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.

• Law’s 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