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