Corporate Laws - I Syllabus at Tamil Nadu National Law School

Corporate Laws I Syllabus Page 1 of 27
TAMIL NADU NATIONAL LAW SCHOOL

TIRUCHIRAPPALLI 620 009
B.A. LL.B. (HONS.) AND B.COM. LL.B. (HONS.)

SEMESTER V, 2014 BATCH
CORPORATE LAWS I
COURSE DESIGNED BY:

M L SHANKAR KAARMUKILAN
ASSISTANT PROFESSOR OF LAW
[2mukil@gmail.com]
[Cell: 91787 41341]
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NAVALUR KUTTAPATTU, TIRUCHIRAPPALLI 620 009, TAMIL NADU, INDIA
PHONE: (0091) 413 2692 108, FAX: (0091) 671 2506 516
http://www.tnnls.in
M L Shankar Kaarmukilan, Assistant Professor of Law, Tamil Nadu National Law School, Tiruchirappalli 620 009
CORPORATE LAWS I: COURSE INFORMATION AND REQUIREMENTS

INTRODUCTION
General principles of contracts as well as law relating to certain special contracts of personal
relationships such as agency and partnership based on trust and good faith have been covered in
the previous semesters. Company contract is a special contract yet different from that of agency
and of partnership. A company is an artificial legal person, recognized as such by law, with
certain legal capacity and perpetual succession. It is different from that of the people who
constitute it. Management and capital provision are separated. Even if the capital providers are
the managers, they are agents of the company and not the company itself. Also capital may be
brought by a vast majority of the persons.
Under these special circumstances, there are many rules to be observed and adhered to from
formation stage to dissolving of a company. As recently as 2008, the Limited Liability
Partnership law became the reality and now LLP is also an artificial legal person. But contracting
is not the only way by which a company or LLP may be brought into existence. We will study
the law relating to statutory corporations as well. The subject of corporate laws is therefore vast
and taught in two papers, viz. Corporate Laws - I and Corporate Laws - II, in semesters V and VI
respectively, of the B.A./B.Com. LL.B. (Hons) courses.
OBJECTS OF THE COURSE:

This course is aimed at making the students the best transactional/litigating corporate lawyers,
regulators, highly sensitive thinkers capable of influencing the economic well being and posterity
of the country while being able to effectively contribute in achieving social and economic justice
as envisioned in the Constitution. In order to fulfill the above object, its imperative for the
students to have conceptual clarity as well as the ability to think critically and evaluate the
existing framework with respect to its need, scope, adequacy and future requirements. Corporate
Laws I course is designed keeping the above objects in mind. The functional understanding of
the promotion and registration of company and LLP, corporate finance, rights and obligations of
a capital provider and adjudicatory mechanism under the corporate laws are to be covered in
Corporate Laws I. Laws relating to the (company) management etc. are to be covered in
Corporate Laws II.
Reasons and justifications for rules relating to the above mentioned aspects of company shall be
discussed in adequate detail so as to ensure that the students develop independent thinking,
critical analysis and evaluating the existing domain knowledge and in order to facilitate the same
critical, evaluative and comparative approaches are to be used in studying Corporate Laws I. The
standard shall be comparable to the best of the national and international law schools. To develop
an understanding of the formation, registration of companies and regulation of companies,

relevant provisions of the Companies Act, 1956, including schedules, rules, departmental
circulars, clarifications and notifications made thereunder, their interpretation through decided
case laws, scholarly theoretical material, journal review articles, post independence corporate
law developments including the review of company law by the JJ Irani Committee and the
Limited Liability Partnership Act, 2008 would form part of the study material which are listed
under the specific modules in the following pages. In addition to the Companies Act, 1956,
relevant provisions of legislations relating to securities market and foreign exchange
management would also be discussed in brief.
LEARNING OBJECTIVES
To understand the historical development of corporation and regulation of corporations by State
To appreciate the scheme of registration of the corporations and the rationale behind various
statutory requirements
To know the limitations of the authority of a company and the system of checks and balances
To understand and appreciate the extent of the civil, criminal and tortuous liability of a company
To examine the nature, scope and the constitutional validity of adjudicatory mechanism under the
Companies Act, 2013 and its functioning
To understand how corporate finance is being regulated by the state
To understand the statutory rights and obligations of a capital provider
To understand and to evaluate the regulation of stakeholders interface and the interface between
the company and the stakeholders
COURSE SUMMARY
Corporate Laws I deals with promotion and incorporation by registration, consequences of
incorporation, interpretation of the constitutional documents of companies, adjudicatory bodies,
financial structure, raising of equity capital including issue of prospectus, allotment of shares and
certificates, depositories, transfer/transmission of shares and membership rights. Cross reference
will be made to the extent the Companies Act, 2013 applies to the LLP.
The topics for this course are divided into ten units:
UNIT 1 - INTRODUCTION
UNIT 2 - SPECIAL CONTRACTS RESULTING IN BODY CORPORATE
UNIT 3 ADJUDICATORY BODIES
UNIT 4 INTERPRETATION AND ALTERATION OF MEMORANDUM AND ARTICLES
UNIT 5 CORPORATE THIRD PARTY DEALINGS AND LIABILITY
UNIT 6 FORMATION OF CAPITAL AND RAISING OF SHARE CAPITAL

UNIT 7 DEBT CAPITAL
UNIT 8 MAINTENANCE OF CAPITAL
UNIT 8 TRANSFER AND TRANSMISSION OF SHARES
UNIT 10 MEMBERSHIP RIGHTS, CLASS RIGHTS AND MINORITY PROTECTION
TEACHING METHODOLOGY
Corporate Laws I will be taught by a combination of lectures and classroom discussions. Being
a branch of law essentially made of various statutes and decided cases the interpretation of
various statutory provisions and case laws will be an integral part of teaching. Students are
expected to read the full judgments in advance in order to participate in the class room
discussions. As part of project writing exercise, ample scope would be made available to the
students for their self learning, critical thinking, creativity and development of research skills and
techniques.
ASSESSMENT
The performance of the students in this course is assessed on continuous basis for a total of 100
marks. The division of marks between internals, mid-semester and end semester examination is
30, 20 and 50 respectively. Mid-semester (open book) as well as end-semester (closed book)
shall be written exam. In case of open book exam, the questions will be problem based. This is
aimed at checking the in-depth knowledge and analytical as well as advocacy skills of the
students in the subject. In case of closed book exam, a combination of problem as well as theory
based questions will be given. This will test, in addition to the skills as mentioned under mid-
semester exam, the retaining capacity as well as the recalling ability of candidates.
Students are strongly advised to read the full text of case laws from the reports which would
enable them to solve the legal problems in the exams. In case of closed book examination, only
the Bare Act (without any commentary or short notes or both) is allowed in the
examination hall.
DIVISION OF INTERNALS MARKS (MAXIMUM MARKS 30):

In this semester students will write a research paper as part of the internal assessment for this
course.
Internal Assessment is planned by the course teacher in her discretion but subject to the relevant
rules of the University. The division of marks for the same in this course is as follows :
A) Project Writing :
First Draft :
Relevance and significance of the topic : 1 mark
Literature review : 1 mark
Synopsis content : 1 mark
Chapterisation : 1 mark
Bibliography : 1 mark Total : 05 marks
Presentation/Viva :
Time management : 0.5 mark
Content, delivery, clarity of concepts and articulation : 2.5 marks
Use of authorities :1 mark
Answer to questions : 1 mark Total : 05 marks
Final Draft :
Content and Analysis : 10 marks
Extent of research, foot noting and bibliography : 5 marks Total : 15 marks
B) Attendance and Class Participation : 5 marks
ACADEMIC HONESTY :
Plagiarism and cheating are strictly prohibited. Plagiarism is defined as taking or using the
thoughts, writings, or inventions of another without acknowledging her. It also means using
direct quotations without quotation marks, as well as using the ideas of another without proper
credit. Ask the course teacher when in doubt. Cheating is defined as any intent to deceive the
course teacher in her effort to grade fairly. Anything that can possibly effect the fairness of
grading is cheating, which includes, but not limited to, any collaborative, mischievous, or
disruptive or like behaviour in relation to examination. In this course, pay special attention to
gleaning information off the internet, and do NOT pass it off as your own, or without proper
citation. Learn to paraphrase ideas in your own words. Do not borrow or revise another student's
work. Do not double dip an assignment you did in another class to turn it in for this one.
Students indulging in such activities shall be punished according to the University rules.
NOTE: All students SHALL keep their own copy of the bare Companies Act, 2013 as
amended up to date during the class hours. Alternatively, one may use the corporate laws
manual published by any of the publishers.
DETAILED COURSE CONTENTS

UNIT 1 - INTRODUCTION
Nature of business organisation and kinds of business organisations
Corporation nature and definition; Types and the historical development of incorporated
companies; emergence of principle of limited liability
Companies under the Companies Act, 1956; Limited Liability Partnership (LLP)
Features of company and Limited Liability Partnership
Differences between a Partnership under the 1932 Act and a Company/LLP
Development of Company Law in England and India
Major Amendments to the Companies Act, 2013

Producer Companies
Board of Company Law Administration; Company Law Board
NCLT and NCLAT
Cases:
1. Smith v. Anderson, (1880) L.R. 15 Ch. D. 247
2. Sathish Chandra v. Union of India, AIR1995 SC138: [1994] 81 Comp. Cases 482 (SC)
3. The Barium Chemicals Ltd. and Anr. v. The Company Law Board and Ors., AIR 1967 SC
295: [1966] 36 Comp. Cases 639 (SC)
4. A.B.N. Amro Bank v. Indian Railway Finance Corporation Ltd., [1996] 85 Comp. Cases
716 (Del)
5. Maharashtra Power Development Corporation Ltd. v. Dabhol Power Company and Ors.,
AIR 2004 Bom 38a: [2003] 117 Comp. Cases 651 (Bom)
6. Micromeritics Engineers Pvt. Ltd. and Ors. v. S. Munusamy, [2003] 116 Comp. Cases
465 (Mad)
7. Sumitomo Corporation v. CDC Financial Services (Mauritius) Ltd. and Ors., AIR 2008
SC 1594: (2008) 1 Comp LJ 393 (SC): (2008) 4 SCC 91
Mandatory Readings:
1. A.K. Majumdar and G.K. Kapoor, on Introduction.

2. Paul L. Davies, relevant chapters.
3. Report of the JJ Irani Committee on Company Law, 2002
4. The Companies Bill, 2011 along with statement of objects and reasons
5. P.B. Menon, Origin of Private Limited Companies and the Emergence of Deemed Public
Companies, Chartered Secretary, June 1981, p. 521.
6. L.C.B. Gower, The English Private Company, 18 L. & CONTEM. PROBS. 535 (1953).
(LAW AND CONTEMPORARY PROBLEMS)
7. Patrick C. Leyens, German Company Law: Recent Developments and Future Challenges,
06 G.L.J. 10:1408 (2005). (German Law Journal)
8. Ronald J. Colombo, Ownership, Limited: Reconciling Traditional and Progressive Cor-
porate Law via an Aristotelian Understanding of Ownership, 34 J. CORP. L. 247 (2008).
Additional Readings:
1. Henry Wade Rogers, Corporations, YALE L.J., Vol. 11, No. 5, (Mar., 1902), pp. 223-245
(The Yale Law Journal).
2. Henry Hansmann and Reinier Kraakman, What is Corporate Law? Yale Law School,
Center for Law, Economics and Public Policy Research Paper No. 300
3. Robert L. Raymond, The Genesis of the Corporation, 19 HARV. L. REV. 350 (1906).
(Harvard Law Review)
4. Jeffrey N. Gordon, The Mandatory Structure of Corporate Law, 89 COLUM. L. REV. 1549
(1989) (Columbia Law Review).
5. David Millon, Theories of Corporation, 201 DUKE L.J. 201 (1990).
6. Paddy Ireland et al., The Conceptual Foundations of Modern Law, 14 J. L. & Soc'y. 149
(1987).
7. Klaus J. Hopt, Comparative Company Law, in THE OXFORD HANDBOOK OF COMPARA-
TIVE LAW, (Mathias Reimann and Reinhard Zimmermann (eds., 2006, Oxford), pp. 1161-
1191.
UNIT 2 SPECIAL CONTRACTS RESULTING IN BODY CORPORATES
Promoters meaning, position, duties and liabilities
Memorandum of Association and Articles of Association: Meaning, Significance and

Contents
Scope and Significance of Modern Company and LLP Contracts
Parties to the contract and other stakeholders

Registration and Incorporation of Companies
Resultant Body Corporate : Nature and Meaning
Identification of Legal Relationships amongst the stakeholders inter se, if any, and
between the stakeholders and the company
Registered office and publication of name
Certificate of Incorporation
Certificate of Commencement of Business
An Overview of the Structure of Company and LLP Laws

Structure of Corporate Law
Protection of Stakeholders Interest under the Corporate Law
Freedom of Contract vis--vis Corporate Law
Select Special Features of Company Contract

Concept of Corporate Personality and other associated features
Doctrine of Lifting of Corporate Veil
Concept of Limited Liability
Exceptions to Limited Liability
Cases:
1. Twycross v. Grant, 1877 2 C.P.D 469.
2. Whaley Bridge Calico Printing Co. v. Green, (1880) 5 QBD 109.
3. Salomon v. Salomon & Co, [1895-99] All ER 33: 1897 A.C. 22 (HL).
4. Erlanger v. New Sombrero Phosphate Co., (1878) 3 App Cas 1218.
5. Foss v. Harbottle, (1843) 2 Hare 461.
6. Lydney and Wigpool Iron Ore Co. v. Bird, (1886) 33 ChD 85.
7. Jacobus Marler Estates Ltd. v. Marler, (1913) 85 LJ PC 167.
8. Gluckstein v. Barnes [1900] AC 240.
9. Thiruvenkatachariar National Livestock Registration Bank Ltd. v. A.T. Velu Mudaliar,
AIR 1938 Mad 154 : ILR 1938 Mad 192.
10. Adams v. Cape Industries plc (1991) 1 All ER 929
11. Bacha F. Guzdar v. CIT, Bombay, AIR 1955 SC 74: (1955) 1 SCR 876
12. Bennett, Coleman & Co. v. Union of India, (1972) 2 SCC 788
13. Commissioner of Income Tax v. Sri Meenakshi Mills Ltd., AIR 1967 SC 819
14. Cotton Corporation of India Ltd. v. G.C. Odusumathd, (1999) 22 SCL 228 (Kar)
15. D.C.M Company Ltd. v. Union of India & Ors., 1983 5 Comp. Cases 674
16. Daimler Co. Ltd. v. Continental Tyre Co., [1916-1917] All ER 191: (1916) 2 A.C 307 HL
17. DHN Food Distributors v. London Borough of Tower Hamlets, [1976] 3 All E.R. 462:
[1976] 1 WLR 852
18. Imperial Chemical Industries Ltd. v. Commission, (case 48/69) [1972] ECR 619
19. In re, the Kondoli Tea Co. Ltd., (1886) ILR 13 Cal. 43
20. Industrial Development Corporation, Orissa v. Regional Provident Fund Commissioner,
(2002) 112 Com. Cases 527 (Orissa)
21. Lee v. Lee Air Farming Ltd., (1961) AC 12: 3 All ER 420 (PC)
22. LIC v. Escorts Ltd., (1986) 59 Com Cases 548
23. Macaura v. Northern Assurance Co. Ltd., [1925] AC 619
24. New Horizons Ltd. v. Union of India, (1995) 1 SCC 478
25. R.C. Cooper v. UOI, (1970) 1 SCC 248: 1970 SCR 530
26. Salomon v. Salomon & Co, [1895-99] All ER 33: 1897 A.C. 22, HL.
27. State Trading Corporation of India Ltd. v. Commercial Tax Officer, AIR 1963 SC 1811.
28. Tata Engineering and Locomotive Company Ltd. v. State of Bihar, AIR 1965 SC 40.
29. Workmen of Associated Rubber Industry Ltd. v. Associated Rubber Industry Ltd., (1985)
4 SCC 114
30. Electronics Corporation of India Ltd. v. Secy. Revenue Dept. Govt. of A.P., [1999] 97
Comp. Cases 470
31. Heavy Engineering Mazdoor Union v. State of Bihar, [1969] 39 Comp. Cases 905 (SC)
32. C.V. Raman v. Management of Bank of India and Another., [1988] 3 SCC 105
Mandatory Readings:
1. Thomas Thacher, Incorporation, 9 YALE L.J. 82 (1899).
2. J.H. Gross, Who is a company Promoter?, (1970) 86 LQR 493.
3. J. Gold, The Liability of Promoters for Secret Profits in English Law, 5 UTLJ 21 (1943).
4. B.E. MeCrea, Disclosure of Promoters Secret Profits, 3 U. BR. COLUM. L. REV. 3:183-
216 (1968).
5. Note:- Promoters Profits: Control by Court and Commission, 49 HAR. L. REV. 785
(1936).
6. Harry Shapiro, The Formation of Companies under the English Company Law: A
Comparison with American Legislation, 60 U. PA. L. REV. 419 (1912).
7. A.W.S., Corporations: The Right of Majority to Amend Certificate of Incorporation, 28
MICH. L. REV. 1009 (1930).
8. Stanton J. Schuman, Corporations: Amendments by Majority of the Stockholders:
Provision in Certificate of Incorporation Requiring More than Majority, 37 MICH. L.
REV. 803 (1939).
9. R. R. Drury, Nullity of Companies in English Law, 48 MLR 644 (1985).
10. Herbert Knox Smith, Incorporation by the State, 14 YALE L.J. 385 (1905).
11. Stewart Chaplin, Incorporation by Reference, 2 COLUM. L. REV. 148 (1902).
12. Note: Constitutional Rights of the Corporate Person, 91 YALE L. J. 1641 (1982).
13. Andrew Hicks, Corporate Form: Questioning The Unsung Hero, 1997 JBL 306.
14. B. Errabbi, The Problem of Juristic Personality, 7 JILI 156 (1965).
15. T.N. Pandey, When Can a Company be treated as a Partnership, Chartered Secretary,
March 1997, p. 239.
16. Jeffrey K. Vandervoort, Piercing the Veil of Limited Liability Companies: The Need for a
Better Standard, 3 DEPAUL BUS. & COMM. L.J. 51.
17. John H. Farrar, Frankenstein Incorporated or Fools Parliament? Revisiting the Concept
of the Corporation in Corporate Governance, 10 BOND L. REV. 142 (1998).
18. I. Maurice Wormser, Piercing Veil of Corporate Entity, 12 COLUM. L. REV. 496 (1912).
19. Joseph L. Weiner, The Berle-Dodd Dialogue on the Concept of Corporation, 64 COLUM.
L. REV. 1458 (1964).
20. Stephen Griffin, Limited Liability: A Necessary Revolution, 25 COM. LAW. 99 (2004).
21. F. G. Rixon, Lifting the Corporate Veil Between Holding and Subsidiary Companies, 102
L.Q.R. 415 (1986).
22. Lisa Linklater, Piercing the Corporate Veil - The Never Ending Story, 27 COM. LAW.
65 (2006).
1. Alexander Hamilton Frey, Modern Development in the Law of Pre-Incorporation

Subscriptions, 79 U. PA. L. REV. 1005 (1931).
2. C.A.W., Liability of Promoters for Promotion Profits, 77 U. PA. L. REV. 661 (1929).
3. David S. Ruder, Public Obligations of Private Corporations, 114 U. PA. L. REV. 209
(1965).
4. Dennis Thompson, The Creation of a European Company, 17 ICLQ 183 (1968).
5. Frank B. Kellogg, Federal Incorporation and Control, 20 YALE L.J. 177 (1911).
6. John McMullen, Preliminary Contracts by Promoters, 41 CAMBRIDGE L.J. 47 (1982) 612
7. John W. Brabner-Smith, Federal Incorporation of Business, 24 VA. L. REV. 159 (1937).
8. Manfred W. Ehrich & Lucille C. Bunzl, Promoters' contract, 38 YALE L.J. 1011 (1929)
575.
9. Max Thelen, Federal Incorporation of Railroads, 5 CAL. L. REV. 273 (1917).
10. Myron W. Watkins, Federal Incorporation II, 17 MICH. L. REV. 145 (1918).
11. Myron W. Watkins, Federal Incorporation III, 17 MICH. L. REV. 238 (1919).
12. Note: Company Promoters Are Fiduciaries, 13 HAR. L. REV. 602 (1900).
13. Note: Corporations: Promoters: Duty to Incorporate, 25 MICH. L. REV. 670 (1927).
14. R.D. Weston, Promoters Liability: Old Dominion v. Bigelow, 30 HAR. L. REV. 39 (1916).
33. Stephen M. Bainbridge, Abolishing Veil Piercing, 26 J. CORP. L. 479 (2001) (Journal of
Corporation Law).
34. Margaret M. Blair and Lynn A. Stout, A Team Production Theory of Corporate Law, 85
VA. L. REV. 247 (1999) (Virginia Law Review).
35. Judith Freedman, Small Business and the Corporate Form: Burden or Privilege? 57:4
MLR 555 (1994).
36. Judith Freedman, Limited Liability: Large Company Theory and Small Firms, 63:3 MLR
317 (2000).
37. Andrew Hicks, Corporate Form: Questioning The Unsung Hero, J. BUS. L. (July 1997).
38. Paul Halpern, Michael Trebilcock and Stuart Turn Bull, An Economic Analysis of Limited
Liability in Corporation Law, 30 U. TORONTO L.J. 2: 117-150 (1980).
39. Binda Sahni, The Interpretation of the Corporate Personality of Transnational
Corporations, 15 WIDENER L.J. 1 (2005).
40. Max Radin, The Endless Problem of Corporate Personality, 32 COLUM. L. REV. 643
(1932).
41. Arthur W. Machen, Jr., Corporate Personality, 24 HARV. L. REV. 253 (1911).
42. Arthur W. Machen, Jr., Corporate Personality (Continued), 24 HARV. L. REV. 347 (1911).
43. Jason W. Neyers, Veil-Piercing, and the Private Law Model Corporation, 50 U.
TORONTO L.J. 173 (2000).
44. Henry Hansmann and Reinier Kraakman, Towards Unlimited Shareholder Liability for
Corporate Torts, 100 YALE L.J. 1879 (1991).
45. Bryant Smith, Legal Personality, 37 YALE L.J. 283 (1928).
46. Simon Bowmer, To Pierce or Not to Pierce the Corporate Veil Why Substantive
Consolidation is Not an Issue Under English Law, 15 J.I.B.L. 193 (2000).
47. Kevin Wardman, The Search for Virtual Reality in Corporate Group Relationships, 15
COM. LAW. 179 (1994).
48. Anil Hargovan and Jason Harris, Piercing the Corporate Veil in Canada: A Comparative
Analysis, 28 COM. LAW. 58 (2007).
49. Frank H. Easterbrook and Daniel R. Fishchel, Limited Liability and the Corporation, 52
U. CHI. L. REV. 89 (1985).
UNIT 3 ADJUDICATORY BODIES
Ordinary Civil Courts : Jurisdiction in relation to company matters
High Court : Original and appellate jurisdiction in relation to company matters
Company Law Board : Structure and Composition, Significance, Jurisdiction, Powers and
Functions
NCLT and NCLAT : Creation, Scope, Significance, Jurisdiction, Powers and Functions
Recent changes in the echanisms

Cases :
1. President, Madras Bar Council v. Union of India, (2004) 2 Comp LJ 274 (Mad)
2. Ashoka Tea Estates (P.) Ltd. v. RoC, (1959) 29 Com. Cases 244 (Mad)
3. Jyoti Bhusan Mukherjee v. Eastern Tea Co. Ltd., (1983) 53 Com Cases 722 (Cal)
4. M.G. Doshit v. Reliance Petro Chemical Ltd., (1994) 79 Com Cases 830 (Guj)
5. Patel Roadways Ltd. v. Prasad Trading Co. Ltd., (1992) 74 Com Cases 11 (SC)
6. Subramanian Swamy v. Union of India, (2001) 118 Com Cases 126 (Delhi)
Mandatory Readings :
1. K.S. Ravichandran, Basic Techniques for Appearances Before National Company Law
Tribunal, CHARTERED SECRETARY, 2005 (03): 390-394.
2. R. Santhanam, National Company Law Tribunal: Creation and Expectations, (2003) 1
COMP. L.J. (J) 33.
3. R. Santhanam, Appellate Tribunal under Company Law, (2003) 1 COMP. L.J. (J) 41.
UNIT 5 INTERPRETATION AND ALTERATION OF MEMORANDUM AND ARTICLES
Interpretation of MoA and AoA
Alterations in Memorandum of Association and in Articles of Association
Restrictions on such Alterations
A Comparative Analysis of MoA and AoA
Conflict between MoA and AoA
Distribution of corpora authority

Cases:
Memorandum of Association
1. Ashbury Railway Carriage and Iron Co. Ltd. v. Riche, (1875) 44 LJ Exch 185, (1875) 44
LR 7 HL 653.
2. B. Ramachandra Adityan v. Educational Trustee Co., (P) Ltd., [2003] 113 Comp. Cases
334 (Mad): [2003] 41 SCL 385 (Mad)
3. Bell Houses Ltd. v. City Wall Properties Ltd., [1966] 2 All ER 674.
4. British Diabetic Association v. Diabetic Society Ltd., [1995] 4 All ER 812.
5. Dalmia Cement (Bharat) Ltd., In re [1964] 34 Comp. Cases 729 (Mad)
6. Exxon Corporation v. Exxon Insurance Consultants International Ltd., [1982] Ch 119.
7. Framrose Rustomji Paymaster v. British Burmah Petroleum Co. Ltd., [1976] 46 Comp.
Cases 587 (Bom)
8. Halifax plc v. Halifax Repossessions Ltd., [2004] BCC 281: [2004] EWCA Civ 331.
9. Jehangir R. Modi v. Shamji Ladha, [1866-67] 4 Bom HCR 1855
10. Lakshmana Swami Mudaliar v. L.I.C., AIR 1963 SC 1185
11. Minerva Mills Ltd. v. Govt. of Maharashtra, [1975] 45 Comp. Cases 1 (Bom)
12. Montari Industries Ltd. v. Montari Overseas Ltd., [1996] 20 CLA 313 (Delhi)
13. Munirabad Chemicals Co. v. R.C Mody Exports (P) Ltd., [2008] 142 Comp. Cases 589
(Bom): [2007] 78 SCL 307 (Bom)
Articles of Association General Principles
1. Beattie v. E & F Beattie Ltd., [1938] 1 Ch 708
2. Borlands Trustee v. Steel Brothers and Co. Ltd., [1901] 1 Ch 279
3. Bratten Seymour Service Co. Ltd. v. Oxborough, [1992] BCC 471 (CA)
4. C.P. Singhania v. Garware Club House, [2003]46 SCL 659 (Bom)
5. Clemens v. Clemens Bros Ltd., [1976] 2 All ER 268
6. Eley v. The Positive Government Security Life Assurance Co Ltd., (1876) 1 Ex D 88
7. Foss v. Harbottle (1843) 2 Hare 461
8. Hickman v. Kent or Romney Marsh Sheepbreeders Association, [1915] 1 Ch 881
9. In re New British Iron Co, ex parte Beckwith, [1898] 1 Ch 324
10. Kerr v. John Mottram Ltd., [1940] Ch 657
11. North-West Transportation Co Ltd. v. Beatty, (1887) 12 App Cas 589
12. Pender v. Lushington, (1877) 6 Ch D 70
13. Quinn & Axtens v. Salmon, [1909] AC 442
14. Rayfield v. Hands, [1960] 1 Ch 1
15. Scott v. Frank F. Scott (London) Ltd., [1940] Ch 794
16. Shuttleworth v. Cox Bros & Co. (Maidenhead) Ltd., [1927] 2 KB 9 (CA)
17. Wood v. Odessa Waterworks Co., (1889) 42 Ch D 636
Articles of Association Alteration of Articles
1. Allen v. Gold Reefs of West Africa Ltd., [1900] 1 Ch 656
2. Andrews v Gas Meter Company Ltd., [1897] 1 Ch 361
3. Bharat Gramin Merchants Association Ltd., In re [1974] 44 Comp. Cases 214 (Del)
4. Brown v. British Abrasive Wheel Co., [1919] 1 Ch 290
5. Cane v. Jones, [1980] 1 WLR 1451; [1981] 1 All ER 533
6. Clemens v. Clemens Bros Ltd., [1976] 2 All ER 268
7. Cumbrian Newspapers Group Ltd. v. Cumberland and Westmoreland
8. Dafen Tinplate Co Ltd. v. Llanelly Steel Co., (1907) Ltd [1920] 2 Ch 124
9. Eley v. The Positive Government Security Life Assurance Co. Ltd., (1876) 1 Ex D 88
10. Greenhalgh v. Arderne Cinemas Ltd., [1951] Ch 286 (CA)
11. Herald Newspaper and Printing Co Ltd., [1987] Ch 1; [1986] 2 All ER 816
12. Hickman v. Kent or Romney Marsh Sheepbreeders Association, [1915] 1 Ch 881
13. House of Fraser plc v. ACGE Investments Ltd. and Others, [1987] BCLC 478
14. In re, Northern Engineering Industries plc, [1994] BCC 618 (CA)
15. Mathrubhumi Printing and Publishing Co. Ltd. v. Vardhaman Publishers Ltd. and Ors.,
[1992] 73 Comp Cases 80 (Ker)
16. Northern Counties Securities Ltd. v. Jackson and Steeple Ltd., [1974] 1 WLR 1133;
[1974] 2 All ER 625
17. Punt v. Symons & Co. Ltd., [1903] 2 Ch 506
18. Quinn & Axtens v. Salmon, [1909] AC 442
19. Rights and Issues Investment Trust Ltd. v. Stylo Shoes Ltd., [1964] 3 All ER 628
20. Russell v. Northern Bank Development Corporation Ltd., [1992] 1 WLR 588 (HL):
[1992] 3 All ER 161 (HL)
21. Shuttleworth v. Cox Bros & Co. (Maidenhead) Ltd., [1927] 2 KB 9 (CA)
22. Sidebotham v. Kershaw, Leese & Co., [1920] 1 Ch 154 (CA)
23. Southern Foundries (1926) Ltd. v. Shirlaw, [1940] AC 701
Mandatory Readings:
1. K.S. Ravichandran, Memorandum and Articles of Association of Producer Companies
A Secretarial Practice Manual,
2. T.N. Pandey, Computer Printing of Memorandum and Articles of Association of
Companies, CS 1991, Vol. 21, Iss. 10, p. 815
3. M. Ramakrishna, Procedure for Change of Name Clause in the MoA, CS 1989 Vol. 19,
Iss. 8, p. 575
4. Hinduja, Objects Clause of Memorandum of Association of a Company, CS 1982 Vol. 12,
Iss. 4, p. 285
5. T.K.A. Padmanabhan, Alteration of Articles of Association, Corporate Law Adviser,
51(03):2002, pp.77-78.
6. Note: Pre-Emptive Rights [of Common Stockholders] Restricted, 4 STAN. L. REV. 449
(1952).
1. J. Savirimuthu, Thoughts on Russell Killing Private Companies with Kindness?, 14
COM LAW 137 (1993).
2. B.J. Davenport, What did Russell v. Northern Bank Development Corporation Ltd.
decide?, 109 LQR 553 (1993).
3. B.G. Pettet, Unlimited Objects Clause?, 97 LQR 15 (1981).
4. John Armour and Michael J. Whincop, The Proprietary Foundations of Corporate Law,
OXFORD J. LEG. STUD. 429 (2007).
5. Bernard F. Cataldo, Conditions in Subscription of Shares, 43 VA. L. REV. 353 (1957).
6. Robert R. Pennington, Reform of the Ultra Vires Rule, 8 COM. LAW. 103 (1987).
7. William J. Carney, Fundamental Corporate Changes, Minority Shareholders, and
Business Purposes, 5 AM. B. FOUND. RES. J. 69 (1980).
UNIT 6 CORPORATE THIRD PARTY DEALINGS AND LIABILITY
Corporate Control
Company Third Part Contracts and Contractual Capacity
Rules of Attribution
The doctrines of constructive notice, indoor management and ultra-vires
Pre-incorporation, preliminary and post-dissolution contracts
Corporate Criminal Liability
Corporate Tortuous Liability
Corporate Liability v. Limited Liability: A Social Cost Analysis
Cases:
1. Bell Houses Ltd. v. City Wall Properties Limited, [1966] 36 Comp. Cases 779
2. CIT v. Bijli Cotton Mills, (1953) 23 Comp. Cases 114 (All)
3. Cotronic (UK) Ltd. v. Dezonie, [1991] BCLC 721
4. Kelner v. Baxter, [1866] 15 LT 213: (1866) LR 2 CP 174
5. M. Velayudhan v. Registrar of Companies, [1980] 50 Comp. Cases 33(Ker)
6. Meridian Global Funds Management Asia Ltd. v. Securities Commission, [1995] 2 AC
500
7. Newborne v. Sensolid (GB) Ltd., [1954] 1 QB 45
8. Phonogram Ltd. v. Lane [1982] QB 938
9. Royal British Bank v. Turquand, [1856] 6 E & B 327

10. Seth Sobhag Mal Lodha and Ors. v. Edward Mills Co. Ltd. and Ors., [1972] 42 Comp.
Cases 1 (Raj)
11. Standard Charted Bank and Ors. v. Directorate of Enforcement and Ors., (2005) 4 Comp
LJ 464 (SC)
12. Vali Pattabhirama Rao v. Sri Ramanuja Gining and Rice Factory Pvt. Ltd., [1986] 60
Comp. Cases 568 (AP).
13. Williams and Another v. Natural Life Health Foods Ltd., [1998] 2 All ER 577 (HL) ;
[1998] BCC 428
Mandatory Readings:
1. Kent Greenfield, From Rights to Regulation in Corporate Law in PERSPECTIVES ON
COMPANY LAW: 2 (Fiona Patfield, ed., 1997).
2. Forgery under the Doctrine of Indoor Management, Chartered Secretary, August 1983, p.
602.
7. David W. Leebron, Limited Liability, Tort Victims and Creditors, 91 COLUM L. REV. 7:
1565 (1991).
8. I. D. Campbell, Contracts with Companies I - The Doctrine of Constructive Notice, 75
LQR 469 (1959).
3. I. D. Campbell, Contracts with Companies II - The Indoor Management Rule, 76 LQR
115 (1960).
4. Anrew R. Thompson, Company Law Doctrines and Authority to Contract, 11 U.
TORONTO L.J. 248 (1956).
5. Robert D. Cooter, Economic Theories of Legal Liability, 5 J. ECON. PERSP. 11 (1991).
1. K.W. Wedderburn, Ultra Vires in Modern Company Law, 46 MLR 204 (1983).
2. Adolf A. Berle, Jr., Control in Corporate Law, 58 COLUM L. REV. 1212 (1958).
3. F.H.M., Corporation: Stockholders Liability for Torts, 5 CAL. L. REV. 248 (1917).
4. R.S. Welsh, The Criminal Liability of Corporations, 62 LQR 345 (Oct., 1946).
5. Daniel Fischel & Alan O. Sykes, Corporate Crime, 25 J. LEGAL STUD. 319 (1996).
6. V.S. Khanna, Corporate Criminal Liability: What Purpose Does It Serve? 109 HAR. L.
REV. 1477 (1996).
7. L.H. Leigh, The Criminal Liability of Corporations and Other Groups: A Comparative
View, 80 MICH. L. REV. 1508 (1982).
8. Stewart Field and Nico Jorg, Corporate Liability and Manslaughter: Should We be Going
Dutch? CRIM. L.R. 156 (1991).
9. Henry Hansmann and Reinier Kraakman, Towards Unlimited Shareholder Liability for
Corporate Torts, 100 YALE L.J. 1879 (1991).
10. No Soul to Damn: No Body to Kick: An Unscandalised Inquiry into the Problem of
Corporate Punishment, 79 MICH. L. REV. 386 (1981).
11. Stephanie Earl, Ascertaining the Criminal liability of a Corporation, 13 NZBLQ 200
(2007).
12. Nico Jorg and Stewart Field, Corporate Liability and Manslaughter: Should We be Going
Dutch, CRIM. L.REV. 1991 Mar. p. 156.
13. Edward B. Diskant, Comparative Corporate Criminal Liability: Exploring the Uniquele
American Doctrine Through Comparative Criminal Procedure, 118 YALE L.J. 126
(2008).
UNIT 6 FORMATION OF CAPITAL AND RAISING OF EQUITY CAPITAL
Concept of capital and financing of companies
Kinds of capital and Contracts to subscribe for shares
Classes and types of shares; equity with differential rights.
Issue of shares at par, premium and discount.
Private Placement and Statement in lieu of Prospectus
Information Memorandum: Contents and Registration
Public Issue
Prospectus:
Meaning, Definition and Kinds

Abridged prospectus
Red-herring prospectus
Shelf prospectus
Contents and Registration
Misrepresentations in prospectus and civil and criminal liability for such

misrepresentations.
Allotment of Shares
Minimum Subscription Requirement
Dematerialisation and rematerialisation of securities
Cost v. Benefit of demat form
Share certificates and share warrants.
Call on shares.
Forfeiture and surrender of shares.
Bonus issues; rights issues; issue of sweat equity shares.
Private placement
Qualified Institutions Placement

Cases:
1. Birch v. Cropper (1889) 14 AC 525
2. Borlands Trustee v. Steel Brothers & Co Ltd., [1901] 1 Ch 279
3. Carruth v. Imperial Chemical Industries Ltd., [1937] AC 707
4. Chatterley-Whitfield Collieries Ltd, Re, [1949] AC 512 (HL)
5. Gopal Jalan & Co. v. Calcutta Stock Exchange Association, AIR 1964 SC 250
6. Greenhalgh v. Arderne Cinemas., [1946] 1 All ER 512
7. Hillcrest Realty Sdn Bhd v. Hotel Queen Road Pvt. Ltd., [2006] 71 SCL 41 (CLB)
8. CIT v. Dalmia Investment Co. Ltd., (1964) 52 ITR 567 (SC)
9. Holders Investment Trust Ltd., Re [1971] 1 WLR 583
10. House of Fraser plc v. ACGE Investments Ltd. and Others, [1987] BCLC 478
11. Isle of Thane Electricity Supply Co Ltd., Re, [1950] Ch 161
12. M/s. Khoday Distilleries Ltd. v. Commissioner of Income Tax and Anr., Civil Appeal No.
6654 of 2008, decided on 14 November, 2008
13. Kisan Mehta and another v. Universal Luggage Manufacturing Co. Ltd. and another,
[1988] 63 Comp. Cases 398 (Bom)
14. Naresh Chandra Sanyal v. Calcutta Stock Exchange Association Ltd., AIR 1971 SC 422
15. Northern Engineering Industries plc., Re, [1994] BCC 618
16. Oakbank Oil Co. v. Crum, (1882) 8 AC 65
17. Prudential Assurance Co. Ltd. v. Chatterley-Whitfield Collieries Ltd., [1949] AC 512
18. Raymond Synthetics Ltd. and Ors. v. Union of India, AIR 1982 SC 847
19. Saltdean Estate Co Ltd., Re. [1968] 1 WLR 1844: [1968] 3 All ER 829
20. Scottish Insurance Corporation Ltd. v. Wilsons & Clyde Coal Co. Ltd., [1949] AC 462
21. Thundercrest Ltd., Re, [1994] BCC 857 (Ch D)
22. White v. Bristol Aeroplane Co., [1953] Ch 65
23. Will v. United Lankat Plantations Co. Ltd., [1914] AC 11
Mandatory Readings:
1. Alexander Hamilton Frey, Shareholders Pre-Emptive Rights, 38 YALE L.J. 563 (1929).
2. Amit Jain, Can Bonus Equity Shares be Issued to the Preference Shareholders, CHAR-
TERED SECRETARY
3. Eva Micheler, Farewell Quasi-Negotiability? Legal Title and Transfer of Shares in a

Paperless World, 2002 J.B.L. 358.
4. J.K. Dwivedi, Book Building Emerging Scenario in the Indian Capital Market,
CHARTERED SECRETARY, June 1998, p. 507.
5. Jasbir Kaur Taak, Forfeiture of Shares Law and Practice, CHARTERED SECRETARY,
February 1997, p. 135.
6. K.R. Chandratre, Stamp Duty on Shares Issued in Demat Mode: All Round Confusion,
EXECUTIVE CHARTERED SECRETARY, January 2007, p. 9.
7. Mritunjay K. and Prashant K., Voting and Non-Voting Shares, (2004) 4 Comp. L.J. (J) 10.
8. Paras K. Jain, Qualified Institutions Placement, EXECUTIVE CHARTERED SECRETARY,
January 2007, p.23.
9. Pavan Kumar Vijay, Corporate Concerns Depository System, CHARTERED SECRETARY,
March 1996, p. 266.
10. Sanjiv Agarwal, Red-Herring Prospectus and Information Memorandum, CHARTERED
SECRETARY, May 2002, p. 34.
1. Stefan Grundmann and Wiss. Mitarbeiter Dipl.-Kfm. Florian Mslein, Golden Shares
State Control in Privatised Companies: Comparative Law, European Law and Policy
Aspects, European Banking and Financial Law Journal (EUREDIA), 1 (2004).
2. Catarina af Sandeberg, From Caveat Emptor to Caveat Venditor the Winding

Road to prospectus Liability in the Scandinavian Countries, 2003 JBL 91.
UNIT 7 DEBT CAPITAL
Borrowings: Meaning, Types

Loans from Banks and Financial Institutions
Debentures: Characteristics and Kinds
debenture stock, bonds
Debenture trust deed and trustees
Contracts to subscribe for debentures and other securities excluding shares
Conversion of and redemption of debentures
Issue of Debentures and Charges
Debt Capital and Company Charges
Securing of debts creation, modification and satisfaction of charges
Kinds of Charges: Fixed and Floating
Perfection of Charges
Crystallisation of Floating Charges and its effects
New developments in corporate debt financing
Reconstruction of Financial Assets
Asset Management Companies
Enforcement of Security Interest
Cases :
1. A.P. State Financial Corporation v. Mopeds India Ltd., (2005) 124 Comp. Cas. 833 (AP)
2. Government Stock Co. v. Manila Rly., [ 1897] AC 81
3. Lallan Prasad v. Rahman Ali, AIR 1967 SC 1322
4. Maturi U. Rao v. Pendyala, AIR 1970 AP 225
5. Narendra Kumar Maheswari v. Union of India, AIR 1989 SC 2138
6. Narotamdas T. T. v. Bombay Dyeing and Manufacturing Co, Ltd. & ors., (1990) 68
Comp. Cas. 300
7. Official Liquidator v. Union of India, AIR 1988 NOC 78 (Ker)
8. Rajasthan Financial Corporation v. Jaipur Spinning and Weaving Mills Ltd. [2006] 133
Comp. Cas. 1 (SC)
9. Siva Sankara Panicker v. Kerala Financial Corporation, (1980) 50 Comp. Cas. 817
10. Standard Chartered Bank v. HUDCO, 1995 CLB.
11. Sushil Prasad v. Vinod Motors (Pr.) Ltd., [1984] 55 Comp. Cas. 52 (Delhi)
Mandatory Readings:
1. Dan Prentice, Corporate Personality, Limited Liability and the Protection of Creditors,
pp. 99-125
2. Armour, J, Share Capital and Creditor Protection: Efficient Rules for a Modern
Company Law, 63 MLR ?? (2000).
3. Robert Charles Clark, The Duties of Corporate Debtor to Its Creditors, 90 HARV. L. REV.
505 (1977).
1. Ferran, EV, Creditors Interests and Core Company Law, 20 COM. LAW. 314 (1999).
2. David W. Leebron, Limited Liability, Tort Victims, and Creditors, 91 COLUM. L. REV.
1565 (1991).
UNIT 8 MAINTENANCE OF CAPITAL
Rule relating to the maintaining of share capital for the benefit of the company, its mem-
bers and its creditors.
Alteration of share capital

Reduction of capital
Buy-back of shares
Cases:
1. Acatos and Hutcheson v. Watson [1995] 1 BCLC 218
2. Arab Bank plc v. Mercantile Holdings Ltd and Another [1993] BCC 816
3. Aska Investment Pvt. Ltd. v. Grob Tea Company Ltd., [2005] 61 SCL 134.
4. Belmont Finance Corporation Ltd. v. Williams Furniture Ltd (No 2) [1980] 1 All ER 393
5. Bhagwati Developers v. Peerless Finance,
6. Bradford Investments Ltd (No 2), Re [1991] BCC 379
7. Brady v. Brady [1989] AC 755
8. CIT v. Standard Vacuum Oil Co., [ 1966] Comp. LJ 187
9. Dery v. Peek, (1889) 14 AC 337
10. Global Trust Bank Ltd., In re [2005] 57 SCL 164 (AP).
11. Govt. Stock and Other Securities Investment Co. Ltd. v. Christopher, [1956] 1 WLR 237.
12. Gurmeet Singh v. Polymer Papers Ltd., [2003] 45 SCL 251 (CLB)
13. Heald v. OConnor [1971] 1 WLR 497
14. Henry Head and Company Limited v. Ropner Holdings Limited [1952] Ch 124
15. Holders Investment Trust Ltd., Re [1971] 1 WLR 583
16. I.T. Cube India (Pvt.) Ltd. v. I.T. Cube Inc., [2006] 69 SCL 319 (Kar).
17. New Brunswick & Canada Rly. & Land Co. v. Muggeridge, (1860)
18. OCL India Ltd., In re [1999] 19 SCL 331 (Ori).
19. Ooregum Gold Mining Company of India v. Roper [1892] AC 125
20. Park Business Interiors Ltd. v. Park [1990] BCC 914
21. Pramatha Nath Sanyal v. Kali Kumar Dutt, AIR 1925 Cal 714.
22. Rajasthan Telecom Company Ltd., In Re (Raj) [2006] 69 SCL 71]
23. Rex v. Kylsant, [1932] 1 K.B. 422
24. SEBI v. Sterlite Industries (India) Ltd., [2004] 45 SCL 475 (Bom).
25. Selangor United Rubber Estates Ltd. v. Cradock (No 3) [1968] 1 WLR 1555
26. Shree Gopal Paper Mills Ltd. v. CIT, [1967] 37 Comp. Cases 240 (Cal).
27. T.G. Venkatesh v. Registrar of Companies, [2007] 78 SCL 1
28. TCI Industries Ltd., In re [2004] 50 SCL 450 (AP).
29. Unit Trust of India v. Omprakash Berlia, [1983] 54 Comp Cases 723 (Bom).
30. Vishwanathan v. East India Distilleries, [1957] 27 Comp. Cases 175.
31. Wragg Ltd., Re [1897] 1 Ch 796
Mandatory Readings:
1. Naresh Kumar, Buy Back of Shares by Companies: Law and Procedure, Company
Secretary, June 1997, p. 637.
2. Dhananjoy Rakshit, Buy Back of Shares and the Fate of Small Investors, CHARTERED
SECRETARY, August 2002, p.1164.
3. Gauri Manglik, Indemnity by Company in Sale of Shares by Shareholders, via Private
Placement or Public Offer, Whether Financial Assistance and Barred? (2003) 3 COMP.
L.J. (J) 40
UNIT 9 TRANSFER AND TRANSMISSION OF SHARES
Transfer of Shares
Transfer Procedure in physical mode; Share Certificates, Uncertified Shares

Transfer Procedure in Depository mode
Forged or Fraudulent Share Transfers
Transmission of Shares
Nomination
Share Warrants
Warranties and indemnities on Share Sales
Overview of dealings in Securities in Secondary Market
Companies lien on shares
Cases:
1. All India Bank Officers Confederation v. The Dhanlakshmi Bank Ltd., [1997] CLB
2. Bahia & San Francisco Railway Co, Re (1868) LR 3 QB 584
3. Bajaj Auto Ltd. v. Company Law Board and Ors., (1999) 95 Comp. Cases 12.
4. Bajaj Auto Ltd. v. N.K. Firodia and Anr., AIR 1971 SC 321: [1971] 41 Comp. Cases 1
(SC): (1970) 2 SCC 550
5. Bajaj Tempo Ltd. v. Bajaj Auto Ltd. and Others, (1991) 2 Comp. L.J. 393 (CLB)
6. Bajaj Tempo Ltd. v. Unit Trust of India and Others, (1991) 2 Comp. L.J. 405 (CLB)
7. Balkis Consolidated Co. v. Tomkinson, [1893] AC 396
8. Balkrishna Gupta v. Swadeshi Polytex Ltd., [1985] 58 Comp. Cases 563.
9. Bede Steam Shipping Co. Ltd, Re [1917] 1 Ch 123
10. Bloomenthal v. Ford, [1897] QB 156
11. Hackney Pavilion Ltd, Re [1924] Ch 276
12. Hillcrest Realty Sdn Bhd v. Hotel Queen Road Pvt. Ltd., [2006] 71SCL 41 (CLB)
13. JK Industries Ltd. v. Union of India, [2007] 80 SCL 283.
14. Kumaran Potty v. Vinod Pharmaceuticals & Chemicals Ltd., [1996] 2 Comp. L.J. 288
(Ker)
15. Life Insurance Corporation of India Ltd. v. Escorts Ltd., [1986] 59 Comp. Cases 548.
16. Mathrubhumi Printing and Publishing Co. Ltd. v. Vardhaman Publishers Ltd. and Ors.,
[1992] 73 Comp. Cases 80 (Ker)
17. R.T. Perumal v. H. John Deavin, AIR 1960 Mad 43.
18. Rajdhani Grains and Jaggery Exchange Ltd., In Re, [1983] 54 Comp. Cases 166 (Delhi).
19. Royal Bank of Scotland plc. v. Sandstone Properties Ltd [1998] 2 BCLC 429
20. Ruben v. Great Fingall Consolidated [1906] AC 439
21. S.L Bagri v. Britannia Industries Ltd., [1980] Company Law Board.
22. S.M. Haji Abdul Haye Sahib v. KNS Haji Shaikh Abdul Kader Labhai Sahib Ltd. [1997]
26 CLA 304. (CLB)
23. Sheffield Corporation v. Barclay, [1905] AC 392
24. Smith and Fawcett Ltd., Re [1942] 1 Ch 304
25. Srikanta Dutta v. Venkateshwara Real Estate Enterprises (P) Ltd., [1990] 68 Comp. Cases
216 (Kar)
26. Suresh Chandra Marwaha v. Lauls (P) Ltd., [1978] 48 Comp. Cases 110 (Punj. & Har.)
27. Swaledale Cleaners Ltd, Re [1968] 3 All ER 619: [1968] 1 WLR 1710
Mandatory Readings:
1. Duvva Pavan Kumar and Siddharth Mahajan, Transfer of Shares: Effects of Section 82 of
the Companies Act, 1956, (2002) 4 COMP. L.J. 117.
2. Ronald Modlin, Stock Transfer: Enforceability of Restrictions on Right of Transfer When
Not Stated in Certificate, 56 MICH. L. REV. 634 (1958).
1. David B. Weaver, The Corporation and the Shareholder, 343 ANNALS AM. ACAD. POL.
& SOC. SCI. 84 (Sep., 1962). (Annals of the American Academy of Political and Social
Science)
UNIT 10 - MEMBERSHIP RIGHTS, CLASS RIGHTS, MINORITY PROTECTION
Membership Rights; Statutory and Contractual Rights
Class Rights and Alteration of Class Rights
Oppression and Mismanagement Meaning, scope, locus standi; powers of

NCLT/NCLAT and of the Union government
Remedies available for shareholders

Cases :
1. Allianz Securities Ltd. v. Regal Industries Ltd., 2002 (11) CC 764 : (2000) 25 SCL 349
(CLB)
2. Chatterjee Petrochem (I) Pvt. Ltd. v. Haldia Petrochemicals Ltd., CDJ 2011 SC 1072
3. Cumbrian Newspapers Group Ltd. v. Cumberland and Westmoreland Herald Newspaper

and Printing Co Ltd., [1986] 2 All ER 816
4. Dale & Carrington Invt. (P) Ltd. v. P.K. Prathapan & Ors., (2005) 1 SCC 212
5. Life Insurance Corporation of India v. Escorts Ltd., (1986) 1 SCC 264
REFERENCES
STATUTORY MATERIALS
1. The Companies Act, 2013
2. The Limited Liability Partnership Act, 2008
3. The Securities and Exchange Board of India Act, 1992
4. The Securities Contract (Regulation) Act, 1956
5. The Depositories Act, 1996
6. The Banking Companies Act, 1949
7. The Foreign Exchange Management Act, 1999
8. Other relevant Rules, Regulations and By-Laws issued from time to time
BOOKS
1. Y.V. Chandrachud (2004), A. Ramaiya Guide to Companies Act, Lexisnexis Wadhwa,
Nagpur.
2. A.A. Berle and G.C. Means (1991), The Modern Corporation and Private Property,
Transactional Publishers.
3. Brian R. Cheffins (1997), Company Law: Theory, Structure, and Operation, Clarendon
Press, Oxford.
4. Eils Ferran, Company Law and Corporate Finance, OUP, 1st Indian Edition, 2003.
5. John H. Farrar, Farrars Company Law, Butterworths, London
6. Majumdar and Kapoor (2008), Company Law and Practice, 13th ed., Taxman.
7. Nicholas Bourne on Principles of Company Law (1998), 3 rd ed., Cavendish Publishing
Ltd.
8. Palmers Company Law, Stevans, London.
9. Paul L. Davies and Sarah Worthington (2016), Gower and Davies Principles of Modern
Company Law, Sweet and Maxwell, London.
10. Robert R. Pennington (2001), Penningtons Company Law, (8 th Ed.) London:
Butterworths.
11. Ross Grantham and Charles Rickett, Corporate Personality in the 20 th Century, Hart
Publishing, Oxford, 1998.
12. Stephen M. Bainbridge (2002), Corporation Law and Economics, Foundation Press.
13. Susan Barber (2003), Company Law, Old Bailey Press, London.
COMMITTEE REPORTS
The Report of the Committee on Company Law Amendment, 1945. (Cohen Report)
Report of the Company Law Committee, 1962. (Jenkins Committee)
Report of the JJ Irani Committee on Company Law, 2002.

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Corporate Laws I Syllabus Page 1 of 27

TAMIL NADU NATIONAL LAW SCHOOL

B.A. LL.B. (HONS.) AND B.COM. LL.B. (HONS.)

COURSE DESIGNED BY:

CORPORATE LAWS I: COURSE INFORMATION AND REQUIREMENTS

OBJECTS OF THE COURSE:

an understanding of the formation, registration of companies and regulation of companies,

UNIT 6 FORMATION OF CAPITAL AND RAISING OF SHARE CAPITAL

DIVISION OF INTERNALS MARKS (MAXIMUM MARKS 30):

DETAILED COURSE CONTENTS

Nature of business organisation and kinds of business organisations

Features of company and Limited Liability Partnership

Differences between a Partnership under the 1932 Act and a Company/LLP

Development of Company Law in England and India

Major Amendments to the Companies Act, 2013

1. A.K. Majumdar and G.K. Kapoor, on Introduction.

Promoters meaning, position, duties and liabilities

Memorandum of Association and Articles of Association: Meaning, Significance and

Scope and Significance of Modern Company and LLP Contracts

Parties to the contract and other stakeholders

Registered office and publication of name

Certificate of Commencement of Business

An Overview of the Structure of Company and LLP Laws

Select Special Features of Company Contract

1. Alexander Hamilton Frey, Modern Development in the Law of Pre-Incorporation

Ordinary Civil Courts : Jurisdiction in relation to company matters

High Court : Original and appellate jurisdiction in relation to company matters

Recent changes in the echanisms

Interpretation of MoA and AoA

Alterations in Memorandum of Association and in Articles of Association

Restrictions on such Alterations

A Comparative Analysis of MoA and AoA

Conflict between MoA and AoA

Distribution of corpora authority

9. Royal British Bank v. Turquand, [1856] 6 E & B 327

Concept of capital and financing of companies

Kinds of capital and Contracts to subscribe for shares

Classes and types of shares; equity with differential rights.

Issue of shares at par, premium and discount.

Private Placement and Statement in lieu of Prospectus

Information Memorandum: Contents and Registration

Meaning, Definition and Kinds

Contents and Registration

Misrepresentations in prospectus and civil and criminal liability for such

Minimum Subscription Requirement

Dematerialisation and rematerialisation of securities

Cost v. Benefit of demat form

Share certificates and share warrants.

Forfeiture and surrender of shares.

Bonus issues; rights issues; issue of sweat equity shares.

Qualified Institutions Placement

3. Eva Micheler, Farewell Quasi-Negotiability? Legal Title and Transfer of Shares in a

2. Catarina af Sandeberg, From Caveat Emptor to Caveat Venditor the Winding

UNIT 7 DEBT CAPITAL

Borrowings: Meaning, Types

2. Government Stock Co. v. Manila Rly., [ 1897] AC 81

3. Lallan Prasad v. Rahman Ali, AIR 1967 SC 1322

4. Maturi U. Rao v. Pendyala, AIR 1970 AP 225

5. Narendra Kumar Maheswari v. Union of India, AIR 1989 SC 2138

7. Official Liquidator v. Union of India, AIR 1988 NOC 78 (Ker)

10. Standard Chartered Bank v. HUDCO, 1995 CLB.

Alteration of share capital

Transfer Procedure in physical mode; Share Certificates, Uncertified Shares