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OF

BUSINESS LAW
(STEEL SECTOR)

MGT 518
SUBMITTED TO:-
SUBMITTED BY:-
MISS YOGITA SAHNI MANJEET
PAUL
SHIL
PA SALUJA
SHREYA
CHITTRAYANSHI

ACKNOWLEDGEMENT

Through my gratitude towards my supporters yet we like to


add a few hearts full for the people who were part of this
case study in numerous ways. People who gave
understanding support right project ideas were conceived.

First we want to thank MISS YOGITA SAHNI, Lecturer


BUSINESS LAW, lovely professional university, phagwara for
assigning this term paper & we also want to give hands full
gratitude to her for her help & guidance. We would like to
thank all the faculty of lovely school of business for having
faith in us, & for their kind inspiration and helping us
whenever asked.

Last but not least, we expand us heartiest gratefulness all


people who have given us best wishes & all help that we
needed for the completion of the term paper.

SHILPA SALUJA

MANJEET PAUL

SHREYA CHITRAYANSHI
TABLE OF CONTENTS

1- RESEARCH AND METHODOLOGY


2- FORMATION OF A COMPANY
3- MEMORANDOM OF ASSOCIATION
4- CONTENT OF MOA
5- ARTICLE OF ASSOCIATION
6- CONTENT OF AOA
7- REGISTRATION OF COMPANY
8- DOCUMENTS
9- CONTRACT WITH INFRASTRUCTUR AND AUTOMOBILE
COMPANY
10- CONCLUSION
11-REFERENCES.
MEANING OF RESEARCH

“Systematized efforts to gain new knowledge”


Research is a process of defining and redefining problems
formulating the different hypothesis with suggested solutions by
collecting, summarizing, organizing and evaluating different
data’s by thus reaching on solutions with careful testing.
Research is common means which refer to search for knowledge.

This research is based on first hand and second hand data.

In this basically I have collected second hand data.


Sources of secondary data:-

*Various publications of the control state are local government.


*Trade journals, books, and internet.
FORMING A NEW COMPANY

INTRODUCTION TO A STEEL SECTOR

A company is formed by registering the Memorandum and Articles


of Association with the State Registrar of Companies of the state
in which the main office is to be located. The first step in the
formation of a shreya steel pvt. ltd. company is the approval of
the name by the Registrar of Companies (ROC) in the State/Union
Territory in which the steel company will maintain its registered
office. This approval is provided subject to certain conditions: for
instance, there should not be an existing STEEL company by the
same name. The ROC generally informs the applicant within
seven days from the date of submission of the application,
whether or not any of the names applied for is available. Once a
name is approved, it is valid for a period of six months, within
which time Memorandum of Association and Articles of
Association together with miscellaneous documents should be
filed. If one is unable to do so, an application may be made for
renewal of name by paying additional fees. After obtaining the
name approval, it normally takes approximately two to three
weeks to incorporate for depending on where the company is
registered.

MODE OF FORMING INCORPORATED COMPANY (Sec.12)

Shreya steel pvt ltd company is formed as a company limited by


shares.
In this company limited by shares means, where the liability of
the members of a company is limited to the amount unpaid on
the shares, such a company is known as a company limited by
shares.

MEMORANDUM OF ASSOCIATION-

1. Name clause
2. Objective clause
3. Liability clause
4. Registered office clause
5. Capital clause
6. Association clause

MEMORANDUM OF ASSOCIATION-
MOA IS the charter document of the company the promoter for
the registration of a company under company act 1956. The MOA
was prepared according to the Table B of schedule 1 for making
public company.

CONTENT OF MOA-

1-NAME CLAUCE-
The promoter of company going to suggest to the registrar of
companies . SHREYA steel ltd. As a main name and other name
and other suggested names also
( shreya steel ltd. sms steel ltd ,ms2 steel ltd )and to show that
our company ‘Public company’ is limited by share. We are Using
limited word at the name and the name accept by the registrar
will be engrave on its seal and Be published on the outside of
every office or place where business will be carried on .
OBJECT CLAUSE-
The object of SHREYA steel Ltd. Company was to provide better
steel to customer for easily they get at different areas .means in
all over the world. The company achieves the main object of the
company.

LIBILITY CLAUSE-
Share value Liability clause tell that liability of the company is
limited In case of company quidaliry so,the shareholder will pay
only the unpaid call . capital. Company cannot forces its
Shareholder to pay any extra amount over these share value.

REGISTERED OFFICE CLAUSE-


Registered office of the company is At JHALANDHAR .the
registered office will not be change unless until resolution has
been passed by the board director Registration office will be hold
all the important document of the company like audit report and
other all legal document related to the formation of the
company.

CAPITAL CLAUSE-
The company have authorized capital of 20000000and value of
share is 100 each.

ASSOCIATION CLAUSE-
Association clause was followed by the names, addresses and
description of subscribers it. The person who is desires for the
formation of a company and the no. of shares taken by these
subscribers is 5000 in total

ARTICLE OF ASSOTIATION-(AOA)-
The AOA is subsidiary document of SHREYA steel ltd. Company.
Which specify all the right and duties of all the members and
directors? The company is following the table A of schedule 1. In
which they mode all the rules and regulation of their
Own.

CONTENT-

Share capital-

Authorized capital is 20000000 divide in to Rs. 100 per


share.

CALL ON SHARES-
SHREYA Steel ltd. Company has divided the face value of that
Rs. 100 into5 parts
1. Application money (Rs. 20 per share)
2. Allotment money (Rs. 30 per share)
3. First call (Rs. 20 per share)
4. Second call (Rs. 20 per share)
5. Third call(Rs. 10 per share)

RULES AND REGULATION-


1. The director has right to revoke and to
post pone a call on share.
2. If the shareholder will pay the unpaid
amount after the due notice, the share
will be for fitted by the company.

THE LIEN ON SHARE –


SHREYA steel ltd. company will have
st
1 lien on the share and debenture registered in the name of
members and upon the proceeds of sales. The board of directors
of SHREYA steel ltd. Company whenever they feel like.
The board of director of SHREYA steel ltd. Company
may declare of shares wholly or in part To be exempt from this
procedure.

TRANSFER OF CAPITAL-
The shareholder can
transfer the share of company .

ALTERATION OF CAPITAL-
As provided in MOA
of SHREYA Steel ltd. Company. The capital Of this company can
be increased or decreased by passing a special resolution by
making alteration in AOA

DIVIDENDS AND RESERVE-


The company will
transfer 20% of its net profit to reserves for future and rest after
making necessary deduction will be divided as divided to the
shareholder.

BORROWING POWERS-
Borrowing power subject
to the provision of sec.58 A 292 and 293 of company act 1956 ,
SHREYA steel ltd may from time to time raise or borrow any sum
of money.

CONVERTION OF SHARES INTO STOCK-

BY Passing a special resolution, the SHREYA steel ltd company


can convert any paid up share into stock, Holder of stock,
according to the amount of stock will have some right.
DIRECTORS-
1. Member of directors shall not be less than 3or limit
on maximum First directors of the company are

2. MANJEET - 40 %

3. ,SHREYA, -30%

4. SHILPA - 30%

The first directors shall hold office until the close of SHREYA steel
ltd . Company.

POWER OF DIRECTOR-
Entitle the board direct shall be
to exercise all such powers and all such acts and things as
company is authorized to exercise and do

• Power to make calls

• Power to issue debenture

• Power to borrow money otherwise than by debentures

COMMON SEAL-
The company has a common seal and the
directors shall provide for safe custody them.

AUDIT-
Every year the account of the company shall be
balanced and audited and the correct information. The P&l
account and the balance sheet ascertained by one or more
auditors.
WINDING UP-

If SHREYA steel ltd company shall be wound up and the


assets available for distribution among the member as such
shall be insalticient to repay the paid up capital ,such assets
Shall be distributed so that as clearly as may be the ,losses
shall be boar by the member in proportion To the capital
paid –up.

FORM OF REGISTRATION;

• If any person and association want to make new company


related to financial services and open a new bank then there
are some form should be fulfill then after they success in his
mission, means opening a new bank , so that the information
about the form is following;

• COFIDENTAL—please complete all section and boxes.

o Firstly the proprietor fill his full name MANJEET

o Secondly he or she describe his contact name and his


telephone number

 MANJEET PAUL 09464333562…………….

o Doctor telephone number…0129455648………..

o Home number……05944273089………………………
o Email……MANJEET PAUL @

gmail.com……………………………

o Date of birth………18 July 1989…………………….

o Age…20…..height…5”3….weight……44………..

o Describe any Disability, if yes…no……..

o Have you ever suffered a serious injury or discomfort


while riding or been advise not to ride?
yes………..no……no…….

• EMERGENCY CONTACT AND DOCTOR DETAIL

• Contact name and relationship …… Mr.singh (family docter)


… ……

 Telephone…9877937865………….

• Doctor name ……mr.singh………………

 Telephone……9811629368……………………….

• RIDING ABILITY –you must tick all boxes and that


apply :

• I consider myself (or the person riding for who I am signing


on behalf as a minor) to be a:

 Never ridden before…………


Beginner……………………..

Novice………………………

Intermediate…………………

Advance……………………..

1. How many times have you/rider ridden in last 12


months:

None…………….

Under 12…………….

12—40…………………….

40 +………………………..

2. What do you believe yours or the person riding’


capabilities to be on a horse or pony to be?

Riding at a walk…………………..

Trotting with Stirrups………………Trotting without


Stirrups……………Cantering……………………………
RIDERS UNDER 16 YRS OF AGE:

I accept full responsibility for my child and confirm that the


above pre-assessed abilities are correct. I accept my child rides at
his/her own risk.

RIDERS AGED 16 YRS AND OVER:


I confirm that the above pre-assessed abilities are correct and I
agree that I RIDE ENTIRELY AT MY OWN RISK.

DATA PROTECTION ACT 1998:


Statement: I understand that the information I have given will be
held in accordance with the Data Protection Act 1998 but may
also be
made available to Insurers and other concerned parties in the
event of any injury or accident.
I understand that I must obey the instructions of the instructor
and must comply with the Health & Safety requirements of the
establishments. I reserve the right not ride a
horse allocated to me or my child and or request a change of
instructor.
I confirm that to the best of my knowledge all the above details
are correct. A parent or guardian of riders under the age of 16
must sign this form.
I acknowledge THAT RIDING IS A RISK SPORT AND HOLDS A
POTENTIAL DANGER, and that all horses may react
unpredictably on occasions.

If signing on behalf of rider please state relationship to rider


……………………………
Signature MANJEET PAUL ………………. Print
Name……………………………….
Date…………………………………………..

TO BE COMPLETED BY ISTRUCTOR/ SUPERVISOR ON


BEHALF OF THE EQUESTRIAN ESTABLISHME
1. This client has been assessed and our judgment of their
capabilities is as follows:
Complete Beginner (Lead rein/Lunge)
……………………………
Beginner (Beginning Walk & Trot independently)
………………..
Novice (Walk, Trot, Canter independently)
…………………………

Intermediate (Jumping, Stage 1)


…………………………………….

Advanced (Stage 2, Equivalent and above):


……………………..

2. ASSESSMENT LESSON CONTENT: Walk……………………

Trot ……………………..

Canter…………………….

W/O Stirrups…………….

Jump……………………

Lateral…………………….
3. OFFICE USE - Assessment Lesson

Horse Used…………………….

Lesson Type…………………….

Date……………………………….

Time………………………

Signature……………………………………. Print
Name……………………………….
Position………………………………………..

Form_ 1

Please specify the type of company _new company

Name of the company SHREYA steel pvt. Ltd.

State whether the company is public or private _ private

Whether the company is having _ Share Capital

Authorized share capital of the company _RS.20000000

Breakup of authorized capital :

[a] Number of equity shares 30%

[b] Face value of per equity share Rs. 100

[c] Total amount Rs 3000

[d] Number of preference share 40%


CONTRACT MADE BY SHREYA STEELPVT LIMITED

The total two contracts are made between our company “shreyasteel” AND

 Infrastructure company

 SAV pvt ltd. Company (automobile company)

CONTRACT NO.1:-

CONTRACT FOR SUPPLY OF STEEL RODS:-

Shreya steel will provide good quality steel rod of 100 ton to Infrastructure
Company of Rs.400000 on 1 Jan 2010.

TERMS AND CONDITIONS:

1. The parties in the contract are capable to enter in contract The contract was
made with major person (i.e. not less than 21 yrs of age), and the person of
sound mind

2. The contract is made on free consent.

3. Once the steel rods are supplied, company is not liable of any destruction
or loss of product while in transportation.

4. Company is not giving on discount on steel rods.

5. Both the parties are intended to create legal relationship with each other.

6. There is lawful consideration like our shreya steel is offering them 100 ton
steel rods while Infrastructure Company is giving them 4 lacks in return.
ACCEPTANCE: A contract emerges from the acceptance of an offer. Acceptance
is the act of assenting by the offeree to an offer. The contract’s terms and
conditions were clearly specified to both the parties, and remarkable interest was
shown by both the companies, both the parties accepted the offer and AGREED to
bound with the contract .the contract was made accepted with all terms and
conditions, it was done successfully by both the companies and we will proceed
further according to contract made between us.

1. We will accept only check made on the name of the company.

2. Company will take half of payment in advance.

3. Offer that is in terms written agreement must be made to company.

4. Acceptance of the offer should be in written agreement.

5. company will provide all the steel rods on 1jan 2009 and the rest of
payment should also be made at that time

CONTRACT NO- 2:-

CONTRACT FOR SUPPLY OF NUTS AND BOLT USED IN AUTOMOBILES:-

All parts like nuts, bolts to automobile company, which are found in automobiles
will be purchased from shreya steel company. And automotive will become loyal
customer of our company.

TERMS AND CONDITIONS:-

1. The purchase of nuts and bolts will be done only from shreya steel.

2. The amount for purchase of goods should be paid simultaneously at the same
time only by cheque or draft.

3. The warranty for one year will be given for each item purchased from our
company and in case of any problem if occur within this period of time we will be
liable for either repair it or replace it.
4. Only exchange of goods will be welcomed and not the return of goods.

5. We will provide quality goods to automotive automobiles and will no chance of


complaints.

6. We will supply the goods within 15 days after making contract.

7. There is lawful consideration by both the companies that is shreya steel is


offering then nuts and bots while SAV pvt. Ltd. Company giving them money in
return.

ACCEPTANCE: A contract emerges from the acceptance of an offer. Acceptance


is the act of assenting by the offeree to an offer .The contract’s terms and
conditions were clearly specified to both the parties, and remarkable interest was
shown by both the companies, both the parties accepted the offer and AGREED to
bound with the contract .the contract was made accepted with all terms and
conditions, it was done successfully by both the companies and we will proceed
further according to contract made between us

6. We will accept only check made on the name of the company.

7. Company will take half of payment in advance.

8. Offer that is in terms draft agreement must be made to company.

9. Acceptance of the offer should be in written agreement.

10. Company will provide all the steel rods on 1 Jan 2009 and the rest
of payment should also be made at that time
CONCLUSION

To scrutinize, we only want to say that we now understand how to make a


company, its registration process, details needed to make MOA and AOA and how
to make contract. This information is very helpful to us in context to future for the
MBA students like us to make a company then to register its name is very tedious
work but also exciting as well that helps you to learn the difficulties and
government process occurring in your way and these conditions also makes you
liable to government and people and reminds you that you are doing a very
responsible job of starting accompany as well as giving employment to number of
people.
REFERENCES
 elements of MERCHANTILE LAW : N.D.KAPOOR
 http://www.companyformationindia.com/steps-
to-set-up-a-pvt-ltd-company-1.html