The registered office of a Company

Introduction The registered office of a company is the main office to which all communication relating to the company is sent by governmental departments. During incorporation, a company’s promoters must declare its registered office in its Memorandum of Association and keep certain documents, like the mandatory statutory registers, at the registered office. This article will... Continue Reading →

Power of Company to purchase its own securities

Introduction Previously, a company was not allowed to purchase its own shares/ securities, except for a very exceptional cases, as given in section 67 of the 2013 Act. This structural change in the principle and philosophy of company law was brought about by Section 77-A of the Companies (Amendment) Act, 1999 [1956 Act], which stipulates... Continue Reading →

List of Statutory Registers to be maintained under the Companies Act, 2013

Introduction and Meaning of Statutory Registers Statutory Registers, as the name implies, are registers that must be kept by a company in order to record certain important data about the Company. According to the Companies Act, Statutory Registers are registers containing specific records of the Company’s shareholders, directors, deposits, loan & guaranty, etc., and are... Continue Reading →

What is a Related Party?

Introduction A person or organisation associated with the reporting entity is referred to as a related party. If a person has control, joint control, or significant influence over the reporting entity, or if that person is a prominent member of its management team, then that person or a close relative of that person is related... Continue Reading →

Role of a Promotor

Introduction A promoter plays the most important role in the formation and registration of a company under the Companies Act, 2013. The promoter conceives the idea of the formation of the company and takes all preliminary steps to get the company registered. The emphasis of all the definitions of a promoter is on the kind... Continue Reading →

Securities to be dealt with in Stock Exchanges

Introduction Section 40 of the Companies Act, 2013, lays down the guidelines to be followed when a company wants to raise money through a public offering. A public offering is when equity shares or other financial products, like bonds, are sold to the general public in an effort to raise money. This section lays down... Continue Reading →

What does the Memorandum of a Company include?

Introduction A Memorandum or a Memorandum of Association (MoA) serves as the company’s charter. It is a legal document created during a company’s establishment and registration procedure that outlines the goals for the organisation’s formation, its connection with shareholders, and how the two will work together. The company may carry out only the activities listed... Continue Reading →

Role of a Managing Director

A Managing Director plays a crucial role in the day-to-day functioning of a company. She/ he is responsible for the growth and progress of the Company, and the position is so important that, as per Section 2(51), a managing director is “Key Managerial Personnel” (KMP) placed along with a Chief Executive officer and a Chief... Continue Reading →

Calls on Shares of Same Class to be made on Uniform Basis

Meaning of “call on shares” The term call refers to “an order or demand for payment”. A demand made by a company, under the terms of its articles of incorporation or the terms of the issuance of the share, asking its shareholders to pay up the entire or partial nominal value of their shares is... Continue Reading →

Different types of Share Capital

Many people buy and sell shares of companies. It is a kind of investment by the consumers. But what does it mean for a company? A simple answer is that a company issues shares to earn some capital, known as share capital. However, it is not as simple as this. The Companies Act lays down... Continue Reading →

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