Loans to Directors by a Company is governed by Section 185 of the Companies Act, 2013. This Section deals with prohibitions, relaxations and exemptions relating to lending of loan and providing guarantee and security. It also deals with the penalty for contravention of the provisions of the section. The original Section prohibited the companies from...
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Companies Act, 2013Understanding a Balance Sheet in view of the Companies Act, 2013
June 5, 2019by GLC & Partners
Financial Statement Section 2(40) of the Companies Act, 2013 defines the term financial statement to include: Balance Sheet as at the end of the financial year; Profit and loss account for the financial year; Cash flow statement for the financial year; Statement of change in equity, if applicable, and Any explanatory note forming part of...
Section 179 Powers of Board read with Rule 8 of the Companies (Meeting of Board and its Powers) Rules, 2014 and Companies (Meeting of Board and its Powers) Amendment Rules, 2015 As per Section 179 (1) of Companies Act, 2013 board of directors are entitled to exercise such powers, and to do such acts, as...
Companies Act, 2013Resolutions and Agreements to be Filed Under Companies Act, 2013
June 1, 2019by GLC & Partners
This section is about various resolutions or agreements passed by the company, their time limit for filing it with ROC & their penalties & fines payable by the company and officer in default or officer responsible TIME LIMIT: Every resolution/ agreement as per 117(3) with its explanatory statement (if any) should be filed with the...
What are Free Reserves? Reserve means a provision made for a specific purpose. There are lots of unknown expenditures which can occur in current year or in future. To meet such type of expenses the business organisation has to make the reserves out of the profits of the company for the specified expenses/purposes. By maintaining...
Companies Act, 2013Merger or Amalgamation of an Indian Company with a Foreign Company
May 28, 2019by GLC & Partners
The two types Mergers/Amalgamations being referred to in this blog are: Merger (Outbound Merger- domestic company merges with foreign company) or Amalgamation between Indian Company and Foreign Company; Merger (Inbound Merger- foreign company merges with domestic company) or Amalgamation between Foreign Company and Indian Company; Foreign Company: Foreign company means any company or body corporate...
What is a debenture? Section 2 (30) of the Companies Act, 2013 defines inclusively debenture as “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. Further, pursuant to Section 2(30) of the Companies Act, 2013 and notification...
Companies Act, 2013Doctrine of Ultra Vires with Respect to an Indian Company’s Memorandum of Association
May 24, 2019by GLC & Partners
Memorandum of Association The Memorandum of Association is a document which sets out the constitution of a company and is therefore the foundation on which the structure of the company is built. It defines the scope of the company’s activities and its relations with the outside world. It is ultra vires for a company to...
Dividend: Dividend means that portion of the profit received by a shareholder from the company’s net profit which is available for distribution among the members. Definition of dividend as per Secretarial Standards -3 (SS-3) issued by Institute of Company Secretaries of India (ICSI): “Dividend” means a distribution of any sums to Members out of profits...
Companies Act, 2013Applicability of Companies Act, 2013 to Foreign Company
May 18, 2019by GLC & Partners
Company – “company” means a company incorporated under the Companies Act, 2013 Act or under any previous company law (Section 2(20) of the Companies Act, 2013). Foreign Company – “foreign company” means any company or body corporate incorporated outside India which,— (a) has a place of business in India whether by itself or through an...