Corporate and Other Laws
This domain tests the Companies Act 2013 and LLP Act 2008 alongside the "other laws" in the CA Inter Law syllabus - usually the Indian Contract Act 1872, Negotiable Instruments Act 1881, General Clauses Act 1897 and Interpretation of Statutes. Questions favour direct provisions, definitions and timelines over policy debate.
Company law anchors
- Incorporation: a private company needs 2 members, a public company 7 and an OPC 1 (s.3). The registered office must be fixed within 30 days of incorporation (s.12).
- Board: a public company needs at least 3 directors, a private company 2 and an OPC 1 (s.149). The first board meeting must be held within 30 days of incorporation; thereafter at least four meetings a year, with no gap exceeding 120 days (s.173).
- AGM: the first AGM within 9 months of the close of the first financial year; later AGMs within 6 months of the financial year end and no more than 15 months apart (s.96). Notice must be 21 clear days (s.101).
- Dividend: may be declared only out of profits or reserves, not capital (s.123).
LLP and other laws
An LLP needs at least two partners and two designated partners, at least one resident in India; the LLP agreement governs mutual rights. Under the Contract Act, an enforceable agreement requires offer, acceptance, consideration, capacity, free consent and lawful object (s.10). Under s.138 NI Act, after cheque dishonour the payee gives notice within 30 days; the drawer gets 15 days to pay.
Worked example
A private company incorporated on 1 January 2024 must hold its first board meeting by 31 January 2024 (30 days). Its first financial year ends 31 March 2024, so the first AGM deadline is 31 December 2024 (9 months from that date), not 30 September 2024.
Traps
Using the public-company board size for a private company; applying the 6-month AGM deadline to the first AGM; treating "21 clear days" as including the service date and meeting date. In LLP questions, missing the resident designated-partner requirement.