22 august legal aspects of business & business law

www.afterschoool.tk AFTERSCHO☺OL's MATERIAL FOR PGPSE PARTICIPANTS

LEGAL ASPECTS OF BUSINESS

AFTERSCHO☺OL – DEVELOPING CHANGE MAKERS

CENTRE FOR SOCIAL ENTREPRENEURSHIP PGPSE PROGRAMME –

World’ Most Comprehensive programme in social entrepreneurship & spiritual entrepreneurship

OPEN FOR ALL FREE FOR ALL


LEGAL ASPECTS OF BUSINESS

Dr. T.K. Jain.

AFTERSCHO☺OLCentre for social entrepreneurship

Bikaner

M: 9414430763

[email protected]

www.afterschool.tk

www.afterschoool.tk


When should a partner give a public notice?

On retirement On explusion On dissolution of the firm


Jiten gave his spare 1 Crore Rs. To me to be advanced as loan for micro finance. He will be given 20% share in profit plus 10% interest on his capital . Are we partners as per the Indian partnership Act?

No ( read Mollow March & Co. V/s Court of Wards, 1872).


Mayank has a large shipping business. He appoints me as shipping incharge with 20% share in net profit. Are we partners now?

No. (see Abdul Latif V/s Gopeswar 1933).


A,B,C are partners. C dies, Now C’s widow becomes partner in the share of the business. She promises not to withdraw the money and will continue to get 30% profits. Is she a partner?

No (see CIT v/s Kesharmal). She is getting profit in lieu of interest, but actually she is not partner.


A was an Advocate. He asked B to join him. He assured B that he will give all his clients to B. B also got share in profit of A’s profession. A wanted to sell his profession to B. Are they partners?

No. ( see Rawlison V/s Clarke 1846).


Every contract requires considdration, thus does the partnership contract require consideration?

No. ( see sec. 185 of Indian Contract Act).


Ajay and Dhaval are joint owners of a property. They give this property on rent to Prateek, and share rent equally. Are they partners?

No. ( they are only joint owners).


Every contract requires lawful object, thus does the partnership contract require lawful object?

Yes.


does the partnership contract require partnership deed?

No (you should have it, it is advisable).


Should the partnership deed by signed by all the partners?

Yes


What will happen, if the deed is not stamped ?

It will not be considered as deed. It has to be duly stamped as per Indian Stamp Act.


Ajay gets married to a business woman, who is a partner in a big firm. Later the firm gets insolvent, will Ajay and his personal property be used in making payment?

No. (however, personal property of his wife

will be used in making payment of outstanding amount).


Goutam is 17 and Ajay is 20. Can they become partners?

No. (because Goutam is still minor).


Sapna and Jayati set up a firm titled Royal Travels. Is there any problem?

Yes = the word ROYAL cannot be used in partnership firm.


Can a partner of an unregistered firm file a suit against the firm?

No.


Can a partner of an unregistered firm file a suit against other partners?

No.


Can a partner of an unregistered firm file a suit for dissolution of the firm?

Yes


Can an unregistered firm sue for its statutory rights under any law?

Yes


Can an unregistered firm sue third party ?

No.


Can third party sue against unregistered firm?

Yes


Can a partner of unregistered firm enforce arbitration before arbitrator?

Yes.


AB is a unregistered partnership firm. They buy goods of Rs. 10000 from XYZ. They also sell goods of Rs. 10000 to XYZ on credit. XYZ demands their payment. ABC insist tha their 10000 due should be adjusted against it. Are they right?

Their’s is an unregistered firm, they are bound to pay Rs. 10000. They cannot claim for their money of 10000 through legal process.


ABC are partners in unregistered firm . A is wrongfully expelled from the firm. Can A claim damages for this and become a partner again.

No. However, he can apply for dissolution of the firm and also for accounts.


Can a minor demand accounts of a partnership firm, in which the minor is profit sharing partner?

Yes.


Can a minor sue other partners in a firm (minor is also a partner)?

Yes


Goutam is a partner in a firm – only to share profit (as he is minor). When he becomes 18, he gives a public notice that he has become a full fledged partner. Other partners refuse to take him as partner. Can Goutam become partner?

Yes.


Can a partner do a business competing with his firm’s business?

No.


Can a partner have the right to get information about accounts of the firm?

Yes.


Can a partner stop entry of another partner?

Yes.


Can a partner do something beyond his rights / authority?

Yes – only in case of emergency – to protect the firm and prudently.


Can a retiring partner start a competing business?

Yes (but he cannot use the same name, he cannot show himself as a partner and cannot seek the customers of the old firm).


ABOUT AFTERSCHOOOL Afterschoool conducts three year integrated PGPSE (after

class 12th along with IAS / CA / CS) and 18 month PGPSE (Post Graduate Programme in Social Entrepreneurship) along with preparation for CS / CFP / CFA /CMA / FRM. This course is also available online also. It also conducts workshops on social entrepreneurship in schools and colleges all over India – start social entrepreneurship club in your institution today with the help from afterschoool and help us in developing society.


Why such a programme?

To promote people to take up entrepreneurship and help develop the society

To enable people to take up franchising and other such options to start a business / social development project

To enable people to take up social development as their mission

To enable people to promote spirituality and positive thinking in the world


Who are our supporters?

Afterschoolians, our past beneficiaries, entrepreneurs and social entrepreneurs are supporting us.

You can also support us – not necessarily by money – but by being promotor of our concept and our ideas.


About AFTERSCHOOOL PGPSE – the best programme for developing great entrepreneurs

Most flexible, adaptive but rigorous programme Available in distance learning mode Case study focused- latest cases Industry oriented practical curriculum Designed to make you entrepreneurs – not just

an employee Option to take up part time job – so earn while

you learn The only absolutely free course on internet


Workshops from AFTERSCHOOOL IIF, Delhi CIPS, Jaipur ICSI Hyderabad Branch Gyan Vihar, Jaipur Apex Institute of Management, Jaipur Aravali Institute of Management, Jodhpur Xavier Institute of Management,

Bhubaneshwar Pacific Institute, Udaipur Engineering College, Hyderabad


Flexible Specialisations: Spiritualising business and society Rural development and transformation HRD and Education, Social Development NGO and voluntary work Investment analysis,microfinance and inclusion Retail sector, BPO, KPO Accounting & Information system (with CA / CS /CMA) Hospital management and Health care Hospitality sector and culture and heritage Other sectors of high growth, high technology and social

relevance


Salient features: The only programme of its kind (in the whole world) No publicity and low profile course For those who want to achieve success in life – not just a degree Indepth knowledge and expertise Professional approac: World class approach Strong intellectual and business capabilities Flexible – you may stay for a month and continue the rest of the

education by distance mode. / you may attend weekend classes Scholarships for those from poor economic background Latest and constantly changing curriculum – keeping pace with

the time Placement for those who are interested Admissions open throughout the year Latest and most advanced technologies, books and study material


Components Pedagogy curriculum and approach based on IIM Ahmedabad and ISB

Hyderabad (the founder is alumnus from IIMA & ISB Hyderabad) Meditation, spiritualisation, and self development Essential softwares for business Business plan, Research projects Participation in conferences / seminars Workshops on leadership, team building etc. Written submissions of research projects/articles / papers Interview of entrepreneurs, writing biographies of entrepreneurs Editing of journals / newsletters Consultancy / research projects Assignments, communication skill workshops Participation in conferences and seminars Group discussions, mock interviews, self development diaryng Mind Power Training & writing workshop (by Dr. T.K.Jain)


Pedagogy Case analysis, Articles from Harvard Business Review Quiz, seminars, workshops, games, Visits to entrepreneurs and industrial visits Presentations, Latest audio-visuals Group discussions and group projects Periodic self assessment Mentoring and counselling Study exchange programme (with institutions out of India) Rural development / Social welfare projects


Branches

AFTERSCHOOOL will shortly open its branches in important cities in India including Delhi, Kota, Mumbai, Gurgaon and other important cities. Afterschooolians will be responsible for managing and developing these branches – and for promoting social entrepreneurs.


Case Studies

We want to write case studies on social entrepreneurs, first generation entrepreneurs, ethical entrepreneurs. Please help us in this process. Help us to be in touch with entrepreneurs, so that we may develop entrepreneurs.


Basic values at afterschoool Share to learn more Interact to develop yourself Fear is your worst enemy Make mistakes to learn Study & discuss in a group Criticism is the healthy route to mutual support

and help Ask fundamental questions : why, when, how &

where? Embrace change – and compete with yourself

only


www.afterschoool.tk social entrepreneurship for better society

22 august legal aspects of business & business law

Documents

partnership firm

partner of unregistered

big firm

partnership contract

partnership deed

unregistered partnershi

indian partnership act

indian contract act