BASIC CONSTITUTIONAL PROVISIONS REGARDING REGULATION OF BUSINESS IN INDIA

The Constitution of India has guaranteed some fundamental rights to the citizens and has also laid down certain directive principles of state policy for the achievement of a social order based on justice, liberty, equality and fraternity. Legal aspects are an indispensable part of a successful business environment in any country. They reflect the policy framework and the mind set of the Government structure of that country. They ensure that every company is functioning as per the statutory framework of the country.

LAWS RELATING TO BUSINESS

Different commercial and industrial laws have been enacted to play very important role in regulation of economic activities and creating conductive environment for successful operations of business and industries : 1. Indian Companies Act, 1956 2. Indian Partnership Act 1932 3. Negotiable Instrument Act , 1881 4. Indian Contract Act, 1872 5. The Sale Of Goods Act, 1920 6. The Carriers Act, 1865

Indian Companies Act, 1956

It empowers the Central Government to regulate the formation, financing, functioning and winding up of companies. The Act contains the mechanism regarding organizational, financial, managerial and all the relevant aspects of a company. It provides for the powers and responsibilities of the directors and managers, raising of capital, holding of company meetings, maintenance and audit of company accounts, powers of inspection, etc. The Act applies to whole of India and to all types of companies.

Indian Partnership Act,1932

It empowers the Central Government to regulate the formation, financing, functioning and winding up of companies. The Act contains the mechanism regarding organizational, financial, managerial and all the relevant aspects of a company. It provides for the powers and responsibilities of the directors and managers, raising of capital, holding of company meetings, maintenance and audit of company accounts, powers of inspection, etc. The Act applies to whole of India and to all types of companies.

Negotiable Instrument Act,1881

A Negotiable Instrument means a promissory note, bill of exchange or cheque payable either to order or to bearer.

Indian Contract Act, 1872

The Indian Contract Act,1872 is the governing legislation for contracts, which lays down the general principles relating to formation, performance and enforceability of contracts and the rules relating to certain special types of contracts like Indemnity and Guarantee; Bailment and Pledge, and Agency.

The Sale Of Goods Act,1930

Law relating to the sales of goods is a branch of contract law which is applicable to contracts for the sale of goods such as offer and its acceptance, capacity of parties, free consent, consideration and legality of the object. It applies only to movables other than actionable claims and money.

The Carriers Act, 1865

According to the act, common carriers denotes a person, other than government, engaged in the business of transport document or of transporting for hire. They can be made responsible for transporting goods if public is ready to pay for freight, etc.

THE ROLE OF LAW IN INDUSTRIAL RELATIONS

It has also greatly influenced the trade union movement in our country. Industrial relations operate in a legal system. Its an extent to which it attempts to regulate relationships. It is obligatory rather than optional.

CONCLUSION
Legal aspect of business empowers the government to intervene in business activities. The basic purpose of this intervention is to protect the interest of workers employed in the industries and other similar institutions. Fundamental rights and directive principles of state policies as given in Indian constitution expect that the government should take initiative to safeguard the interest of labour.