Page 105 - DCOM404_CORPORATE_LEGAL_FRAMEWORK

Corporate Legal Framework

Notes The act prohibits anti-competitive agreements, abuse of dominant position and regulates
combination. Competition Commission of India may inquire into alleged contravention
on the receipt of information from person/consumer/trade/association with fees or any
reference by Central/State Government or Statutory body.
An appeal can be made to Competition Appellate Tribunal (CAT) within 60 days of CCI
orders, thereafter to Supreme Court within 60 days of CAT order.

Sec.40 provides that any person aggrieved by any decision or order of the Commission may

file an appeal to the Supreme Court within sixty days from the date of communication of
the decision or order of the Commission to him on one or more of the grounds specifi ed in
Sec.100 of the Code of Civil Procedure, 1908.

The accounts of the Commission as certified by the Comptroller and Auditor-General of
India or any other person appointed by him in this behalf together with the audit report
thereon shall be forwarded annually to the Central Government and that Government
shall cause the same to be laid before each House of Parliament.

5.10 Keywords

Acquisition: A corporate action in which a company buys most, if not all, of the target company’s
ownership stakes in order to assume control of the target fi rm.
Agreement: It includes any arrangement or understanding or action in concert, whether or not,
such arrangement, understanding or action is formal or in writing.
Cartel: It includes an association of producers, sellers, distributors, traders or service.
CAT: Competition Appellate Tribunal
Merger: The combining of two or more entities into one, through a purchase acquisition or a
pooling of interests.
Shares: Shares are the best investment available over a long period of time. The growth of share
prices comfortably out-paces inflation most years because the best share prices represent the

growth in earnings of the best companies. Although the stock market is seen as “high risk” this
depends very much on timing and the sort of shares you invest in.
Turnover: Turnover often refers to inventory or accounts receivable

5.11 Self Assessment

Choose the appropriate answer:
1. CCI stands for:

(a) Consumer Commission of India (b) Competition Commission of India
(c) Competition Collaboration of India (d) Computer Competition of India
2. Director General appointed under.
(a) Sec.8(1) (b) Sec.16(2)
(c) Sec.8(2) (d) Sec.16(1)

3. Value of sales of goods or service includes in
(a) Product (b) Service
(c) Turnover (d) Profi t

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