Q2. Describe in Detail The Clauses in The Memorandum of Association. Ans

Q2. Describe in detail the clauses in the Memorandum of Association.
Ans.
Contents of Memorandum of Association (Section 13):

i) Name clause: A company may have any name which is not undesirable in
the view of the Central Government. For example, the name cannot be
identical or similar to the name of another existing company. It must
contain at its end, the word ‘Limited’ if it is a public limited company or
the words ‘Private Limited’ if it is a private limited company. But
companies formed for the promotion of art, science, etc., may be
exempted from adding words “Limited” or “Private Limited” as the case
may be, by means of general or special order granted by the Central
Government under Section 25. Section 147(1) lays down that the name
must appear on the outside of every office or place of business in a
conspicuous manner and on all bills, notices, etc., of the company.
ii) The Situation Clause: It shows the State in which the registered office
of the company is situated.
iii) The Objects Clause: It states separately (1) the main objects and
objects ancillary or incidental to the main objects to be pursued by the
company and (2) other objects. It defines the powers of the company
beyond which, the company cannot act. But it cannot contain the objects
or powers which are contrary to the provisions of the Act.
iv) The Liability Clause: It states whether the liability of the members is
limited to the extent of the nominal value of the shares or the extent of
the amount guaranteed by the members or unlimited.
v) The Capital Clause: It states the amount of the capital and the way in
which it is to be divided into shares.
vi) The Association and Subscription Clause: All the signatories of the
memorandum make a declaration that they are desirous of forming
themselves into a company and that they agree to take the number of
shares mentioned against their respective names given therein, with their
addresses and occupations.
Q3. Discuss the need for the development of cyber laws.
In the 49th year of Indian independence, Internet was commercially introduced

in India. The beginnings of Internet were small and the growth of subscribers
painfully slow.
However, as Internet has grown, the need has been felt to enact the relevant
Cyber laws, which are necessary to regulate Internet in India. This need for
Cyber laws was propelled by numerous factors.
Firstly, India has an extremely detailed and well-defined legal system in place.
Numerous laws have been enacted and implemented and the paramount among
them is The Constitution of India. We have various laws like Indian Penal Code,
1860, The Indian Evidence At, 1872, The Banker’s Book Evidence Act, 1891, The
Reserve Bank of India Act, 1934, The Companies Act, 1956, and so on.
However, the arrival of Internet signaled the beginning of the rise of new and
complex legal issues. It may be pertinent to mention that all the existing laws
in place in India were enacted keeping in mind the relevant political, social,
economic, and cultural scenario of that time. Nobody then could really
visualize the emergence of the Internet. Despite the brilliant acumen of our
master draftsmen, the requirements of cyberspace could hardly be anticipated.
The advancement of Internet led to the emergence of numerous ticklish legal
issues and problems, which necessitated the enactment of Cyber Laws.
Secondly, the existing laws of India could not be interpreted in the light of the
emerging cyberspace, to include all aspects relating to different activities in
cyberspace.
Thirdly, none of the existing laws gave any legal validity or sanction to the
activities in Cyberspace. For example, the Net is used by a large majority of
users for email purposes. Yet, e-mail was not “legal” in our country. There was
no law in the country, which accorded legal sanctity to e-mail and the
electronic format. The judiciary in our country had been reluctant to grant
judicial recognition to the legality of e-mail in the absence of any specific law
having been enacted by Parliament on the subject. Thus the need arose for
enacting Cyber Law in our country.
Fourthly, Internet requires an enabling and supportive legal infrastructure in

time with the times. This legal infrastructure can only be given by the
enactment of the relevant Cyber Laws as the traditional laws have failed to
provide it. E-commerce, the biggest future of Internet, can only be possible if
necessary legal infrastructure complements the same to enable its vibrant
growth. As such, an urgent need was felt for enacting Cyber Law in our
country.
Q1. What is process for an enterprise to get incorporated as a company?
Formation of a Company
The process of formation of a company can be divided and discussed under the
following four stages:
1. Promotion;
2. Incorporation or Registration;
3. Capital subscription;
4. Commencement of business.
Incorporation of a company: Any seven or more persons or where the company
to be formed will be a private company, any two or more persons, associated
for any lawful purpose may, by subscribing their name to a memorandum of
associations and otherwise complying with the requirement of this Act in
respect of registration, form an incorporated company, with or without limited
liability.
Documents to be filed for registration: After ascertaining the availability of
name, the promoter should proceed to prepare the following documents and
file with the Registrar of companies:
1. Memorandum of Association: The memorandum of association is the
charter of the company. This includes its objectives, its name, the address
of its registered office, the capital which the company is authorised by
law, the nature of liability of members as well as the names, addresses
and agreement of people who agree to form a company.
2. Articles of Association: The other important document is the articles of
association which contains the rules and regulations relating to the
internal management of the company. However, it is not necessary for a
public company limited by shares to file the Articles of Association. If such
public company does not file Articles of Association, it is deemed to have
adopted “Table A” of schedule I of the Act.
3. Copy of proposed agreement: If a company purposes to enter into an
agreement with any individual for appointment as a Managing Director, or
a whole-time director or manager, a copy of such an agreement should
also be filed with the Registrar of companies.
4. Consent of the Directors: According to Section 266, in the case of a public
limited company having share capital, a person cannot be appointed as a
Director by the Articles of Association unless, he has, before the
registration of the articles, either himself or through his agent, signed and
filed, with the Registrar his consent in writing to act as Director.
5. Q4. What do you mean by award with reference in arbitration?
Ans.
Award
Award means an arbitral award. It is a final decision or judgement of the
arbitral tribunal on all matters referred to it. An award in order to be valid
must be final, certain and must decide all the matters referred to. An award by
the arbitrator is as binding in its nature as the judgement of a court.
Arbitral award includes an interim award

There are two types of decisions to be made by the arbitral tribunal i.e.
decision on the merits of the dispute and decision on questions of procedure.
Decision on merits of dispute is to be made by the, majority of members of the
arbitral tribunal but question of procedure can be decided by the presiding
arbitrator, if authorised by the parties or all members of the arbitral tribunal.
In the absence of such authorisation by the parties or other members of the
tribunal, the decision on question of procedure is also to be made by majority
of members of the arbitral tribunal. In the absence of such authorisation by the
parties or other members of the tribunal, the decision on question of procedure
is also to be made by majority of members of the arbitral tribunal. The
presiding arbitrator has not been given any special power and he acts like any
other arbitrator. All arbitrators have been given equal power irrespective of
mode of appointment.
Essentials of an Arbitral Award

Section 31 deals with the form and contents of the arbitral award. The
provisions of Section 31 are discussed in the form of essentials which are as
under:
1. An arbitration agreement is required to be in writing. Similarly, a

reference to arbitration and award is also required to be made in writing.
The arbitral award is required to be made on stamp paper of prescribed
value. An oral decision is not an award under the law.
2. The award is to be signed by the members of the arbitral tribunal.
However, the signatures of majority of all the members of the tribunal
are sufficient if the reason for any omitted signature is stated.
3. Unless the agreement provides otherwise, the arbitrator must give
reasons for the award. Thus, the making of an award is a rational process
which is accentuated by recording the reasons. However, there are two
exceptions where award without reasons is valid i.e.
(a) Where the arbitration agreement expressly provides that no
reasons are to be given, or
(b) Where the award has been under section 30 of the new Act i.e.
where the parties settled the dispute and the arbitral tribunal has
recorded the settlement in the form of an arbitral award on agreed
terms.
4. The award should be dated i.e. the date of the making of the award
should be mentioned in the award.
5. The arbitral tribunal shall state the place of arbitration in the

award.
6. The arbitral tribunal may include in the sum for which award is
made, interest up to the date of award and also a direction regarding
future interest. The rate of interest shall be eighteen per cent.
7. The award may also include decisions and directions of the

arbitrator regarding the cost of the arbitration.
8. After the award is made, a signed copy should be delivered to each

party for appropriate action.
9. The arbitral tribunal may, at any time during the arbitral

proceedings, make an interim arbitral award on any matter with respect
to which it may make a final arbitral award.
Q5. How is a consumer defined in the Consumer Protection Act? Discuss.
Ans.
Most of the manufacturers and traders have been adopting unfair trade practices for
the purpose of promoting sale, use of supply of any goods, or for the provision of any
services. Unfair practices like false and misleading descriptions about the nature and
quality of the goods, exaggerated statements about their power and potency, false
weights and measurements etc., have been causing loss or injury to consumers of such
goods and services. A number of Acts were enacted by the Government to protect the
interests of consumers. For instance, Prevention of Food Adulteration Act, Essential
Commodities Act, Sales of Goods Act, Standards of Weights and Measures Act,
Monopolies and Restrictive Trade Practices Act, Indian Standard Institution (certification
of marks) Act etc. were passed by the Government for the purpose of protecting the
interests of the consumers. But these Acts failed to provide the needed protection to
the interests of the consumers. To provide for better protection of the interests of the
consumers, and to save the consumers from the evils of unfair trade practices, the
Government of India enacted the Consumer Protection Act in 1986. Most of the defects
in the Act were removed by amendments to the Act in 1991, 1993 and 2001.
Rights of Consumer or Objectives of the Act

The Consumer Protection Act, 1986 seeks to provide for better protection of
the interests of consumers. This Act seeks, inter alia, to promote and protect
the basic rights of consumers such as:
Right of Protection to Life and Property: The Right to be protected against

marketing of goods which are hazardous to life and property.
Right to be informed: The Right to be informed about quality, quantity,
potency, purity, standard and price of goods to protect the consumers against
unfair trade practices.
Right to choose: The Right to be assured, wherever possible, access to a
variety of goods at competitive prices.
Right to be heard: The Right to be heard and to be assured that consumer’s
interests will receive due consideration at appropriate forums.
Right to Redress: The Right to seek Redressal against unfair trade practices or
unscrupulous exploitation of consumers, and
Right to Education: The Right to consumer education.
This is based on the basic rights of consumers as defined by the International
Organization of Consumers (IOCU) viz. Right to safety, to information, of
choice, to be heard, to redressal, to consumer education, to healthy
environment and basic needs.

Q2. Describe in Detail The Clauses in The Memorandum of Association. Ans

Uploaded by

Copyright:

Available Formats

Q2. Describe in Detail The Clauses in The Memorandum of Association. Ans

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Q2. Describe in Detail The Clauses in The Memorandum of Association. Ans

Uploaded by

Copyright:

Available Formats

Q2. Describe in detail the clauses in the Memorandum of Association.

Contents of Memorandum of Association (Section 13):

Q3. Discuss the need for the development of cyber laws.

In the 49th year of Indian independence, Internet was commercially introduced

Fourthly, Internet requires an enabling and supportive legal infrastructure in

Q1. What is process for an enterprise to get incorporated as a company?

5. Q4. What do you mean by award with reference in arbitration?

Arbitral award includes an interim award

Essentials of an Arbitral Award

1. An arbitration agreement is required to be in writing. Similarly, a

5. The arbitral tribunal shall state the place of arbitration in the

7. The award may also include decisions and directions of the

8. After the award is made, a signed copy should be delivered to each

9. The arbitral tribunal may, at any time during the arbitral

Q5. How is a consumer defined in the Consumer Protection Act? Discuss.

Rights of Consumer or Objectives of the Act

Right of Protection to Life and Property: The Right to be protected against

You might also like