Hi,

Can company give performance linked bonus of Rs 3000000/- to its managing director for achieving certain Target. If yes then is any thing needs to be followed as per companies act.

Best regards,
Samir Ambavi

In case of Pvt. co. which is not a subsidiary of public Co. what sholud be the period of appointment of Managing Director while sec. 317 of Companies Act restricting the period of appointment to 5 years is not applicable to a pvt. co.

Poonam

I had appeared in CA(Final)nov'07. Although I gave good answers so far as my knowledge goes in my Fourth paper of GrI. i got only 38.I had mentioned sections and tried to give answers to the point.can you please tell me wht is the reason behind it. I have already solicited for reveiwing the the said paper. I don't know what will turn out. Does reveiwing paper make any sense

treatment of preliminary expenses as per Companies Act,1956 and Income Tax Act, 1961

I have read at many places that before applying for compounding of offence under 621A, the offence committed should be first rectified i.e. it should not be a continuing offence. For example, if the Bal Sheet etc. is not filed or Sec 383A is not complied and so on, such offences have to end first by filing the documents or complying with 383A etc.

Can you tell me under which section, rule or guidlines such prior compliance before applying for compounding is indicated.

My email ID is atulv27@gmail.com

Regards.

Atul V.

can anybody tell me about Rolta India Ltd. vs Venire industries case reg sec 258 and the share holders voting agreements.

One of my client has issued 8% redeemable preference shares in Maarch'08. In november'07 it started to redeem those shares in part. they redeemed them at the Issue price itself. But on redemption they did not pay any amount as dividend for the capital contribution form march to November. Is There any mandatory requirement in act to provide for the Dividend on the redeemed amount of capital.

Can Indian company take loans from foriegn company? If it can lend what are the RBI and Comapnies act procedures to be followed.

If both are parent and subsidary comapnies what are the implicatins.

Please help me in this...

Sir,
Please guide on the following case.

Facts of the case
1. X is a Govt. Company formed for developing land , its income being subsidy received from Govt. for administrative and other purposes.
2. During the period from 1975 to 1986 it took loan from Bank for giving loan to cultivators etc..
3. Up to 91-92 the Company raised Rs.705 lacs as share capital. The Company could not repay the loan from Bank since the cultivators defaulted in repayment. The loan and accumulated interest came up to Rs.4700 lacs. Amount incurred for work was Rs.1300 lacs and loan given to cultivators together with interest came up to Rs.1300 lacs.The loss accumulated up to Rs.3200 lacs.
4. During the year 2000 the Government took over the loan payable to Bank and the amount was converted into Capital reserve .The loan given to cultivators and the amount shown under work was also written off.

The query
Now the Company is proposing to adjust the accumulated loss against the Capital reserve.
Kindly clarify whether the Company is justified in doing so.
Also what are its implications in Income tax ?

Sir, The required information are furnished below.
1. The amount was given by the Govt. as Grant-in-aid.There was no other condition specified.
2. The decision to convert the grant in aid to capital reserve was taken by the Company and conveyed to Govt.
3. The Income tax assessment has not yet been completed.
Please advice.

Few insurance companies are not ready to provide some insurance products to companies due to insurance underwriting constraints. But some other insurance companies are providing the same product.

Is there is any common guidelines for this ?