Share Certificate

Section 2(84) of the Companies Act, 2013 defines shares, are the divided capital of the company.[i] The shareholding a person has in the company is their ownership in the company. A company releases shares in order to gain capital for the operations of the company, shares are some part of ownership within the company. Depending... Continue Reading →

What is a Subsidiary Company

A company whose control lies with another company is called a subsidiary company. The company controlling the subsidiary company is called a holding company. The holding company owns a majority of the shares of the subsidiary company, and thus, exercises control as the majority shareholder or has a controlling interest in the company. Holding companies... Continue Reading →

Interested Director

Companies Act, 2013 defines a director as someone who is appointed to be a director on the board of directors.[i] Directors are supposed to act in a bona fide manner towards the company, as they are the agents of the company and thus have a fiduciary relationship with it. Directors are responsible for taking decisions... Continue Reading →

Authentication of Documents, Proceedings, and Contracts

Companies Act, 2013 and Companies (Registration Offices and Fees) Rules, 2014 state that documents need to be authenticated by individuals or professionals, depending on the document. Section 21 of the Companies Act, 2013 states that a document, proceeding or contract requiring authentication on behalf of the company can be signed by an officer of the... Continue Reading →

Prohibition on Issue of Shares at Discount

A share represents the amount of shareholding a person has in the company. Shares are the divided capital of the company.[i] This is a form of ownership in the company and is offered by the company to raise capital for itself. The person who buys these shares when they are released by the company is... Continue Reading →

Duplicate Share Certificate

‘Share certificate’ is a document issued by a company, which serves as evidence that the person whose name is on the certificate is owner of shares in the company. The Companies Act, 2013 mandates companies to issue such share certificates after the company’s incorporations. These are thus, very important documents which serve as primary evidence... Continue Reading →

Procedure for filing an Application as a Creditor before the NCLAT

A creditor is someone who loans some credit to people, companies, other entities and so on, in the form of money, goods and services, credit facilities, and so on. The person the creditor loans this credit to is called the debtor. The debtor is responsible for returning the credit back to the creditor, with some... Continue Reading →

Proxies during Board Meetings

The Companies Act, 2013 refers to proxies in 2 ways. The first meaning of proxy refers to an individual who has been appointed by a member to attend a board meeting on their behalf and vote in this meeting as a representative.  The second meaning of proxy is referring to a document or instrument by... Continue Reading →

Application of company law in India

In India, the first company legislation dates back to 1850, called the Joint Stock Companies Act, adapted from the English Companies Act, of 1844.  After multiple amendments and additions, the Companies Act, of 1913 was passed by the Parliament. This was further amended and the Companies Act, of 1956 came into force, based on the... Continue Reading →

Financial year under the Companies Act

The financial year was not defined under the Companies Act, of 1956. However, the Companies Act, 2013 (“the act”) amended the same and added the definition of the financial year to avoid any differing financial years. The financial year is important because it decides for which period a set of records, is to be analyzed,... Continue Reading →

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