Legal aspects form a vital element of a thriving business environment in any country. They give a sign of the policy framework and the way of working of the Governmental make-up of that country. Legal aspects of business make sure that every company works within the stipulated framework of the country. In India, the Companies Act, 1956 is the most significant law to control all activities related to a company.
The Companies Act, 1956 contains various provisions to effectively regulate a business, like-
Formation of a company
Powers and responsibilities of the directors and managers
Raising of capital and holding company meetings
Maintenance and audit of company accounts
Powers of inspection and investigation of company affairs
Reconstruction and amalgamation of a company and even winding up of a company
Some other major legislation is:
Industries (Development and Regulation) Act 1951
Trade Unions Act
The Competition Act, 2002
The Arbitration and Conciliation Act, 1996
The Foreign Exchange Management Act (FEMA), 1999
Laws relating to intellectual property rights; as well as laws relating to labor welfare
Copyright 2008, All Rights Reserved
