INTRODUCTION Every entrepreneur looks forward to the first step in starting a business, which is giving it a legal identity by registering a company. Companies are governed by legal documents that spell out the dos and don'ts. The Memorandum of Association (MOA) and Articles of Association (AOA), also known as the company charter, define the... Continue Reading →
Corporate Social Responsibility
In general companies rely on societal assets to operate efficiently, as they are morally obligated to contribute back to the society. CSR in India has traditionally been seen as a philanthropy activity. As some observers have pointed out, the practice of CSR in India still remains within the philanthropic space, but has moved from... Continue Reading →
Right of Member to Copies of audited financial statement-
INTRODUCTION- The term “Company” basically means an association of a number of persons for some common object or objects. The purposes for which people may wish to make a company might differ. Buti in Legal terms, the meaning of the company might slightly differ, but not the purpose of the company, so, here a company... Continue Reading →
LIABILITY WHERE PROPER ACCOUNTS ARE NOT KEPT
INTRODUCTION Books of accounts means the records maintained in order to ascertain the financial position of the companies. It is mandatory to maintain books of accounts as it helps in the disclosure of the working as well as financial position of the companies to the shareholders so that they can have a more purposeful control... 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 →
LIST OF STATUTORY REGISTERS TO BE MAINTAINED UNDER COMPANIES ACT, 2013.
INTRODUCTION: To run organization in a smooth manner, there is a need of efficiency in the organization, so it requires a systematic approach by maintaining records and registers. Statutory register is essential for an effective organization. MEANING: Statutory register contains essential information related to company’s current position and that must be accordance with Companies Act,... Continue Reading →
Jurisdiction of Civil Courts in Company Law Matters
The conclusion of a single lawsuit can have far-reaching consequences for a business or conglomerate of businesses, potentially damaging the interests of the company's founders, top executives, investors, and other key constituents. Lawmakers have been cognizant of the fact that speed is of the utmost essential in arbitrating corporate issues because even a single dispute... Continue Reading →
Official liquidator to make payment into public account of India
Chapter xx (sec270 – 365) of the Companies Act, 2013 (CA 2013) deals with the provisions related to winding up. Section 349 of CA 2013 provides for official Liquidator to make payments into public account of India. As per the section of 349 of company law in which it was given that “EVERY OFFICIAL LIQUIDATOR... Continue Reading →
The Stay of Suits ,On winding up Order.
Introduction When a winding up order has been released or a provisional has been passed, no suit or other legal proceedings shall be commenced or passed, or if pending at the date of the winding up order, shall be proceeded with, by or against the company, except with the leave of the Tribunal and subject... Continue Reading →
COMPANIES ( WINDING UP) RULES, 2020 AND ITS IMPACT ON NCLAT
INTRODUCTION A company's dissolution is the final stage of its existence. It is the process by which the company is terminated, i.e. the process by which its corporate existence ends and it is finally dissolved. A company can be wound up by a National Company Law Tribunal ("Tribunal") or by voluntary winding up, according to... Continue Reading →
“FINANCIAL STATEMENT, BOARD’S REPORT”
The Companies Act,2013 is a broad detailed legislation which basically governs the incorporation, dissolution, and functioning of the company. Mainly, it focuses on the pellucidity by way of detailed disclosures. Financial statement, Board’s report,etc has been mentioned under section 134 of Chapter IX of Companies Act,2013. Financial reporting is necessary for companies as it provides... Continue Reading →
TOPIC: WHAT IS EQUITY SHARE CAPITAL?
SHARES: A share is the share capital of the company including stock according to section 2(84) of the Companies Act 2013. A share is a measure of the interest in the company’s assets held by a shareholder. Kinds of share capital [S. 43] Capital must be divided into shares of a fixed amount. All the... Continue Reading →
What is Company Law?
Introduction Law exists for different segments in a society. It can be applied in a variety of sectors whether civil or corporate. In discharging the lawful duties, law also governs companies. In respect of companies, company law is applied to regulate different matters in relation to companies. The global business community has grown rapidly in... Continue Reading →
REPAYMENT OF DEPOSITE ETC. ACCEPTED BEFORE COMMENCEMENT OF THE ACT
Section 74. Repayment of deposits, etc., accepted before commencement of this Act. Chapter V (SEC 73-76A) of the Companies Act, 2013 deals with the provisions related to acceptance of deposits by companies. Section 74 of CA 2013 provides for repayment of deposits, etc., accepted before commencement of this Act. Applicability of the provision (1) Where... Continue Reading →
EXECUTION OF BILLS OF EXCHANGE
INTRODUCTION A bill of exchange is a type of paper that entitles the holder to pay a certain amount of money to the debtor named in the document. The bill of exchange is both a means of payment and an instrument for making payment. The bill of exchange is typically a paper on orders, but... Continue Reading →
RIGHTS OF MINORITY SHAREHOLDERS
INTRODUCTION TO MINORITY SHARE HOLDERS To start with we will first know the definition of “majority and minority shareholders”.The majority shareholders in a firm or company are those members who own the most shares in the company. The word "minority shareholder" is not defined in the Company Law. However, it is commonly accepted that persons who... Continue Reading →
RED HERRING PROSPECTUS
INTRODUCTIONUnderstanding Red Herring prospectus necessitates first understanding the definition of prospectus. A "prospectus" is defined in Section 2(70)[3] of the Companies Act, 2013 as follows:"Prospectus" means any document described or issued as a prospectus, including a red herring prospectus referred to in section 32 or a shelf prospectus referred to in section 31, as well... Continue Reading →
The Companies Act
Introduction The Companies Act, 2013 passed by the parliament has received the assent of the president of India on 29th August 2013.This Act was amended and the law was passed relating to companies. The Companies act, 2013 has been notified in the Gazette in 2013. Some of the other provisions has been passed and published... Continue Reading →
Vicarious Liability
Meaning and Definition: The doctrine of ‘vicarious liability is generally termed as ‘liability for the acts of others. Vicarious is derived from the Latin term ‘vice’ i.e., in the place of. By this phrase, we mean the liability of a person for the tort of another in which he had no part. It may arise under... Continue Reading →
OVER VIEW OF DEPOSITORY SYSTEM IN INDIA
Depositories act, 1996 were introduced to overcome the challenges. Before knowing the depositories act act, 1996. We need to understand the growth of capital market, India seems the rapid growth in it, in the 21st century. In this existing system there was paper based work and issues like delays in transfers, settlements periods that were... Continue Reading →
Aishwarya Sandeep 