SHARE CERTIFICATE

INTRODUCTION A company issues shares in order to raise its capital from investors. The money collected from the issuance of shares is used to expand the company. Any person who purchases any number of shares of the company becomes the shareholder of the company which shows his/her interest in the company. When a person buys... Continue Reading →

Mens Rea Under IPC

The word mens rea have nowhere been used in the Indian Penal Code but it has been applied in two different ways:-While defining offences some words used in the respective section which indicate the actual criminal intent required for the offence. Such words are knowingly, intentionally, fraudulently, dishonestly, voluntarily etc. Such words haven't been used... Continue Reading →

WHAT IS THE NET WORTH OF A COMPANY?

INTRODUCTION A company prepares a financial statement at the end of the financial year which depicts a company’s total assets, debt and shareholders’ equity that eventually provides the financial stability of that company. When a company’s financial statement is examined, it is important to recognise the shareholder’s equity or net worth. The shareholder’s equity or... Continue Reading →

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

INTRODUCTION The Securities and Exchange Board of India was established through the SEBI Act, 1992. It is a regulatory body for the capital and security market. The main function of SEBI is to protect the interests of the investors in the security market and also to promote the development of the security market. SEBI was... Continue Reading →

CORPORATE SOCIAL RESPONSIBILITY

INTRODUCTION The Companies Act, 2013 introduced Section 135 and Schedule VII which makes it the first country in the world to mandate corporate social responsibility (CSR) spending along with a framework to identify potential CSR activities. The activities which can be performed by the company to achieve its CSR obligations includes eradicating hunger and poverty,... Continue Reading →

Decriminаlisаtiоn оf cоmpоundаble cоmpаny lаw оffences

Intrоductiоn CОVID-19 The pаndemic hаs hаd а significаnt impаct оn the wоrking pаtterns оf businesses. Cоmpаnies аre hаving а difficult time meeting their regulаtоry, prоcedurаl, аnd technicаl оbligаtiоns under the Cоmpаnies Аct оf 2013. (the Аct). The Gоvernment оf Indiа is lаunching vаriоus relief pаckаges tо аssist businesses in eаsing their оperаtiоns during the current... Continue Reading →

WHO IS AN INTERESTED DIRECTOR?

INRODUCTION The directors of the company are the key managerial persons. They are professional men hired by the company to direct its affairs[1]. The directors are sometimes described as agents, trustees or managing partners of the company who work for the benefit of the company as well as its shareholders. Since the success of the... Continue Reading →

JURISDICTION OF CIVIL COURTS IN COMPANY LAW MATTERS

INTRODUCTION Civil courts have jurisdiction to try all suits of a civil nature except those suits of which the cognizance is either expressly or impliedly barred. In India the functioning of Civil Courts is guided by the Code of Civil Procedure, 1908. Civil courts have a jurisdiction over company law matters but after the National... Continue Reading →

Importance and Exceptions of Mens Rea

Essential Elements of Crime There are 4 elements of a crime which are- The crime must be committed by a person There must be a mens rea to commit the crime, with certain exceptions. There must exist actus reus, There must be injury caused to another person In this article we would be discussing Mens... Continue Reading →

Jurisdiction of Tribunal

Jurisdiction of Tribunal It is the name given to the ‘administrative exercise of the judicial functions. It is the term synonymously used with the administrative sections and decision making. It is the name given to various ways of deciding the dispute outside the ordinary courts. It is constitutional, though it is a negation of the... Continue Reading →

SHELF PROSPECTUS

A particular kind of prospectus released by businesses that issue bonds in numerous issues is known as a shelf prospectus. Any announcement, advertisement, or other document urging the public to subscribe for securities is referred to as a prospectus. Public limited businesses are required to publish a prospectus prior to issuing securities. Any public limited... Continue Reading →

Liability for Misstatements in Prospectus

Misstatements in Prospectus This article seeks to elucidate the concept of liability of misstatements in Prospectus. Introduction The purpose of this article is to examine the liability for misstatements in the prospectus of a company. Before going to the details of liability, a brief overview of the meaning and significance of the prospectus would be... Continue Reading →

EXECUTION OF BILLS OF EXCHANGE

INTRODUCTION: Bill of exchange is a type of an agreement or a document where one party needs to pay a definite amount to another party on a fixed date or on demand by the parties. It is a type of binding agreement upon the parties. It is mainly used in international trade by the exporters... Continue Reading →

Nature and Elements of Criminal Liability

Essential Elements of Crime There are 4 elements of a crime which are- The crime must be committed by a person There must exist actus reus, There must be a mens rea to commit the crime, with certain exceptions. There must be injury caused to another person The crime must be committed by a person... Continue Reading →

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 →

INDEPENDENT DIRECTORS

Independent Directors' Qualifications, Powers, and Terms of Appointment. An Independent Director has traditionally been a highly esteemed and intelligent someone who represents governance within the Board. A non-executive director of a corporation who satisfies the Companies Act of 2013's requirements for independence is referred to as an independent director. Independent Directors serve as an oversight... Continue Reading →

Voting Rights of Shareholders

Voting rights of shareholders This article seeks to elucidate the concept of voting rights of shareholders. Voting rights of shareholders Investors have specific rights whenever they purchase company shares. Voting on specific corporate issues is one of these important rights. The percentage of his shares in the paid-up equity share capital of the corporation will... Continue Reading →

CRIMINAL LIABILITY FOR MIS STATEMENTS IN PROSPECTUS

A prospectus is a vital part of any business. In general, consumers search for a firm’s prospectus to determine whether or not they should invest in that company. It’s crucial that the things described in the prospectus are genuine. Companies create prospectuses because they want customers to come in and buy the firm’s debentures or... Continue Reading →

JURISDICTION OF CIVIL COURTS IN COMPANY LAW MATTERS

INTRODUCTION The power granted by law to a court to hear cases and provide judgments on legal issues pertaining to a specific geographic area and/or specific categories of legal proceedings. It is crucial to establish which court has jurisdiction before a case is filed. Courts at various levels have jurisdiction over litigation involving various sums... Continue Reading →

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