Companies Act | Corporate Law Reporter

REVERSE PIERCING OF CORPORATE VEIL: AN UNEMPLOYED PHENOMENON IN INDIA

Abstract The foundation of corporate governance rests on the principle that a company is a separate legal entity, distinct from its members and its shareholders offering them financial protection. Gradually, Courts realized that this ensured limited liability of individuals is often abused to achieve their selfish goals. The necessary ascent of an equitable doctrine of… Read More

Tags: Companies Act, India, Law, United States

Cross-Border Mergers.

Merger and acquisition activity plummeted in 2015. However, a steep rise in the same was expected owing to the renewed bankruptcy legislations. The previously applicable Companies Act, 1956 had been replaced by the Companies Act of 2013, with a view to react to the fast-evolving requirements and financial activities of India’s business models. While ‘merger’… Read More

Tags: Companies Act, cross-border mergers, Indian Corporate Law, M&A

Provisions under Companies Act, 2013

Various Committees and provisions under Companies Act, 2013 1. CSR Committee (Section 135 of Companies Act 2013) Every company having the following criteria shall contribute in every financial year, at least two per cent. Of the average net profits of the company made during the three immediately preceding financial years Net Worth: Rs. 500 Crores … Read More

Tags: Audit Committee, Companies Act, Companies Act 2013, Companies Auditor, CSR Committee, Internal audit, Women Director

ONE PERSON COMPANY: A concept of modern age

Not old in some countries but new in India, One person company(OPC) is a form of business, introduced by Companies act, 2013 (no. 18 of 2013), was first recommended by the expert committee of Dr. JJ Irani in 2005, enabling sole proprietors to enter into corporate world. It is like forming a company with the… Read More

Tag: Companies Act

Issue of Sweat Equity Shares Old Wine in a New Bottle ?

SECTION 54 of the Companies Act, 2013 deals with the Issue of Sweat Equity Shares. Most of the provisions have been copied from Section 79A of the Companies Act, 1956. The New Act has maintained the same percentage and quantum upto which Sweat Equity could be issued. ˜The Sweat Equity Issue™ has become more transparent… Read More

Tags: Companies Act, issue of sweat equity, Sweat Equity, Sweat Equity Shares

Clarification with regard to Section 185 of the Companies Act, 2013

General Circular No 03/2014 No.01/12/2013-CL.V Government of India Ministry of Corporate Affairs 5th Floor,™ A' Wing, Shastri Bhawan, Dr. R.P. Road, New Delhi-110001. Dated: 14/2/2014 To All Regional Directors, All Registrar of companies, All Stakeholders. Subject: Clarification with regard to Section 185 of the Companies Act, 2013. Sir, 1. This Ministry has received number of… Read More

Tags: Companies Act, Companies Act 1956, Holding company, Loan, New Delhi, Registrar of Companies, Section 372A of the Companies Act, Subsidiary

SEBI Board Meeting – Tax related Policies for MFs, Review of Corporate Governance and other decisions

The SEBI Board met in New Delhi today and inter-alia took the following important decisions: I. Review of Corporate Governance norms in India for listed companies The Board has approved the proposals to amend the Listing Agreement with respect to corporate governance norms for listed companies. The amendments, inter-alia, propose to align the provisions of… Read More

Tags: Board of directors, Companies Act, Corporate Governance, India, Mutual fund, New Delhi, SEBI, Securities & Exchange Board of India

Prosecution Architecture Under The Companies Act 2013

Foreword Mechanism For Criminal Proceedings Under The Present Companies Act 1956 Generally at the time of scrutinizing the Balance Sheet and Other Financial Statements of the Company, if Registrar of Companies come across any lapses on part of the Company in recording the transactions and financial irregularities etc. and observed provisions of Companies Act 1956… Read More

Tags: Central Government, Companies Act, Companies Act 1956, Company Law Board, Registrar of Companies, Securities & Exchange Board of India, Serious Fraud Investigation Office, SFIO

Procedure for Authorization of Related Party Transactions under the Companies Act, 2013 – The Conundrum that it is

Introduction Members of the professional fraternity are aware that the Companies Act 2013(hereinafter referred to as The Act) is being notified for implementation in a phased manner-not surprisingly though, considering its overwhelming slant and dependence on sub-ordinate Legislation in the form of Rules. As we write these lines, only 98 out of the 470 Sections … Read More

Tags: Audit Committee, Companies Act, Corporate Affairs Ministry, Corporate Governance, Corporate law, Institute of Chartered Accountants of India, National Football League Draft, Official Gazette

Roles and Responsibilities Of Directors Under Companies Act 2013

Who is a Director? An appointed or elected member of the board of directors of a company. He has the responsibility for determining and implementing the company™s policy. A company director need not to be a shareholder or an employee, and may hold only the office of director under the provisions of the Act. Directors… Read More

Tags: Annual General Meeting, Board, Board of directors, Chief executive officer, Companies Act, CompanySecretary, India, Legal liability

Board™s Report Enhanced Role Under The New Companies Act 2013

Introduction Section 134 of the Companies Act, 2013 casts a responsibility on the Board of Directors to prepare a report containing details as discussed below and this report needs to be annexed to the Financial Statements which are laid before the members in the annual general meeting. Companies Act, 2013 also contains provisions regarding revision… Read More

Tags: Audit Committee, Board of directors, Companies Act, Companies Act 2013, Compensation and Benefits, Financial statement, Independent director, Public company

Buy back of Shares – Need of Listed and Unlisted Companies

Buy back of Shares: Need of Listed and Unlisted Companies Ishwar Ahuja & Isha Gandhi* Outline When Companies with outstanding businesses and comfortable financial positions find their shares selling far below the intrinsic value in the marketplace, no alternative action can benefit shareholders as surely repurchases. - Warren Buffett The term Buy back has two… Read More

Tags: Bank of England, Companies Act, Companies Act 1956, Diluted earnings per share, India, Public company, Securities and Exchange Board of India, Warren Buffett

Assocham 6th National Conference on Companies Act 2013 at Ahmedabad

ASSOCHAM National Conferences on Companies Act 2013 - New Rules for the Game ----------------------------------------------------------------------------------- Overview The recently enacted Companies Act, 2013 is a historic piece of legislation aimed at improving transparency and accountability in India™s corporate sector. A part of the Act has already become effective with the notification of 98 sections and the draft Rules… Read More

Tags: Ahmedabad, ASSOCHAM, Companies Act, Corporate Affairs Ministry, Corporate Governance, corporate social responsibility, India, Spice Group