Disclosure of interest by director Every single director shall at the first meeting of the Board of Directors in which he participates as a director and subsequently at the first meeting of the Board in every financial year or on every occasion there is slightly change in the disclosures previously made, then at the first Board meeting held after such change, disclose his concern or interest in any company or companies or bodies corporate, firms, or other association of individuals which ..
Register of contracts or arrangements in which directors are interested 1. Every single corporation shall keep one or more registers giving separately the details of all contracts or arrangements to which sub-section (2) of section 184 or section 188 applies, in such way and containing such particulars as may be prescribed and after entering the particulars, such register or registers shall be placed before the next meeting of the Board and should be signed by all the directors present at the..
A Section 8 company is almost identical to a Society or a Trust. It is registered with the Ministry of Corporate Affairs (MCA). A company registered with section 8 has quite a lot of advantages like better legal standing; improved recognition and the donors, as well as stakeholders, consider it much more reliable as compared to a Trust or a Society. The company registered under this section shall enjoy all the privileges and be subject to all the obligations of limited companies. Its objects the..
UPDATE AS ON 05.03.2021 AMENDMENT IN SECTION 92 (ANNUAL RETURN) OF COMPANIES ACT, 2013 S NO. RELEVANT SECTION AMENDMENT 1 Section 92(1)(c) Particulars of Indebtedness as on 31st March, shall not be mentioned in the MGT-7 Form. The clause has been removed from the respective form and the clause has been omitted from Section 92. 2 Section 92(1)(j) ..
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..