B Com Exam > B Com Videos > Company Law [Case study (2) and (3)]
Company Law [Case study (2) and (3)] Video Lecture - B Com
FAQs on Company Law [Case study (2) and (3)] Video Lecture - B Com
| 1. What are the main provisions of company law? |  |
Ans. Company law encompasses various provisions that govern the formation, operation, and dissolution of companies. Some key provisions include regulations regarding the incorporation process, shareholder rights and responsibilities, directors' duties and liabilities, corporate governance, financial reporting requirements, and measures to prevent fraudulent activities.
| 2. What are the legal requirements for incorporating a company? | |
Ans. To incorporate a company, certain legal requirements must be fulfilled. These typically include choosing a unique company name, preparing the company's articles of association, appointing directors and shareholders, and registering the company with the relevant government authority. Additionally, companies may need to meet specific capital requirements and comply with any additional regulations specific to their jurisdiction.
| 3. What are the duties and responsibilities of directors under company law? | |
Ans. Directors have several duties and responsibilities under company law. These include acting in the best interests of the company and its shareholders, exercising reasonable care, skill, and diligence, avoiding conflicts of interest, promoting the success of the company, and ensuring compliance with applicable laws and regulations. Directors may also be responsible for financial reporting, strategic decision-making, and overseeing the company's operations.
| 4. What is corporate governance and why is it important in company law? | |
Ans. Corporate governance refers to the system of rules, practices, and processes by which a company is directed and controlled. It encompasses the relationships between a company's management, board of directors, shareholders, and other stakeholders. Corporate governance is crucial in company law as it aims to ensure transparency, accountability, and integrity within the company, promoting investor confidence and protecting the interests of shareholders. It helps establish a framework for effective decision-making and ethical conduct.
| 5. What are the consequences of non-compliance with company law regulations? | |
Ans. Non-compliance with company law regulations can have significant consequences. Depending on the nature and severity of the violation, consequences may include fines, penalties, legal actions, reputational damage, and potential personal liability for directors and officers. Non-compliant companies may also face restrictions on their operations, loss of business opportunities, and difficulties in raising capital. It is essential for companies to adhere to the requirements of company law to maintain legal and ethical standards and avoid potential negative outcomes.
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Sep 05, 2025
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