limited Companies (PLC): Shares can be sold to the public on stock exchanges.
3. Key Components of Company Law
Incorporation: The process of legally forming a company, typically requiring registration with a governmental body.
Corporate Governance: Rules and practices that direct and control a company, including the roles of the board of directors and management.
Shareholder Rights: Legal rights of shareholders, including voting rights, rights to dividends, and rights to information.
Duties of Directors: Legal obligations of directors to act in the best interests of the company, including fiduciary duties.
4. Regulatory Framework
Company law is often governed by national legislation, such as the Companies Act in many countries. Regulatory bodies oversee compliance and enforce laws to ensure fair practices.

5. Recent Trends
Corporate Social Responsibility (CSR): Increasing emphasis on ethical practices and social responsibility among companies.
Digital Transformation: The rise of technology and digital business models, impacting traditional company structures and regulations.
Conclusion
Company law plays a crucial role in the business environment, providing the framework for establishing and running companies while protecting the interests of various stakeholders. Understanding its principles is essential for anyone involved in business, whether as an owner, investor, or employee. Types of Companies
Sole Proprietorship: A business owned and run by one individual.
Partnership: A business operated by two or more individuals who share profits and responsibilities.
Corporations: Legal entities separate from their owners, which can be further classified as:
Private Limited Companies (Ltd): Shares are not available to the public.
Public Limited Companies (PLC): Shares can be sold to the public on stock exchanges.
3. Key Components of Company Law
Incorporation: The process of legally forming a company, typically requiring registration with a governmental body.
Corporate Governance: Rules and practices that direct and control a company, including the roles of the board of directors and management.
Shareholder Rights: Legal rights of shareholders, including voting rights, rights to dividends, and rights to information.Duties of Directors

1. Unit 1 Introduction in Company

2. Definition of company According to Lord Justice Lindley, by a company is meant an association of many persons who contribute money or money’s worth to a common stock & shares.

3. Characteristics of Company A voluntary association Incorporated Association Artificial Legal Person Separate Legal Entity Perpetual Existence Common Seal

4. Limited Liability Transferability of Shares Separate Property

5. Types of Company Based on Incorporation Chartered Company Statutory Company Registered company

6. Based on Liability Limited by Shares Limited by Guarantee Unlimited Company

7. Based on Control Govt/Non Govt Company Foreign/ Domestic Company Holding & Subsidiary Company