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ANSWER 1
INTRODUCTION:
A company's or an employer's capital or fund is the money or assets they need to function well in the current climate and remain viable in the marketplace for the long term. Fundraising or capital raising has grown quite common in the industry because of the surge in start-ups over the previous three years. Each company is searching for a little amount of capital to expand their product line or utilise the money for other business purposes. Various ways are used to create funds. It comprises of funds in exchange for equity, funds in exchange for debts, or funds in exchange for both. Someone investing in your firm in exchange for a debt on which you will pay interest at a positive negotiated rate is known as debt fund raising. Someone might give you money in exchange for some of your company's shares if you raise money through equity. The investor may consider your company's fairness while deciding whether to offer you with financing.
CONCEPT AND ANALYSIS:
For a company to run a business a large amount of capital is required, because of which a company is needed to raise a capital. So, depts and shares are the only ways through which the companies can raise their capital. Shares are, used to raise the capital that has owned by the share holders and debts are a secured way of capital raising with the fixed amount of interest. In India, each business enterprise has to check-in itself beneath the companies Act, 2013 to get benefits of the provisions noted therein. The groups Act also specify the numerous units through which any organization can improve capital.
So, the company can raise the capital under the following three instruments
- Equity based instruments
- Debt based instruments
- Hybrid based instruments
1) Equity based instrument: In this type someone would provide you with funding in exchange for a few stocks in your organisation. The investor would take portion of your company's equity in exchange for capital. The capital may be raised by some of the equity stocks. Those are:
- Equity shares with voting rights
- Equity shares with differential voting rights
- Worker stock options
- Sweat equity shares
2) Preference shares: During the life of the company, shareholders are given preferential rights and receive an annual dividend. During the company's winding up procedures, shareholders have the right to receive a certain amount of each share that they own in the form of a dividend. Again, there are three types of preferred shares:
a) Cumulative and non-cumulative preference shares. b) Participating and non-participating preference shares. c) Redeemable and irredeemable preference shares.
3) Dept based instrument: Here the capital is raised by depts that someone could be making. They invest on the business against the dept on which the business holders are asked to pay the interest according to the price agreed and until the time given. The amount taken as dept is based on the valuation of the company. The debenture may be secured or unsecured. At the same time, they can be convertible or unconvertible. The debenture holders have a chance to go for legal obligation if the fixed interest amount is not paid within the given time. The debentures also had a right to wind up the company when the dept amount is not cleared by the given limited time. All the debenture holders have the right to claim on the assets of the company. The dilution of the organization's shareholding occurs at a later stage in this case. When the company is unable to generate profits and need to repay the investor's debts, they dilute a portion of shareholdings in the investor's name to eliminate the debts. As a result, the company can retain its shareholding as long as it can meet the investor's debt or interest requirements. As a result, dept is very dependent on a non-profit situation.
4) Hybrid based instrument: These have protection elements of both equity and dept security. They are generally given when the company optionally converts debentures either fully or partially, or even sort of debentures. Those are all convertible into equity stocks of the company.
CONCLUSION:
These three are the most widely used units by which an employer can generate a budget or increase capital. The nature of the instrument to be issued by a corporation is heavily influenced by the company's valuation. The valuation of the company is the deciding factor in determining which instrument should be used. However, there is another issue with this precise idea of valuation.
contradict fundamental rights under paragraph 19(1)(g), namely the freedom to pursue one's own trade, career, or business.
So, in this case, the court docket has incorporated the interest of the staff by ensuring them minimum salaries and informing the company that if you are employing any people, you must pay them minimum wages to keep your employment or business; otherwise, you must close your firm as it not able to satisfy the human resources. This is the way how the judiciary has aimed to defend the welfare of the employees.
b) Devikandan K. Mishra Vs. Sayaji Iron & Engineering Company Pvt.Ltd & Anr- Respondent (s)
Here the plaintiff was working as a machinist charge-hand, who used to supervise work of other machinists. He was suspended because of ‘misconduct’ as he was found sleeping on duty. A charge sheet was filed against him. The Labor court passed the judgement that the petitioner was a supervisor and not a workman. Later, in the supreme Court, the misconduct was not a considered as a grave crime and the petitioner was reinstated and awarded with the continuity of service and be paid 30% of his wages.
Minimum Wages Act, 1948:
This Act protects workers from the dangers of unfair labour practises and exploitation. Although social welfare is a primary goal of defining the minimum wage structure, the immediate goal is to settle the conflict between employers and employees and deliver justice to both labour and capital interests. Its goal is to bring them together and enhance collaboration on manufacturing tasks. The Minimum Wage Act of 1948 in India provides for the establishment and enforcement of minimum wages in respect of scheduled work.
Employee Compensation Act, 1923:
This Act consists of 4 chapters further divided into 36 sections and 4 schedules. It protects the workers from tough difficulties and rescue arising from accidents during work. In case of injury accident arising out of and in the course of employment and resulting in disablement or death, payment is ensured and enacted as per workmen provisions of ECA 1923.
Employment Provident Fund and Miscellaneous Provisions Act, 1952:
The Employment Provident Fund and Miscellaneous Provisions Act, 1952 aims to set as a means of social security. It becomes applicable for establishment with 20 or more employees. And it applies to whole part of India.
Payment OF Bonus Act, 1965:
They shall continue to apply notwithstanding that the number of persons employees falls below 20 Section (1). This law is applicable to 20 or more employees are employees. The establishment that has more than 20 or more persons employees.
Payment of Gratuity Act, 1972:
This law is a social security enactment or an extension of labor laws that has a sole aim of providing gratuity. Gratuity is defined as a monetary award provided to the working employees for providing uninterrupted services during the employment. Thus, act main motto is the encores the workers past perilous and achieves and accomplishments.
CONCLUSION:
The Indian judiciary has issued various judgements ensuring employee safety on multiple occasions. Employees are given special consideration since they are in a disadvantaged or weak position in comparison to the employers. They might be people who are actively looking for work. For the previous three centuries, they have been exploited by these employer teachings.
Saxon law. So, the fairness and efficiency of the judicial system are both suffering as a result of the backlog of cases and delays, and this is not a new trend. Unfortunately, this is the situation in many nations, including India, and it is a problem that affects the majority of developed economies.
ANSWER 3B
INTRODUCTION:
Section 4 of the Partnership Act of 1932 defines a partnership as a group of two or more men or women who have agreed to share a percentage of the profits earned by the business under the supervision of all members or on behalf of various contributors.
In addition, characteristics of a partnership are:
a) Partner agreement.
b) There must be two or more members.
c) The agreement must be in accordance with income sharing.
d) The joint venture must have a commercial goal.
e) There must be a shared business
CONCEPT AND APPLICATION
The Arbitration and Conciliation Act of 1996 explains the numerous methods for resolving legal disputes. Arbitration, conciliation, mediation, patron counselling, Lok Adalat, and other processes are included. For each alternative technique, we have various laws in place to regulate court proceedings. The primary motivation for using these alternative dispute resolution procedures is to expedite the resolution of cases.
Some of the advantages of using Alternate dispute resolution:m
a) Less time-consuming and there is a quicker resolution of disputes : The parties have entire control over the location, the applicable legislation, and the time of the hearing, all of which contribute to a faster conclusion of the case as compared to the traditional court system. b) Less costly: Because each new hearing takes less time, no fees may be imposed. c) Party autonomy: This refers to the complete autonomy of both parties in deciding the regulation to be adopted, the discussion board where the hearing will take place, and the individual or arbiter who will conduct the arbitration. d) Method control: Due to party autonomy, the technique of the proceedings is governed by events.. e) Discussion board selection: Unlike the court docket machine, the opportunity dispute decision system may not have a hierarchy. To facilitate conflict settlement, the parties can choose any of the forums at random. f) A variety of conflicts cab be solved: the ADR procedure is far more adaptable than the traditional judicial system. There might be a wide range of issues discussed. g) A wide range of possible outcomes : unlike litigation, the ADR system offers a variety of remedies or outcomes, such as reimbursement, injunction, and so on.
