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PRESENTATION ON COUSTOMS &LEGAL ASPECTS OF BUSINESSPRESENTED
BY: Isha PatelITM VOCATIONAL UNIVERSITY11COUSTOMSCustoms have
played an important role in making law and therefore are also known
as customary laws. In the words of Keeton, customary law may be
defined as those rules of human action, established by usage and
regarded as legally binding by those to whom the rules are
applicable, which are adopted by the courts and applied as sources
of law because they are generally followed by the political society
as a whole or by some part of it. In simple words, it is a
generally observed course of conduct by people on a particular
matter. When a particular course of conduct is followed again and
again, it becomes a custom
ITM VOCATIONAL UNIVERSITY2Memorandum of AssociationThe
Memorandum of Association is a document related to the company and
contains the fundamental conditions upon which the company is
allowed to be incorporated.As per SECTION 15 the Memorandum of
Association of a company shall be PrintedDivided into paragraphs
numbered consecutively, andSigned by 7 (2 in case of a private
company) subscribersITM VOCATIONAL UNIVERSITY3
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ARTICLES OF ASSOCIATIONThe Articles of Association or just
articles are the rules, regulations and bye-laws for the internal
management of the affairs of the company.Form and signature of
ArticlesThe Article shall be-PrintedDivided into paragraphs,
andSigned by each subscriber of the Memorandum in the presence of
at least 1 witness who will attest the signature and likewise add
his address, description and occupation, if anyITM VOCATIONAL
UNIVERSITY44MEMBERS AND SHAREHOLDERSThe members or shareholders of
a company are the persons who collectively constitute the company
as a corporate entity.They are synonymous in the case of a company
limited by shares, a company limited by guarantee and having a
share capital and an unlimited company whose capital is held in
definite shares.But in the case of an unlimited company or a
company limited by guarantee, a member may not be a shareholder,
for such a company may not have a share capitalITM VOCATIONAL
UNIVERSITY55DIRECTORSA director may be defined as a person having
control over the direction, conduct, management or superintendence
of the affairs of a company.Every public company (other than a
deemed public company) shall have at least 3 directors and every
other company (e.g. a private company, a deemed public company) at
least 2 directors.A public company having :A paid-up capital of
Rs.5 crore or more;One thousand or more small shareholders;shall
have at least one director elected by such small shareholders in
the manner as may be prescribedITM VOCATIONAL UNIVERSITY66THANK
YOUITM VOCATIONAL UNIVERSITY7
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