Basic Constitutional Provisions Regarding Regulation of Business in India

7/27/2019 Basic Constitutional Provisions Regarding Regulation of Business in India

1/11

BASIC CONSTITUTIONAL PROVISIONSREGARDING REGULATION OF

BUSINESS IN INDIA


2/11

The Constitution of India has guaranteed somefundamental rights to the citizens and has also laid down

certain directive principles of state policy for the

achievement of a social order based on justice, liberty,

equality and fraternity.

Legal aspects are an indispensable part of a successful

business environment in any country. They reflect the

policy framework and the mind set of the Government

structure of that country. They ensure that everycompany is functioning as per the statutory framework of

the country.


3/11

Different commercial and industrial laws have been

enacted to play very important role in regulation of

economic activities and creating conductive

environment for successful operations of business andindustries :

1. Indian Companies Act, 1956

2. Indian Partnership Act 1932

3. Negotiable Instrument Act , 1881

4. Indian Contract Act, 18725. The Sale Of Goods Act, 1920

6. The Carriers Act, 1865

LAWS RELATING TO BUSINESS


4/11

Indian Companies Act, 1956

It empowers the Central Government to regulate

the formation, financing, functioning and winding up

of companies.

The Act contains the mechanism regarding

organizational, financial, managerial and all the

relevant aspects of a company.

It provides for the powers and responsibilities of

the directors and managers, raising of capital,

holding of company meetings, maintenance andaudit of company accounts, powers of inspection,

etc.

The Act applies to whole of India and to all types of

companies.


5/11


6/11

Negotiable Instrument Act,1881

A Negotiable Instrument means a promissory note,

bill of exchange or cheque payable either to order or

to bearer.


7/11

Indian Contract Act, 1872

The Indian Contract Act,1872 is the

governing legislation for contracts, which lays down

the general principles relating to formation,

performance and enforceability of contracts and the

rules relating to certain special types of contracts

like Indemnity and Guarantee; Bailment and Pledge,

and Agency.


8/11

The Sale Of Goods Act,1930

Law relating to the sales of goods is a branch

of contract law which is applicable to contracts for

the sale of goods such as offer and its acceptance,

capacity of parties, free consent, consideration and

legality of the object.

It applies only to movables other than

actionable claims and money.


9/11

The Carriers Act, 1865

According to the act, common carriers

denotes a person, other than government, engaged

in the business of transport document or of

transporting for hire. They can be made responsible

for transporting goods if public is ready to pay for

freight, etc.


10/11

THE ROLE OF LAW IN

INDUSTRIAL RELATIONS

It has also greatly influenced the trade

union movement in our country.

Industrial relations operate in a legalsystem.

Its an extent to which it attempts to

regulate relationships. It is obligatory rather than optional.


11/11

CONCLUSION

Legal aspect of business empowers

the government to intervene in business

activities. The basic purpose of this

intervention is to protect the interest ofworkers employed in the industries and

other similar institutions. Fundamental rights

and directive principles of state policies asgiven in Indian constitution expect that the

government should take initiative to

safeguard the interest of labour.

Documents

Basic Constitutional Provisions Regarding Regulation of Business in India