Concept and Sources of Law

8/9/2019 Concept and Sources of Law

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Concept of Law and sources of Law

Ms. Urvi ShahAssistant Professor

Unitedworld School of Law


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Assignment

Q.1 Discuss dierent kinds ofmeetings as er the !omaniesAct "#1$. %1# Marks&

Q." 'A !oman( meeting must)e dul( convened and roerl(constituted.* Discuss. %1# Marks&

Q.$ +,lain Doctrine of Ultra-ires. %1# Marks&

Q. +,lain Doctrine of

!onstructive /otice. %1# Marks&


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Su)mission date of Assignment01th 2e)ruar( "#13.

/o su)mission will )e entertainedafter this date in an(circumstances.

!oied assignments 4 will getless marks.

5ut of these # marks (our

internal marks will )e given.Assignment should )e

handwritten.

6f (ou are a)sent on 1th7 then


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Meaning of Law

9he s(stem of rules which aarticular countr( or communit(recogni:es as regulating the

actions of its mem)ers and whichit ma( enforce )( the imositionof enalties.

Law is also often descri)ed as the)inding rules of human conduct.


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Classification of Law

i. 6nternational Law ii. Municial Law6nternational law is an imortant )ranch

of law. 6t deals with those rules andregulations of nation which arerecogni:ed and are )inding uon eachother through recirocit(.

Municial laws are )asicall( domestic or

national laws. 9he( regulate therelationshi )etween the State and itsciti:en and determines the relationshiamong citi:ens


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International Law can be furtherclassified as:Pu)lic 6nternational Law

9his )ranch of law relates to the )od( ofrules and regulations which governs therelationshi )etween nations.

Private 6nternational Law

Private 6nternational law is that art of lawof the State7 which deals with cases havinga foreign element. Private 6nternational law

relates to the rights of rivate citi:ens ofdierent countries. Marriages and adotionof individuals )elonging to dierent nationsfall within its domain.


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Municipal Law

Pu)lic Law

1. !onstitutional Law0 !onstitutional law is considered to )e the)asic as well as the sureme law of the countr(. 9he nature ofan( State is )asicall( determined )( its !onstitution. 6t alsorovides the structure of the government. All the organs of

states derive their owers from the !onstitution.

". Administrative Law0 Administrative law mainl( deals with theowers and functions of administrative authorities ;government deartments7 authorities7 )odies etc.

$. !riminal Law0 !riminal law generall( deals with acts which are

rohi)ited )( law and de


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Municipal Law (Contd)Private Law

9his )ranch of law de


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Substantive law and ProceduralLaw Procedural law comrises the set of rules that

govern the roceedings of the court in criminallawsuits as well as civil and administrativeroceedings. 9he court needs to conform to thestandards setu )( rocedural law7 while during the

roceedings. 9hese rules ensure fair ractice andconsistenc( in the =due rocess=.

Substantive law is a statutor( law that deals withthe legal relationshi )etween eole or the eoleand the state. 9herefore7 su)stantive law de


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Sources of Law

!ustoms!onstitution

>udicial Precedents

Legislation?Statutor( Law

Princiles of +@uit(


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Customs

!ustom can siml( )e e,lained as thoselong esta)lished ractices or unwritten ruleswhich have ac@uired )inding or o)ligator(character.

!ustom was the most imortant source ofLaw in ancient 6ndia.

After indeendence7 the imortance ofcustom has de


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Statutory Law

Statutor( law is a written law enacted )( thelegislature or other authori:ed governing )od(such as the e,ecutive )ranch of thegovernment. Statutor( law contains all laws

enacted to facilitate7 regulate or clarif( therocess of governance7 to imrove civil order7codif( or amend e,isting laws7 or to grantsecial treatment to an individual or coman(.

6n the 6ndian conte,t7 all laws are statutor(.

Bhen a 'Cill* assed )( the Parliament issigned )( the President of 6ndia7 it )ecomes

an 'Act* or a 'Statute*.


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Judicial Decisions

9he ast udicial decisions or recedents ofcourts are imortant sources of law.

Sometimes e,isting statutor( rovisions arenot ade@uate enough to resolve an issue.

6n such cases the court adudicatesaccording to ast recedents on similarmatters. 9he recedents set )( the highercourts have a )inding force on lower courts

and the recedents set )( the courts of thesame status like igh !ourts of dierentstates7 e,ercise a ersuasive ower overeach other.


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Equity

9he term Ee@uit(E literall( means EustE7EfairnessE and according to EgoodconscienceE.

Bhen the e,isting law is inade@uate orsilent with regard to a articular case7the udges generall( al( their

common sense7 ustice and fairness indealing with such cases. 9hus7 withoutEe@uit(E the term law will )e devoid ofits essential @ualit(.


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Types of Business Organizations

1. Sole rorietorshi

". Partnershi

$. Limited Lia)ilit( Partnershi

. !oman( %Private and Pu)lic&


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Sole proprietorship

9he sole rorietorshi is a formof )usiness that is owned7managed and controlled )( an

individual. e has to arrangecaital for the )usiness and healone is resonsi)le for its

management.


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Advantages of Sole Proprietorship

+ase of formation anddissolution.

Low start;u costs and low

oerational overhead.5wnershi of all ro


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Disadvantages of Soleproprietorship

Unlimited Lia)ilit(Limited Life

6t ma( )e diFcult for an

individual to raise caital. 6tscommon for funding to )e in theform of ersonal savings or

ersonal loans.


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Partnership

Partnershi is an association of ersons whoagree to com)ine their


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Disadvantages of Partnership

Unlimited Lia)ilit(Limited Life

Geal ossi)ilit( of disutes or

conHicts )etween artners whichcould lead to dissolving theartnershi.


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Limited Liability Partnership

Limited Lia)ilit( Partnershi %LLP& is a new

cororate structure that com)ines the He,i)ilit( ofa artnershi and the advantages of limitedlia)ilit( of a coman( at a low comliance cost.

6n other words7 it is an alternative cororate)usiness vehicle that rovides the )ene


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Advantages of Limited LiabilityPartnership+as( to form in comarison to !oman(.LLP is organi:ed and operates on the basisof an agreement.

Lia)ilit( of the artners is Limited. LLP e,ists

as a searate legal entit( from (our ersonallife.

Provides exibility without imposingdetailed legal and procedural

requirements.+na)les rofessional?technical e,ertise and

initiative to com)ine with


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Disadvantages of LLP

Gegulated form of CusinessAmendment in LLP Agreement

Lack of recognition

9ransfer of interest


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Difference between LLP andCompanyA )asic dierence )etween an LLP and a

coman( lies in that the internal governancestructure of a coman( is regulated )( statute%i.e. !omanies Act7 1J3& whereas for an LLP itwould )e )( a contractual agreement )etweenartners.

9he management-ownership divide inherentin a coman( is not there in a limited lia)ilit(artnershi.

LLP has more He,i)ilit( as comared to acoman(.

LLP has lesser comliance re@uirements ascomared to a coman(.


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Public Company

According to Section " %81& of the !omaniesAct7 "#1$

'Pu)lic !oman(* means a coman( which 4

%a& 6s not a rivate !oman(

%)& as a minimum aid u share caital of


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Private Company

According to Section "%I& 'rivatecoman(* means a coman( having aminimum aid u share caital of Gs. 5nelakh or such higher aid 4u share caital as

ma( )e rescri)ed7 and which )( its articles7i& restricts the right to transfer its shares

ii& e,cet in case of 5ne erson !oman(7limits the num)er of its shares to two

hundred0iii& rohi)its an( invitation to the u)lic to

su)scri)e for an( securities of the coman(

Documents

Concept and Sources of Law