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“Securities” are those defined in Section 2 clause (h) of the Securities Contracts (Regulation) Act, 1956. (42 of 1956). Shares, scrips, stocks, bonds, debentures, debenture stock, or other marketable securities of a like type in or of any incorporated corporation or other body corporate are defined as “securities.” Physical certificates of securities are changed into […]
Chapter XXI of the 2013 Companies Act, which addresses companies authorised to register under this act and establishes the provisions for companies capable of being registered, contains Section 366. The process and conditions for registering a company, as broadly defined in this section, under this part are laid out in this section and the corresponding […]
A Board of Directors (BoD) is a group of elected individuals who manage the organization and represent the shareholders. Section 149 of the Companies Act, 2013, lays down the fundamental framework governing the composition of a company’s Board of Directors in India. It clearly defines who qualifies for appointment as a director, sets the minimum […]
Procedure for Removal of Auditor before expiry of term [Section 140(1)] The auditor appointed can be removed from his office before the end of his term. The formalities should be strictly followed to remove auditors before the end of their term. In compliance with Rule 7 of the Companies (Audit and Auditors) Rules, 2014, following […]
Section 148 of the Companies Act 2013 specifies the procedure regarding cost audit of specific companies. Inclusion of Cost records Central Government (CG) has the power to direct inclusion of cost records in the books of account of specified class of companies by a written order. Such order by the CG is to be issued […]
This provision suggests a simplified procedure for the merger or amalgamation of two or more companies including small companies, holding and subsidiary companies, and such other classes of companies as may be prescribed. Section 233 of the Companies Act 2013 This provision of The Companies Act, 2013 suggests the concept of the Fast Track Merger […]
Section 150 of the Companies Act, 2013 specifies that: Rule 6 of the Companies (Appointment and Qualification of Directors) Rules, 2014 It specifies rules for the creation and keeping of a database( databank) of individuals seeking to become independent directors. 1) Creating a Databank: Any group, institute, or organization (the agency), which has been authorized […]
Section 42 of the Companies Act, 2013, as altered by the Companies (Amendment) Act, 2017, and Rule 14 of the Companies (Prospectus and Allotment of Securities) Rules, 2014 govern the sale of securities through a private placement. The term “Private Placement” refers to any offer of securities or invitation to subscribe to securities made to […]
The investigation’s primary goal is to gather evidence, identify any illegal acts or infractions, and then determine the appropriate course of action. The act’s Section 210 stipulates: (a)Investigation according to the central government’s assessment Where the central government is of the opinion, that it is necessary to investigate the affairs of a company: 1) On the […]
“SECTION 2(88) ‘Sweat equity shares’ means Equity shares issued by the company to its employees or directors at a discount or for consideration other than cash for providing know-how or making available rights in the nature of intellectual property rights or value addition by whatever name called.” Put simply; The term sweat equity is all […]