DAMODARAM SANJIVYYA NATIONAL LAW UNIVERSITY

Visakhapatnam

Course Outline
Title of the Subject: Corporate Law I
Academic Year 2021-22

Name of the Faculty: Dr. Dayananda Murthy C P Total No. of Hours: 75

OBJECTIVE OF THE COURSE:

Corporate and Securities laws have been in a constant state of flux and constitute the
structure of special commercial transaction, which is becoming more complex and
challenging and a student is bound to study and understand. Companies are surging into and
bringing new activities into the fold of Indian economy. Companies have emerged
internationally as efficient providers of a wide range of goods and services, including
increasing number of options and avenues for international business, trade and capital flows
not only for harnessing entrepreneurial and economic resources efficiently but also to be
competitive in attracting investment for growth. India is considered to be the fastest growing
economy and the business environment requires dynamism for entrepreneurs. The Corporate
Laws has witnessed a positive shift towards corporate governance. The Regulatory
framework had to adopt to the changing needs and at the global level.
This made the legislature to understand the development happening across countries and
keeping pace with this, a review and redrafting of the Companies Act, 1956 was taken up by
the Ministry of Corporate Affairs. The Companies Act, 2013 was enacted by replacing the
1956 Act. There are various changes made to the new Act, wherein it simplifies the
substantive and procedural law. The students are expected to be conversant with the latest
developments in corporate laws, amendments or the corresponding provisions of any
statutory modification or re-enactment thereof and judicial pronouncements.

The policy of the Government is “Government has no business to do business” and informed
to the business community that the focus will be on “Minimum Government but Maximum
Governance”. The objective is that the role of the Government is limited to that of a
facilitator rather than a regulator. The building and encouraging the entrepreneurship with the
“Make in India” and “Start-up India” programs with the slogan “Atmanirbar Bharat” is the
buzz in the market. The legislation has crafted the law to encourage the creation of start-ups
and small companies including Micro, Small and Medium Enterprises (MSME’s). There are
many Schemes and program including the financial support and enhancement of value
creation not only for itself, but for the Indian economy.

The objective of the course is to develop an understanding of the law applicable to various
companies registered under the Companies Act, 2013. In addition, the student is supposed to
know the relevance of the Schedules of the Act, Rules and Regulations made there under
including their interpretation through case laws, notification and circulars and departmental
clarifications issued from time to time.

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The students will be guided through Securities Law like, the Securities Exchange Board of
India Act, 1992, Depositories Act, 1996 and the Securities Contract Regulation Act, 1956 as
part of the subject (covered under the Corporate Law II Course). We have to keep in mind
that Globalization has opened vistas of both inbound and outbound investments. The
companies are attracted to the global markets, like, expecting inbound investments from
multi-national giants, Foreign Institutional Investors (FII), Venture Capital Fund, Angel
Investments, etc and outbound investment like the Global Depositories Receipts. Students are
expected to know the companies’ prospect of foreign investments regime, which has
developed as a separate branch of law. The Competition or anti-trust law also influences the
functioning of the companies, which branch of law has gained prominence in the recent past.

The course shall intend to provide the following learning outcomes wherein students shall
acquire:
1. Knowledge to practice Corporate Laws as a Judge, member of a Tribunal, Advocate,
Academician or as Adviser or Consultant to the corporate entities.
2. Identification and recognition of the problem and necessary skills to deal in the
existing business scenario
3. Understanding the application of the Skills of Statutory as well as Judicial
interpretation.
4. Knowledge in identifying appropriate or existence of the legal remedies.

Students are expected to understand and know:

a) The Concept of incorporation of companies, separate legal entity, limited liability,
lifting of corporate veil and reverse veil piercing.
b) The statutory and administrative compliances required under the Companies Act 2013
c) The capacity of companies including the powers and limitations
d) The changing face of Doctrine of Ultra-Vires, Constructive Notice & Indoor
Management
e) The concept of share capital and debt capital including debentures and overall
financial structure of the companies
f) The role, responsibility, powers, duties, limitations, and potential liability of the
promoters, directors, managers, the shareholders, and debenture holders in a company
g) The power equations between the shareholders, the directors, and shareholder and
debenture holders’ remedies
h) To understand the management of company affairs and winding up of companies
including insolvency petition

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Unit UNIT 1 No. of
No. The Companies Act, 2013 - Chapter – I - XXIX - SS. 1 – 470 Hours
INTRODUCTION
1.1 Forms of Business Enterprises – Distinctiveness of individual proprietor - Partnership – 7
Limited Liability Partnership and Companies - ‘Company’ as a business medium.
Changing Face of Companies. Historical Development of Concept of Corporate and
Securities Law - Start-ups - Unicorns - MSME’s - Support for Entrepreneurship
Company - Nature - Characteristics - Functions - Concept of Corporate Personality and
Limited Liability - Perpetual Succession
Company as a Citizen – Its Residence / Domicile – Place of Effective Management
(POEM) - Common Seal (Sec. 9)
 Salomon v A Salomon & Co Ltd, (1897) AC 22
 In Re, The Kondoli Tea Co. Ltd.., (1886) ILR 13 Cal 43
 Catherine Lee v Lee’s Air Farming Ltd., (1961) AC 12
 Bacha Guzdar v CIT, (1955) 25 Comp Cas 1 (SC); AIR 1955 SC 74
 Macaura v Northern Assurance Co. Ltd., (1925) AC 619 (HL)
 Gilford Motor Co Ltd v Horne, (1933) Ch. 935
 Jones & Another v Lipman & Another, (1962) 1 WLR 832
 LIC v Escorts Ltd., (1986) 1 SCC 264
 New Horizons Ltd. v Union of India, (1995) 1 SCC 478
 State of U.P. and Ors. v Renusagar Power Co. and Others, AIR 1988 SC 1737
 DDA v Nalwa Sons Investment Ltd. and another, 2019 Indlaw SC 468
 Re Noel Tedman Holdings Pty Ltd. (1967) QDR 561
1.2 Lifting of Corporate Veil / Piercing the Corporate Veil and Concept of “Reverse Veil 7
Piercing” - Fraudulent / illegal acts - Evasion of Law - Avoidance of legal obligation and
Principles of ‘Agency’ / Concept of “Single Economic Entity” / Concept of “Alter ego”
 Daimler Co. v Continental Tyre& Rubber Co. (Great Britain) Ltd., [1916] 2 A.C. 307
(H.L.)
 In Re, FG (Films) Ltd., (1953) 1 WLR 483
 In Re, CIT v Sri Meenakshi Mills Ltd., Madurai, AIR 1967 SC 819
 Commissioner of Central Excise v Modi Alkalies & Chemicals Ltd., (2004) 7 SCC 569
 PNB Finance Ltd. v Shital Prasad Jain and Others, AIR 1982 DEL 125
 Delhi Development Authority v Skipper Construction Co. Pvt. Ltd., AIR 1996 SC 2005
 Apthorpe v Peter Schoenhofen Brewing, (1899) 15 T.L.R. 245 (A.C.)
 Smith, Stone & Knight Ltd. v Birmingham Corp., (1939) 4 All E.R. 116 (K.B)
 DHN Food Distributors Ltd. v London Borough of Tower Hamlets, (1976) 1 W.L.R.
741
 Firestone Tyre and Rubber Co. Ltd. v Lewellin (Inspector of Taxes), CA, [1956] 1
W.L.R. 352; Firestone Tyre and Rubber Co. Ltd. v Lewellin (Inspector of Taxes), HL,
[1957] 1 W.L.R. 464
 Scottish Cooperative Wholesale Society v Meyer, (1959) A.C. 324 (HL)
 Bank of Tokyo Ltd. v Karoon and Another, (1987) A.C. 45
 Adams v Cape Industries Plc, [1991] 1 All E.R. 929
 Balwant Rai Saluja & another v Air India Ltd. & others, (2014) 9 SCC 407 (3 Judge
Bench) & (2013) 15 SCC 85 (DB)
 Union of India v ABN Amro Bank and others, (2013) 16 SCC 490
 Estate Officer, UT Chandigarh v Esys Information Technologies Ltd., [2016] 136 SCL
513
1.3 Contractual, Tortious and Criminal Liability 3
Liability / obligation of the “Officer in Default” in a company - Applicable “Agency

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 Principles in Company Law - Doctrine of Identification - Doctrine of Alter Ego - Doctrine
of Attribution - Collective Blindness Doctrine - Willful Blindness Doctrine
 TVS Employees Federation v TVS & Sons Ltd, 1996 87 Comp Cases 37 Mad.
 Indowind Energy Ltd v Wescare (I) Ltd., AIR 2010 SC 1793
 Bermuda Cablevision Ltd. and Others v Colica Trust Co. Ltd., [1998] AC 198
 A.K. Khosla v T.S. Venkatesan, (1992) Cr. L.J. 1448
 M.V. Javali v Mahajan Borewell and Co. and Others, (1997) 8 SCC 72
 Kalpanath Rai v State (through CBI), (1997) 8 S.C.C 732
 Zee Telefilms Ltd. v Sahara India Co. Corp. Ltd., (2001) 1 Cal.L.T 262 HC
 Standard Chartered Bank & Ors v Directorate of Enforcement & Ors, AIR 2005 SC
2622
 Iridium India Telecom Ltd. v Motorola Incorporated & others, (2011) 1 SCC 74
 Aneeta Hada and others v Godfather Travels and Tours Pvt. Ltd., (2012) 5 SCC 661
 In Re, M.K. Srinivasan v Unknown, AIR 1944 Mad 410
 V Mohan Rao v M Kishan Rao, AIR 2002 SC 2653
 Lennard’s Carrying Co Ltd v Asiatic Petroleum Co Ltd., 1915 AC 705 H L
 Bolton Engineering Co Ltd v T J Graham & Sons Ltd., (1957) 1 QB 159
 R v I.C.R. Haulage Ltd, [1944] K.B.551, C.A
 R v P & O European Ferries (Dover) Ltd., (1990) 93 Cr. App. R. 72
 Director of Public Prosecutions v Kent and Sussex Contractors Ltd., (1994) K.B. 146
 Tesco Supermarkets Ltd. v Natrass, (1971) 2 All ER 127 HL
 Tesco Stores Ltd v Brent London Borough Council., [1993] 2 All ER 718
 R v Cotswold Geotechnical (Holdings) Ltd., [2011] All ER (D) 100 (May)
 R. v Philippou, (1989) 5 B.C.C. 665
 DPP v Gomez, [1993] A.C. 442
 New York Central & Hudson River Railroad v U.S, 212 U.S. 481
UNIT 2
INCORPORATION OF COMPANIES
2.1 Formation and Registration of Companies - MCA 21- E filing of documents for the 3
company
(SS. 3 & 7)
 Muluk Mohamed v Capital Stock Exchange Kerala Ltd, (1991) 72 Com. Cases 333
(Ker)
 R v Registrar of Companies, ex parte Attorney General, (1980) (1991) BCLC 476
 Workmen Employed in Associated v Associated Rubber Industry Ltd., AIR 1986 SC 1
 Kirloskar Proprietary Ltd v Kirloskar Dimensions (P) Ltd, AIR 1997 Kant 1, (1999) 96
Comp. Cases 726 Kar
 Pino Bisazza Glass P Ltd v Bisazza India Ltd, (2003) 1 GLR 528
 In Re, Metal Box India Ltd. v Unknown, (2000) 2 Comp LJ 390 CLB
 In Re, Mackinnon Mackenzie & Co. v Unknown, 1967 37 Comp Cases, 516 Cal
 Minerva Mills v Govt. of Maharashtra, (1975) 45 Com. Cases 1 (Bombay)
DOCUMENTS OF THE COMPANY
2.2 MEMORANDUM OF ASSOCIATION – Name, Registered Office, Objects, Capital and 6
Liability. Doctrine of ultra-virus - Death of Doctrine of Ultra Virus - Section 4 - 6; SS 12
– 22
 Ashbury Railway Carriage & Iron Co. Ltd v Riche, (1875) LR 7 HL 653.
 Attorney General v Great Eastern Railway Co., (1880) 5 App Cas 473 (HL).
 Cotman v Brougham, (1918) AC 514.
 Ajay Kumar Gupta v Bhagyanagar Silk Mill (P) Ltd., (2013) 178 Comp Cas 135 (AP).
 In Re, Bilsasrai Juharmal, AIR 1962 Bom 133

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  Lakshmanaswami Mudaliar (A) v LIC of India, AIR 1963 SC 1185
 Evans v Brunner Mond & Co. Ltd., (1921) 1 Ch 359.
 Simmonds v Heffer, (1983) BCLC 298 (Ch D).
 Ferrom Electronics (P) Ltd. v Vijaya Leasing Ltd., (2002) 109 Comp Cas 467 (Kant.)
 Trevor v Whitworth, (1887) 12 App Cas 409 (HL)
 In Re David Payne & Co., Ltd, [1904] 2 Ch. 608.
 In Re, Introductions, [1970] Ch 199 CA
 Re German Date Coffee Co., [1882] 20 Ch 169
 Bell Houses Ltd v City Wall Properties Ltd., [1966] 2 All ER 674.
 Rolled Steel Products (Holdings) Ltd. v British Steel Corporation, (1985) 3 All ER 52
2.3 ARTICLES OF ASSOCIATION and additional documents required for incorporation - 6
SS 4 - 6 - Certificate of Incorporation - Commencement of Business
The Doctrine of Constructive Notice - Doctrine of Indoor Management - Exceptions –
Validity of the Doctrine
Cases:
 Matrubhumi Ltd. v Vardhaman Publishers Ltd., (1992) 73 Comp Cas 80 Ker
 K G Khosla v R C Kirloskar, 2001 103 Comp Cas 984 Delhi
 Royal British Bank v Turquand, (1856) 6 E1 & B1 327.
 Morris v Kanssen, (1946) 1 All ER 586.
 Freeman and Lockyer v Buckhurst Park Properties (Mangal) Ltd., [1964] 2 QB 480
 Hely Hutchinson v Brayhead Ltd, (1968) 1 QB 549
 Houghton & Co v Nothard Lowe & Wills Ltd, [1927] 1 KB 246 (CA) 81
 Gunmala Sales Private Limited v Anu Mehta and others, (2015) 1 SCC 103
 Anand Bihari Lal v Dinshaw& Co., (1946) 48 Bom LR 293
 Dehra Dun Mussoorie Electric Tramway Co. Ltd. v Jagmandar Das, [1931] 1 Comp
Cas 227
 T. R. Pratt (Bombay) Ltd. v. E. D. Sassoon and Co. Ltd., [1936] 6 Comp Cas 90;
 Lakshmi Rattan Cotton Mills v J K Jute Co., AIR 1957 All 311
 British Thomson - Houston Co. Ltd v Federated European Bank Ltd., (1932) 2 KB 176
 Kreditbank Cassel GmbH v Schenkers Ltd, (1927) 1 KB 826
 Rama corporation Ltd v Proved Tin and General Investments Ltd, (1952) 1 All ER 554
 V. J. Paul Joseph & another v Alexander Correya & others, 2020 Indlaw NCLAT 344
 In Re, Aptech Limited, 2020 Indlaw SEBI 46
 Hillcrest Realty SDN BHD & Anr. v Hotel Queen Road Pvt. Ltd. & others, [2013] 179
Comp Cas 475
2.4 Promoters - Meaning and importance, Position, Duties, Rights, Responsibilities and 3
Liabilities - Pre-incorporation contracts - SS. 15 & 19, Specific Relief Act, 1963
Binding Nature of MOA & AOA; Alteration of Memorandum and Articles of Association
and implication and limitations on power of alteration
(SS 10, 13 & 14)
Cases:
 Hill Properties Ltd. v Union Bank of India, (2014) 1 SCC 635
 Borlands Trustee v Steel Brothers & Co., [1901] 1 Ch 279
 Wood v Odessa Waterworks Co., [1880] 42 Ch. 636
 Browne v La Trinidad, (1887) 37 Ch.D. 636
 Eley v Positive Govt. Security Life Assurance Co., [1876] 1 Ex D 88.
 Hickman v Kent or Romney Marsh Sheep-Breeders’ Association, [1915] 1 Ch 881
 Rayfields v Hands, [1960] Ch 1; (1958) 2 All ER 194
 Claude-Lila Parulekar v Sakal Papers Pvt. Ltd. and Ors., (2005) 11 SCC 73
 L. Chandramurthy v Pearl Metal Products Pvt. Ltd. and Ors., [2009] 149 Comp. Cases

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 291 (CLB)
 AIDQUA Holdings (Mauritius) Inc. v Tamil Nadu Water Investment Co. Ltd., (2014) 4
MLJ 429
 Erlanger v New Sombrero Phosphate Co., (1878) 3 App Cas 1218.
 Gluckstein v Barnes, (1900) AC 240
 Kelner v Baxter, (1866) LR 2 CP 174
 Jai Narain Parasrampuria v Pushpa Devi Saraf, (2006) 7 SCC 756
 World Phone India (P) Ltd. v WPI Group Inc, (2013) 178 Comp Cas 173 (Del)
2.5 TYPES OF COMPANIES 7
 Public & Private - Registered & Unregistered - Holding and Subsidiary - Single
shareholder companies / One Person Company - Not for Profit Companies (S. 8) -
Producer Companies - Chapter XXII Companies Incorporated Outside India (Foreign
Company - SS. 379 - 393) - Chapter XXIII - Government Companies - SS - 394 - 395
Cases:
 Vodafone International Holdings B.V. v Union of India & Anr., (2012) 6 SCC 613
 SAIL v Shri Ambica Mills Ltd., (1998) 1 SCC 465
 STC v CTO, AIR 1963 SC 1811
 Heavy Engg. Mazdoor Union v State of Bihar, (1969) 1 SCC 765
 Tata Engineering & Locomotive Co Ltd v State of Bihar, (1964) 34 Comp Cas 458
(SC)
 Som Prakash Reki v Union of India, (1981) 1 SCC 449
 Bennet Colman and Co. v UOI, AIR 1973 SC 106; 1973 SCR (2) 757
 Rustom Cavasjee Cooper v UOI, AIR 1970 SC 564
 BALCO Employees Union v UOI, (2002) 2 SCC 333
 Amar Alcohol Ltd. v SICOM Ltd., (2006) 1 SCC 199
 Kapila Hingorani v State of Bihar, (2003) 6 SCC 1
 GD Zalani v UOI, (1995) 84 Comp Cas 40 (SC)
 TELCO Ltd. v State of Bihar, (1964) 34 Comp Cas 458 (SC)
 LIC v Escorts Ltd., (1986) 1 SCC 264
 N C Bakshi v UOI, (2013) 178 Comp. Cas. 289 (Sec. 8, Co.)
 PJ Johnson v Astrofiel Armadorn, (1989) 3 Comp L J 5, 10 (Ker)
 Pratap Singh v Bank of America, (1976) 46 Comp Cas 532 (Bom)
 FR Paymaster v British Burmah Petroleum Co Ltd., (1976) 46 Comp Cas 587 (Bom)
UNIT 3
FINANCIAL STRUCTURE AND MEMBERSHIP
SS. 43 – 71
3.1 Capital of the Company - Sources of capital - Types of shares – Equity, Equity with 5
differential rights (DVRs) and Preferential Shares
Issue of shares at par, premium and discount; Issue of Bonus - Sweat Equity Shares,
Employee Stock Option Scheme (ESOS) & Employee Stock Purchase Scheme (ESPS) –
SEBI Regulations and Guidelines (SEBI (Issue of Capital and Disclosure Requirement)
Regulations, 2018
Global Depository Receipt - American Depository Receipt - Indian Depository Receipt
Declaration & Payment of Dividend – Rule in Lee v Neuchatel (1889)
Compulsory Reserves (SS - 122 - 127)
ALTERATION OF SHARE CAPITAL - Increase and reduction of share capital -
Further Issue of Shares (Right Issue) - Buy-back of Shares - Procedure & Practice for buy-
back of shares (SS 61 - 70) with SEBI (Buy-back of Shares) Regulations, 2018
Cases:
 K Madhava Nayak v Popular Bank Ltd., (1969) 39 Comp Cas 717

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  CIT v Standard Vaccum Oil Co., AIR 1966 SC 1393
 Hariprasad v Amalgamated Commercial Traders, (1964) 1 Comp LJ 339
 Dovey v Cory, 1901 AC 477
 Lee v Neuchatel Asphalt Co., (1899) LR 41 Ch D 1; (1886-90) All E R Rep. 947
 Surana Steels (P) Ltd. v CIT, (1999) 4 SCC 306
 Vazir Sultan Tobacco Co. v CIT, (1981) 4 SCC 435
 CIT v Express Newspaper Ltd, (1998) 3 SCC 106
 HV Jayaram v ICICI Ltd., (2000) 2 SCC 202
 SOL Pharmaceuticals Ltd. v ROC, (2002) 111 Comp Cas 845 (AP)
 Dimbula Valley (Ceylon) Tea C. Ltd. v Laurie, (1961) 1 Ch 353; (1961) 1 All ER 650
 Shri Gopal Paper Mills Co. Ltd. v CIT, (1970) 2 SCC 80.
 Hunsur Plywood Works Ltd. v CIT, (1998) 1 SCC 355
 Standard Chartered Bank v Custodian, (2000) 6 SCC 427
 Khoday Distilleries Ltd. v CIT, (2009) 1 SCC 256
 Chandrakant Mulraj v TELCO, (1985) 58 Comp Cas 320 (Bom.)
DEBT CAPITAL
3.2 Debentures, debenture stock, bonds - Developments in corporate debt financing; 4
Debenture Trust Deed and trustees - Conversion of and redemption of Debentures -
Creation of charges – Fixed and Floating Charge – Registration of charges (SS. 77-87)
 Shri Gopal Jalan & Co v Calcutta Stock Exchange Assn, AIR 1964 SC 250
 Narendra Kumar Maheshwari v UOI, AIR 1989 SC 2138; 1990 Supp SCC 440
 Chief Controlling Revenue Authority v State Bank of Mysore, AIR 1988 Kant. 1
 State of AP v Rajah Ram Janardhana, AIR 1966 AP 233
 Raymond Synthetics Ltd. and Ors. v UOI and Ors., (1992) 2 SCC 255
 Rishyashringa Jewellers Ltd v Stock Exchange, Bombay, (1995) SCC 6 714
 UOI v Allied International Products Ltd., (1970) 3 SCC 594
 Government Stocks and Other Securities Investment Co Ltd v Manila Rly Co., [1897]
AC 81
 National Westminster Bank Plc v Spectrum Plus Ltd and others, [2005] UKHL 41
 Illingworth v Houldsworth, [1904] AC 355
 In Re, Yorkshire Woolcombers Association, [1903] 2 Ch 284
 In Re, Panama, New Zealand and Australian Royal Mail Co., (1870) 5 Ch App 318
 Calcutta Tramways Co. Ltd. v CWT, (1973) 3 SCC 35
 Rai Bahadur Seth Jessa Ram Fatehchand v Om Narain Tankha and Another, AIR 1967
SC 1162
 Aluminium Industries Vaasem BV v Romalpa Aluminium Ltd., [1976] 2 All ER 552
 Nelson & Co. v Faber & Co., [1903] 2 KB 367
 Evans v Rival Granite Quarries Ltd., [1910] 2 KB 979
 N W Robbie & Co v Witney Warehouse Co., [1963] 3 All ER 613
 AP SFC v Mopeds India Ltd., (2005) 133 Comp Cas 833 (AP)
 Rajasthan Fin. Corp. v Jaipur Spg. &Wvg. Mills Ltd., (2005) 13 SCC 765
 Kerala State Financial Enterprises Ltd. v OL, (2006) 10 SCC 709
3.3 PROSPECTUS (SS. 23 – 43)
SEBI (Issue of Capital & Disclosure Requirements) Regulations, 2018
Public offer and private placement (S. 42) - Matters to be stated in Prospectus - Abridged 4
prospectus - statement in lieu of prospectus - Shelf Prospectus (S. 31) - Red herring -
Prospectus (S. 32) – Registration - Misrepresentations - civil and criminal liabilities (SS.
34 - 35) - Crowd funding and its Regulations
Allotment of Securities (S. 39) - Securities to be Dealt in Stock Exchanges (S. 40)
Certificates - Contracts to subscribe for shares, debentures, and other Securities - letters of

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 allotment and renunciation – Call on Shares and forfeitures - share certificates and shares
warrants
 Mukesh Malhotra v SEBI, (2005) 124 Comp Cas 336 (SAT)
 Maxwell Dyes and Chemicals (P) Ltd v Kothari Industrial Corporation Ltd., 1996 85
Comp Cas 111 Mad
 New Brunswick and Canada Rly and Land Co v Muggeridge, (1860) 1 Dr. & Sm. 363
 Henderson v Lacon, 1867 LR 5 Eq. 249
 Standard Chartered Bank v Pakistan National Shipping Corp, [2002] UKHL 43
 Derry v Peek, (1889) LR 14 App Cas 337
 Peek v Gurney, (1873) LR 6 HL 377
 Edington v Fitzmaurice, (1885) 29 Ch D 459
 Parr v Diamond; Possfund Custodian Trustee Ltd. v Diamond, (1996) 1 WLR 1351
 R v Kylsant (Lord), [1932] 1 KB 442
 Mckeown v Boudard Peveril Gear Co Ltd., (1896) 65 LJ Ch 735, CA)
 Ritesh Agarwal and Anr. v SEBI and Ors, (2008) 8 SCC 205 (Minors liability for
misrepresentation)
 T.G. Venkatesh v ROC, (2007) 78 SCL 1 AP
 DLF Case, SEBI, Order dt. 10th Oct. 2014
 Sahara India Real Estate Corp. Ltd &Ors v SEBI &Anr, (2013) 1 SCC 1
 Almondz Global Securities Limited and others v SEBI, 2016 Indlaw SAT 119
Detailed procedure for issue of various types of Securities (Shares and debentures)
Prospectus requirement and Book Building Process - Acceptance of Deposits by
Companies (SS. 73 -76)
Membership - modes of acquiring membership - Restriction on membership - Rights and
Privileges of members - Transfer and transmission of securities - Pre-emptive Clause and
Transfer; Physical and Depository Modes - Depositories Act, 1996 - Listed and Unlisted
Share - Mortgage & Pledge of Shares - Lien on Shares
Cases:
 Gammon India Ltd. v Hongkong Bank Agency (P) Ltd., (1992) 74 Comp Cas 123
 V B Rangaraj v V B Gopalakrishnan, AIR 1992 SC 453
 John Tinson& Co. (P) Ltd. v Surjeet Malhan, (1997) 9 SCC 651
 Bajaj Auto Ltd. v N K Firodia, (1970) 2 SCC 550
 Bajaj Tempo Ltd. v UTI, (1992) 73 Comp Cas 451 (CLB)
UNIT 4
MANAGEMENT AND ADMINISTRATION OF COMPANIES
SS. 88 – 121 -
Chapter XI - SS 149 – 172; Chapter XII - SS 173 – 195; Chapter XIII – SS 196 – 205
4.1 Directors - Management - Berle-Dodd Debate 5
Director as – Agent – Trustee – Employee - Appointment / Re-Appointment of Directors,
Additional & Alternative Directors Qualifications, Disqualifications, Remuneration,
Vacation of office, Retirement, Resignation and Removal
Powers (SS.179-180) and Duties (S. 166) - Power to Make Political Contributions (S. 182)
- Remuneration of Directors - Office or Place of Profit - Meetings of Directors and
Committees - Proceedings of Board / Committee meetings, minutes, and evidence
Corporate Opportunities – Corporate Espionage - Loans to Directors - Related Party
Transaction
Appointment, Role and Liability of Independent and Nominee Directors
Cases:
 Ram Chand & Sons Sugar Mills (P) Ltd. v Kanhayalal Bhargava, AIR 1966 SC 1899
 Ramaswamy Iyer v Brahamayya& Co., (1966) 1 Comp LJ 107

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  Nandlal Zaveri v Bombay Life Assurance Co. Ltd. AIR 1950 SC 172
 Chiranjit Lal Chowdhury v UOI, AIR 1951 SC 41
 OL, Supreme Bank Ltd. v P. A. Tendolkar, AIR 1973 SC 1104
 Karnataka Bank Ltd v A B Datar, 1994 79 Comp. Cas 417 Kar
 Prakash Roadlines v Vijay Kumar and Narang, 1995 84 Comp. Cas 782 Kar
 Peso Silver Mines Ltd v Cropper, [1966] S.C.R. 673
 Industrial Development Consultants Ltd v Cooley, [1972] 1 WLR 443
 Hunter Kane Ltd v Watkins, [2003] EWHC 186 (Ch)
 Canadian Aero Service Ltd v O Malley, (1973) 40 DLR (3d) 371
 Regal Hastings Ltd v Gulliver, [1942] 1 All ER 378
 Dweck v Nasser, C.A. No. 1353-VCL (Del. Ch. Jan. 18, 2012)
 Dorchesster Finance Co Ltd v Stebbings, [1989] BCLC 498
 Kishor Kundan Sippy v Samrat Shipping, [2004] 118 Comp Cas 472 (CLB) on Appeal
See [2004] 120 Comp Cas 681 (Bom), (2006) 6 Comp LJ 74 (Bom)
 BN Viswanathan v Tiffins Baryl Asbestos (P)Ltd., AIR 1953 Mad. 520
 N. Narayanan v SEBI, (2013) 12 SCC 152
 JK Industries v Chief Inspector of Factories, (1996) 6 SCC 665
 Rama Narang v Ramesh Narang, (1995) 2 SCC 513
 Case Study of Satyam Computers Ltd.
 GirniKamgar Sangharsh Samiti v Matulaya Mills Ltd., 2002 Cri LJ 253 (Bom.)
 SK Sharma and A K Mahajan v ROC, (2005) 126 Comp Cas 222 (P&H)
 J Sethuraman v IAC of IT, (1992) 74 Comp Cas 815 (Mad)
4.2 Managing and Whole-Time Directors, Manager, Company Secretary – Appointment, 2
Reappointment, Powers and Duties
Cases:
 UNICCO Trading and Chit Funds (India) Pvt. Ltd. v Zahoor Hassan, (1991) 71 Comp
Cas 270 (Kant.)
 Briji Gopal Doga v State of Kerala, (2013) 181 Comp Cas 320 (Ker)
 National Small Industries Corp. Ltd. v Harmeet Singh Paintal, (2010) 3 SCC 330
 State (NCT of Delhi) v Rajiv Khurana, (2010) 11 SCC 496
 State Bank of Travancore v Kingston Computer (India) (P) Ltd., (2011) 11 SCC 524
 ESI Corp. v Apex Engg. (P) Ltd., (1998) 1 SCC 86
 Ram Pershad v CIT, (1972) 2 SCC 696
4.3 Shareholders Meeting - General meetings - kinds of meetings - Annual General and Extra- 2
Ordinary General Meeting - Resolutions - Ordinary & Special Resolution
Law, practice and procedure relating to convening and proceedings at meetings -Notice of
the Meeting - Quorum for the Meeting - Voting - by Show of hands and poll - Proxies -
Recording and signing of minutes - Role of chairman; Postal ballot & teleconferencing -
Distribution of powers of a company - Division of powers between Board and general
meetings; Acts by directors in excess of authority; monitoring and management -
Shareholder Education & Investor Protection Fund
Cases
 Claude-Lila Parulekar v Sakal Papers (P) Ltd., (2005) 11 SCC 73
 Sunil Mills Ltd. v Official Liquidator of Shri Amibca Mills Ltd., (1999) 1 Com LJ 423
(Guj)
4.4 Accounts of Companies - Financial statement - Constitution of National Financial 1
Reporting Authority – CSR
Audit & Appointment of auditors - Eligibility, qualifications & disqualifications of
auditors. Powers & duties of auditors & auditing standards (SS. 129 – 148)
4.5 Shareholders’ Democracy: 5

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 Rule in Foss v Harbottle - Majority Rule v Minority Rights - Exceptions to majority rule -
Protection of shareholders - Concept of Oppression and Mismanagement (SS – 241- 246)
Changing Profile of Corporate Ownership.
Corporate Governance:
Cadbury, Greenbury & Henkel Committee (UK) - Kumara Mangalam Birla and Narayana
Murthy Committee Report on Corporate Governance.
SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 &Corporate
Governance - Corporate Social Responsibility (S. 135) - Protection of Whistle Blower
Cases:
 Foss & Edward Starkie Turton v Harbottle, (1843) 2 Hare 461
 Mac Daugall v Gardiner, (1875) 1 Ch D 13, 25
 Burland v Earle, [1902] AC 83
 Cook v Deeks, [1916] 1 AC 554
 Menier v Hooper’s Telegraph Works Ltd., (1874) 9 Ch App 350
 Rajahmundry Electric Supply Corporation Ltd. v A. Nageshwara Rao & Others, AIR
(1956) SC 213
 Elder v. Elder and Watson, (1952) S.C. 49
 Scottish Co-operative Wholesale Society Ltd. v. Meyer, (1958) 3 All E.R. 66
 Bajaj Auto Ltd v N. K. Firodia&Anr. Etc, AIR 1971 SC 321
 LIC v Escorts, (1986) 1 SCC 264
 Naresh Chandra Sanyal v Calcutta Stock Exchange Assn Ltd., AIR 1971 SC 422
 Nanalal Zaveri v Bombay Life Assurance Co., AIR 1950 SC 172
 S. P. Jain v Kalinga Tubes Ltd, AIR 1965 SC 1535
 Needle Industries (India) Pvt. Ltd. v. Needle Industries New (India) Holding Ltd., AIR
1981 SC 1298
 In Re, Five Minute Car Wash Service Ltd., (1966) 1 W.L.R. 745
 M.S. Madhusoodhanan & Anr. v Kerala Kaumudi (P) Ltd. &Ors., (2004) 9 SCC 204
 Sangramsinh P. Gaekwad v Shantadevi P. Gaekwad, 2005 (11) SCC 314
 Dale and Carrington Investment P Ltd v Prathappan, (2005) 1 SCC 212]
 Pearson Education Inc. v Prentice Hall India (P) Ltd. and Ors, (134 (2006) DLT 450)
 V.S. Krishnan & Ors v M/S Westfort Hi-Tech Hospital, Appeal (civil) 1473/2008, SC
 Incable Net (Andhra) Ltd.& Others v AP Aksh Broadband Ltd.& Others, (2010) 6 SCC
719
 Cyrus Investments Pvt. Ltd. & another v Tata Sons Ltd. & others, 2017 Indlaw NCLAT
126
UNIT 5
National Company Law Tribunal and Appellate Tribunal - Chapter XXVII SS. 407 –
434
Special Courts - Chapter XXVIII – SS – 435 - 446
Investigations of Companies - Chapter XIV – 206 – 229
5.1 Establishment of National Company Law Tribunal - Jurisdiction, functions and power of 1
the NCLT - Establishment of Special Courts - Investigations of Companies: Investigation -
Powers of the Central Government - Establishment of Serious Fraud Investigation Office
(SFIO) (s. 211)
Cases:
 UOI v R. Gandhi, C.A. No.3067 of 2004 and C.A. No.3717 of 2005, dt. 11th May 2010
 Embassy Property Developments Pvt. Ltd. v State of Karnataka & others, 2019 Indlaw
SC 1184
5.2 Winding Up of Companies - Chapter XX – SS. 270 – 365 4
Winding Up, Liquidation & Dissolution of Companies

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 Defunct Companies; - Modes of Winding Up - Compulsory Winding Up – Winding up
under Just & Equitable Clause
Official Liquidator - Role, Powers & Functions
Preferential payments - Workmen’s Rights and Payments during Winding up - Insolvency
and Winding Up - Final meeting of shareholders and Dissolution
Cases:
 Pawan Kumar K v Kaushal Leather Board Ltd., (1996) 87 CC 130 (AP)
 Hariprasad v Amalgamated commercial Trans Pvt. Ltd., (1964) 1 CLJ 339 Mad. (DB)
 National Textile Workers Union v Ramakrishnan, (1983) 54 CC 184 (SC))
 Lord Krishna Bank Ltd. v Express (Malayalam), (2005) 125 CC 655 (Ker)
 Kudremukh Iron Ore Co. Ltd v Kooky Roadways P Ltd., (1990) 69 CC 178 (Karn.)
(DB)
 Rhein Chemie Rheinau Gmbh v. Standard Oil Additive P. Ltd., (2005) 128 Comp Cas
13
 Mediqup Systems P Ltd v Proxima Medical System GmbH, (2005) 124 Comp Cas 473
 Tata Iron & Steel Co. Ltd v Micro Forge (India) Ltd., (2001) 104 CC 533 Guj.
 ICICI v Vanjinad Leather Ltd., ((1998) 91 CC 625 Ker, (Recovery U/ DRT)
 Jitendra Nath Singh v OL, Civil Appeal No. 6755/2012, 21 Sept 2012
 Allahabad Bank v Canara Bank, (2000) 4 SCC 406
 Andhra Bank v OL, (2005) 5 SCC 75

Sl. No. List of Books for Reference Remarks

1. Palmer’s “Company Law” Reference
2. Buckley on Company Law Reference
3. Pennington on Company Law Reference
4. Ghosh and Chandratre, Company Law Reference
5. Ramaiyya, Company Law Reference
6. M C Bhandari, Company Practice and Procedures; Reference
7. Taxmann, Company Law (5 Volumes) Reference
8. C R Dutta, Company Law, Lexis Nexis Reference
9. The Chamber of Tax Consultants , Directors Responsibility Under Reference
Various Acts
10. Vinod Kothari  Sikha Bansal, Guide to Independent Directors, Reference
Taxman
11. Kaushik Dutta, Handbook for Independent Directors-Upholding Reference
the Moral Compass, LexisNexis
12. Konstantin von Busekist, International Compliance - Legal Reference
Requirements of Business Organisation in 30 Countries
13. Charlesworth’s Company Law, Sweet & Maxwell Reference
14. Rodney D Ryder, Drafting Corporate and Commercial Reference
Agreements- Legal Drafting Guidelines, Forms and Precedents
(with FREE CD), Universal Publication
15. A Ramaiya, Board of Directors (Providing guidance under the Reference
Companies Act, 2013 and Allied Legislations), Lexis Nexis
16. Gower- Company Law Student Ed.
17. Company Law by Mayson, Ryan & Young Student Ed.
18. Company Law by Dr. Avtar Singh Student Ed.

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CORPORATE LAW II – SEMESTER VIII:
1. Chapter XV - Merger’s, Amalgamation, Demerger etc. (SS 230 – 240)
2. SEBI Act, 1992 and Related Regulations
a. Substantial Acquisition or Takeover of Companies (Takeover Code)
b. Prohibition of Insider Trading
c. Prohibition of Fraudulent and Manipulation of Securities Market Regulation
d. Listing Obligation and Disclosure Regulation
3. SCRA – Stock Exchanges – Functions – Credit Rating Agencies
4. Insolvency & Bankruptcy Code, 2016

Articles for Corporate Law I

1. Murray A. Pickering, The Company as a Separate Legal Entity, 31 Mod. L. Rev. 481
(1968)
2. Umakanth Varottil, The Evolution of Corporate Law in Post-Colonial India: From
Transplant to Autochthony, 31 Am. U. Int’l L. Rev. 253 (2016)
3. P. M. Vasudev, Corporate Law and Its Efficiency: A Review of History, 50 Am. J.
Legal Hist. 237 2008-2010
4. Orrin K. III Ames, Closely Held Corporations: An Intersection of Business, Law, and
Ethics, 43 Cumb. L. Rev. 171 (2012)
5. Robert J. Rhee, A Legal Theory of Shareholder Primacy, Minnesota Law Review
[102:1951]
6. Steven R. Ratner, Corporations and Human Rights: A Theory of Legal Responsibility,
111 Yale L.J. 443 (2001)
7. Joseph L. Weiner, The Berle-Dodd Dialogue on the Concept of the Corporation,
Columbia Law Review, Vol. 64, No. 8 (Dec., 1964)
8. Frank B. Cross & Robert A, Prentic, The Economic Value of Securities Regulation,
28 Cardozo L. Rev. 333 2006-2007
9. Zohar Goshen & Sharon Hannes, The Death of Corporate Law, 94 N.Y.U. L. Rev.
263 (2019)
10. Zhong Xing Tan, New Era of Corporate Veil-Piercing: Concealed Cracks and
Evaded Issues, 28 SAcLJ 209 (2016)
11. Rolf Garcia-Gallont & Andrew J. Kilpinen, If the Veil Doesn’t Fit. An Empirical
Study of 30 Years of Piercing the Corporate Veil in the Age of the LLC, 50 Wake
Forest L. Rev. 1229 (2015).
12. George A. Mocsary, Freedom of Corporate Purpose, 2016 BYU L. Rev. 1319 (2016)
13. Kathryn Hespe, Preserving Entity Shielding: How Corporations Should Respond to
Reverse Piercing of the Corporate Veil, 14 J. Bus. & Sec. L. 69 (2013)
14. Michal Barzuza, Inefficient Tailoring: The Private Ordering Paradox in Corporate
Law, 8 Harv. Bus. L. Rev. 131 (2018).
15. Miriam Mafessanti, Corporate Misbehavior & International Law: Are There
Alternatives to “Complicity”?, 6 S.C. J. Int'l L. & Bus. 167 2009-2010
16. H. Justin Pace, Rogue Corporations: Unlawful Corporate Conduct and Fiduciary
Duty, 85 Mo. L. Rev. 1 (2020)
17. V. Umakanth and Mihir Naniwadekar, Corporate Criminal Liability and Securities
Offerings: Rationalizing the Iridium-Motorola Case: Iridium India Telecom Ltd. v.
Motorola Incorporated &Ors, NLSIR, Special Issue (2013)
18. William H. Jarvis, Corporate Criminal Liability--Legal Agnosticism, 1 W. L. Rev. 1
(1961)
19. Donald C. Langevoort, Disasters and Disclosures: Securities Fraud Liability in the
Shadow of a Corporate Catastrophe,107 Geo. L.J. 967 (2019)

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20. David A. Skeel, Jr., Shaming in Corporate Law, University of Pennsylvania Law
Review, June, 2001
21. Victoria Barnes & James Oldham, The Legal Foundations of Apparent Authority, 44
J. Corp. L. 649 (2019)
22. Will Marrow, Is the Internet Participating in Securities Fraud: Harsh Realities in the
Public Domain, Tulane Law Review, Vol. 72, 2203, 1997-98
23. Surya Deva, Human Rights Violations by Multinational Corporations and
International Law: Where From Here?, 19 Conn. J. Int’l L. 1 2003-2004
24. David Kjnley& Junko Tadaki, The Emergence of Human Rights Responsibilities for
Corporations at International Law, 44 Va. J. Int’l L. 931 2003-2004
25. Robert J. Shiller, Capitalism and Financial Innovation, Financial Analysts Journal,
Vol. 69, No. 1 (January/February 2013)
26. C. Steven Bradford, Crowdfunding and the Federal Securities Laws, 2012 Colum.
Bus. L. Rev. 1 2012
27. S.V. Joga Rao and Y. Shiva Santosh Kumar, Understanding the Law on Corporate
Opportunity: Inputs for India,Journal of the Indian Law Institute, October-December
2013, Vol. 55, No. 4
28. Eric Talley and Mira Hashmall, The Corporate Opportunity Doctrine, Journal of the
Indian Law Institute [Vol. 55: 4]
29. Harwell Well, The Birth of Corporate Governance, 33 Seattle U. L. Rev. 1247 2009-
2010
30. Alan C. Neal, Corporate Social Responsibility: Governance Gain or Laissez-Faire
Figleaf?, 29 Comp. Lab. L. &Pol’y J. 459 2007-2008
31. Ataollah Rahmani, Shareholder Control and its Nemesis, International Company and
Commercial Law Review, 2012
32. David Milman, Protection of Minority Shareholders in the post-Companies Act 2006
era, Company Law Newsletter, 2012
33. Nicolena Farias-Eisner, Gender Diversity in Corporate Boardrooms: Do Equal Seats
Mean Equal Voices, 13 J. Bus. Entrepreneurship & L. 1 (2019)
34. Peter Watts, Deeds and the Principles of Authority in Agency Law, 2 Oxford U.
Commw. L.J. 93 (2002)
35. John Kiggundu, The Never-Ending Story of Ultra Vires, 24 Comp. & Int’l L.J. S. Afr.
1 (1991)
36. Leon Getz, Ultra Vires and Some Related Problems, 3 U. Brit. Colum. L. Rev. 30
(1969)
37. Yedidia Z. Stern, Corporate Liability for Unauthorized Contracts - Unification of the
Rules of Corporate Representation, 9 U. Pa. J. Int'l Bus. L. 649 (1987)
38. J. A. C. Hetherington, Fact and Legal Theory: Shareholders, Managers, and
Corporate Social Responsibility, 21 Stan. L. Rev. 248 (1969)
39. Victoria Sadaf Azizi, The Magic of Corporate Social Responsibility: An Academic
Perspective, 12 Amsterdam L.F. [i] (2020)
40. Lyman Johnson, Law and Legal Theory in the History of Corporate Responsibility:
Corporate Personhood, 35 Seattle U. L. Rev. 1135 (2012)
41. Giovanni Strampelli, How to Enhance Directors’ Independence at Controlled
Companies, 44 J. Corp. L. 103 (2018)
42. William W. Bratton, Collected Lectures and Talks on Corporate Law, Legal Theory,
History, Finance, and Governance, 42 Seattle U. L. Rev. 755 (2019)
43. Thomas W. Joo, Narrative, Myth, and Morality in Corporate Legal Theory, 2009
Mich. St. L. Rev. 1091 (2009)

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44. Alice Belcher, Boundaries, Corporate Decision-Making and Responsibility, 58 N. Ir.
Legal Q. 211 (2007)
45. Brian T. Fitzpatrick & Randall S. Thomas, The Indian Securities Fraud Class Action:
Is Class Arbitration the Answer, 40 Nw. J. Int’l L. & Bus. 203 (2020)
46. Michael R. Siebecker, Making Corporations More Humane through Artificial
Intelligence, 45 J. Corp. L. 95 (2019)
47. Min Yan, Corporate Social Responsibility versus Shareholder Value Maximization:
Through the Lens of Hard and Soft Law, 40 Nw. J. Int’l L. & Bus. 47 (2019)
48. Ciara Torres-Spelliscy, Corporate Democracy from Say on Pay to Say on Politics, 30
Const. Comment. 431 (2015)
49. Tanya M. Marcum & Jacob Young, Blowing the Whistle in the Digital Age: Are You
Really Anonymous: The Perils and Pitfalls of Anonymity in Whistleblowing Law, 17
DePaul Bus. & Comm. L.J. 1 (2019)
50. Ann M. Scarlett, Investors Beware: Assessing Shareholder Derivative Litigation in
India and China, 33 U. Pa. J. Int'l L. 173 (2011)
51. Henry Hansmann& Mariana Pargendler, The Evolution of Shareholder Voting Rights:
Separation of Ownership and Consumption, 123 Yale L. J. 948 (201

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