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About the Authors
Late Dr. V.K. Jain -
I-5
Shashank S. Sharma
I-6
Preface to Sixth Edition
The aim of this book is to provide an introduction to the core concepts of Business Laws in a student friendly style. The book is primarily written for the students of Foundation Course of Chartered Accountancy under the new syllabus introduced by the Institute of Chartered Accountants of India. It is also useful for the students of other professional exams.
We have attempted to present the subject in a lucid and simple style keeping in mind the students of undergraduate level. To test the understanding of the student and also to enable them to have sufficient knowledge. The exercise given at the end of chapters covers a lot of Multiple Choice Questions, True and False type questions, Theoretical Questions and Practical Questions as well as questions in the pattern of Case Studies. The book is divided into five units depending upon their respective Acts. The answers and hints for writing the answers further adds up to the value of the book. In preparation of this book we have received encouragement and support from various quarters. We would be failing in our duty if we do not acknowledge the deep sense of gratitude that we owe to various people for providing us an insight and inspiration in writing this book.
I-7
Any comment and criticism relating to the present work will be most welcome.
Happy Reading!
V.K. JAIN
SHASHANK S. SHARMA
I-8
Contents About the Authors I-5 Preface to Sixth Edition I-7 UNIT 1 INDIAN CONTRACT ACT, 1872 CHAPTER 1 3 CHAPTER 2 22 CHAPTER 3 41 CHAPTER 4 54 CHAPTER 5 63 CHAPTER 6 81 CHAPTER 7 98 CHAPTER 8 111 CHAPTER 9 131 UNIT 2 SALE OF GOODS ACT, 1930 CHAPTER 10 157 CHAPTER 11 171 CHAPTER 12 184 CHAPTER 13 199 I-9
CHAPTER 14 210 CHAPTER 15 223 UNIT 3 INDIAN PARTNERSHIP ACT, 1932 CHAPTER 16 231 CHAPTER 17 250 CHAPTER 18 257 CHAPTER 19 272 UNIT 4 LIMITED LIABILITY PARTNERSHIP ACT, 2008 CHAPTER 20 293 UNIT 5 COMPANIES ACT, 2013 CHAPTER 21 317 SOLVED PAPER : DECEMBER 2021 P.1 SOLVED PAPER : JUNE 2022 P.4 SOLVED PAPER : DECEMBER 2022 P.8 I-10
20.1 INTRODUCTION
The First Schedule
The Second Schedule
The Third Schedule
The Fourth Schedule Note:
CONCEPT OF LLP
TAXMANN ®
20.2
293 t t Limited Liability Partnership Act, 2008 20 CHAPTER
20.3 PARTNERS AND DESIGNATED PARTNERS OF LLP
Who can be a Partner?
Minimum number of partners (Section 6):
Designated partners (Section 7): Provided -
Explanation.
TAXMANN ® 294
a b c q
i ii
TAXMANN ® 295 i a b ii-mutatis mutandis
CHARACTERISTIC/SALIENT FEATURES OF LLP
LLP is a body corporate: d Body Corporate — a. b. c. i
20.4
1.
2. Perpetual Succession:
3. Separate Legal Entity:
4. Mutual Agency:
5. LLP Agreement:
6. Artificial Legal Person:
7. Common Seal:
8. Limited Liability:
TAXMANN ® 296 ii iii
9. Management of Business:
10. Minimum and Maximum number of Partners:
11. Business [Section 2(e)]:
12. Investigation:
13. Compromise or Arrangement:
14. Conversion into LLP:
15. E-Filling of Documents:
16. Foreign LLPs:
17. “Small limited liability partnership” [Section 2(ta)]:
20.5 ADVANTAGES OF LLP FORM
TAXMANN ® 297
i ii iii
20.6 INCORPORATION OF LLP
A. NAME OF LLP:
a b
B. RESERVATION OF NAME:
C. INCORPORATION DOCUMENT (SECTION 11):
a. incorporation document
b.
c. A statement
TAXMANN ® 298 -
D. INCORPORATION BY REGISTRATION (SECTION 12):
E. REGISTERED OFFICE OF LLP AND CHANGE THEREIN (SECTION 13):
TAXMANN ® 299a. b. c. d. e. f. g. — a. b. ` `
a b
statement
-
F. EFFECT OF REGISTRATION (SECTION 14):
G. CHANGE OF NAME OF LLP (SECTION 17):
TAXMANN ® 300 ` `
a b c d
a b a b Provided -
H. STEPS TO INCORPORATE LLP
Step 1: Reservation of name:
Step 2: Incorporate LLP:
Step 3: LLP Agreement:
20.7 PARTNERS AND THEIR RELATIONS
A. ELIGIBILITY TO BE PARTNERS (SECTION 22):
B. RELATIONSHIP OF PARTNERS (SECTION 23):
TAXMANN ® 301
Provided
-
C. CESSATION OF PARTNERSHIP INTEREST (SECTION 24):
TAXMANN ® 302
a b c
— a b
a. b.
D. REGISTRATION OF CHANGES IN PARTNERS (SECTION 25):
Change of Name or Address of Partners:
20.8 EXTENT AND LIMITATION OF LIABILITY OF LLP AND PARTNER
A. PARTNER AS AGENT (SECTION 26):
TAXMANN ® 303
— a bc
a ` b 1 ` c Provided
Penalty for Contravention:
B. EXTENT OF LIABILITY OF LLP (SECTION 27):
C. EXTENT OF LIABILITY OF PARTNER (SECTION 28):
D. HOLDING OUT (SECTION 29):
E. UNLIMITED LIABILITY IN CASE OF FRAUD (SECTION 30): who acted with intent to defraud
TAXMANN ®
304
a b
-
F. WHISTLE BLOWING (SECTION 31):
20.9 FINANCIAL DISCLOSURES
A. MAINTENANCE OF BOOKS OF ACCOUNT, OTHER RECORDS AND AUDIT, ETC. (SECTION 34):
Proper Books of account:
Statement of Account and Solvency:
TAXMANN ® 305 ` `
—
306 Filing with Registrar:
Audit of Accounts:
B. ACCOUNTING AND AUDITING STANDARDS (SECTION 34A):
C. ANNUAL RETURN (SECTION 35):
TAXMANN ®
` ` ` ` ` `
a
-
b
` ` ` `
20.10 CONVERSION INTO LLP
Conversion from firm into LLP (Section 55):
Conversion from private company into LLP (Section 56):
Conversion from unlisted public company into LLP (Section 57):
20.11 REGISTRATION AND EFFECT OF CONVERSION (SECTION 58):
A. REGISTRATION:
B. EFFECT OF REGISTRATION:
TAXMANN ® 307
iii iii iv -
a. b. c.
20.12 FOREIGN LLP
A. FOREIGN LIMITED LIABILITY PARTNERSHIPS (SECTION 59):
20.13 WINDING UP AND DISSOLUTION
A. WINDING UP AND DISSOLUTION (SECTION 63):
B. CIRCUMSTANCES IN WHICH LLP MAY BE WOUND UP BY TRIBUNAL (SECTION 64):
C. RULES FOR WINDING UP AND DISSOLUTION (SECTION 65):
20.14 MISCELLANEOUS
A. BUSINESS TRANSACTIONS OF PARTNER WITH LLP (SECTION 66):
B. APPLICATION OF THE PROVISIONS OF THE COMPANIES ACT (SECTION 67):
TAXMANN ® 308
a ; b c d e f
C. ESTABLISHMENT OF SPECIAL COURTS (SECTION 67A):
D. PROCEDURE AND POWERS OF SPECIAL COURT (SECTION 67B):
TAXMANN ® 309 -
ab Provided Provided further
E. APPEAL AND REVISION (SECTION 67C):
F. ELECTRONIC FILING OF DOCUMENTS (SECTION 68):
G. REGISTRATION OFFICES (SECTION 68A):-
TAXMANN ® 310 Provided Provided further
H. PAYMENT OF ADDITIONAL FEE (SECTION 69):
Provided
Provided further
20.15 DIFFERENCES WITH OTHER FORMS OF ORGANISATION
A. DISTINCTION BETWEEN LLP AND PARTNERSHIP FIRM:
TAXMANN ® 311
Sr. No. Basis
Partnership
1. 2. 3. 4. 5. 6.7. 8.
LLP
firm
TAXMANN ® 312 Sr. No. Basis LLP Partnership firm 9. 10. 11. 12. 13. i ii iii 14. 15. B. DISTINCTION BETWEEN LLP AND LIMITED LIABILITY COMPANY Sr. No. Basis LLP Limited Liability Company 1. 2. 3.i.e. 4. 5.
TAXMANN ® 313 Sr. No. Basis LLP Limited Liability Company 6. 7. 8.
CHOICE
1. a b c d
a b c d
a b c d 4.a b c d 5. a b c d
a b c d ANSWERS: b d a b d b
MULTIPLE
QUESTIONS:
2.
3.
6.
STATE WHETHER THE FOLLOWING ARE TRUE OR FALSE:
ANSWERS:
THEORETICAL QUESTIONS:
1. Hint: Refer Chapter text 20.2 and 20.4
2. Hint: Refer Chapter text 20.6.H
3. (RTP Nov. 18) Hint: Refer Chapter text 20.16.A
4.Hint: Refer Chapter text 20.6.H
5. Hint: Refer Chapter text 20.10.A
6. (Nov. 2018) Hint: Refer Chapter text 20.6
7. (RTP Nov. 2018) (RTP May 2019) (May 2018) Hint: Refer Chapter text 20.6
8. (RTP Nov. 2019) Hint: Refer Chapter text 20.3.
9. (5 Marks) (May 2019)Hint: Refer Chapter text 20.2.
10. (RTP Nov. 2019) Hint: Refer Chapter text 20.6.F.
11. (Nov. 2019) Hint: Refer Chapter text 20.8.B (Point 1 & 2)
12. (Nov. 2020) Hint: Refer Chapter text 20.14.B
13. (Jan 2021) Hint: Refer Chapter text 20.8.E
TAXMANN ® 314
1. 2. 3. 4. 5. 6. 7. 8.
BUSINESS LAWS (LAW) Study Material
AUTHOR : V.K. JAIN , SHASHANK SHARMA
PUBLISHER : TAXMANN
DATE OF PUBLICATION : JANUARY 2023
EDITION : 6th Edition
ISBN NO : 9789356225947
NO. OF PAGES : 394
BINDING TYPE : PAPERBACK
DESCRIPTION
Rs. 575 USD 36
The book aims to introduce the core concepts of Business Laws in a student-friendly manner. This book is prepared exclusively for the Foundation Level of Chartered Accountancy Examination requirement. It covers the entire revised, new syllabus as per ICAI. The Present Publication is the 6th Edition for CA-Foundation | New Syllabus | June 2023 Exams. This book is authored by Dr. V.K. Jain & CA Shashank S. Sharma, with the following noteworthy features:
• [Simple & Lucid Language] has been used throughout the book to present the subject matter
• Coverage of this book includes:
• Previous Exam Solved Paper for CA Foundation
• Solved Paper – December 2021
• Solved Paper – June 2022
• Solved Paper – December 2022
• Multiple Choice Questions (MCQs)
• True/False Type Questions
• Theoretical Questions
• Practice Questions
• Questions in the pattern of Case Studies
• [Answers & Hints] for writing, the answers are given in this book
• Student-Oriented Book] The authors have developed this book keeping in mind the following factors:
• Interaction of the authors with their students, with specific emphasis on difficulties faced by students in the examinations
• Shaped by the author's experience of teaching the subject matter at different levels
• Reactions and responses of students have also been incorporated at different places in the book
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