law rem paper

8/9/2019 Law Rem Paper

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OFBUSINESS LAW

(STEEL SECTOR)

MGT 518SUBMITTED TO:-SUBMITTED BY:-

MISS YOGITA SAHNI MANJEETPAUL

SHILPA SALUJA



SHREYACHITTRAYANSHI

ACKNOWLEDGEMENT

Through my gratitude towards my supporters yet we like to

add a few hearts full for the people who were part of this

case study in numerous ways. People who gaveunderstanding support right project ideas were conceived.

First we want to thank MISS YOGITA SAHNI, Lecturer

BUSINESS LAW, lovely professional university, phagwara for

assigning this term paper & we also want to give hands full

gratitude to her for her help & guidance. We would like to

thank all the faculty of lovely school of business for having

faith in us, & for their kind inspiration and helping us

whenever asked.

Last but not least, we expand us heartiest gratefulness all

people who have given us best wishes & all help that we

needed for the completion of the term paper.

SHILPA SALUJA

MANJEET PAUL

SHREYA CHITRAYANSHI



TABLE OF CONTENTS

1- RESEARCH AND METHODOLOGY2- FORMATION OF A COMPANY3- MEMORANDOM OF ASSOCIATION

4- CONTENT OF MOA5- ARTICLE OF ASSOCIATION6- CONTENT OF AOA7- REGISTRATION OF COMPANY8- DOCUMENTS9- CONTRACT WITH INFRASTRUCTUR AND AUTOMOBILE

COMPANY10- CONCLUSION11-REFERENCES.



MEANING OF RESEARCH

“Systematized efforts to gain new knowledge”Research is a process of defining and redefining problemsformulating the different hypothesis with suggested solutions bycollecting, summarizing, organizing and evaluating different

data’s by thus reaching on solutions with careful testing.Research is common means which refer to search for knowledge.

This research is based on first hand and second hand data.

In this basically I have collected second hand data.Sources of secondary data:-

*Various publications of the control state are local government.

*Trade journals, books, and internet.



FORMING A NEW COMPANY

INTRODUCTION TO A STEEL SECTOR

A company is formed by registering the Memorandum and Articles

of Association with the State Registrar of Companies of the statein which the main office is to be located. The first step in the

formation of a shreya steel pvt. ltd. company is the approval of

the name by the Registrar of Companies (ROC) in the State/Union

Territory in which the steel company will maintain its registered

office. This approval is provided subject to certain conditions: for

instance, there should not be an existing STEEL company by the

same name. The ROC generally informs the applicant within

seven days from the date of submission of the application,whether or not any of the names applied for is available. Once a

name is approved, it is valid for a period of six months, within

which time Memorandum of Association and Articles of

Association together with miscellaneous documents should be

filed. If one is unable to do so, an application may be made for

renewal of name by paying additional fees. After obtaining the

name approval, it normally takes approximately two to three

weeks to incorporate for depending on where the company is

registered.

MODE OF FORMING INCORPORATED COMPANY (Sec.12)

Shreya steel pvt ltd company is formed as a company limited byshares.



In this company limited by shares means, where the liability of the members of a company is limited to the amount unpaid onthe shares, such a company is known as a company limited byshares.

MEMORANDUM OF ASSOCIATION-

1. Name clause2. Objective clause3. Liability clause

4. Registered office clause5. Capital clause6. Association clause

MEMORANDUM OF ASSOCIATION-

MOA IS the charter document of the company the promoter forthe registration of a company under company act 1956. The MOAwas prepared according to the Table B of schedule 1 for makingpublic company.

CONTENT OF MOA-

1-NAME CLAUCE-

The promoter of company going to suggest to the registrar of companies . SHREYA steel ltd. As a main name and other nameand other suggested names also( shreya steel ltd. sms steel ltd ,ms2 steel ltd )and to show that

our company ‘Public company’ is limited by share. We are Using

limited word at the name and the name accept by the registrar

will be engrave on its seal and Be published on the outside of

every office or place where business will be carried on .



OBJECT CLAUSE-

The object of SHREYA steel Ltd. Company was to provide bettersteel to customer for easily they get at different areas .means inall over the world. The company achieves the main object of the

company.

LIBILITY CLAUSE-

Share value Liability clause tell that liability of the company islimited In case of company quidaliry so,the shareholder will payonly the unpaid call . capital. Company cannot forces itsShareholder to pay any extra amount over these share value.

REGISTERED OFFICE CLAUSE-

Registered office of the company is At JHALANDHAR .the

registered office will not be change unless until resolution has

been passed by the board director Registration office will be hold

all the important document of the company like audit report and

other all legal document related to the formation of the

company.

CAPITAL CLAUSE-

The company have authorized capital of 20000000and value of share is 100 each.

ASSOCIATION CLAUSE-

Association clause was followed by the names, addresses and

description of subscribers it. The person who is desires for the

formation of a company and the no. of shares taken by thesesubscribers is 5000 in total

ARTICLE OF ASSOTIATION-(AOA)-

The AOA is subsidiary document of SHREYA steel ltd. Company.Which specify all the right and duties of all the members and



directors? The company is following the table A of schedule 1. Inwhich they mode all the rules and regulation of theirOwn.

CONTENT-

Share capital-

Authorized capital is 20000000 divide in to Rs. 100 per

share.

CALL ON SHARES-SHREYA Steel ltd. Company has divided the face value of that

Rs. 100 into5 parts1. Application money (Rs. 20 per share)2. Allotment money (Rs. 30 per share)3. First call (Rs. 20 per share)4. Second call (Rs. 20 per share)5. Third call(Rs. 10 per share)

RULES AND REGULATION-1. The director has right to revoke and to

post pone a call on share.2. If the shareholder will pay the unpaid

amount after the due notice, the sharewill be for fitted by the company.

THE LIEN ON SHARE –

SHREYA steel ltd. company will have

1st lien on the share and debenture registered in the name of

members and upon the proceeds of sales. The board of directors

of SHREYA steel ltd. Company whenever they feel like.



The board of director of SHREYA steel ltd. Companymay declare of shares wholly or in part To be exempt from thisprocedure.

TRANSFER OF CAPITAL-The shareholder can

transfer the share of company .

ALTERATION OF CAPITAL-

As provided in MOAof SHREYA Steel ltd. Company. The capital Of this company canbe increased or decreased by passing a special resolution bymaking alteration in AOA

DIVIDENDS AND RESERVE-

The company will

transfer 20% of its net profit to reserves for future and rest after

making necessary deduction will be divided as divided to the

shareholder.

BORROWING POWERS-

Borrowing power subject

to the provision of sec.58 A 292 and 293 of company act 1956 ,

SHREYA steel ltd may from time to time raise or borrow any sum

of money.

CONVERTION OF SHARES INTO STOCK -

BY Passing a special resolution, the SHREYA steel ltd company

can convert any paid up share into stock, Holder of stock,

according to the amount of stock will have some right.



DIRECTORS-

1. Member of directors shall not be less than 3or limit

on maximum First directors of the company are

2. MANJEET - 40 %3. ,SHREYA, -30%

4. SHILPA - 30%

The first directors shall hold office until the close of SHREYA steel

ltd . Company.

POWER OF DIRECTOR-

Entitle the board direct shall be

to exercise all such powers and all such acts and things as

company is authorized to exercise and do

• Power to make calls

• Power to issue debenture

• Power to borrow money otherwise than by debentures

COMMON SEAL-

The company has a common seal and the

directors shall provide for safe custody them.

AUDIT-

Every year the account of the company shall be

balanced and audited and the correct information. The P&l

account and the balance sheet ascertained by one or more

auditors.



WINDING UP-

If SHREYA steel ltd company shall be wound up and the

assets available for distribution among the member as suchshall be insalticient to repay the paid up capital ,such assets

Shall be distributed so that as clearly as may be the ,losses

shall be boar by the member in proportion To the capital

paid –up.

FORM OF REGISTRATION;

• If any person and association want to make new company

related to financial services and open a new bank then there

are some form should be fulfill then after they success in his

mission, means opening a new bank , so that the information

about the form is following;

• COFIDENTAL—please complete all section and boxes.

o Firstly the proprietor fill his full name MANJEET

o Secondly he or she describe his contact name and his

telephone number

MANJEET PAUL 09464333562…………….

o Doctor telephone number…0129455648………..

o Home number……05944273089………………………



o Email……MANJEET PAUL @

gmail.com……………………………

o Date of birth………18 July 1989…………………….

o Age…20…..height…5”3….weight……44………..

o Describe any Disability, if yes…no……..

o Have you ever suffered a serious injury or discomfort

while riding or been advise not to ride?

yes………..no……no…….

• EMERGENCY CONTACT AND DOCTOR DETAIL

• Contact name and relationship …… Mr.singh (family docter)

… ……

Telephone…9877937865………….

• Doctor name ……mr.singh………………

Telephone……9811629368……………………….

• RIDING ABILITY –you must tick all boxes and that

apply :

• I consider myself (or the person riding for who I am signing

on behalf as a minor) to be a:

Never ridden before…………



Beginner……………………..

Novice………………………

Intermediate…………………

Advance……………………..

1. How many times have you/rider ridden in last 12

months:

None…………….

Under 12…………….

12—40…………………….

40 +………………………..

2. What do you believe yours or the person riding’

capabilities to be on a horse or pony to be?

Riding at a walk…………………..

Trotting with Stirrups………………Trotting without

Stirrups……………Cantering……………………………



RIDERS UNDER 16 YRS OF AGE:

I accept full responsibility for my child and confirm that theabove pre-assessed abilities are correct. I accept my child rides athis/her own risk.

RIDERS AGED 16 YRS AND OVER:

I confirm that the above pre-assessed abilities are correct and Iagree that I RIDE ENTIRELY AT MY OWN RISK .

DATA PROTECTION ACT 1998: Statement: I understand that the information I have given will beheld in accordance with the Data Protection Act 1998 but mayalso bemade available to Insurers and other concerned parties in theevent of any injury or accident.

I understand that I must obey the instructions of the instructorand must comply with the Health & Safety requirements of theestablishments. I reserve the right not ride ahorse allocated to me or my child and or request a change of instructor.I confirm that to the best of my knowledge all the above detailsare correct. A parent or guardian of riders under the age of 16must sign this form.I acknowledge THAT RIDING IS A RISK SPORT AND HOLDS A

POTENTIAL DANGER, and that all horses may react

unpredictably on occasions.

If signing on behalf of rider please state relationship to rider

……………………………



Signature MANJEET PAUL ………………. Print

Name……………………………….

Date…………………………………………..

TO BE COMPLETED BY ISTRUCTOR/ SUPERVISOR ON

BEHALF OF THE EQUESTRIAN ESTABLISHME 1. This client has been assessed and our judgment of their

capabilities is as follows:Complete Beginner (Lead rein/Lunge)

……………………………Beginner (Beginning Walk & Trot independently)

………………..Novice (Walk, Trot, Canter independently)

…………………………

Intermediate (Jumping, Stage 1)

…………………………………….

Advanced (Stage 2, Equivalent and above):

……………………..

2. ASSESSMENT LESSON CONTENT: Walk……………………

Trot ……………………..

Canter…………………….

W/O Stirrups…………….

Jump……………………

Lateral…………………….



3. OFFICE USE - Assessment Lesson

Horse Used…………………….

Lesson Type…………………….

Date……………………………….

Time………………………

Signature……………………………………. Print

Name……………………………….

Position………………………………………..

Form_ 1

Please specify the type of company _new company

Name of the company SHREYA steel pvt. Ltd.

State whether the company is public or private _ private

Whether the company is having _ Share Capital

Authorized share capital of the company _RS.20000000

Breakup of authorized capital :

[a] Number of equity shares 30%

[b] Face value of per equity share Rs. 100

[c] Total amount Rs 3000[d] Number of preference share 40%



CONTRACT MADE BY SHREYA STEELPVT LIMITED

The total two contracts are made between our company “shreyasteel” AND

Infrastructure company

SAV pvt ltd. Company (automobile company)

.

CONTRACT NO.1:-

CONTRACT FOR SUPPLY OF STEEL RODS:-

Shreya steel will provide good quality steel rod of 100 ton to Infrastructure

Company of Rs.400000 on 1 Jan 2010.

TERMS AND CONDITIONS:

1. The parties in the contract are capable to enter in contract The contract was

made with major person (i.e. not less than 21 yrs of age), and the person of

sound mind

2. The contract is made on free consent.

3. Once the steel rods are supplied, company is not liable of any destruction

or loss of product while in transportation.

4. Company is not giving on discount on steel rods.

5. Both the parties are intended to create legal relationship with each other.

6. There is lawful consideration like our shreya steel is offering them 100 ton

steel rods while Infrastructure Company is giving them 4 lacks in return.



ACCEPTANCE: A contract emerges from the acceptance of an offer. Acceptance

is the act of assenting by the offeree to an offer. The contract’s terms and

conditions were clearly specified to both the parties, and remarkable interest wasshown by both the companies, both the parties accepted the offer and AGREED to

bound with the contract .the contract was made accepted with all terms and

conditions, it was done successfully by both the companies and we will proceed

further according to contract made between us.

1. We will accept only check made on the name of the company.

2. Company will take half of payment in advance.

3. Offer that is in terms written agreement must be made to company.

4. Acceptance of the offer should be in written agreement.

5. company will provide all the steel rods on 1jan 2009 and the rest of

payment should also be made at that time

CONTRACT NO- 2:-

CONTRACT FOR SUPPLY OF NUTS AND BOLT USED IN AUTOMOBILES:-

All parts like nuts, bolts to automobile company, which are found in automobiles

will be purchased from shreya steel company. And automotive will become loyal

customer of our company.

TERMS AND CONDITIONS:-

1. The purchase of nuts and bolts will be done only from shreya steel.

2. The amount for purchase of goods should be paid simultaneously at the same

time only by cheque or draft.

3. The warranty for one year will be given for each item purchased from our

company and in case of any problem if occur within this period of time we will be

liable for either repair it or replace it.



4. Only exchange of goods will be welcomed and not the return of goods.

5. We will provide quality goods to automotive automobiles and will no chance of

complaints.

6. We will supply the goods within 15 days after making contract.

7. There is lawful consideration by both the companies that is shreya steel is

offering then nuts and bots while SAV pvt. Ltd. Company giving them money in

return.

ACCEPTANCE: A contract emerges from the acceptance of an offer. Acceptance

is the act of assenting by the offeree to an offer .The contract’s terms and

conditions were clearly specified to both the parties, and remarkable interest was

shown by both the companies, both the parties accepted the offer and AGREED to bound with the contract .the contract was made accepted with all terms and

conditions, it was done successfully by both the companies and we will proceed

further according to contract made between us

6. We will accept only check made on the name of the company.

7. Company will take half of payment in advance.

8. Offer that is in terms draft agreement must be made to company.

9. Acceptance of the offer should be in written agreement.

10. Company will provide all the steel rods on 1 Jan 2009 and the rest

of payment should also be made at that time



CONCLUSION

To scrutinize, we only want to say that we now understand how to make a

company, its registration process, details needed to make MOA and AOA and how

to make contract. This information is very helpful to us in context to future for the

MBA students like us to make a company then to register its name is very tedious

work but also exciting as well that helps you to learn the difficulties and

government process occurring in your way and these conditions also makes you

liable to government and people and reminds you that you are doing a very

responsible job of starting accompany as well as giving employment to number of

people.



REFERENCES

elements of MERCHANTILE LAW : N.D.KAPOOR

http://www.companyformationindia.com/steps-to-set-up-a-pvt-ltd-company-1.html





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