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BLAW | BUSINESS LAWS | PART-A FULL EXPLANATION | OU SEM-2 | DEGREE | 💯 PASS | ‎⁨@shivanipallela⁩  — Transcript

by SHIVANI PALLELA · 4,484 words · 702 segments · language en · Watch on YouTube

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  1. 0:00Students, welcome back to our YouTube
  2. 0:01channel. So, here in this video we are
  3. 0:04going to discuss the business law part A
  4. 0:07complete explanation. This one video
  5. 0:10will be more than enough to cover part A
  6. 0:1220 marks, okay? So, 1 to 5 units all
  7. 0:16four marks questions I'm going to
  8. 0:17explain in this video. Whatever the
  9. 0:20explanation I'm doing here, no, that
  10. 0:22will be more than enough for your part
  11. 0:24A, okay? So, part B I have already
  12. 0:26explained and it is available in our
  13. 0:28YouTube channel. So, just check out the
  14. 0:30playlist, okay? So, first important
  15. 0:33question from this first unit for four
  16. 0:35marks is about the definition of offer
  17. 0:37and acceptance. Okay, what is mean by
  18. 0:40offer and what is mean by acceptance?
  19. 0:42Simple here, ma. What is mean by offer?
  20. 0:44According to the section two of A of the
  21. 0:47Indian Contract Act 1872, offer is
  22. 0:50nothing about one person is made
  23. 0:53proposal to the another person, okay?
  24. 0:56See, the proposal is made when one
  25. 0:58person expresses to another person his
  26. 1:01willingness to do or abstain from doing
  27. 1:04something with the intention of
  28. 1:06obtaining from the another person's
  29. 1:09consent, okay? So, the one person is
  30. 1:11making an offer and another person
  31. 1:14making an
  32. 1:16accepting that, okay?
  33. 1:18So, each and every person will get some
  34. 1:20or the other consent, okay? So, the
  35. 1:22person making the offer is called
  36. 1:24offeror, that is nothing about a
  37. 1:25promisor. The person who is made who is
  38. 1:29whom it is made is called offeree, that
  39. 1:31is promisee. So, offeror, offeree, okay?
  40. 1:35So, what is mean by acceptance then?
  41. 1:37Acceptance according to the section two
  42. 1:39of two section two of B,
  43. 1:42according to the Indian Contract Act
  44. 1:441872, when one person is made an
  45. 1:47proposal, okay? So, and his opposite
  46. 1:51person is making acceptance that, okay?
  47. 1:54So, the offer is accepted, then it
  48. 1:56becomes a valid promise. For example, I
  49. 1:58am offering 10 rupees each book. Okay, I
  50. 2:02am offerer, promiser. If you are
  51. 2:04agreeing means you need to give 10
  52. 2:06rupees and you need to take this book.
  53. 2:07Like that. You are accepting this. When
  54. 2:09you are accepting that that will it will
  55. 2:11be a valid promise. So, acceptance is
  56. 2:14nothing about if one person is making an
  57. 2:16offer the opposite person is if it is
  58. 2:18agreeing if it is accepting that that
  59. 2:20will be the acceptance. Okay? What is
  60. 2:22the essentials of valid acceptance means
  61. 2:25means what are the essential means first
  62. 2:27one it should be absolute and
  63. 2:28unconditional. It should be communicated
  64. 2:31with the offerer. It should given only
  65. 2:33by the offeree if other positive person
  66. 2:35is accepted then only it will give a
  67. 2:37proper acceptance. And it should be
  68. 2:40prescribed and it should be have only
  69. 2:41reasonable time. And also last but not
  70. 2:44least it should be having a prescribed
  71. 2:46manner. If this five points is
  72. 2:48satisfying then only we can able to
  73. 2:51understand then only we can able to
  74. 2:53consider it as a perfect acceptance. So,
  75. 2:56therefore, offer and acceptance are the
  76. 2:58two essential elements of a valid
  77. 3:01contract. So, without a lawful offer and
  78. 3:03valid acceptance no no contract is
  79. 3:06considered as a valid. No contract will
  80. 3:09considered as a coming to the existence.
  81. 3:12Clear? So, like this you need to write
  82. 3:13the answer for four marks. Exact answer
  83. 3:16if you are writing for four marks also
  84. 3:18200% you can able to
  85. 3:20get full on full marks from this
  86. 3:23particular question.
  87. 3:25Clear? So, next question mark explain
  88. 3:27consideration. Second question is about
  89. 3:29the explanation of consideration.
  90. 3:32According to the section two of D of the
  91. 3:34Indian Contract Act 1872. Sometimes uh
  92. 3:38you people will ask no this is a section
  93. 3:39remembering is very important I mean
  94. 3:41it's not important. Okay? If you have uh
  95. 3:43forgot means just according to the
  96. 3:45Indian Contract Act 1872 like that you
  97. 3:48just write the answer. Okay?
  98. 3:49Consideration is nothing about something
  99. 3:52value given by the promiser to other
  100. 3:54other person who desires that promise in
  101. 3:57return of the thing. So, that will be
  102. 4:00considered as a consideration. For
  103. 4:01example, I am saying that I will teach
  104. 4:04you the B law subject. Okay? You people
  105. 4:07are waiting for the B law subject. That
  106. 4:09is nothing about something you are
  107. 4:11waiting. Something I want to give it to
  108. 4:12you. Okay? So, it means something value
  109. 4:15to give to the promiser or the other
  110. 4:18person who is desiring that. Okay? So,
  111. 4:21it is popularly known as price of
  112. 4:23promise. Basically, this consideration
  113. 4:25is known as price of promise. What are
  114. 4:27the essential things of a consideration
  115. 4:30in which circumstances this will be
  116. 4:32considered as a valid means it must be
  117. 4:35approved. It must be desired by the
  118. 4:37promiser. Okay? It must move from the
  119. 4:39promiser or any other person. It may be
  120. 4:42from past, present, or future. Anything
  121. 4:44it might be there. It should be lawful.
  122. 4:46It should be real, not imaginary. And it
  123. 4:49should be having the adequate, but not
  124. 4:51have some value.
  125. 4:53These are the values for the essential
  126. 4:54features for this particular
  127. 4:56consideration. Question number What is
  128. 4:58the importance of this consideration
  129. 4:59means in an agreement it is legally
  130. 5:01enforceable. It will have the legal
  131. 5:03obligation and it will have the
  132. 5:05prevention of the unnecessary claims.
  133. 5:07So, therefore consideration is one of
  134. 5:09the main important element in a valid
  135. 5:11contract. Without an agreement, without
  136. 5:13a consideration, an agreement is cut and
  137. 5:15certain to be void. Okay? If agreement
  138. 5:18is done means compulsory there should be
  139. 5:20a consideration. Okay? So, that is about
  140. 5:23the second question. Third question from
  141. 5:25unit number one is about the void
  142. 5:27agreement. Void agreement is nothing
  143. 5:29about according to the Indian Contract
  144. 5:31Act 1872, a void agreement is an
  145. 5:34agreement that is not enforceable by
  146. 5:37law. Means the the agreement which is
  147. 5:40not enforceable by law, which it is not
  148. 5:43it creates no legal rights and
  149. 5:45obligations between the parties, that
  150. 5:47will be considered as a void agreement,
  151. 5:50okay? This void agreement will create a
  152. 5:52no legal rights or obligations without
  153. 5:56between the parties, okay? What are the
  154. 5:58features we are having in this void
  155. 5:59agreement means it will be no legal
  156. 6:02effect. It has no legal effect will be
  157. 6:04there. It cannot be enforced to in the
  158. 6:06form of law. It does not create any
  159. 6:08legal obligations and it may avoid from
  160. 6:11the beginning, okay? So, these four
  161. 6:14These four are the features of a void
  162. 6:16agreement. Then what is the examples for
  163. 6:18this means? An agreement should be with
  164. 6:20the minor and it should be without any
  165. 6:22consideration. It should not have
  166. 6:24agreement which should not have the
  167. 6:25unlawful or illegal purposes and
  168. 6:28agreement in restraint of marriage or
  169. 6:30trade. So, these are the examples. So,
  170. 6:33overall conclusion is nothing about a
  171. 6:34void agreement has no legal rights.
  172. 6:37Therefore,
  173. 6:38the parties cannot claim the legal
  174. 6:40remedy, okay? So, that's about the void
  175. 6:42agreement. In the second unit, the first
  176. 6:44important question is about the caveat
  177. 6:46emptor. A caveat emptor is nothing about
  178. 6:48a Latin word, which it is means let
  179. 6:50buyer behave, okay? So, basically it is
  180. 6:53a fundamental principle under sales
  181. 6:55goods act 1930. So, according to this
  182. 6:58principle,
  183. 6:59a buyer should examine the goods
  184. 7:01carefully before purchasing them. If the
  185. 7:04goods are not suitable for the buyer
  186. 7:05purpose, the seller is generally not
  187. 7:08responsible, okay? So, this is about the
  188. 7:12caveat emptor. It is nothing about let
  189. 7:14the buyer behave. Before purchasing
  190. 7:16anything, the buyer should be very
  191. 7:18careful about the goods what he was they
  192. 7:20were buying, okay? So, therefore, the
  193. 7:23seller is not responsible for further
  194. 7:24any things, okay? At what are
  195. 7:26circumstances this will be exempted
  196. 7:28means fitness for buyer purpose. That
  197. 7:30means if a buyer informs a seller about
  198. 7:32the purpose of the goods or relies on
  199. 7:34the seller skill, the seller must supply
  200. 7:36suitable goods. If you are depending on
  201. 7:39the seller, seller will supply the
  202. 7:40suitable goods. Next one, merchantable
  203. 7:42quality. Merchantable quality is nothing
  204. 7:44about goods purchased by description
  205. 7:46from the dealer must be merchant
  206. 7:48quality. Next one, sale by sample. The
  207. 7:51bulk of goods must correspond with the
  208. 7:54sample down. And next one, my sale by
  209. 7:57description. Goods Goods must match the
  210. 8:00description
  211. 8:01given by the seller. And fraud and
  212. 8:03misrepresentation, if the seller
  213. 8:04conceals any defects or giving the false
  214. 8:08information, that time caveat emptor
  215. 8:10does not apply. Okay. So, what is the
  216. 8:12conclusion you can write it over here?
  217. 8:14It protects the seller. It protects the
  218. 8:16seller, but the law also protects the
  219. 8:18buyer also in certain situations where
  220. 8:21the seller is dishonest or breaches
  221. 8:23these conditions and warranties will be
  222. 8:25implied. So, both seller and buyer, for
  223. 8:28both this caveat emptor will be helpful
  224. 8:30and it both are for them it is a asset
  225. 8:33only. Okay.
  226. 8:37Next one, my differences between sale
  227. 8:39and agreement to sell. Sale is nothing
  228. 8:41about a contract of the ownership.
  229. 8:44Immediately we can transfer the goods
  230. 8:45and services to the other, but agreement
  231. 8:48to sell is a contract where transfer of
  232. 8:49ownership will take a future date. Okay,
  233. 8:52it will take a future date for the
  234. 8:53fulfillment of the certain conditions.
  235. 8:55So, what is the differences you can
  236. 8:56write it here? So, sale is nothing about
  237. 8:58the ownership immediately it will have
  238. 9:00in the future. It will create immediate
  239. 9:01rights. It will create a future rights.
  240. 9:03It will have the the risk passes. It
  241. 9:05will have the risk remains with the
  242. 9:07seller until the ownership is passing.
  243. 9:09It is executed contract. It is executory
  244. 9:12contract. Buyer becomes the owner. Buyer
  245. 9:14becomes the owner later, not now. Okay.
  246. 9:17So, like that four to five differences
  247. 9:19if you are writing for the four marks,
  248. 9:21this that will be more than enough. What
  249. 9:23is the conclusion you can write it over
  250. 9:24here means? A sale transform ownership
  251. 9:27immediately whereas agreement to sell
  252. 9:29creates only a future promise to
  253. 9:31transfer ownership. That is the part you
  254. 9:33need to write it over here is the this
  255. 9:36conclusion. Third question from unit
  256. 9:38number two, differences uh the define
  257. 9:40consumer under Consumer Protection Act,
  258. 9:43okay? So, according to the Consumer
  259. 9:44Protection Act, who is a consumer? So,
  260. 9:46Consumer Protection Act 2019, a consumer
  261. 9:49is a person who buys any goods or hires
  262. 9:51or avails or any services from the
  263. 9:53consideration. The consideration may be
  264. 9:55paid, partly paid, promised, or payable
  265. 9:58in installments, okay? So, that is about
  266. 10:01the Consumer Protection Act 2019, but
  267. 10:03who is a consumer?
  268. 10:05Consumer is nothing about a personal use
  269. 10:07who purchases the goods for the personal
  270. 10:09use, who purchases or who hires the
  271. 10:11services for the consideration, who uses
  272. 10:13the goods and services by the personal
  273. 10:16approval, okay? So, that time we will
  274. 10:18consider it as a consumer. When we will
  275. 10:20not consider it as a consumer means if a
  276. 10:22purchase only of the goods for the
  277. 10:24resale, if you are purchasing the goods
  278. 10:26for the resale, you are not a consumer.
  279. 10:28If a person purchasing goods for the
  280. 10:30commercial purpose except for the like
  281. 10:32self-employment like that. So,
  282. 10:35that time also we will not consider them
  283. 10:37as a
  284. 10:39consumer, okay? That time that time also
  285. 10:41it will not considered as a consumer,
  286. 10:43okay? So, these two questions. And what
  287. 10:46are the rights we are having means right
  288. 10:48to information, right to safety, right
  289. 10:50to choose, right to be heard, right to
  290. 10:52seek redressal, like a long whatever we
  291. 10:54have discussed no, short also we have
  292. 10:56discussed the same thing. This is the
  293. 10:58conclusion ma. The Consumer Protection
  294. 11:00Act 2019 safeguards the consumer from
  295. 11:03unfair trade practices and ensures the
  296. 11:06right to be protected, okay?
  297. 11:09So, like this you need to write the
  298. 11:11answer. Then what is meant by product
  299. 11:13liability? Product liability is nothing
  300. 11:14about a responsibility of a manager,
  301. 11:17sorry, responsibility of a manufacturer,
  302. 11:19responsibility of a seller or a service
  303. 11:21provider to compensate consumer from the
  304. 11:23loss or injury or damage to a defective
  305. 11:27product or a defective service. So, this
  306. 11:29is law is introduced under the section
  307. 11:32consumer protection act 2019. [music]
  308. 11:35So product liability is also one of the
  309. 11:37main important four marks question. What
  310. 11:38are the grounds you will have it here
  311. 11:40means manufacturing defects will be
  312. 11:41there, design defect will be there, poor
  313. 11:43quality will be there and poor proper
  314. 11:46instructions and warnings failure is
  315. 11:48there and deficiency in service related
  316. 11:51of the product is also one of the main
  317. 11:53ground for the product liability. What
  318. 11:55are the what are the persons liable?
  319. 11:57Okay, manufacturer, product seller and
  320. 11:59product service provider are the persons
  321. 12:01who is liable for these things. Okay.
  322. 12:04Next, what are the remedies we can use
  323. 12:06it here means compensation for the loss,
  324. 12:08replacement of the defective goods,
  325. 12:10return
  326. 12:11like refund of the amount and removal of
  327. 12:13the defects. These are the four remedies
  328. 12:15we can get it here in the product
  329. 12:17liability. So product liability is
  330. 12:19nothing about a manufacturer and sellers
  331. 12:21maintain the quality to compensate the
  332. 12:24consumers from the losses caused by the
  333. 12:26defective products or defective goods.
  334. 12:29For that case
  335. 12:31whatever the quality standards they are
  336. 12:33maintaining that is called product
  337. 12:34liability. Clear? Now unit number three,
  338. 12:37ma. Unit number three first important
  339. 12:39question is about the patent. Patent
  340. 12:42Patent is nothing about a legal right.
  341. 12:44Okay, patent is nothing about a legal
  342. 12:47right which is granted by the
  343. 12:48government. Okay, for the new
  344. 12:50inventions. Okay. So uh if it gives the
  345. 12:54inventors to make the
  346. 12:56uh right to make, right to use, right to
  347. 12:58sell, right to give the license or
  348. 13:00anything for the limited period of time.
  349. 13:02So if you are a new inventor and you are
  350. 13:05getting a patent right at that time you
  351. 13:07will have a for a limited period of time
  352. 13:09you will have this right. So right to
  353. 13:11use, right to sell
  354. 13:13everything you will have for this
  355. 13:15patents. So that is the meaning of the
  356. 13:17patent, ma. Okay.
  357. 13:19Then what is the features for here
  358. 13:20means? First one it will granted only
  359. 13:22for the uh inventions. Okay. Second one
  360. 13:26it will be considered for the It
  361. 13:28protects the inventors inventions or
  362. 13:30inventors from the unauthorized users.
  363. 13:33Valid only for the 20 years or from the
  364. 13:35date of filing. It encourages the
  365. 13:37innovation and it can be transferred to
  366. 13:39license to the other persons also. What
  367. 13:41is the importance we are having means it
  368. 13:43will protect the inven- investors life.
  369. 13:45It will prevent from the copying. It
  370. 13:47will promote the research and it will
  371. 13:48have the commercial value also. Okay,
  372. 13:51what is the conclusion you can write it
  373. 13:52over here means a patent is nothing
  374. 13:54about protection to the inventors and it
  375. 13:57will encourage us technology and by
  376. 14:00rewarding the innovations. So, like this
  377. 14:01you need to write about the
  378. 14:03answer for the four marks, ma.
  379. 14:05Generally, generally you can write it by
  380. 14:07your own. Don't by heart the answers.
  381. 14:09Don't butty Don't buttyfy the answers,
  382. 14:12okay? Try to understand the concept. Try
  383. 14:14to write it by your own. That will be
  384. 14:16okay. Second important question from
  385. 14:18unit number three is about a copyright,
  386. 14:20ma. So, copyright
  387. 14:22is a legal right. Okay, basically it is
  388. 14:24a given to a creator of an original like
  389. 14:27a musical, artistic, literary
  390. 14:30Sorry, literally, dramatical works,
  391. 14:32everything. Okay, films, everything it
  392. 14:34might be. So, it protects the expression
  393. 14:37of ideas from the unauthorized copying.
  394. 14:39Okay, that is called copyright. So,
  395. 14:41copyright will give the protection to
  396. 14:43the creative works. It will right to
  397. 14:45reproduce and publish the work. It it
  398. 14:46can be sold, licensed and transferred.
  399. 14:48It will have the prevention of copying
  400. 14:51from the unauthorized users. Okay? It
  401. 14:53exists automatically. What is the
  402. 14:55importance we are having in this
  403. 14:56copyright means it will protect the
  404. 14:57creators from privacy. It will encourage
  405. 15:00us the creativity. It will give the
  406. 15:01financial benefits to the authors also.
  407. 15:04So, therefore the conclusion will be
  408. 15:05copyright state safeguards will
  409. 15:08intellects the parts of the creator, ma.
  410. 15:10Okay, it will promote the creativity in
  411. 15:12the society. Okay? Next one, ma. Sec-
  412. 15:15third important question from the third
  413. 15:17unit is trademark. Trademark is nothing
  414. 15:19about a trade or a symbol or a logo or a
  415. 15:21design or a word, anything it might be.
  416. 15:24So, that will be a service from one
  417. 15:26business from the another business. It
  418. 15:27will be different. Your different name
  419. 15:30will be there for your business. I will
  420. 15:32be having some different name. Your Your
  421. 15:34business will have the separate logo and
  422. 15:36my business will have the separate logo.
  423. 15:38Like that, it is a name or a symbol or a
  424. 15:40logo or a design, anything it might be.
  425. 15:42So, that is called trademark. What is
  426. 15:43the
  427. 15:44features we are having in this trademark
  428. 15:46means it will identify the goods and
  429. 15:48services. It will create a brand
  430. 15:50recognition. It will have the legal
  431. 15:51protection and it will give the reward
  432. 15:54periodically. It will prevent the misuse
  433. 15:56from the competitors. Okay. So, what is
  434. 15:59the importance for this thing means
  435. 16:01trademark means it will protect the
  436. 16:02business reputation. It will
  437. 16:03It will build the customer confidence
  438. 16:06and it will be helpful for the
  439. 16:07advertisement as well as the marketing
  440. 16:09also. So, a trademark is a valuable
  441. 16:11business asset, ma. So, it will gives
  442. 16:13the business and it will It will protect
  443. 16:16the goodwill of a business also. So,
  444. 16:19very important answer and you can draw
  445. 16:21the logos of like Amazon, anything logos
  446. 16:24also you can draw it over there. Okay.
  447. 16:26So, fourth one, ma, trade secrets. So,
  448. 16:28trade secret is nothing about a
  449. 16:30confidential business information where
  450. 16:32it will give the advantage to the
  451. 16:33business. So, it is not disclosed in the
  452. 16:35public. Okay. So, what is the examples?
  453. 16:39For example, a trade secret is a
  454. 16:40Coca-Cola formula.
  455. 16:42A customer list, manufacturing process,
  456. 16:45making strategies. So, these are the
  457. 16:47things we are having here. This is very
  458. 16:49important. Definitely, you need to
  459. 16:51understand that. Okay. Next, what is the
  460. 16:53features we are having means information
  461. 16:55must be secret. It should give the
  462. 16:57economic value to the business. It
  463. 16:58should be protected through
  464. 16:59confidentiality and no registration is
  465. 17:02required for this. So, what is the
  466. 17:04importance for this trade secret means
  467. 17:05it will protect the confidential
  468. 17:07information. It will give the business
  469. 17:08competitiveness and it will prevent
  470. 17:10unfair competition also. So, therefore,
  471. 17:13trade secrets will be helpful for the
  472. 17:14business to protect valuable
  473. 17:17confident information maintaining that
  474. 17:19advantage also. Clear? So like this you
  475. 17:22need to write about the answer for four
  476. 17:23marks for the trade secrets ma. Next
  477. 17:25unit number four, first important
  478. 17:27question we have discussed about the
  479. 17:29company. So company according to the
  480. 17:31companies act 2013 a company is nothing
  481. 17:33about a artificial person, okay, which
  482. 17:36is incorporated under the law. It is
  483. 17:38incorporated under the act. It so it is
  484. 17:41having the separate legal entity for the
  485. 17:43perpetual succession and with a common
  486. 17:46seal. So what is the characteristics
  487. 17:48we'll have means first one separate
  488. 17:49legal entity will have the laws and
  489. 17:51everything will be separate legal entity
  490. 17:53will be there. Perpetual succession will
  491. 17:55be there even if a
  492. 17:56even if a humans die also but company
  493. 17:59still have the existence and it will
  494. 18:02have the limited liability and separate
  495. 18:04property will be there and it is a
  496. 18:05artificial person. What is the
  497. 18:07advantages of this company means it is
  498. 18:09having the transfer of easy shares,
  499. 18:11large capital can be raised and
  500. 18:13professional management also can be done
  501. 18:15with this. Okay, what is the conclusion
  502. 18:17you are here? A company is more suitable
  503. 18:19for the business organization for the
  504. 18:21large scale business activities. Okay?
  505. 18:24Second question ma MOA memorandum of
  506. 18:26association. Memorandum of association
  507. 18:28is nothing about a fundamental document
  508. 18:30of a company. Okay, it defines the goals
  509. 18:33and powers of a company. Okay? So here
  510. 18:36you will have the contents ma so there
  511. 18:37are six contents name clause, register
  512. 18:39office clause, object clause, liability
  513. 18:42clause, capital clause, subscription
  514. 18:44clause. Okay, this six contents you need
  515. 18:46to write it and what is the importance
  516. 18:48you are having in this MOA means it will
  517. 18:50define the company activities, it will
  518. 18:52protect the shareholders and it will
  519. 18:54give the and it will guide the
  520. 18:55management.
  521. 18:57Okay, what is the conclusion you can
  522. 18:59write it over here that MOA act as a
  523. 19:01constitution of the company where it
  524. 19:03will determine the power and functions
  525. 19:05of the companies. Okay? So third
  526. 19:08question from unit number four is
  527. 19:10articles of association. Articles of
  528. 19:12association is nothing about the
  529. 19:14internal rules and regulations of a
  530. 19:15company, management of a company.
  531. 19:18Internally, what are the rules and
  532. 19:19regulations we are having? That will be
  533. 19:21considered as the articles of
  534. 19:22association. What is the contents you
  535. 19:24are having means issue of shares,
  536. 19:27meetings, directors powers, dividend
  537. 19:29policy, voting rights. So, these are the
  538. 19:31contents you are having in articles of
  539. 19:33association. Why it is having the
  540. 19:35importance means it will have the
  541. 19:36internal management. It will defines the
  542. 19:39duties of director. It will protect the
  543. 19:41shareholders interest also. So,
  544. 19:43therefore, the articles of association
  545. 19:45ensures the smooth administration and
  546. 19:48effective management of a company also.
  547. 19:51Clear, ma? So, last question from unit
  548. 19:53number four is prospectus. Prospectus is
  549. 19:56nothing about a legal document where it
  550. 19:57is issued by a public company. Public
  551. 20:00company inviting subscription to the
  552. 20:03shareholders or shares or debentures.
  553. 20:06So, that is called prospectus. It is a
  554. 20:08legal document. What is the
  555. 20:11contents we are having in this means
  556. 20:12company details should be there, its
  557. 20:14goals should be there, capital structure
  558. 20:16should be there, financial information
  559. 20:18should be there, and what are the risk
  560. 20:20factors you are having also, it should
  561. 20:21be considered in that, okay? So, what is
  562. 20:23the importance we are having here means
  563. 20:25it will give a it will give the complete
  564. 20:28information to the investors. It will be
  565. 20:30helpful for the investor to make the
  566. 20:31decisions. It will ensure the
  567. 20:33transparency also. So, what is the
  568. 20:35conclusion? A prospectus provides the
  569. 20:37investors by providing the accurate
  570. 20:40information before they invest anything,
  571. 20:43okay? So, this is the questions about
  572. 20:45the until unit number four. Now, last
  573. 20:49unit, unit number five, ma. First
  574. 20:51important question is about the
  575. 20:52insolvency. Insolvency is nothing about
  576. 20:55a financial condition where one person
  577. 20:58or a company is unable to pay debts.
  578. 21:01That time, this will become the due,
  579. 21:04okay? If you are unable to pay your
  580. 21:05losses, if you are unable to pay your
  581. 21:07debts means that type of financial
  582. 21:09condition is called insolvency. So, what
  583. 21:12is the features we are having? It will
  584. 21:13be inability to repay your debts. It
  585. 21:15will have the financial distress. It
  586. 21:17will have the legal proceedings. And it
  587. 21:19can affect your companies or individuals
  588. 21:21also. What is the importance for this?
  589. 21:24Means it will protect the creditors. It
  590. 21:26will ensure the financial settlement of
  591. 21:28your debts. And it will be helpful to
  592. 21:29revive your financial distressed
  593. 21:31companies. So, therefore, this
  594. 21:33insolvency will give you the financial
  595. 21:35failure and it will have the IBC 2016
  596. 21:39also. Insolvency and Bankruptcy Code
  597. 21:412016. Second question, now what is meant
  598. 21:43by bankruptcy? Bankruptcy is nothing
  599. 21:45about a legal declaration where an
  600. 21:48individual is unable to pay repay your
  601. 21:50debts. That time, contemporary court
  602. 21:53will under the Insolvency and Bankruptcy
  603. 21:55Code 2016. Okay, it is declared by a
  604. 21:57competent court. Okay, what is the
  605. 21:59features we are having? Means it is
  606. 22:01having the legal proceeding. It will
  607. 22:03asset may be distributed to the among
  608. 22:04the creditors. It will have mainly
  609. 22:06applicable to the individuals. It will
  610. 22:09be provides relief from the unmanageable
  611. 22:11debts also. What is the importance we
  612. 22:13are having? Means it will protect the
  613. 22:15debtors and creditors. It will ensure
  614. 22:17the fair discrimination fair
  615. 22:18distribution of your assets. It will
  616. 22:20provide the equal opportunities. Okay?
  617. 22:23So,
  618. 22:24this Bankruptcy Code is a legal process
  619. 22:26for solving your debts in the individual
  620. 22:28who cannot repay your liabilities.
  621. 22:31Clear? So, next question, winding up of
  622. 22:33a company. Winding up of a company is
  623. 22:35nothing about legal process of closing a
  624. 22:37company. Okay? Before closing a company,
  625. 22:40company's assets you need to clear. You
  626. 22:42need to pay your liabilities and you
  627. 22:44need to distribute all your remaining
  628. 22:46assets and among shareholders,
  629. 22:47everything you need to clear. So,
  630. 22:49winding up of a company modes means
  631. 22:51compulsory winding up of a tribunal
  632. 22:53NCLT.
  633. 22:54Okay? NCLT is nothing about compulsory
  634. 22:57winding up by the tribunal. Second one
  635. 22:59is voluntary winding up. Voluntary
  636. 23:01winding up is nothing about under the
  637. 23:02applicable law.
  638. 23:04So, importance means settle it will
  639. 23:06settle all the liabilities of the
  640. 23:07company. It will protect the
  641. 23:09integrators. It will bring the company's
  642. 23:10existence into end. What is the
  643. 23:12conclusion? Winding Winding up is a
  644. 23:15final stage of a life of a company and
  645. 23:17ensures orderly closure of its affairs.
  646. 23:20Okay?
  647. 23:22Now, the last question unit number five,
  648. 23:24fourth question. CIRP, corporate
  649. 23:27insolvency
  650. 23:28resolution process. What is the CIRP
  651. 23:31means? It is a procedure under
  652. 23:32insolvency and bankruptcy code 2016
  653. 23:35where insolvency of corporate entities
  654. 23:37will be having the specific time. What
  655. 23:39is the features we are having means? It
  656. 23:41will be initiated by the NCLT and it
  657. 23:44will be managed by the insolvency
  658. 23:46professionals. It will have the
  659. 23:47committee of creditors and it will be
  660. 23:49aims to review the company. Okay? So,
  661. 23:52what is the importance we are having in
  662. 23:54this means? It will maximize the company
  663. 23:56assets. It will provide the creditors
  664. 23:58interest and it will enable
  665. 24:00business revival also. Okay? So, what is
  666. 24:04the conclusion? CIRP provides a
  667. 24:06structured and efficient mechanism to
  668. 24:09resolve corporate insolvency while bank
  669. 24:12like you're balancing your interest of a
  670. 24:14shareholders along with that. Okay? So,
  671. 24:16that's it about the short questions, all
  672. 24:19unit questions I have explained. It is
  673. 24:21not about by harding the answers. It is
  674. 24:23all about understanding the answers.
  675. 24:25Okay? When you are perfect with the long
  676. 24:27questions, automatically you can able to
  677. 24:29attend the short questions also. Okay?
  678. 24:32So, this PDF is available in our
  679. 24:33Telegram group for free of cost. Still,
  680. 24:36if you're having any further doubts, do
  681. 24:37let me know in the comment section and
  682. 24:40all the very best for your examination
  683. 24:41as well as your preparation in our
  684. 24:43channel. Part A explanation just now I'm
  685. 24:45uploading. Part B and explanation is
  686. 24:47there. Epic video is there. Paper
  687. 24:49presentation, quick revision, quick
  688. 24:51revision and last minute revision,
  689. 24:53everything how you need to attend your
  690. 24:55case study, how your question paper
  691. 24:57pattern will be there, everything I have
  692. 24:59uploaded in our channel. It's your
  693. 25:01responsibility to see all the videos.
  694. 25:03Top 10 questions also is there. The 10
  695. 25:05questions if you are preparing means
  696. 25:07200% you can able to pass in this
  697. 25:09subject, okay? So, let me know how many
  698. 25:11completed how many members were
  699. 25:12completed your preparation in the
  700. 25:14comment section. All the very best. See
  701. 25:15you all in the next video, students.
  702. 25:17Bye-bye, everyone.

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