ASSIGNMENT

LEGAL ASPECTS OF BUSINESS

A Company is an artificial person created by law. The Companies Act, 1956 was enacted to
regulate Companies in India. Since under the corporate form of business, substantial amounts of
money is pooled by various stakeholders and entrusted to a selected few, the law requires that
every significant development in the management of the Company must be reported to the
Administrative Machinery, i.e. the Registrar of Companies.

However, owing to poor administration of the Act, unscrupulous promoters duped lot of
unsuspecting investors of their wealth, which necessitated major revamping of the regulatory
environment.

The Ministry of Company Affairs, embarked upon a major e-governance initiative by unveiling
its high profile MCA-21 project. The project is the first ever of its kind by the Government of
India and aims at making all the reporting requirements paperless. The project amongst other
things envisages allotment of Director Identification Number on the lines of Income Tax PAN to
anyone who wants to be a director of a company, requires every document filed to be
authenticated by the Chartered Accountant or a Company Secretary

The entire scheme of filing and registering of documents at the ROC Office has undergone a sea
change and e-filing has completely replaced paper filing. The documents are to be filed
electronically, using digital signatures.

You are required to study the various changes that have been brought about by MCA 21, the
procedures introduced, the registration requirements for Companies, Directors, etc. and critically
evaluate the advantages and disadvantages to various stakeholders. You can visit the website of
the Ministry of Company Affairs at www.mca.gov.in

The assignment has to be submitted individually by each student. Every submission should be an
authentic document. The assignment complete in all respect should reach the undersigned at the
following address by November 12, 2010.

Vimal Kishore
Anurag Sangal & Co.,
Chartered Accountants
1st Floor, Tilak Complex,
27-Tilak Road,
Dehra Dun – 248 001

VIMAL KISHORE