AUTHENTICATION OF DOCUMENTS, PROCEEDINGS AND CONTRACTS.

INTRODUCTION There are numerous documents that should be authenticated on behalf of the company. Companies Act, 2013 and Companies (Registration Offices and Fees) Rules, 2014 state that documents need to be authorised by individuals or professionals, there are few things which are involved in these provisions of the related sections of the Act, which prescribes... Continue Reading →

POWER OF SECURITIES AND EXCHANGE BOARD TO REGULATE ISSUE AND TRANSFER OF SECURITIES.

Prior to 1992, there were three Major Acts governing the securities markets were: The capital issue (Control) Act, 1947. [Its objective is to restrict issuers access to the securities market and controlled the pricing of issues.] The Companies Act, 1956. [Which has laid down the code of conduct for the corporate sector in relation to... Continue Reading →

EFFECT OF MEMORANDUM AND ARTICLES OF ASSOCIATION

Memorandum of Association and Articles of Association are the two fundamental documents essential in the process of incorporation of Company. The very First step for starting a business is giving it a legal identity by registering a company. Companies are governed by legal documents that contents internal rules and regulations for conducting affairs of the... Continue Reading →

RIGHTS OF MINORITY SHAREHOLDERS

The shareholders democracy in today’s corporate world signifies the shareholders supremacy in the governance of the business and affairs of corporate sector either directly or through their elected representatives. The government of India has been endeavouring to scatter the shareholdership as widely as possible to avoid concentration of ownership in few hands. It is widely... Continue Reading →

LIST OF STATUTORY REGISTERS TO BE MAINTAINED UNDER COMPANIES ACT, 2013

The Companies Act, 2013, Lays down the guidelines that every company must maintain and keep books, registers and copies of returns, documents etc. at its registered office. These books are acknowledged as Statutory Books. Statutory Books are the official records kept by company relating to all legal and statutory matters. The registers that contain the... Continue Reading →

SHARE CERTIFICATE

As per the notes to the clause of the Companies Bill, 2011, “this clause corresponds to section 84 of the Companies Act, 1956 and seeks to provide that a certificate issued by a company shall be prima facie evidence of the title of the person to such shares. It provides the manner for issuance of... Continue Reading →

POWER OF LIMITED COMPANY TO ALTER ITS SHARE CAPITAL

Introduction: To run a company, it needs huge funds for its operations in long/short term. Company has to raise and pool the money to do the business it has various sources through which company can raise money as a Public co (Limited Co here) can offer its shares to general public to subscribe through Prospectus... Continue Reading →

EQUITY SHARES WITH VOTING RIGHTS

Meaning of Voting right: The term ‘voting right’ is defined in Section 2(93) of Act, as “Voting right” is the right of a member of a company to vote in any meeting of the company or by means of postal ballot. As per dictionary “voting rights” means “delegable right of a common stock (ordinary share)... Continue Reading →

PROHIBITION ON ISSUE OF SHARE AT DISCOUNT

Share is the interest of the member in the company, it represents ownership in the company. When an individual buys the share of any company, they become one of its owners known as shareholders choose who run a company and are involved in making key decisions. As per Companies Act 2013 section 2 (84) defines... Continue Reading →

CRIMINAL LIABILITY FOR MIS STATEMENTS IN PROSPECTUS

Financial market has paramount importance in economic development. A company decides to issue its shares and securities for various reasons; the main reason being raising capital to meet its financial requirements may be for starting a venture, expansion, diversification and repaying debts, etc. This actually satisfies the number of investors wealth for the sublime reason... Continue Reading →

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