Corporate Laws

Presented By
Jaspreet Singh
Nitin Banka
Khalid Mohammad

Negotiable Instrument Act 1881

The instrument is freely transferable by
delivery and by endorsement and delivery if it
is payable to order; and
A person taking the instrument bonafide for
value gets an absolute title to the instrument
notwithstanding any defect in the title of the
transferor or any other prior party.
PROMISSORY NOTE (SEC 4)
It is a written unconditional undertaking by the
maker to pay a certain sum of money to the
Bearer of instrument.
BILL OF EXCHANGE (SEC 5)
It is a written unconditional order by the

CHEQUE (SEC 6)
A cheque is a bill of exchange, drawn on a
specified banker and payable on demand.
It cannot be drawn on any person other than
a bank;
It cannot be drawn payable so many days
after date or after sight as is the case with a
bill of exchange. It is always payable on
demand
ENDORSEMENTS
Sec. 15 of NI Act says Where the maker or
holder of a negotiable instrument signs the
same, otherwise than as such maker, for the
purpose of negotiation, on the back or face

CROSSING (SEC 123 - 131 )

Crossing is a direction by the drawer to his
banker to make payment of a cheque drawn
by him. In general crossing, payment can
be made through any bank, while in special
crossing; it can be made only through a
specified banker. However in any case,
payment can be made through a bank
account only
Criminal action u/s.138
Bank can file a Criminal Complaint u/s.138 of
Negotiable Instruments Act, 1881, for
punishment to the drawer of the cheque for
having committed an offence alongwith claim

Limited Liability Partnership Act

2008LLP
(LLP)
is a body corporate formed and
incorporated under the LLP Act which is a
distinct legal entity separate from that of its
partners. It has perpetual succession. Any
change in the partners will not affect the
existence, rights or liabilities of the LLP
Every partner of the LLP is an agent of the LLP
but not of the other partners
The LLP is a new edition for conducting a
business or profession and is an option that
would facilitate professionals to come together
in bigger number and form LLPs. Due to
flexibility in structure and operation, LLP could
be the preferred mode for venture capital. The

CODE OF BANKS COMMITMENT

TO CUSTOMERS
Concept
Objectives
Applicability
Commitments
Information
Advertising, Marketing and Sales
Privacy And Confidentiality
Collection Of Dues And Repossession Of
Security
Complaints, Grievances and Feedback.
Products and Services.
Protecting Accounts of Customers

Getting Help
Review of Code
Lockers
Closure of Deposit account
Transfer of account

Meaning and Definition of

a Company
Section

3(1)(i) of the Companies Act,

1956 defines a company as: a
company formed and registered under
this Act or an existing Company.
Existing Company means a company
formed and registered under any of
the earlier Company Laws.

Characteristics Of A
Company
Separate

legal entity
Limited liability
Perpetual succession
Common seal
Transferability of shares
Separate property
Capacity to sue

Borrowing Powers
A company is empowered to borrow money,
ifThe object clause permits the company to borrow
money;
Or
It is a trading company (since a trading company
has an implied power to borrow money.)

No borrowing until certificate of

commencement of business is received
(Sec. 149)

Restriction on Powers of a
company to borrow (Sec
Borrowing of money by issue of
292)
debentures

Borrowing

of money otherwise
than by issue of debentures

Statutory

(Sec 293)

limits on Borrowing

The Companies
(Amendment) Bill , 2006
Amendment

of section 253

"Provided that no company shall

appoint or reappoint any individual as
director of the company unless he has
been allotted a Director Identification
Number under section 266B.
Insertion

of new sections 266A,

266B, 266C, 266D, 266E, 266F and
266G

Insert

new sections 610B, 610C, 610D

and 610E
The Ministry of Company Affairs on the
recommendations of Department of Information
technology is implementing an e-Governance
initiative through a project named as "MCA-21".
This project will provide the public, corporate
entities and others an easy and secure online
access to the corporate information, including
filing of documents and public access to the
information required to be in the public domain
under the statute, at any time and from
anywhere.

Sec 211(B/S & P/L

account)
True

& Fair View

Comply with accounting
standards recommended under
the ICAI act 1949.

Boards Report(sec
217)
State

of companys affairs
Other disclosures
Directors responsibility
statement