Durga Rao
Few important points touching Company Law in India:
· The study of company law can’t be seen in isolation with other laws like SEBI Act, RBI Act, Depository Act, the Securities Contracts Regulation Act, the debt recovery and securitization law, various regulations and guidelines issued by the SEBI, various circulars and clarifications/notifications issued by the Department of Company affairs, various circulars issues by the SEBI and RBI, the foreign exchange management laws and the RBI circulars, various central government rules and regulations, the stock exchange bye laws and plethora of other issues.
· In view of the volume of laws, rules, regulations, circulars, notifications and its nature, though, studying all the circulars and notifications is important practically, understanding company law broadly is further more significant.
· A private company or a closely held public company can not be seen at par with a listed company in view its exposure to the public and the scope for the market capitalization.
· Various principles laudably laid down by the constitutional courts dealing with the company law or the provisions thereof can not be dispensed with and the same will give an insight into the complication involved in interpreting the provisions of the Act and dealing with the company law.
· The principles of civil law and the criminal law, in general, may not have an application to the company matters in strict senso keeping the subject of company law on a different footing.
· The invocation of principles of interpretation and the construction thereof to the company law may the combination of all established principles and the interpretation, and adjudication normally be based on various facts and circumstances of the case in particular.
· Even a Chartered Accountant may not venture ignorance of the provisions of the Act and the provisions of Company Law in view of responsibilities cast on him.
· A legal practitioner may not venture to claim ignorance of issues relating to accountancy, trading, cross border deals and the impact of globalization etc. as all are important while advocating a company matter and assisting the adjudicating forum.
· The persons or professionals manning the company can not always shift the responsibility and to avoid unnecessary difficulties it is very important to the persons manning the company to have an understanding of law, rules and regulations governing the companies.
· Many a times, as the same issue as dealt with under the provisions of the Act will have to be seen in the light of other rules and regulations, the scope of each issue is to be seen very carefully and with due analysis.
· The procedural issues like e-forms, formats, issuance of clarifications and circulars keeping an eye on the changes with the availability of right information and technological advancement resulting development of speedy and reliable information on-line, the study of concepts and understanding the company law is indispensable for the legal practitioners, chartered accountants, company secretaries, professionals manning the companies, the intermediaries, the presiding officers and the investors in particular.
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