Category: Investment

Limited Liability Partnership (LLP) is a new corporate form to provide an alternative to the traditional partnership with unlimited personal liability on the one hand, and, the statute-based governance structure of the limited liability company on the other. LLP is a good hybrid of partnership and company which enables professional expertise and entrepreneurial initiative to operate in flexible and efficient manner. LLP provides the benefits of limited liability but allows its members the flexibility of organizing their internal structure as a partnership based on a mutually arrived agreement. Owing to flexibility in its structure and operation, the LLP is a suitable vehicle for small enterprises and for investment by venture capital. (i) The LLP is a body corporate and a legal entity separate from its partners. Any two or more…

Combination of persons for achievement of common objects is called an ‘association’. In order to protect public from the mischief of large trading associations, whose membership may go on constantly changing, section 11 provides for their compulsory registration.According to section 11 every association consisting of more than 10 persons in banking business and 20 in the case of any other business must either be registered as a company under the Companies Act or be formed according to the provisions of some other Indian Law. An association not so registered is an illegal association having no legal existence.An illegal association is an association of more than 20 persons (10 in case of banking business) which carries a business without being registered under any law. Image Source: pearlsofprofundity.files.wordpress.com ADVERTISEMENTS: An association will…

All the powers that a company is vested with can be exercised by the board of directors of the company, subject to the applicable law.The powers of the directors can be exercised either in a board meeting by passing a resolution in the meeting itself or by circulation or by way of delegation to various committees constituted by the board or to the appropriate officials of the company. The powers of the board of directors under various provisions of the Indian Companies Act, 1956 may be grouped under four heads: I. Powers to be exercised by Resolutions Passed at Board’s Meeting: ADVERTISEMENTS: According to section 292, the following powers of the company can be exercised only by means of resolutions passed at the meeting of the Board:(a) The power to…

Following are the effects of ultra-vires transactions: 1. Injunction: Any member of the company can bring injunction against the company to restrain it from doing ultra-vires acts. 2. Personal Liability of Directors: The directors of the company are personally liable to make good those funds of the company which they have used for ultra-vires purposes. It is the duty of the directors of the company to employ funds and properties of the company for the purposes laid down in the memorandum of association of the company. 3. Contracts Void: ADVERTISEMENTS: Any contract which is ultra-vires the company, will be void and of no effect whatsoever. “An ultra vires contract being void ab initio cannot become intra vires by reason of estoppel, lapse of time, ratification, acquiescence or delay”.However, if the…

An analysis of the above definition and other writings brings out the following features of globalisation from international business viewpoint: Image Source: jessmc.global2.vic.edu.au1. Economic Globalisation involves globalisation of firms, markets and regulation. Global firms are firms which, originating in a specific territory, spread their operations through corporate groups and structures to other territories. ADVERTISEMENTS: Markets are where buyers and sellers meet. In global markets, place or space to meet is not restricted. Financial markets are the genuinely global markets. The globalisation of regulation refers to spread of some set of regulatory norms. It is not the same set as there are many differences in the level of rules between the systems.2. It emphasises a global rather than a national context. It does not mean to deny national settings, but to…

The disadvantages are described as follows: 1. Uncertainty: MNCs often scale down their production facilities and close the operations in situation of economic uncertainty. They practise hire and fire; hence, people employed in MNCs often lose their jobs.Such uncertainty may lead to internal problems in the country. Image Source: cdn.shareyouressays.com 2. Control: ADVERTISEMENTS: MNCs often exert control over the local government, both economically and politically. Such control may even go against the interest of the nation as a whole. 3. Transfer Pricing: This is done by lowering the internal price structure. Through this, MNCs can reduce their profits in the countries, where they operate and thus deprive their host countries from the legitimate tax payouts. 4. Environmental Imbalance: MNCs can create environmental imbalances extracting natural resources and polluting the environment…

The multiplier and its operation are both based on certain assumptions, non-fulfilment or partial fulfillment of which adversely affects the working of the multiplier retarding the process of income generation. Image Source: i.ytimg.comSome of these assumptions are outlined below: 1. Availability of Consumer Goods: ADVERTISEMENTS: Availability of adequate supply of consumption goods is the basic requisite of income propagation and hence of multiplier process to operate. According to Dr V.K.R.V. Rao, “the principle of multiplier does not work vigorously in an underdeveloped country like India on account of inelastic nature of the consumption output curve”. If consumer goods were not available, consumers would not be able to spend their incomes on these goods. Value of MPC and hence that of the multiplier would be low. 2. Maintenance of the Level…

Section 29 of the Limitation Act, 1963 provides that:(1) Nothing in this Act shall affect Section 25 of the Indian Contract Act, 1872. Image Source: 3.bp.blogspot.com(2) Where any special or local law prescribes for any suit, appeal or application a period of limitation different from the period prescribed by the Schedule, the provisions of Section 3 shall apply as if such period were the period prescribed by the Schedule and for the purpose of determining any period of limitation prescribed for any suit, appeal or application by any special or local law, the provisions contained in Sections 4 to 24 (inclusive) shall apply only in so far as and to the extent to which, they are not expressly excluded by such special or local law. ADVERTISEMENTS: (3) Save as otherwise…

Here is your Essay on the Major Qualitative Characters of Plant Community and Animal Community ! image source: goldengateaudubon.orgThe major qualitative characters of the plant community (and also of the animal community) are as follows: 1. Physiognomy: Physiognomy is the external appea­rance of the plant community which may be described on the basis of dominant plants, density, height, colour, etc., of the plants. It does not emphasize any particular species or individuals. ADVERTISEMENTS: In fact, Cain and Castro (1959) have defined physiognomy as the form and structure of the vegetation, the appearance that results from the life-form of the predominant plants. (Life-form is a general term referring to the shape or appearance of an organism irrespective of how formed, Daubenmire 1947). The terms like forests, grass­lands, savannahs, scrub, bog, etc.,…

Based primarily on nature of land, climatic characteristics and available irrigational facilities, the farmers in India practise different types of farming. Image Source: 2.bp.blogspot.com (1) Subsistence Farming: Majority of farmers in the country practise subsistence farming. It is characterised by small and scattered land holdings and use of primitive tools. As the farmers are poor, they do not use fertilisers and high yielding variety of seeds in their fields to the extent they should do. Facilities like electricity and irrigation are generally not available to them. These result into low productivity. ADVERTISEMENTS: Most of the food production is consumed by the farmers and their families. Where facilities like irrigation and electricity are available, farming has improved. Important cash crops like sugarcane, oilseeds, cotton and jute are grown.The subsistence agriculture has…