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Corporate Legal Framework

Notes 5.1 Defi nitions

Sec.2 defines various expressions used in the Act. Unless the context otherwise requires, these

expressions are defined as below.
Acquisition: It means, directly or indirectly, acquiring or agreeing to acquire – (1) Shares, voting
rights or assets of any enterprise; or (2) Control over management or control over assets of any
enterprise.
Agreement: It includes any arrangement or understanding or action in concert – (1) Whether or
not, such arrangement, understanding or action is formal or in writing; or (2) whether or not such
arrangement, understanding or action is intended to be enforceable by legal proceedings.
Cartel: It includes an association of producers, sellers, distributors, traders or service providers
who, by arrangement amongst themselves, limit, control or attempt to control the production,
distribution, sale or price of, or trade in goods or provision of services.
Chairperson: It means the Chairperson of the Commission appointed under Sec.8(1).
Commission: It means the Competition Commission of India established under Sec.7(1).
Director General: It means the Director General appointed under Sec.16 (1) and includes any
Additional, Joint, Deputy or Assistant Director General appointed under that section.
Enterprise: It means a person or a department of the Government, who or which is, or has been,
engaged in any activity, relating to the (i) production, storage, supply, distribution, acquisition
or control of articles of goods, or (ii) the provision of services, of any kind, or (iii) in investment,
or in the business of acquiring, holding, underwriting or dealing with shares, debentures or other
securities of any other body corporate, either directly or through one or more of its units or
divisions or subsidiaries. Further such unit or division or subsidiary may be located at the same
place where the enterprise is located or at a different place or at different places.
Member: It means a Member of the Commission appointed under Sec.8 and includes the
Chairperson.
Practice: It includes any practice relating to the carrying on of any trade by a person or an
enterprise.

Public Financial Institution: It means a public financial institution specified under Sec.4A of the

Companies Act, 1956 and includes a State Financial, Industrial or Investment Corporation.
Relevant Market: It means the market which may be determined by the Commission with
reference to the relevent product market or the relevant geographic market or with reference to
both the markets.
Relevant Geographic Market: It means a market comprising the area in which the conditions
of competition for supply of goods or provision of services or demand of goods or services
are distinctly homogeneous and can be distinguished from the conditions prevailing in the
neighboring areas.
Relevant Product Market: It means a market comprising all those products or services which are
regarded as interchangeable or substitutable by the consumer, by reason of characteristics of the
products or services, their prices and intended use.
Shares: It means shares in the share capital of a company carrying voting rights and includes– (i)
any security which entitles the holder to receive shares with voting rights; (ii) stock except where
a distinction between stock and shares is expressed or implied.
Statutory Authority: It means any authority, board, corporation, council, institute, university or
any other body corporate, established by or under any Central, State, or Provincial Act for the
purposes of regulating production or supply of goods or provision of any services or markets
therefore or any matter connected therewith or incidental thereto.

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