Legal Aspects in Management

Dr. D. S. Sengar Professor & Chairman, Legal Management Group Indian Institute of Management Lucknow

An Introduction to Law
Law emerges from society It is a rule of conduct India is governed by the Rule of Law No one even Government is not above the law.

 Laws concern is what ought to be

Standards to be achieved

Law making- Public opinion/International commitments

Voluntarily compliance of Law

Non-compliance due to ignorance, greed & corruption

Implementation of law by Enforcement

Government or Citizens

Role of Judiciary interpretation and Implementation

Need for Law

Law is the basis of every civil society
Society exits , law emerges and State makes law for society and enforce it, Thus, State speaks through law

Law changes with changes in the social needs and values

 To regulate human behavior To maintain peace and order To develop confidence that rights existing today will be enforced tomorrow To protect life, property and contractual rights To bring social change as per need of society

Advantages of Legal awareness

Legal awareness helps in understanding the legal environment of national and international business Not expertise but more than passing/ superficial knowledge Helps in understanding the specific concepts and the fundamental principles of law behind the business Serves to understand the potential legal implications

 Develops conceptual skill in identifying potential legal issues

Provides insight into interface between -business government and international organizations Helps to anticipate and identify issues for legal advice Assists in determining which issues need immediate legal attention

 Helps to minimize risk of future legal liability and to maximize benefits out of your legal rights. Enables to identify legal problems and best alternative negotiation or litigation Enables to quantify the chances of winning as an arbitrator

Gives thoughtful approach to legal system and develops legal sense

Why Legal Management of Business?

Every business and financial transaction takes place within the confines of law
Every business activity to be successful must have the backing and sanction of law The survival and growth of business depends on compliance of regulations

Thus, Law and business must go hand in hand as each one shapes the other

 With increasing demand for legal compliance on the part of industry and business Managers/decision makers are obliged to ensure the compliance within the legal frame work while seizing opportunities for competitive advantage and profit maximization.

 Thus, knowledge of important legal issues impacting upon national and international business is necessary especially in today's knowledge economy and the internet environment . Above all, under concept and law of Corporate Governance , the management is expected to ensure the compliance of all Rules and Regulations

Legal management for Business Studies students helps

to understand and appreciate the role of law in Business formation, development and corporate management and decisions. To get familiarity with the selected business and economic laws and the regulations

 To understand legal processes involved in the company formation and corporate management To get an exposure to the current legal and regulatory issues in national and international business through assignments To develop an interest , respect and curiosity for law and legal environment

 And to develop abilities to :

distinguish between legal issues and legal problems Communicate and work effectively with legal professionals handle with confidence the legal and regulatory issues of national and international business and its management