INTEGRAL UNIVERSITY,LUCKNOW

DEPARTMENT OF COMMERCE AND MANAGEMENT

SUBMITTED BY: SUBMITTED TO:
NAME: Khan mohd sajid Dr. ASMA FAROOQUE
PROGRAM: Mba
YEAR/SEMESTER: 2/4
GROUP: B
ENROLLMENT NO.: 2200101399

ASSIGNMENT-2
(BM519)
Ques.1 What are various types of meetings in Company Law?
Ans. In Company Law, various types of meetings include:

Annual General Meeting (AGM): Required for public companies

and certain private companies to discuss financial matters, appoint
directors, and address shareholder concerns.
Extraordinary General Meeting (EGM): Called for specific urgent
matters that cannot wait until the next AGM, such as major decisions
or changes to the company's structure.
Board Meetings: Conducted by the board of directors to discuss and
make decisions on company affairs, strategy, and policies.

Shareholder Meetings: Gatherings where shareholders discuss

company matters, vote on resolutions, and elect directors.
Creditors' Meetings: Held in case of insolvency or restructuring to
discuss the company's financial situation and potential solutions.
Committee Meetings: Meetings of specific committees within the
company, such as audit committees or compensation committees, to
address specialized topics.
Each type of meeting serves a different purpose and involves different
stakeholders in the company's decision-making process.

Ques.2 Discuss the process of winding up of a company ?

Ans. The winding up of a company refers to the process of closing
down its operations and liquidating its assets to pay off its debts and
distribute any remaining funds to its shareholders. Here's a general
overview of the process:
Resolution to Wind Up: The decision to wind up a company can be
made voluntarily by the shareholders through a special resolution or
involuntarily by court order due to insolvency or other legal reasons.
Appointment of a Liquidator: Once the decision to wind up is
made, a liquidator is appointed. The liquidator is responsible for
managing the winding-up process, including selling off assets, paying
creditors, and distributing any remaining funds to shareholders.
Notification to Creditors: Creditors must be notified of the
company's intention to wind up, and they may file claims for
outstanding debts.
Asset Liquidation: The liquidator sells off the company's assets,
which may include property, equipment, and inventory, to generate
funds to pay off creditors.
Debt Payment: The proceeds from asset sales are used to pay off
creditors according to a specific hierarchy outlined in insolvency
laws. Secured creditors are paid first, followed by unsecured creditors,
and finally, shareholders.
Distribution to Shareholders: If there are any funds remaining after
paying off creditors, they are distributed among the shareholders
according to their ownership stakes.

Final Steps: Once all assets are liquidated, debts are paid, and funds
are distributed, the liquidator prepares final accounts and reports for
submission to relevant authorities, and the company is officially
dissolved.
It's important to note that the process of winding up can be complex
and may vary depending on the jurisdiction and specific
circumstances of the company. Legal advice is often sought to ensure
compliance with applicable laws and regulations.
Ques.3 Write in brief about objective and significance of Essential
Commodities Act ?
Ans. Objective and Significance of the Essential Commodities
Act…
The Essential Commodities Act (ECA) is a crucial legislation enacted
by the government to ensure the availability of essential commodities
to consumers at fair prices, particularly during times of scarcity or
crisis. Its primary objective is to regulate the production, supply, and
distribution of essential goods to prevent hoarding, black marketing,
and profiteering. Below are the key objectives and significance of the
Essential Commodities Act:
Objective:
Price Regulation: One of the main objectives of the ECA is to
control the prices of essential commodities to make them affordable
for all sections of society, especially during emergencies or when
market forces fail to ensure fair pricing.
Prevention of Hoarding and Black Marketing: The Act aims to
prevent the hoarding of essential commodities by imposing stock
limits on traders and prohibiting black marketing and profiteering
activities, thus ensuring the equitable distribution of goods.
Stabilizing Supply: It seeks to stabilize the supply of essential goods
by empowering the government to regulate their production, storage,
transport, and distribution to maintain a steady and adequate supply in
the market.
Protecting Consumer Interests: The ECA is designed to safeguard
the interests of consumers by ensuring the availability of essential
items at reasonable prices and preventing artificial shortages created
by unscrupulous traders.
Significance:
Emergency Management: During natural disasters, pandemics, or
other emergencies, the ECA plays a critical role in managing the
supply and prices of essential commodities, ensuring that the
population has access to basic necessities.
Food Security: The Act contributes to food security by regulating the
prices and availability of essential food items such as grains, pulses,
edible oils, and sugar, thus ensuring access to nutrition for all citizens.
Consumer Protection: By preventing hoarding, black marketing, and
unfair trade practices, the ECA protects consumers from exploitation
and ensures that they can purchase essential goods at reasonable
prices.
Market Stability: The ECA helps maintain stability in the market by
preventing sudden fluctuations in prices and supply of essential
commodities, which can disrupt the economy and lead to social
unrest.
conclusion, the Essential Commodities Act serves as a vital tool for
the government to regulate the production, distribution, and pricing of
essential goods, thereby ensuring the welfare and security of its
citizens, particularly during times of crisis.

Ques.4 Write in brief about objective and significance of FEMA

Act ?
Ans. Foreign Exchange Management Act (FEMA) :
Objective:
The Foreign Exchange Management Act (FEMA) is a crucial
piece of legislation in India that governs foreign exchange
management and regulates cross-border transactions. Enacted in 1999,
it replaced the Foreign Exchange Regulation Act (FERA) and aimed
to liberalize and simplify foreign exchange transactions while
ensuring the orderly development and maintenance of the foreign
exchange market in India.
The primary objectives of FEMA are:
Facilitating External Trade and Payments: FEMA aims to facilitate
external trade and payments by providing a legal framework for
conducting foreign exchange transactions smoothly. It promotes the
liberalization of trade and investment, thereby enhancing economic
growth and development.
Promoting Investments: FEMA encourages foreign investments into
India by providing a conducive regulatory environment. It streamlines
procedures for inbound and outbound investments, thereby attracting
capital inflows and fostering economic stability.
Ensuring Exchange Rate Stability: One of the key objectives of
FEMA is to maintain exchange rate stability. By regulating foreign
exchange transactions, FEMA helps prevent excessive fluctuations in
exchange rates, which can adversely affect the economy.
Monitoring Capital Flows: FEMA enables the monitoring of capital
flows in and out of the country, which is essential for maintaining
macroeconomic stability and preventing speculative activities that
could destabilize the economy.
Compliance and Enforcement: FEMA establishes a robust
framework for compliance and enforcement of foreign exchange
regulations. It empowers authorities to investigate and take action
against violations, thereby promoting transparency and accountability
in foreign exchange transactions.

Significance:
The significance of FEMA can be summarized as follows:
Liberalization: FEMA reflects India's commitment to liberalizing its
economy and integrating with the global market. By replacing the
stringent regulations of FERA with a more flexible and liberal
framework, FEMA encourages international trade and investment.
Investor Confidence: The transparent and predictable regulatory
environment established by FEMA enhances investor confidence in
India. Foreign investors are more willing to invest in the country
when they know that their transactions are governed by clear and
consistent regulations.
Ease of Doing Business: FEMA simplifies procedures for conducting
foreign exchange transactions, making it easier for businesses to
engage in international trade and investment. This contributes to
improving India's ranking in global ease of doing business indices.
Exchange Rate Stability: FEMA plays a crucial role in maintaining
exchange rate stability by regulating foreign exchange transactions.
This stability is essential for promoting international trade, attracting
foreign investment, and ensuring macroeconomic stability.
Compliance and Enforcement: FEMA's provisions for compliance
and enforcement help deter illegal activities such as money laundering
and illicit capital flows. By ensuring that foreign exchange
transactions are conducted in accordance with regulations, FEMA
contributes to maintaining financial integrity and stability.
conclusion, the Foreign Exchange Management Act (FEMA) is a vital
piece of legislation in India that serves to facilitate external trade and
payments, promote investments, ensure exchange rate stability,
monitor capital flows, and enforce compliance. Its significance lies in
its role in liberalizing the economy, enhancing investor confidence,
facilitating ease of doing business, maintaining exchange rate
stability, and ensuring compliance and enforcement in foreign
exchange transactions.
Ques.5 what are salient features of SEBI ?
Ans. Salient Features of SEBI (Securities and Exchange Board of
India):
The Securities and Exchange Board of India (SEBI) was established
in 1988 to regulate the securities market in India and protect the
interests of investors. Over the years, SEBI has evolved and
implemented various measures to ensure transparency, fairness, and
efficiency in the Indian capital markets. Here are some of its salient
features:
Regulatory Authority: SEBI is empowered with regulatory authority
over the entire securities market, including stock exchanges,
intermediaries, and other entities involved in securities trading.
Legal Framework: It operates under the Securities and Exchange
Board of India Act, 1992, which provides SEBI with extensive powers
to regulate and oversee the securities market.
Investor Protection: SEBI aims to safeguard the interests of
investors by ensuring fair practices, disclosure norms, and stringent
regulations to prevent fraudulent activities such as insider trading and
market manipulation.
Market Development: SEBI plays a crucial role in the development
and growth of the securities market by introducing innovative
products, fostering competition, and promoting investor education and
awareness.
Regulatory Instruments: SEBI issues regulations, guidelines, and
circulars to govern various aspects of the securities market, including
listing requirements, corporate governance norms, and disclosure
standards.
Monitoring and Surveillance: SEBI conducts surveillance and
monitoring of market activities to detect any instances of market
abuse, manipulation, or systemic risks, thereby maintaining market
integrity and stability.
Enforcement Mechanisms: SEBI has enforcement powers to
investigate and take action against entities violating securities laws,
including imposing penalties, issuing warnings, and initiating legal
proceedings.
Intermediary Regulation: SEBI regulates intermediaries such as
stockbrokers, merchant bankers, portfolio managers, and rating
agencies to ensure their compliance with regulatory norms and
standards of conduct.
Market Transparency: SEBI mandates timely and accurate
disclosure of information by listed companies to provide investors
with access to relevant data for making informed investment
decisions.
International Cooperation: SEBI collaborates with global regulatory
bodies and exchanges to enhance regulatory effectiveness, share best
practices, and facilitate cross-border supervision and enforcement.
Technology Adoption: SEBI promotes the use of technology in the
securities market for trading, surveillance, risk management, and
investor services, thereby enhancing market efficiency and
accessibility.
Investor Grievance Redressal: SEBI operates an efficient grievance
redressal mechanism to address investor complaints and resolve
disputes through arbitration, adjudication, and mediation processes.
In summary, SEBI plays a pivotal role in regulating and developing
the Indian securities market, with a primary focus on investor
protection, market integrity, and sustainable growth. Its proactive
approach, robust regulatory framework, and continuous efforts
towards market reforms contribute to building investor confidence
and fostering a vibrant capital market ecosystem in India.