BUSINESS LAW

AFTERSCHO☺OL
– DEVELOPING CHANGE MAKERS
CENTRE FOR SOCIAL ENTREPRENEURSHIP
PGPSE PROGRAMME –
World’ Most Comprehensive programme in social
entrepreneurship & spiritual entrepreneurship
OPEN FOR ALL FREE FOR ALL

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 BUSINESS LAW
Dr. T.K. Jain.
AFTERSCHO☺OL
Centre for social entrepreneurship
Bikaner M: 9414430763
tkjainbkn@yahoo.co.in
www.afterschool.tk, www.afterschoool.tk
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 WRITE A NOTE ON STATUTORY
REPORT?
• Statutory report is prepared by a company when it calls up the
first meeting – which is called statutory meeting of the
company.
• Statutory meeting is mandatory meeting.
• As per section Sub-section (2) of Section 165 of the Act
prescribes:
• ‘The Board of directors shall, at least twenty-one days before
the day On which the meeting is held, forward a report (in the
Act referred to as “the statutory repôii to every member of the
company
• Statutory meeting is held between 1 to 6th month from the
commencement of business.
• Members may allow directors to send statutory report late.
• Contents include : shares allotted, cash received, Preliminary
expenses of the company—an account or estimate thereof;
details of the directors, details of allotment of shares and
details of unpaid calls, commission or brokerage paid.
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 What are the various types of
meetings
• Statutory meeting as per Section 165 of the Act.
• Meetings as per Section 166 of the Act.
• AGM / EGM (AGM = ANNUAL GENERAL MEETING, EGM =
EXTRAORDINARY GENERAL MEETING)
• EGM = called by directors to transact business of special
importance In between the two annual general meetings and
justifies ing and holding. a meeting of the shareholders Regulation
of Schedule Ito the Companies Act; and
• EGM called by directors on the requisitions of the shareholders as
per oftheAct.
• Board meetings
• Meetings of the creditors
• Meetings of the debenture holders
• Meeting of the creditors for winding up.

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WHAT ARE THE MATTERS FOR
WHICH CONSENT OF
SHAREHOLDERS IS
NECESSARY?
• IMPORTANT MATTERS THAT REQUIRE SHAREHOLDERS’ CONSENT
INCLUDE;
• commencement of any new business (as stated in the memorandum )
• sale,, lease or disposal of the whole, or substantially the whole of the
• undertaking of the company; remission of, or granting time for, the
repayment of any debt due by a director; investment of any compensation
received by the company for the compulsory acquisition of its undertaking
(such consent is not required if the investment is made in trust securities);
borrowing of moneys in excess of the aggregate paid-up capital and its free
reserves; contribution in any year to outside charitable and other funds of
amounts exceeding Rs. 25,000 or 5 per cent of the average net profits
during the past three financial years, whichever is greater; appointment of
sole selling agents by the Board;
• issue of bonus shares; reorganisation of the capital;
• amendment of the memorandum and articles;
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• voluntary winding up ofAFTERSCHO☺OL's
the company.
MATERIAL FOR PGPSE PARTICIPANTS
WHAT ARE THE ESSENTIALS OF
A BILL OF EXCHANGE?
• It must be in writing
• Suppose you sell goods to Goti for Rs.
100000 (on credit). Goti must accept the
bill then only the bill will be valid bill. The
bill will be valid only if it is prepared by you
( seller) and accepted by Goti (purchaser).
It should be duely signed by both of them.

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 What are the duties of a partner ?
• Every partner is bound to carry on the business, of the firm to the greatest eammori
advantage. (Section 9) be just and faithful to other partners. (Section 9)
• A partner is bound to keep and render true, proper and correct accounts àf
• the partnership. (Section, 9) .
• Utmost good faith between the partners ‘is the rule and one partner must not take
advantage of the other. As an agent of other partners,. every partner is bound to
communicate full information to them. (Section 9) , , :,,
• account for any benefits derived from the partnership business without the consent of the
other partners, i.e., a partner must not make “secret profits” [ 16(a)]
• A partner must not compete with the firm, without the consent of the oth* partners. Any
profits made by such unauthorised competition can be claimed by the firm. [ 16(b)]
• Every partner is bound to attend diligently to the business of the firm anct Ir the absence
of any agreement to the contrary, he is not entitled to receive any remuneration. [ 12(b) and
13(a)]
• in the absence of an agreement to the contrary, every partner is bound to share losses
equally with the others. [ 13(b)]
• Every partner must hold and use the. partnership property exciusively for the firm.
(Section 15)
• Every partner is bound to indemnify the firm for any loss caused by fraud In the conduct of
the business. (Section 10)
• A partner who is guilty of wilful neglect In the conduct of the business and the firm suffers
loss in consequence, is bound to make compensation to the fIrm and other partners.
[ 13(f)]

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What are the rights of the partners?
• Every partner has a right to take part in the conduct ‘and managemei business.
[ 12(a) Every partner whether active or dormant, has a right of free apce
records, books and accounts of the business and also to examine a them.
[ 12(d)]
• Every partner is entitled to share in the profits equally, unless proportions are
stipulated. [ 13(b)]
• A partner who has contributed more than’ the share of the capital purpose of
the business is entitled to an interest at a rate agreed u where no rate is
stipulated for, at six per cent per annum. But a cannot claim interest on capital,
unless there is an agreement [ 13(d)]
• A partner is entitled to be indemnified by the firm for all expenses mc him in the
course of the business, for all payments made by him in re partnership debts or
liabilities and ‘disbursements made in an emergency protecting the firm from
loss [ 13(e)]
• Every partner is, as a rule, a joint owner of the partnership prope have it applied
exclusively for the purposes’ of the partnership. (Sectk
• A partner ‘has power to act in an emergency for protecting the firm (Section 21)
• Every partner is entitled to prevent the introduction of a new partne firm without
his consent., (Section 31) ‘ ‘

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 What are the rights & limitations of
an unregistered firm ?
• Partners of unregistered firm cannot sue each other or on the firm for
enorcing their rights.
• The firm also cannot sue on other firms / other bodies.
• Following suits are allowed in the case of unregistered firm also:
• (a) A suit for the dissolution of a firm.
• (b) A suit for rendering of acôounts of a dissolved firm.
• (C) A suit for realisation of the property of a dissolved firm.
• (d) A suit or claim of set-off, the value of which does not exceed one
hundred rupees,
• (e) A proceeding in execution or other proceeding incidental to or arising
from a suit or claim for not exceeding one hundredrupees in value.
• (f) A suit by a firm which has no place of business in the territories to which
the Indian Partnership Act extends.
• (g) A suit for the realisation of the property of an insolvent partner.
• (h) A suit by a firm whose places of business are situated in areas which are
exempted from the application of Chapter VII of the Indian Partnership Act,
1932.

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 ABOUT AFTERSCHO☺OL
Afterschoool conducts three year integrated PGPSE
(after class 12th along with IAS / CA / CS) and 18
month PGPSE (Post Graduate Programme in Social
Entrepreneurship) along with preparation for CS / CFP /
CFA /CMA / FRM. This course is also available online
also. It also conducts workshops on social
entrepreneurship in schools and colleges all over India –
start social entrepreneurship club in your institution
today with the help from afterschoool and help us in
developing society.

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 Why such a programme?
• To promote people to take up entrepreneurship
and help develop the society
• To enable people to take up franchising and
other such options to start a business / social
development project
• To enable people to take up social development
as their mission
• To enable people to promote spirituality and
positive thinking in the world

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 Who are our supporters?
• Afterschoolians, our past beneficiaries,
entrepreneurs and social entrepreneurs
are supporting us.
• You can also support us – not necessarily
by money – but by being promotor of our
concept and our ideas.

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 About AFTERSCHO☺OL PGPSE – the
best programme for developing great
entrepreneurs
• Most flexible, adaptive but rigorous programme
• Available in distance learning mode
• Case study focused- latest cases
• Industry oriented practical curriculum
• Designed to make you entrepreneurs – not just
an employee
• Option to take up part time job – so earn while
you learn
• The only absolutely free course on internet
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 Workshops from
AFTERSCHO☺OL
• IIF, Delhi
• CIPS, Jaipur
• ICSI Hyderabad Branch
• Gyan Vihar, Jaipur
• Apex Institute of Management, Jaipur
• Aravali Institute of Management, Jodhpur
• Xavier Institute of Management, Bhubaneshwar
• Pacific Institute, Udaipur
• Engineering College, Hyderabad

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 Flexible Specialisations:
• Spiritualising business and society
• Rural development and transformation
• HRD and Education, Social Development
• NGO and voluntary work
• Investment analysis,microfinance and inclusion
• Retail sector, BPO, KPO
• Accounting & Information system (with CA / CS /CMA)
• Hospital management and Health care
• Hospitality sector and culture and heritage
• Other sectors of high growth, high technology and social
relevance

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 Salient features:
• The only programme of its kind (in the whole world)
• No publicity and low profile course
• For those who want to achieve success in life – not just a
degree
• Flexible – you may stay for a month and continue the rest of
the education by distance mode. / you may attend weekend
classes
• Scholarships for those from poor economic background
• Latest and constantly changing curriculum – keeping pace
with the time
• Placement for those who are interested
• Admissions open throughout the year
• Latest and most advanced technologies, books and study
material

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 Components
• Pedagogy curriculum and approach based on IIM Ahmedabad and ISB
Hyderabad (the founder is alumnus from IIMA & ISB Hyderabad)
• Meditation, spiritualisation, and self development
• EsGotitial softwares for business
• Business plan, Research projects
• Participation in conferences / seminars
• Workshops on leadership, team building etc.
• Written submissions of research projects/articles / papers
• Interview of entrepreneurs, writing biographies of entrepreneurs
• Editing of journals / newsletters
• Consultancy / research projects
• Assignments, communication skill workshops
• Participation in conferences and seminars
• Group discussions, mock interviews, self development diaryng
• Mind Power Training & writing workshop (by Dr. T.K.Jain)

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 Pedagogy
• Case analysis,
• Articles from Harvard Business Review
• Quiz, seminars, workshops, games,
• Visits to entrepreneurs and industrial visits
• PreGotitations, Latest audio-visuals
• Group discussions and group projects
• Periodic self assessment
• Mentoring and counselling
• Study exchange programme (with institutions out of
India)
• Rural development / Social welfare projects
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 Branches
• AFTERSCHO☺OL will shortly open its
branches in important cities in India
including Delhi, Kota, Mumbai, Gurgaon
and other important cities.
Afterschooolians will be responsible for
managing and developing these branches
– and for promoting social entrepreneurs.

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 Case Studies
• We want to write case studies on social
entrepreneurs, first generation
entrepreneurs, ethical entrepreneurs.
Please help us in this process. Help us to
be in touch with entrepreneurs, so that we
may develop entrepreneurs.

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Basic values at AFTERSCHO☺OL
• Share to learn more
• Interact to develop yourself
• Fear is your worst enemy
• Make mistakes to learn
• Study & discuss in a group
• Criticism is the healthy route to mutual support
and help
• Ask fundamental questions : why, when, how &
where?
• Embrace change – and compete with yourself
only
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 www.afterschoool.tk
social entrepreneurship for better
society

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