Business Laws

Legal Aspect of Business

Submitted To: Submitted By:

Dr. Sundeep Kumar Manu, Sapna, Deepakshi,
Kushagra, Ankit, Mohit, Shweta,
Ashwani, Latika, Yash, Amitabh
 INTRODUCTION

● Legal structure of an
organisation that is recognised
Business in a given jurisdiction
● Key determinant of the
Structure activities that it can undertake
 Sole Properietorship Partnership Firm
● Ownership rests with a single person ● Minimum 2 persons required
● Unlimited liability
● Unlimited liability
● No need for registration
●
● Registration is not mandatory
Free decision making
● Unlimited liability

Partnership Firm Company

● Legally incorporated body under ● Association of 2 or more person
the Co-operative Societies Act,
● Common objective
1912
● Mandatory registration
● Can be on profit-sharing or non-
profit sharing basis
● Limited liability
 TYPES OF LEGAL ENVIRONMENT

Domestic International Regulatory Economic

Legal Legal Legal Legal
Environment Environment Environment Environment
 TYPES OF LEGAL ENVIRONMENT

Technological
Competitive Political Legal Social
Legal
Environment Environment Environment
Environment
 ASPECTS OF LEGAL ENVIRONMENT
Indian Contract Act, Sale of Goods Act, Indian Partnership
1872 1930 Act, 1932
● At least two parties ● At least two parties ● At least two parties
● Offer and ● Consideration ● Oral or written
acceptance ● Agreement to sell ● Profit sharing
● Lawful ● Movable property ● Liability
consideration ● Transfer of Property ● Voluntary
● Free consent registration
● Lawful contract ● Partners
 ASPECTS OF LEGAL ENVIRONMENT

Copyright Act, Consumer Protection Environmental

1957 Act, 1986 Protection Act, 1986
● Objective: protect
● Copyright ● Objective: justice to
environment from
Protection aggrieved customer
harmful impact of
● Duration of ● Consumer Rights
business
Copyright ● Consumer Forums ● Environmental standards
● Compensation and ● Regulatory authorities
Penalties ● Environmental Impact
Assessment
 ASPECTS OF LEGAL ENVIRONMENT
Trademark Act, Companies Act, Competition Act,
1999 2013 2002
● Trademark ● Company ● Objective: to
Registration Formation reduce adverse
● Trademark ● Corporate impact of
Infringement Governance competition
● Financial Reporting ● Antitrust regulation
● Competition
Commission
IMPORTANCE OF LEGAL ENVIRONMENT
● Business compliance: Ensures that the business complies with all
the required laws and regulations.

● Provides stability: Facilitates construction of rules and regulations

with clarifications which helps in decision-making for future.

● Maintaining ethics: Help the companies to establish the rules and

regulations and follow them to prevent unethical acts.
IMPORTANCE OF LEGAL ENVIRONMENT
● Framework for business operations: Help in maintaining a framework
while operating in different contractual agreements, intellectual property
rights, property rights, etc.

● Protecting the business: Provide protection to the company from fraud,

unfair competition, and other illegal or unethical practices.

● Sustained business prosperity: A strong legal framework contributes to

sustained business prosperity and benefits both consumers and
entrepreneurs.
 REGULATORY BODIES
1)Social : MCA,NHRC,SEBI
2)Competition: CCI
3)International: DGFT,MEA
4)Environmental:CPCB,MOEFCC
 Cyber Security
EMERGING With most of the company essentials and confidential
information being stored online, it has become a
LEGAL necessity rather than obligatory function of
TRENDS organizations to rely on cyber security.

AI and ML Making Impacting the

More than 22% businesses experienced
a cyber security attack during the
2021-22 financial year, compared to
almost 8% in 2019-20, according to
new data released today by the
Australian Bureau of Statistics (ABS)
Cyber-Ecosystem
International Data Corporation
(IDC) says AI in the cybersecurity
market is growing at a CAGR of
23.6% and will reach a market
value of $46.3 billion in 2027
 Corporate Social Responsibility has
shifted its value from being looked upon as
a side function to a facilitative one: An
EMERGING organisation must be socially responsible in
order to earn profits in the long run.
LEGAL
TRENDS Recent amendments in the CSR Policy :
● Brief outline on Company’s CSR policy
● Composition of CSR Committee
● Amount spent on CSR
projects(completed and ongoing)
 PAYTM CASE
● RBI action against the Paytm Payments Bank
● Failure on the part of the organization to understand the regulatory compliance
● Regulatory compliance: not an option rather necessity for all, be it
conglomerates or startups
● All the merchants and account holders to shift their accounts to other banks
before March 15
● Paytm QR codes and other systems to remain functional even after March 15
● ISSUES: Licensing provided to PPBL mentioned lending activities aren’t
allowed & issues related to governance structure
Thank you