Scheme for condonation of delay for Companies restored on the Register of Companies between 01 December 2020 and 31 December 2020, under section 252 of the Companies Act, 2013 On receipt of various representations requesting for relief, the Ministry of Corporate Affairs on 15th January, 2021, vide a notification has notified “Scheme for condonation of delay for Companies restored on the Register of Companies between 01 December 2020 and 31 December 2020, under section 252 of the Compani..
Section 180(1) (a) in the Companies Act, 2013(hereinafter referred to as "The Act") which corresponds to Section 293(1)(a) of the predecessor Act of 1956 imposes certain fetters on the powers of the board in respect of the sale, lease or otherwise, the disposal of an undertaking of a company or where the company owns more than one undertaking, of the whole or substantially the whole of any such undertakings. The Section is intended to be an improvement over the predecessor clause in th..
The Companies Act, 2013 first time came up with the new provision of converting loan into equity pursuant to Section 62 (3) of the Companies Act, 2013. This section provides an option to Companies to convert their loan into equity subject to the mandatory condition that such loan is attached with an option to convert it in equity at some future period of time and such option has been approved by shareholders through special resolution. Thus only such loan can be converted which has an opti..
Through this article, I intend to summarize relevant provisions relating to Redemption of Debentures as per Companies Act 2013 and its latest Amendments. Sources of Redemption of Debentures The various sources out of which the debentures may be redeemed are: Out of fresh issue of shares/Debentures By utilization of a part of capital By utilization of profits By conversion into shares/debentures Out of proceeds from sales of fixed assets By purchase of own deben..
Through this article, I intend to summarize relevant provisions relating to Bonus Shares and Right Issue as per Companies Act 2013 and its latest Amendments. Issue of bonus shares Sec 63 1. A company can issue fully paid-up bonus shares to its members, in any manner whatsoever, out of- a. its Free reserves b. the securities premium account or c. the capital redemption reserve account: Provided that no issue of bonus shares shall be made by capitalizing reserves creat..
Through this article, I intend to summarize relevant provisions relating to Buy-Back of Shares as per Companies Act 2013 and its latest Amendments. I. Power of company to purchase its own securities Sec 68 (1) A company can purchase its own shares out of- Free reserves The securities premium account The proceeds of the issue of any shares or other specified securities 2. No Company shall purchase its own shares or other specified securitie..
Through this article, I intend to summarize relevant provisions relating to the Redemption of Preference Shares as per Companies Act 2013 and its latest Amendments. I. Sec 55 (1) No company limited by shares shall, after the commencement of this Act, issue any preference shares which are irredeemable (2) A company limited by shares may, if so authorized by its articles, issue preference shares which are liable to be redeemed within a period not exceeding twenty years from the date of th..
Under sub-section (3) of the companies Act, 2013 (hereinafter referred to as "The Act"), the expression "Surplus in the profit and loss account" has been used. The sub-section contemplates that the above Surplus can be put to use as one of the silos from which the Board of a company can use for declaration of interim dividend. The above term has not been defined in the Act. A surplus in the Profit and Loss account is not defined It is a settled rule of statutory interpr..
There is a certain question that comes to mind about which type of companies are covered in The Companies Act, 2013. Those companies already registered in previous companies’ law i.e. The Companies Act, 1956. Companies that are covered under the Company’s Act are: Insurance Companies Banking Companies Companies like generation or supply of electricity There is a certain exception given to the above companies if they are registered under certain acts r..
What is a Producer Company? "Producer Company" means a body corporate • Registered under amended Companies Act, 1956, • The terms of section 465 of the Companies Act, 2013, the provisions of the Part IX A of the Companies Act, 1956 shall be applicable mutatis mutandis to a producer company • The objects of the producer company shall conform to the activities included in 581B of the Companies Act, 1956. A Producer Company combines the goodness of a cooperat..
Definition of Key Managerial Personnel The concept of appointing Key managerial Personnel (KMPs)in the case of certain classes of companies has found a place in the statute Book for the first time through the insert of Section 203 of the Companies Act(herein after referred to as “The Act”).Before we discuss the substantive law on the subject ,let us look at Section 2(51) of the Act which provides the exhaustive definition of a KMP.In relation to a company, a KMP means- i) the C..
Background The Ministry of Corporate Affairs has issued on August 28, 2020 two notifications in relation to the enforceability of Section 92(3) of the Companies Act ,2013 (hereinafter referred to as "The Act")in respect to the dissemination of the company's Annual Return to its shareholders, which , in a manner of speaking, have set the cat amongst the pigeons. The Notifications have become the inflection point for discussion across the professional fraternity. This exposition i..