In continuation of the previous part on Amendments in Schedule III let us discuss the remaining changes- 10. Details of Benami Property held Where any proceedings have been initiated or pending against the company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder, the company shall disclose the following: Details of such property, including year of acquisition, Amount thereof, Details of Beneficiaries,..
Several changes have been brought into Schedule III to the Companies Act, 2013. This article deals with the changes brought into Schedule III applicable to the companies whose financial statements are prepared in accordance with the Companies(Accounting Standards) Rules,2006. Let's understand the changes one by one- 1. i) Depending upon the turnover of the company, the figures appearing in the Financial Statements may be rounded off as given below Turnover ..
As the financial year comes to an end, apart from other compliances, it is important to ensure proper compliance with the CSR obligations under section 135 of the Companies Act, 2013. The compliance acquires unprecedented importance due to recent amendments which provide for Penalty upto one (1) crore on the company and upto 2 lacs on offices involved Making the CFO responsible for proper CSR spend Specific observation by auditors on CSR compliance in CARO reporting Creating a distin..
Who can be a Registered Valuer? A person, who aspire to be a registered valuer, is required to possess certain qualifications and experience, obtain membership of a recognized organization of valuers and get itself registered as a valuer with IBBI. The RV Rules sets out in detail the eligibility criteria, educational qualifications (degree), experience, and procedure for registration of a valuer. However, such valuer will not undertake valuation of any assets in which he has a direct or in..
Chief Executive Officer (CEO) and Their Appointment under the Provisions of Companies Act 2013 A Chief Executive officer(CEO) is the most senior corporate, executive, or administrative officer in charge of managing an organization especially an independent legal entitysuch as a company or non-profit institution. The CEO of a Corporation Or Company typically reports to theboard of directorsand is charged with maximizing the value of the entity,which may include maximizing the share price, m..
Who is an Auditor? An auditor is a Person Authorized to Review and Verify the Accuracy of Financial Records and Ensure that Companies Comply with Tax Laws. They protect businesses from fraud, point out discrepancies in accounting methods and, on occasion, work on a consultancy basis, helping organizations to spot ways to boost operational efficiency. Auditors work in various capacities within different industries. Auditor appointment and resignation all are to be served to Registrar of Com..
ROC COMPLIANCE Companies Act, 2013 provides for compulsory annual filing for all the company which are incorporated under Companies Act, 2013 or any other previous act and for all LLP under Limited Liability Partnership Act, 2008. The filing with ROC can be done once in a year or on the happening of any event. The company is required to inform the Registrar of Company about every change that is happening in the company. Such as change in name of the company, change in object of the company..
SECTION 188 The meaning of the word 'Related Party' is given under Section 188 of the Companies Act, 2013 and also includes the following: A director or his relative; Key managerial person or their relative; A firm where a director, manager or any of his relative is a partner; A private company where a manager, director or any of his relative is a director or is a member; A public company where a manager, director holds with their relatives more than 2% of its paid up sh..
Section 186(2) of the Companies Act, 2013 provides that no company shall directly or indirectly Give any loan to any person or other body corporate; Give any guarantee or provide security in connection with a loan to any other body corporate or person; and Acquire by way of subscription, purchase or otherwise, the securities of any other body corporate, exceeding 60% of its paid-up share capital, free reserves and securities premium account or 100% of its free reserves and securit..
Introduction This Article mainly deals with the oppression and mismanagement. The Companies Act, 2013 under Chapter XVI covering Sections 241 to 246 deals with Oppression and mismanagement and Class Action. Further provisions for class action are provided under Section 245 and 246. We have a separate article on class action. As we all know majority always wins and majority rule over minority. It is very ordinary that majority oppress the minority. Likewise, in politics and other area, in c..
Arun Kumar Jagatramka (Appellant) vs. Jindal Steel and Power Ltd (Respondent) Supreme Court of India [CA 9664 of 2019] Date of Order: 15.03.2021 Sub: A Person Ineligible u/s 29A IBC to Submit Resolution Plan Cannot Propose Scheme of Compromise & Arrangement u/s 230 Companies Act 2013. FACTS OF THE CASE By its judgment dated 24 October 2019, the National Company Law Appellate Tribunal (NCLAT) held that a person who is ineligible under Section 29A* of the Insolven..
General Circular No. 17/2021 F.No. 01/34/2013 CL-V -Part-III Government of India Ministry of Corporate Affairs 5th Floor, 'A' Wing, Shastri Bhawan, Dr. Rajendra Prasad Road, New Delhi-1 Dated: 29th October 2021 To DGCoA, All Regional Directors, All Registrar of Companies, All Stakeholders. Subject: Relaxation on levy of additional fees in filing of e-forms AOC-4, AOC-4 (CFS), ADC-4, AOC-4 XBRI, AOC-4 Non-XBRL and MGT-7/MGT-7A for the financial year en..
Pursuant to the provisions of section 185(1) of the Companies Act, 2013 no company shall, directly or indirectly, advance any loan, including any loan represented by a book debt to, or give any guarantee or provide any security in connection with any loan taken by: Any director of the company, or of a company which is its holding company or any partner or relative of any such director; or Any firm in which any such director or relative is a partner. Thus, the company canno..
The Central Government may direct any class of companies engaged in production of such goods or providing such services as may be prescribed to include in the books of accounts particulars relating to utilization of material or labour or such other items of cost. Further the Central Government may also direct the audit of cost records of the company. The Companies (Cost Records and Audit) Rules, 2014 are applicable to every company registered under the Act which are engaged in production of g..
As per section 2(30) of the Companies Act, 2013 "debenture" includes debenture stock, bonds or any other instrument of a company evidencing a debt, whether constituting a charge on the assets of the company or not. This is an inclusive definition and amounts to borrowing of monies from the holders of debentures on such terms and conditions subject to which the debentures have been issued. Debenture is a written instrument acknowledging a debt to the company. It contains a contract f..
Where the share capital of the company is divided into different class of shares, the rights attached to any class of shares may be varied with the written consent of the holders of not less than ¾ of the issued shares of that class or by means special resolution passed at a separate meeting of the holders of the issued shares of that class. Pursuant to the provisions of section 110 read with the Rule 22 of the Companies (Management and Administration) Rules, 2014 unlisted public compa..
Compliance Requirement Under Companies Act, 2013 and Rules made thereunder - For the m/o October, 2021 Applicable Laws/Acts Due Dates Compliance Particulars Forms / Filing mode Companies Act, 2013 Within 180 Days From The Date Of Incorporation Of The Company (one time compliance only) As per Section 10 A (Commencement of Business) of the Companies Act, 2013, inserted vide ..
Pursuant to the provisions of section 114 of the Companies Act, 2013 a resolution can be an ordinary resolution or special resolution. Section 114(1) states that the resolution can be an ordinary resolution if such resolution is passed with the majority of the votes. Further section 114(2) provides that a resolution shall be a special resolution when: The intention to propose the resolution as a special resolution has been duly specified in the notice calling the general meeting or other i..
Internal auditor is a person appointed by the board to conduct internal audit of the functions and activities of the company. Internal audit is a continues and systematic way of risk management, proper governance in order to bring out more transparency and accountability in companies' activities. SCOPE, FUNCTION AND PERIODICITY OF INTERNAL AUDIT The internal auditor shall be reporting to audit committee, and audit committee or board shall in consultation with the internal auditor will ..
Any company registered in India under Companies Act, 2013 is required to comply with provisions of the Companies Act, 2013. Such provisions are applicable on the basis of paid-up capital, turnover, type of company, net profit or on the basis of outstanding loan and borrowings of such particular company. Let us study this applicability in detail. APPLICABILITY OF PROVISIONS OF THE COMPANIES ACT, 2013 SHALL BE AS PER FOLLOWING LIMITS SECTION AND COMPLIANCE ..