Company Law Issues That Often Happens

Company Law Issues That Often Happens

A company law is a legal entity that can act as an individual, with its own rights and responsibilities. The most common forms of companies are limited companies (LTDs), which have shareholders and investors, or unlimited companies (ULCs), which don’t have shareholders.

Company Law Issues Incorporation of a Company

Incorporation of a company law issues is the process of registering a new entity with the relevant authorities and acquiring legal status. This allows you to establish your own business, free from personal liability for its debts, obligations, and liabilities. There are many benefits to incorporating your business as well as some requirements that must be met before you can do so:

  • Incorporation provides protection from creditors who may want to sue you personally if they think that they can get something out of it by using your company instead.* In addition, it gives shareholders (owners) greater control over their investments in case someone wants them back.
  • Once incorporated, this type of legal structure also provides tax advantages over sole proprietorships or partnerships since there’s less need for record-keeping requirements due to fewer transactions occurring within an organization overall compared with those involving just one person working independently.
  • Finally – but perhaps most importantly – incorporation offers better financial security than many other types because all assets owned by an LLC remain protected even if lawsuits were filed against both parties separately (i..e., individuals vs companies).

Appointment of Secretary and Registered Office

In this section, we will look at some of the most common company law issues. We will discuss how to appoint a secretary and registered office and what happens if you don’t do it properly.

The role of the Secretary: A company must have at least one director who is responsible for managing its affairs on behalf of its members (shareholders). However, it may also appoint another person with special skills or experience as a secretary to help out with day-to-day tasks such as keeping records of meetings, preparing minutes and correspondence etcetera.

In addition to having directors and secretaries, companies must also have registered offices where they keep their records and conduct business in England & Wales; Scotland; Northern Ireland, and Guernsey respectively (if applicable). This means that documents relating to your business must be sent there too – including applications made under Companies House rules such as Annual Returns or Change of Name Forms which need signing by two directors before being sent back again!

The role of Registered Office: The registered office is the physical address where the company is registered. It’s usually the address of the company’s registered office, but it doesn’t have to be.

Company Law Issues Appointment of Director

The appointment of a director is an important decision for the shareholders to make. A director is an individual who is appointed by the shareholders to manage the affairs of the company. The following conditions must be fulfilled for a person to become a director:

  • He/she must be a natural person and not a juridical entity;
  • He/she must be a resident of India;
  • His age should not be less than 21 years (this requirement does not apply where there are special circumstances);
  • He should not have been convicted for any offense under section 135(7) or 136(1) read with section 135(8) or 136(2).

Company Law Issues Board Meeting Minutes and Records

The minutes of a board meeting must be kept for at least five years and must state:

  • The date and place of the meeting;
  • The names of those present; and
  • Any resolutions passed by the directors.

Above Steps Decide the Fate of Companies

Company law issues are a very important part of the business world. The above steps decide the fate of companies, shareholders, directors, and employees.

The above steps are:

  • Drafting articles of association by members or manager(s)
  • Registering with the Registrar of Companies (ROC)
  • Obtaining approval from ROC before starting any activity in name of the company
  • Appointing directors and secretaries who have been duly registered under ROC Act 1956


The above steps decide the fate of companies. If you are looking for a company law issue and want to know more about it, then contact us today.