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Section 24 of Companies Act. Power of Securities and Exchange Board to regulate issue and transfer of securities. This provision empowers SEBI to regulate,“ Power of Securities and Exchange Board to regulate issue and transfer of securities, etc.— (1) The provisions contained in this Chapter, Chapter IV and in section 127 shall,— (a) in so […]
Section 43 of Companies Act – Kinds of Share Capital: “The share capital of a company limited by shares shall be of two kinds, namely: — (a) equity share capital— (i) with voting rights; or (ii) with differential rights as to dividend, voting or otherwise in accordance with such rules as may be prescribed; and […]
Section 44 of Companies Act – Nature of shares or debentures. “The shares or debentures or other interest of any member in a company shall be movable property transferable in the manner provided by the articles of the company”. An Examination of Section 44 of Companies Act 2013. The Section 44 of Companies Act 2013 emphasises […]
What is Dividend? Section 2(35) of the Companies Act, 2013 defines the word ‘Dividend’ as ‘including any interim dividend’. In easy terms, it can be defined as the portion of profits that are distributed by the Company amongst its shareholders. It can be paid to Equity shareholders as well as preference shareholders. If the dividend […]
Remuneration paid to administration is frequently a point of controversy between shareholders and management because shareholders don’t get to see the company’s performance until the financial statements are presented to them at the annual general meeting, and it is at that meeting that they are supposed to review and approve the remuneration to be paid […]
INTRODUCTION: This provision talks about the managerial remuneration of the management of the company. This Section applies to every public company but not to private companies. What is ‘Remuneration’ “Remuneration” refers to any money or its equivalent paid to a person in exchange for services done, as well as the perquisites included in the 1961 […]
What is Section 186 of the Companies Act 2013? Section 186 of the Companies Act, 2013 deals with the Loans and Investments by a Company. Section 186(1) of the Act states that a Company shall invest in not more than two layers of investment companies. ‘layer’ concerning a holding company means its subsidiary or subsidiaries […]
Right of Persons other than Retiring Director to Stand for Directorship A. Who are Eligible to Give Notice under Section 160? Any individual who is not a retiring director is eligible for appointment as a director at any General Meeting (GM) of the company. This will apply only if any directors are appointed in a […]
What is Director Identification Number (DIN)? Director Identification Number (DIN) is an identification number given by the central government to an individual who wishes to be appointed as a director in any company. DIN once allotted shall be valid for a lifetime. Usage of DIN Who Should Apply for a Director Identification Number? […]
An auditor is a person or a firm appointed by a company to execute an audit. To act as an auditor, a person should be certified by the regulatory authority of accounting and auditing or possess certain specified qualifications. Section 141 of the Companies Act 2013 [Auditor Eligibility, Qualification, and Disqualifications] Who can be appointed […]