Under Section 205(1A) the dividend shall be deposited into a separate bank account within 5 days of declaration. In case of a wholly owned subsidiary which has got one corporate shareholder with 6 other nominees, in case this subsidiary company decided to pay the entire dividend in cash i.e. DD OR ECS to all these shareholders, is it not sufficient compliance with Section 205(1A). Is it necessary to open a bank account, deposit the dividend within 5 days and then only distribute to the shareholders. If any Company decides to directly credit the dividend proceeds into the shareholders account within 4 days from the date of declaration, is there any obligation under Section 205(1A), because in case the dividend is already paid within 5 days from the date of declaration, there is no requirement to deposit anything further into the bank account. pl.clarify.

How a public company(closely held) can get the certificate of commencement of business. What are the procedure and forms required to be filed with ROC?

A person residing in USA wants to become a director of a company registered in West Bengal

How to obtain DIN
What are the formalities
What are the formalities after approving DIN

SUMIT

I have certian queries regarding directors appointment

My company is having 2 directors already 1 new director has to be appointed in May 08.
Do i have to appoint him as a additional director and fill form no 32 and than again in the agm i have to file form no 32.

And if i hold an EGM in May and file form no 32 than again i have to file 32 in next agm

Please clarify

My company has declare a dividend of Re 1 Per share

I need the format of board resolution for dividend decleration that has to be inserted in the minutes

Whether a private company which has earlier issued shares at premium, now issue further shares at face value?

MD of a private company was appointed for 7 years and now the perid of 7 yearas and another 10 months had gone. Actuall he was continuing his position. can his re-appoinment be at a later date ratifying the acts done by him.

Can a Private Limited Co. become partner in a Partner Ship Firm......If Yes Then the treatment if....
a)Out of Seven Directors Two Directors are also the partners in the Firm.
b)Can we give interest on capital & Partners Salary To the Pvt Ltd. Company
c)How is The Pvt Ltd. Company Show this Investment in his books of Accounts.

ABC Limited is a closely held public limited company. During last year (2008) the company had re-appointed its MD for further period of three years. Suitable remuneration was recommended by Remuneration Committee. The remuneration was also approved by Board and Members. The remuneration to MD is Rs.3.00 lacs per month. Since the company had inadequacy of profits, it took the Schedule XIII route to pay remuneration of Rs.3.00 lacs per month.

The remuneration was approved under Sub Paragraph (B) of Section II of Part II to Schedule XIII (Remuneration payable by companies having no profits or inadequate profits) to the Companies Act, 1956. For effective capital of Rs.25.00 crore or more but less than Rs.50.00 crores, the company can pay maximum remuneration of Rs.3.00 lacs per month under schedule XIII

The remuneration paid to MD during the year is more than 5% of the Net Profits. However I am 100% sure that this is not a violation of the Act. This is due to the fact that the remuneration is being paid under Sub-Paragraph B of Section II of Part II of Schedule XIII, which permits companies with no profits or inadequate profits to pay such remuneration as laid down under Schedule XIII.

The accounts for year ended 31.03.2009 are being drawn for approval of Board / Members. In the Notes on Accounts the remuneration paid to MD during the year will be shown separately.

(1) Kindly advise whether it is mandatory for the company to prepare and include in the Notes on Accounts a statement containing “Computation of Net Profit as per Section 198, 309 and 349”.

(2) If the above said “computation” statement is mandatory, then what type of note should I provide in the Notes on Accounts, clarifying about the mismatch between the 5% net profits and actual remuneration paid.

(3) Whether MD remuneration to be disclosed and attached with Boards Report as per Section 217(2A) . Whether MD will be an employee of the company to be covered under Section 217(2A).

I look forward for kind advise

With regards

Muralidharan

Dear Freinds,

Is it possible to convert a private limited company into LLP unit?

Please comments/suggestions.