Corporate Law : It is very clear that the Banks should follow RBI guidelines on Asset-Classification before classifying any loan account as ‘Non...
Finance : In the recent past, there is much talk among the business people, media and also society about India’s growth story, consequence...
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It is known that section 397/398 of Companies Act, 1956 substantially provide relief to the minority shareholders/shareholders against the oppression/mismanagement by the Company or the Majority Shareholders in the Company.
We need not go into the background concerning the usage of cheque and it is a reality now that the payments through cheque have become an indispensable part of the mercantile community and even the public in general. In fact, payments through cheque is encouraged and made mandatory in view of certain regulations and as a best accounting practice.
I am very happy to listen to Smt. Sonia Gandhi and Shri Manmohan Singh expressing their intention to correct our legal system and to restore the public perception of legal profession and the role of Judiciary in India. It is a fact that India can never be able to claim that it is developed unless we are able establish a reliable legal system in India.
The provisions of Companies Act, 1956 makes it very clear that every company should maintain proper books of accounts and should record all the transactions of the Company pertaining to sales, purchases, expenses, receipts, liabilities and Assets. Not only recording the transactions, every Company is also supposed to maintain the documentary proof in support of the transactions as per law.
It is true that the Board of directors in a Company is supposed to act in the best interest of the Company as they are answerable to the Share-holders and submits a report in the Annual General Body Meeting (AGM). In every Company, normally, the majority in the Board consists of the representatives of the majority shareholders though it is a best corporate practice to give proportionate representation to the minority and also to have some independent and expert directors on the Board.
If a petition under section 397/398 of the Companies Act, 1956 is based on a Share Purchase Agreements and its validity, then, despite the pendency of a civil dispute or arbitration proceeding simultaneously, the proceeding under section 397/398 becomes so complicated and dealing with issue is really challenging. I would like to present a case study with typical facts. The analysis and my opinion on the issue follow the presentation of facts.
I am very happy to know the news that the Bar Council of India has already taken a decision to conduct an All India Qualifying Examination for law graduates for entering into profession. I don’t think that there will be an illogical uproar in legal circles in India on the proposed Examination to be conducted by the Bar Council of India. Even if there is an illogical uproar, it is the time to forcibly implement the reforms at any cost as otherwise, the damage to the legal profession; legal system and the society will be irreparable.
We need so many reforms in legal education in India and also in the whole legal system. Our Prime Minister Dr.Manmohan Singh has given a great speech in the recent past telling the truth about legal education and also legal profession. The Bar Associations give so much importance to Senior and privileged advocates and these privileged legal practitioners and Senior Advocates should discharge their basic responsibility with the sole intention of guiding the young generation lawyers and towards bringing the needed reforms in the system.
Since I was a student of law, I was hearing from many legal professionals and the people in the society that it is very difficult to make money in legal profession and survival would be really difficult. I have started my little journey in legal profession without any reference and the legacy. I have seen many and observed many advocates before lower courts, High Court and various other forums.
Price movement of a Share and Investment Decisions:It is true that it is very difficult to predict the price movement of a stock of a listed Public Company. The price of a share of a listed Public Company will depend upon the ‘demand and supply rule’. It depends upon the simple fact as to how many are bidding to purchase a particular stock and how many are proposed to sell that stock in a given period.
