ADR Assignment No-1

ADR   Assignment No-1    (Problem)

On 24^th of March 2002 one “ABC SOFTWARE SOLUTIONS PVT LTD”, copmpany was incorporated by a group of five friends namely,

1)      Ramesh

2)      Pradeep

3)      Isaaq

4)      Raheem

5)      Shahid

Who were acting as a promoters of this company, they called for the 150 crores of capital, ulgtimately they issued the capital of Rs- 45 crore  which is now the issued as well as working capital of the company. Among the total share capital each of the promoters purchased 11% of shares which stood as 55% out of issued capital they took another 2 persons who had 10% of shares each by name Anitha and Sunitha, now all the 7 persons are the members of Board of directors. Mr. Ramesh is the Managing Director of the company. Before starting their business they want to collect another 20 crore rupees capital by way of Debentures at the rate of 15% p/a for the sake of giving an advertisement or an invitation to offer that any one can purchase these dibentures. They visited the office of an advocate4 and requested the advocate/legal agvisor to prepare one standard format of agreement for the sake of arbitration of any dispute which may arise between company and such other prospective party in future.

This agreement should cover the disputes between the following parties and each of these parties should become a party to the agreement and capable to refer the dispute for arbitration  also to take any other legal steps as per this agreement,

1)      All the directors

2)      Purchasers of debentures

3)      Other creditors of the company

4)      Software clients who are hiring the service of company

5)      Other companies who are providing technical assistance to this is company.

6)      Any other third persons who want to deal with a company in any capacity.

Prepare a model for standard Arbitration Agreement for the company.