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...
“Gandhi’s trusteeship principle is with which profit-making cannot be devoid of social responsibility”, said the country’s Corporate Affairs Minister, Nirmala Sitharaman during the session in Rajya Sabha for the passing of the Companies (Amendment) Act, 2019. The Companies (Amendment) Bill, 2019 was passed by the Lok Sabha on 26th July 2019 and by the Rajya...
What is a listed company? Section 2(52) of the Companies Act, 2013 defines a listed company as “listed company means a company which has any of its securities listed on any recognised stock exchange”. What is a public company? Pursuant to Section 2(71) of the Companies Act, 2013 a public company means a company which...
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...
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...
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...
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...
