Can a Company Revise its Financial Statements?
September 26, 2019
Introduction Financial statements are an important document of the company. It describes the past, present and future financial condition of the company. If the company is not listed financial statements is important as on the basis of this clients will be attracted means this will decide whether to invest in the company or not that […]
Information to be stated in the Prospectus of a Company
September 25, 2019
Introduction What is a Prospectus? A prospectus is a document issued by the company inviting the public and investors for the subscription of its securities. A prospectus also helps in informing the investors about the risk of investing in the company. A Prospectus is required to be issued only after the incorporation of the company. […]
Role of the Registrar of Companies in the Incorporation Process
September 25, 2019
Introduction Who is a Registrar of Companies? Section 2(75) of the Companies Act defines ‘Registrar’ as a “Registrar, an Additional Registrar, a Joint Registrar, a Deputy Registrar or an Assistant Registrar, having the duty of registering companies and discharging various functions under this Act.” The registrar is the key person both at the time of […]
Under What Conditions Can New Shares Be Issued – An Overview
September 25, 2019
Issuance of Shares At the point when Company has been enlisted, the accompanying strategy is embraced by the organisation to gather cash from the general population by issuing of shares: Step-1 The issue of Prospectus: When a Public organisation expects to raise capital by issuing its shares to people in general, it welcomes the general population […]
How to Appoint a New Director In Case of Death of an Existing Director?
September 25, 2019
A corporation is an artificial being, invisible, intangible and existing only in the contemplation of law. This means that a company is devoid of a body or mind. This absence makes it necessary for a corporation to function through living persons. A corporation essentially functions through individuals known as directors. Who is a Director? Section […]
How to Transfer Shares in a Private Company to the Legal Representative of Deceased Shareholders
September 25, 2019
Key Differences While used interchangeably by many a layman, “transfer” and “transmission” of shares have very distinct legal implications in Indian law. Specifically, under Section 56, Rule 11, of the Companies Act, 2013, differences between the terms are clearly laid out, and to provide context for this article, are outlined below: Chief amongst the differences […]
Form 32 of the Companies Act and its use in determining offences under the Negotiable Instruments Act
September 24, 2019
The Negotiable Instruments Act, 1881, puts a vicarious liability on the Officer of a Company as per sec. 141 (1) and (2) i.e. every person who, at the time the offence was committed, was in charge of and was responsible to, the company for the conduct of the business of the company, shall be deemed […]
Decriminalising Companies Act Offences – Striking a Balance Between Ease of Doing Business and Corporate Governance
September 24, 2019
Via the Companies (Amendment) Act, 2019, recommendations of the Committee to Review Offences under the Companies Act, 2013 (Committee) to re-categorise 16 out of 81 compoundable offences under the Companies Act, 2013 (Act) as civil liabilities were accepted. In a move to further relax the provisions, the Government has constituted a Company Law Committee to […]
Insight on Companies Act,2013
September 23, 2019
The Companies Act, 2013 has introduced some new Concepts which were not present in 1956 Act. Restriction on Non- Cash Transactions Involving Directors (Section 192) Restriction and Legal requirements:- No Company shall enter into an arrangement by which:- a director of the company or its holding, subsidiary or associate company or a person connected with him […]
Insight on Companies Act, 2013 – Maintenance of Cost Records & Cost Audit Requirement
September 23, 2019
Introduction- Section 148 of the Companies Act, 2013 (“the Act”) read with Companies (Cost Records and Audit) Rules, 2014 and Companies (Cost Records and Audit) Amendment Rules, 2014 (“Rules”) deals with provisions relating to maintenance of Cost Records and Cost Audit requirement. The Central Government by order has specified certain companies engaged in production of […]
Powers of Board
September 23, 2019
(A) Powers of Board(Section 179)- Introduction-Section 179(1) of the Companies Act, 2013 i.e., powers of board, provides that board of directors of a company are entitled to exercise the following powers and to do all such acts as may be authorized by the Company: The above referred powers are subject to provisions specified in the […]
Company Secretary
September 23, 2019
The provisions pertaining to appointment of Company Secretaries are given under Section 203 and the Rules under Chapter XIII of Companies Act, 2013. 1. ESSENCE: A company secretary is responsible for the efficient administration of a company, particularly with regard to ensuring compliance with statutory and regulatory requirements and for ensuring that decisions of the board of […]
Independent Directors
September 23, 2019
The provisions relating to Independent Directors have been taken from Sections 149, 150 of Companies Act, 2013 and Schedule IV read with Rule 4, 5 & 6 of the Companies ( Appointment and Qualification of Directors) rules, 2014 ESSENCE : The Companies Act, 2013 (“Act”), aims to overhaul the provisions relating to independent directors completely by […]
Declaration and payment of Dividend
September 20, 2019
Meaning of Dividend:The term ‘dividend’ has been defined under Section 2(35) of the Companies Act, 2013. The term “Dividend” includes any interim dividend. It is an inclusive and not an exhaustive definition. According to the generally accepted definition, “Dividend” means the profit of a Company, which is not retained in the business and is distributed […]
Dormant Companies under Companies Act, 2013
September 20, 2019
I. Introduction: There are around 1.5 lakh dormant companies presently in India as per the government data some of which are either incorporated for future projects or to hold asset or Intellectual Property Rights. Some are yet to commence operations while some have been non operational for a long period of time. However, dormant companies […]