Dear All,

A Public Ltd company having an exposure of 100+ Crs Bank loan exposure, has about 35 crs unsecured loans from Directors. As per the sanction terms, Banks has restricted repayment of Unsecured Loans during the currency of the Term Loan.

The company has opened a current account (Joint) in the names of two directors and one employee with a bank which is outside the consortium (without the knowledge of Bankers) and started depositing daily cash collections into that account and made repayment of Unsecured Loans to a tune of 5+Crs. Incidentally it was founds that the company is also not paying EMI since March 2020 and thereafter as the moratorium is extended.

Is the above act legally valid? Do banks have any recourse to the above stated facts? Can this act be construed as Diversion or Embezzlement of funds?

Mr. A has taken loan from Mr. B of Rs. 100000/- and has repaid part of the loan of Rs. 50000/- to Mr. B through a Company M/s XYZ Pvt. Ltd. in which Mr. A is a Director. Whether such payment shall be considered repayment or not. Is there any consequence to be faced by the company or Mr. A in the above transaction.

Please guide.

Pls. clear me what is optimum figure for authorized capital? even though it starts from 1,00,000 onwards what would be the long term impact if i put 10,00,000 in place of 1L as authorised capital (except number of shared). Whether it will impact anywhere in future like balance sheet, repayment if company goes shut, any other legal criticalities? where are all it will reflect exactly?

A NRI wants to incorporate one man company in INDIA. Presently, he is out of INDIA. my question as under:

can a NRI do it?
is it necessary to present in INDA at the Time of Incorporation?

This question dates back to the year 2015.

A PVT ltd company in India has 3 directors of which 2 - Mr A & Mr B are foreigners (Mr A is Chairman of the Company) and are at one place only and 1 Mr C is staying in India. It has also appointed a full time Company Secretary Mr D.

On 25th September 2015, Company realised that Financials are to be signed and none of the foreign directors could travel to India and vice-versa.

So, what various options are available to comply with the provisions of section 134 related to signing of Financial Statements by the Company? to be specific with below questions:
the procedures to be followed to comply with section 134, 101, etc as in, in the given conditions -
1) how, where and when to schedule BM for approval of Accounts (certainly with a shorter notice)?
2) who can sign the approved financials & when?
3) how & when to schedule AGM (certainly with a shorter notice and considering Circular 11/2015)

Dear Sir / madam ,

what are the valid grounds for relief sought at the filing of Form Adjudication to ROC .
(the Companies Directors has received a notice for payment of RS 3,00,000 ( directors Rs 1,00,000 each & company Rs 1,00,000)

Company: Private Limited
No. of Directors: 3
Company Incorporated: 01/04/2019
Year closed on 31/03/2020
None of them are appointed as MD/WTD/Manager vide AOA/Board Meeting/GM
But all three worked actively in Company. They are to be given salary/remuneration for 2019-20.
Please explain giving reference to provisions of Companies Act, 2013, how can they be given salary?

Dear Sir/Madam,

This query is regarding "Subscriber's proof of payment for value of shares" to be attached in INC-20A. The problem is subscriber has given share capital amount & loan amount together vide a single cheque payment.
So, the bank statement entry is not matching with share capital but it is more than share capital.

Is this allowed under the Companies Act, 2013?
Can this be problem?

Regards,
Dinesh Dubariya

if any ca is in practice. and doing audit of some entities and opens a another sole proprietorship practice entity in the name of his wife (his name is not in new practice firm) for account maintenance of same entities( in reality he is maintaining account) of whom he is doing auditing .
Is it valid in eyes of law because the main purpose of various provisions is that the auditor must be independent . but threat of self review is exist here.

A Pvt company has 2 directors A & B. Director A loaned Rs. 5 lakhs to the company which was used to purchase machinery. The company is not returning the loan to Mr. A.
Can Mr. A sell or take over the machine?