Legal aspects are backbone for unbeaten & flourishing business environment of any nation. These legal aspects highlight the reflection of policy makers towards the mass, businessmen, and workers. In some countries, Legal Aspects are very rigid whereas in some others it’s too flexible. But the most imperative thing is its effect & implementation. Generally, internal instability occurs in some countries for a long time. Consequently, industrialists & businessman can not exercise these legal aspects in such rubble.
Legal aspects are indispensable for corporate world because it determines the proper & healthy functioning of the organization. Legal Aspects ensure that how to regulate the company & flourish it without any hassle or obstacle.
In India, there are so many acts which regulates the healthy functioning of a company such as the Industries (development & regulation) Act, 1951, Foreign Exchange Regulation Act (FERA), Foreign Exchange Management Act (FEMA), the Arbitration & Conciliation Act, 1996 but the two foremost Act concerned with industries & businesses are……
• The Companies Act, 1956
• The Contract Act, 1872
The Companies Act, 1956
The foremost law of Indian business industry which control & legalize every aspects of a company is known as Companies Act, 1956. It includes so many important aspects & some of them are role & responsibilities of managerial boards & directorial boards, establishment of company, rebuilding of company & even winding up a company.
The Contract Act, 1872
The Contract Act, 1872 is also an indispensable legislation which deals with various sorts of contracts including basic doctrine related to the formation & enforceability of the contracts. So for the establishment of any company & its proper functioning, it�s important to know all the legal & technical aspects.