Tag: sectoral organisation of business

Salomon v Salomon & Co Ltd [1897] AC 22 (law cite link) was the case that got me interested in corporate law. The principle from the case is very simple - a company is a separate legal entity and thus a juristic "person" in the eyes of the law. Piercing the corporate veil refers to a situation in which courts put aside limited liability and hold a corporation's shareholders or directors personally liable for the corporation's actions or debts. Veil piercing is most common in close corporations.

Privacy Issues in the Workplace. Generally speaking, privacy rights are granted (if at all) by specific laws, rules, or regulations. Personnel Records:Employees generally have a right to privacy in their personnel records, except in a few specific circumstances. Employee privacy rights are the rules that limit how extensively an employer can search an employee's possessions or person; monitor their actions, speech, or correspondence; and know about their personal lives, especially but not exclusively in the workplace.

The Companies Act, 2013 earlier mandated that all Private Limited Companies have a minimum paid up capital of Rs.1 lakh. This meant that Rs.1 lakh worth of money had to be invested in the company by purchase of the company shares by the shareholders to start business.

This type of entity limits the owner's liability to their ownership stake and restricts shareholders from publicly trading shares. Members: You can start a private limited company with a minimum of only 2 members (and maximum of 200), as per the provisions of the Companies Act 2013. Minimum 2 and Maximum 20 can only be a part of partnership firm while for private limited company, 2 to 50 members in case of Private Company and Minimum 7 members in case of Public Company can be a part and in LLP's there has to be minimum 2 partners and there is no limitation of maximum number of partners.

For the purpose of advising the Central Government and the Company Law Board on such matters arising out of the administration of this Act as may be referred to it by that Government or Board, the Central Government, may constitute an 'Advisory Committee' consisting of not more than five persons with suitable qualifications.

According to the policy of 1991 the role of public sector was limited only to four industries; rest all the industries were opened for private sector also. Privatization refers to giving greater role to private sector and reducing the role of public sector. 

To execute policy of privatization government took the following steps:(a) Disinvestment of public sector, i.e., transfer of public sector enterprise to private sector (b) Setting up of Board of Industrial and Financial Reconstruction (BIFR). 

This board was set up to revive sick units in public sector enterprises suffering loss. (c) Dilution of Stake of the Government. If in the process of disinvestment private sector acquires more than 51% shares then it results in transfer of ownership and management to the private sector.

In accordance with the section 152(5) of the companies act 2013, a person appointed as a director of any company shall not act as a director unless he gives his consent to hold the office as director and such consent has been filed with the Registrar within 30 days of his appointment.