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Company Law (Case Study 1) Video Lecture - B Com
FAQs on Company Law (Case Study 1) Video Lecture - B Com
| 1. What is company law? |  |
Ans. Company law, also known as corporate law, is a set of legal rules and regulations that govern the formation, operation, and dissolution of companies or corporations. It encompasses various aspects such as corporate governance, shareholder rights, corporate finance, and mergers and acquisitions.
| 2. What are the key features of company law? | |
Ans. The key features of company law include legal recognition and separate legal entity status for companies, limited liability for shareholders, the ability to raise capital through the issuance of shares, and the requirement to comply with various legal and regulatory obligations such as filing annual financial statements.
| 3. What is the significance of limited liability in company law? | |
Ans. Limited liability is a fundamental principle in company law that protects the personal assets of shareholders from being used to settle the company's debts. It means that shareholders are only liable for the company's debts up to the amount they have invested or agreed to contribute. This feature encourages investment and entrepreneurship by providing a level of financial security to shareholders.
| 4. What are the main responsibilities of directors under company law? | |
Ans. Directors have a fiduciary duty to act in the best interests of the company and its shareholders. Their main responsibilities include managing the company's affairs, making strategic decisions, ensuring compliance with laws and regulations, maintaining accurate financial records, and acting with reasonable care, skill, and diligence.
| 5. How does company law regulate mergers and acquisitions? | |
Ans. Company law sets out the legal framework for mergers and acquisitions, including the procedures and requirements for obtaining shareholder approval, conducting due diligence, valuing the companies involved, and drafting and executing the necessary legal agreements. It aims to protect the interests of shareholders and ensure transparency and fairness in such transactions.
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Nov 15, 2024 Last updated |
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