Thank U Sanjay G.......

Really useful ...

What is the expectation of applicability of Companies Act 2013 for May2014(CA Final Exam) and June 2014(CS/CMA final exam).

It is understood that the Act 2013 got presidents assent and notified in official gazette and only Sec 1 has come into force and the remaining portion will come into force on such date as the Central  Government may by notification in the official gazette, appoint.

ICAI announced that

Draft rules is notified and kept open for public comment till 08/10/2013. That too 1st phase. Still e-forms have to notified.

I want to know the PROBABILITY OF COMPANIES ACT 2013 APPLICATION FOR MAY/JUNE 2014 EXAMINATION? WHAT's THE PROBABILITY? WAITING TILL ICAI ICSI ICMAI NOTIFICATION IS OK, BUT WHATS ALL YOUR EXPECTATION ,MY CA CLUB FRIENDS.

WHATS YOUR EXPECTATION OF ENFORCEMENT OF VARIOUS PROVISIONS

Thanks for updating and keeping alive the column to all.

Dear Ajay,

I am very happy that you have taken the lead to educate and update all our members.  I am very much thankful to you from core of my heart and hope to so in future as these type of rare services are very much needed from a professional personal like you.  Kindly keep on up dating for all changes from time to time.

Once again thank you very much.

C.A. S. S. Agarwal, M.Com,LL.B.,F.C.A.

That's a really wonderful gesture from your side sir.....You are just too awesome.

Thank You Sir

Are private limited companies to be counted for calculation of limits of number of twenty companies which an auditor can accept under clause 141 ?

There is confliction between Section 42 read with rule (draft rule ) 3 - Private Placement Of Securities (Securities Includes Debentures also ) , Section  71 read with rule (draft rule)  4 : Issuance Of Debentures, and 179 (3) (c) :-inter alia includes Power Of Board To Issue Debentures. .

Section 42 read with rule 3 says that for issuance of securities (inter alia includes debentures ), company shall obtain approval of members by passing a Special Resolution  and to comply with the other specified condition as specified in the said Section 42 and the rule there of.

Section 71 read with rule 4 says that for issuance of Optionally Convertible Debentures, the company shall pass a Special Resolution at the General Meeting and to comply with the other conditions as specified in the said Section 71 and the respective rule. Not cleared that if the Debentures are Non Convertible than what should be done, whether to pass Board Resolution or Special Resolution.

Section 179 (3) (c) give the power to the board to issue Debentures (not specified whether the debentures should be optionally convertible or non convertible) by Passing A Board Resolution At Board Meeting.

If the company want to issue the Non Convertible Debentures to the selected group of persons (e.g. Banks /Financial Institutions / other selected persons), now what should be done by the company ?

Whether to follow Section 42 , :- Pass Special Resolution and to follow other conditions as specified in Section 42 read rule 3  or

To follow Section 179 (3) (c) :- Pass just a Board Resolution

Further to note that :

Note: Definition of  *Securities : Section 2(81) of the Companies Act, 2013

Further as per the explanation to Section 2(81) of the Companies Act, 2013, Commercial Papers are also seems to be a Security under the said definition, now whether issuance of Commercial Papers, require Board Approval under section 179 (3) of the Companies Act, 2013 or to Pass Special Resolution and to follow other prescribed conditions as prescribed under section 42 read with rule 3.

regards

Jitendra Chaturvedi

Thank You Agarwal Sir..........

For your Valuable words for me, it will encourage to spread my knowledge on this portal.

Provisions related to Loan to Director Section 185, Companines Act, 2013

Dear Jitendra........

Section 185 restrict to giving loan to directors. It only permit to MD and WTD.

Whereas section 295 of the Companies Act, 1956 deal with all kind of directors.