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11 Company Law rulings that every Lawyer and CS should know
Written by : Pranit Mahesh Ponkshe
Following are the Company Law rulings that every Lawyer and CS should know :-
| Sr.No | Heading/Topic | Case Law Name | Decision/Provision |
| 1. | Separate Legal Entity | Saloman Vs. Saloman & Co. Ltd. | The company is different from it’s shareholders. |
| 2. | Ultravires/Void Contracts | Ashbury Railways Carriage & Iron Co Ltd Vs Riche | The company must not go beyond MOA of the company. The suit cannot be filed on Void Contracts. |
| 3. | Doctrine of Indoor Management | Royal British Bank Vs. Turquand | The outsider transacting with the company are not obligatory/ need to investigate into the internal administration of the company. |
| 4. | Fail to hold AGM | Utkal Distributors Pvt. Ltd Vs ROC | If the company is fail to hold AGM then also it’s required to file the annual return with the ROC |
| 5. | Lifting of Corporate Veil | GOL Ford Motor Co. | If there is fraudulent object or activity or purpose of the company then, the court will repulse/decline the status as a separate legal entity. |
| 6 | Certificate of incorporation is a conclusive evidence | Jubilee cotton mills ltd | The certificate of incorporation is a conclusive evidence.it also states that, necessary requirements are followed. |
| 7 | Business must be mentioned in the notice | Westfort hi-tech hospitals | Business/kind of transaction must be mentioned in the notice. |
| 8 | Calling of AGM even if accounts are not ready | a.Radhika Prasad Nanda vs ROC.
b. Andhra Provincinal Potteries vs. ROC |
The company is required to call AGM even if accounts are not ready for consideration. |
| 9 | Considered as Indian company if incorporation is in the India. | Gramophone & Typewriter Ltd v Stanley | The company will be considered as an Indian company even if it is incorporated in India by foreign promoters. |
| 10 | Minutes are regarded as evidence | Escorts Ltd. | It can be proved from the minutes of the meeting that, particular resolution is passed. |
| 11 | Payment of excess capital | Tamil Nadu Newsprint and Papers Ltd vs Roc | The company can reduce its capital by paying excess amount. |
Very useful and quick
Good work