CA Coaching Updates

COMPANY LAW
CHP - 1

COMPANY = COM + PANIS

It is called a body corporate because the persons comprising it are made into a single entity by incorporating it according to the law and clothing it with legal personality.

The word ‘corporation’ is derived from the Latin term ‘corpus’ which means ‘body’. Accordingly, ‘corporation’ is a legal person created by a process other than natural birth. It is, for this reason, sometimes called the artificial juridical person. As a legal person, a corporation is capable of enjoying many rights and incurring many liabilities of a natural person.

U/s 2(20) COMPANY MEANS INCORPORATED UNDER THIS ACT OR ANY PREVIOUS ACT.

Characteristics of company

Corporate personality: So redundant bears own name/ under own name/ separate property from members
incurring debts, borrowing money, employ people, have to Bank a/c.

CASE LAW:
Salomon vs Salomon and Co Ltd. – 1897 (Salomon, four sons, wife & daughter -$ 38782, 20K shares/10K debs secured with floating charge/ 8782 cash, creditors claimed but lordship of the house of lords observed.)

Lee vs Lee Air farming Ltd. - 1961(the same person can be employee & owner)

Kandoli tea Co Ltd. (1882)(transferred TEA estate to claim exemption from ad Valero)

New Horizon Ltd vs Union of India (1994):: Experience of shareholder are generally not consider but in this case ARUN PURIEE & TPI ltd, LMI ltd & WM Ltd + IIP Ltd (Singapore) tender for telephone directory – evaluation committee refused – Delhi HC upheld -=- Supreme court reversed

Artificial Person: enjoy rights & obligation of duties::--Union bank of India VsKhader international construction & Others: indigent Person Order 33 rule 1 CPC1908

Not citizen: Rights of shareholder not impugned with action against the company: RC COOPER vs UOI

Bennet Coleman co vs UOI: SC observed if fundamental rights of a shareholder are impaired by state legislation their power as shareholders are protected.
Has Nationality and Residence: GaaqueVs Inland water revenue commissioners (1940) &
Tulika v Parry & Co (1903) place of registration + residence & domicile
JV company resides where it meets in general presence of persons who represent it.

Limited Liability: Buckley, J in London& globe finance Corporation (1903)observed in last 50 yrs legislation of limited liability has done well to the economy
Exceptions of Limited liability:

Section 3(2)(c) : Unlimited Lia. Co
Section 7(7) : fraudulent doc for incorporation
Section 35(3): Fraudulent Prospectus
Section 75(1): Deposit
Section 224(5): During Investigation by an officer
Section 339(1): During winding up
Section 251(1): Fraudulently removal of the name

Perpetual Succession: LCB Gower ( Hydrogen Bomb)

Separate Property: Member even doesn’t have an insurable interest in property of the company.
Bacha f Guzdar V income tax commissioner(1955)
SC observed that tea company to have 60% exemption in its income but not shareholders
Transferability of shares: re Balia and San Francisco Railway co (1968), Section 44 provides that shares held by members are moveable property in the manner provided by AOA if AOA is silent that by TABLE F Schedule 1.

Capacity to sue and be sued: TVS Employees Fed. V TVS & Sons Ltd. : workers allowed to realise film of their struggle
LalitSurajmalKanodia v Office Tiger Database India (Pvt) Ltd ( 2006) co not liable for contempt by officers

Contractual Rights: shareholder cannot enforce any contract nor derive benefit not a party to contract, co is not a trustee of shareholders and shareholder cannot be sued for deals by the company.
British Thompson Huston co. v Sterling Accessories Ltd (1924)

Limitation of action MOA AOA

Separate Management:

Voluntary association for profit

Termination of existence
It is the Easiest way to grab the company's characteristics. Just look out for more lessons.

Join my classes and surety if you learn with our way, you 'll never forget company law. Just copy to your mobile and study when in hush in the metro.

I have designed such notes to enable you to understand easily not only mugging.

All the best for your upcoming exams and concentrate on studying ICSI course book.

What is the Margin of Safety?

Suppose a class 11^th student need 33 marks to pass a paper.

If a student gets exactly 33 marks, then he will be a pass. These 33 marks are called Break-Even-Point Marks.

If a student get marks above 33, then such excess marks shall be safety marks for him hence shall be called Margin of Safety Marks (i.e. bonus marks in layman language)

Similarly, Margin of Safety means Sales above Break-Even Point Sales. Profit is ZERO at BEP Sales. The company makes a profit only when the margin of safety sales occurs.

Student after registering for CA foundation often get confused about their study preparation. Work harder and smarter, this should be the motive of all aspirants.

Charted accountancy as one of the toughest exam conducted by the statutory body of ICAI (Institute of Chartered Accountants of India). Among lakhs of registered aspirants, the only bunch of them qualify to be a CA.

CA  have currently replaced CPT (Common Proficiency Test) and is going to be tougher than CPT. This can be registered after completing 10+2 examination.

This exam is definitely not a piece of cake and requires full dedication and hard efforts smart planning.

First two papers in the course are subjective, and later two are objective. The students are advised to start preparation with the 12th standard.

1) Stick to the timetable

Planning is always the first step. To win any war, you require a full proof planning and so do you require here as well.
Distribute your 24 hrs. into fruitful time ranges and schedule it properly.
Do not miss intervals for mental boosting.
Start your day with theory and then practical. Finally, end your day with revision.

2) Everyone needs a coach- join coaching institute that makes you progress.

The student does pass on their own but with just boundary marks. However, it’s just not the marks you require. In the long run, you have to have a clear understanding of every concept, 

Coaching is clearing the fog of doubt in your potential and making it shine brighter than the sun.

3) Never miss Statistics and Logical Reasoning

Logical reasoning – 20 marks

Math’s and Statistics- 80 marks (40 each).

Most of the time non-math student do face a problem scoring in these subjects. So it’s always good advice to focus more on this subjects.

4) Own Revision Notes makes it easier

Revision is a must. And making your own notes are most preferred as they are easier to understand and you end up getting grasping concepts easily.

5) Command over Calculator

ICAI do allow students to use the calculator because of the lengthy paper. Now it’s up to students command over calculator that can also turn the table around. Students have a good command often save time to solve hard questions. For this learn short-cut keys like M+, M-, and G etc.

6) Short Nap

You can’t work or study for 24 hrs. Therefore short naps or short intervals are necessary for boosting your brain.

7) Do not fool yourself

Give appropriate time for chapter completion. No matter how less chapter is covered it’s necessary to have a clear understanding. You may cover 2-3 chapters a day, but it won’t be of any use if you are not sure of what it actually meant and how to use it.

8) Model Test Papers

Helps in:

• To evaluate your performance.
• To check your time management skills.
• To understand question patterns.
• To know the difficulty of the paper.

9. Focus on Presentation

In the syllabus, the two of them are objective while the other two are subjective. The presentation is very important once you start preparing for professionals.
For this practice your subjective question and then judge them from any professor, teacher etc.

10) Last minute peek

Plan in a way that you can complete syllabus within 3 months. And for the last month book it for revision purpose. Solving question papers, mock test etc. this will not only increase your potentiality but also boosts your confidence.

Thus use your 4 – month wisely.

Above all, you need proper guidance, and for proper guidance, you need to join coaching classes to boost your confidence. Nowadays many online classes are available which are the easiest way to understands concepts. Currently, Scanner Classes are providing online video classes for CA Foundation & Ca Intermediate. They are providing the best content having more than 46 centres in all over India.

Hi there,

You can register for IPCC in your final year of B.Com. That will be a provisional registration and once you are done with your final year exam you can immediately start you one month training of ICITSS.

  Yes there are various coaching institutes for IPCC coaching all over India and also online. All the best.