Business firms are mainly classified into – sole proprietorship, partnership, and Companies. Company form of business is a very popular type of business because the major disadvantage of sole proprietorship and partnership is that they have unlimited liability. Companies are fairly flexible – ranging from small, one person companies to large multinationals.
A company is governed by the Companies Act, 1956. The Companies Act 1956 is an Act of the Parliament of India, enacted in 1956, which enabled companies to be formed by registration, and set out the responsibilities of companies, their directors and secretaries. The Act is 658 sections long. It contains provisions about Companies, directors of the companies, memorandum and articles of associations, etc. This Act states and discusses every single provision required to govern a company. The Companies Act lays down the law for Companies from its formation to its winding up. Companies Act provides with various sections, clauses, schedules, etc. Further, Companies Act governs both public and private companies. Apart from the Act, one must be thorough with the rules, regulations, notifications, circulars, etc. issued by central government from time to time.
The syllabus of the CS Executive Programme covers the entire portion of the Company Law. It deals with the types of companies, promotion and incorporation, memorandum and articles of association, conversions, financing, prospectus, debt and equity capital, alteration, directors, etc. of a Company.
The study of company law cannot be seen in isolation with other laws like SEBI Act, RBI Act, Depository Act, the Securities Contracts Regulation Act, the debt recovery and securitization law, and various notifications/clarifications issued by the Department of Company Affairs. Even a Chartered Accountant or a Legal Practitioner & other Professionals dealing with any company cannot ignore the provisions of the Act. Rather than avoiding the responsibility and creating unnecessary difficulties, it is important to have a thorough understanding of laws, rules and regulations governing the companies.
The questions asked in the Executive Programme include multiple choice questions, fill in the blanks, true and false or correct and incorrect statements, short notes, distinguish between, elaborate and practical.
Company Law as a subject is taught to students of Company Secretary course at Executive level so that they can acquire knowledge and develop understanding of the regulatory framework of Companies with reference to various provisions of the Companies Act and its schedules, rules, notifications, circulars, clarifications thereunder including case laws and Secretarial Standards.
Due to increasing emphasis on good corporate governance, proper knowledge and understanding of Company Law assumes an added importance in the corporate legislative milieu. A thorough study of various provisions of the Companies Act is a must for becoming a competent and efficient Company Secretary.
Those who are pursuing Executive Programme of Company Secretary Course should be conversant with amendments to the laws made up to six months preceding the date of examination. It is equally important for students to refer the Bare Act, Rules, Regulations, Case Laws as well.