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What are the Duties of a Director? This section describes the duties of a director i.e. the director should work in the best interest of the firm. The following are the duties of a director: 1. Articles of Association (AoA) of the company should contain provisions regarding the duties and role of a director in […]
[Voluntary Revision of Financial Statement or Board’s Report] As per Section 131 of Companies Act 2013[1], if it appears to the Directors of the Company at any time that the financial statement or board report doesn’t comply with the provisions of law or is prepared with some error or incorrect information that requires correction can […]
Bona Fide and Charitable Funds Section 181, Political Funds Section 182, National Defence Fund section 183, Contribution by Companies under Companies Act, 2013. Generally, many companies do contribute in different forms and various sectors. The purpose of the contribution by the company is to maintain the goodwill of the company and maintain corporate social responsibility. […]
Circulation of members’ resolutions generally indicates the resolution authorized by the circulation among the members of the board of directors. The resolutions were often passed under the state of urgency or to avoid the requirement of assembling the physical board meeting. Alternatively, the board members can play the same role in this regard. Those members […]
Section 16 of the Companies Act, 2013 talks about the Rectification of the name of a Company. If, through inadvertence or otherwise, a company on its first registration or on its registration by a new name, is registered by a name which, — (a) in the opinion of the Central Government, is identical with or […]
Section 436 (1) (a) of the Companies Act, 2013 states that despite any provisions of the Code of Criminal Procedure, 1973 (CrPC) all offences mentioned under section 435 (1) shall be triable only by a Special Court. Clause (b) provides that when a person suspected of committing an offence under this Act is forwarded to […]
Definition of Dividend The term “dividend” is defined under Section 2(35) of the Companies Act of 2013. The name ‘dividend’ comes from the Latin word ‘dividend,’ which means ‘items to be divided.’ In basic terms, it refers to the percentage of a firm’s net profit that is not preserved by the company once it has […]
What are Preference Shares? There are 2 types of shares in any company first is Equity shares or Common Stock and the second is Preference shares of Preferred stock. Equity shareholders are considered as real owners of the Company as they have voting rights in a company while preference shareholders don’t have voting rights on […]
Section 231: Power of Tribunal to Enforce Compromise and Arrangement Section 231 of The Companies Act, 2013 talks about the powers of NCLT to enforce the order of Compromise and Arrangement. This provision is an ancillary order of Section 230 of The Companies Act, 2013. This provision states that if the tribunal has allowed compromise […]
The conversion of a private company into a public company in India is governed by Section 18 of the Companies Act, 2013. The process requires the company to have at least 7 shareholders and 3 directors, pass a special resolution (75%+ shareholder approval), alter the Memorandum (MoA) and Articles (AoA) of Association, file Form MGT-14 […]