Chapter 12 - Corporate Law Reporter

Section 186 of Companies Act, 2013 – Loan and investment by company

SECTION 186. LOAN AND INVESTMENT BY COMPANY [Effective from 1st April, 2014] (1) Without prejudice to the provisions contained in this Act, a company shall unless otherwise prescribed, make investment through not more than two layers of investment companies: Provided that the provisions of this sub-section shall not affect,— (i) a company from acquiring any… Read More

Section 185 of Companies Act, 2013 – Loan to directors, etc.

SECTION 185. LOAN TO DIRECTORS, ETC. [Effective from 12th September, 2013] [1][185. (1) No company shall, directly or indirectly, advance any loan, including any loan represented by a book debt to, or give any guarantee or provide any security in connection with any loan taken by,— (a) any director of company, or of a… Read More

Section 184 of Companies Act, 2013 – Disclosure of interest by director

SECTION 184. DISCLOSURE OF INTEREST BY DIRECTOR [Effective from 1st April, 2014] (1) Every director shall at the first meeting of the Board in which he participates as a director and thereafter at the first meeting of the Board in every financial year or whenever there is any change in the disclosures already made, then… Read More

Section 183 of Companies Act, 2013 – Power of Board and other persons to make contributions to national defence fund, etc.

SECTION 183. POWER OF BOARD AND OTHER PERSONS TO MAKE CONTRIBUTIONS TO NATIONAL DEFENCE FUND, ETC. [Effective from 12th September, 2013] (1) The Board of Directors of any company or any person or authority exercising the powers of the Board of Directors of a company, or of the company in general meeting, may, notwithstanding anything… Read More

Section 182 of Companies Act, 2013 – Prohibitions and restrictions regarding political contributions

SECTION 182. PROHIBITIONS AND RESTRICTIONS REGARDING POLITICAL CONTRIBUTIONS [Effective from 12th September, 2013] (1) Notwithstanding anything contained in any other provision of this Act, a company, other than a Government company and a company which has been in existence for less than three financial years, may contribute any amount directly or indirectly to any political… Read More

Section 181 of Companies Act, 2013 – Company to contribute to bona fide and charitable funds, etc

SECTION 181. COMPANY TO CONTRIBUTE TO BONA FIDE AND CHARITABLE FUNDS, ETC. [Effective from 12th September, 2013] The Board of Directors of a company may contribute to bona fide charitable and other funds: Provided that prior permission of the company in general meeting shall be required for such contribution in case any amount the aggregate… Read More

Section 180 of Companies Act, 2013 – Restrictions on powers of Board

SECTION 180. RESTRICTIONS ON POWERS OF BOARD [Effective from 12th September, 2013] EXEMPTIONS Section 180 shall not apply to a private company, vide Notification No. 464(E) dated 5th June, 2015. The above mentioned exception shall be applicable to a private company which has not committed a default in filing its financial statements under section 137… Read More

Section 179 of Companies Act, 2013 – Powers of Board

SECTION 179. POWERS OF BOARD [Effective from 1st April, 2014] (1) The Board of Directors of a company shall be entitled to exercise all such powers, and to do all such acts and things, as the company is authorised to exercise and do: Provided that in exercising such power or doing such act or thing,… Read More

Section 178 of Companies Act, 2013 – Nomination and remuneration committee and stakholders relationship committee

SECTION 178. NOMINATION AND REMUNERATION COMMITTEE AND STAKEHOLDERS RELATIONSHIP COMMITTEE [Effective from 1st April, 2014] EXEMPTIONS Section 178 shall not apply to a Section 8 Company, vide Notification No. 466(E) dated 5th June, 2015. The above mentioned exception shall be applicable to a Section 8 company which has not committed a default in filing its… Read More

Section 177 of Companies Act, 2013 – Audit committee

SECTION 177. AUDIT COMMITTEE [Effective from 1st April, 2014; Proviso to sub-section 4(iv) inserted by Companies (Amendment) Act, 2015 effective from 14th December, 2015] EXEMPTIONS Section 177 shall not apply to Specified public company, vide Notification no. 08(E) dated 04th January, 2017. (1) The Board of Directors of [5] [every listed public company] and such other… Read More

Section 176 of Companies Act, 2013 – Defects in appointment of directors not to invalidate actions taken

SECTION 176. DEFECTS IN APPOINTMENT OF DIRECTORS NOT TO INVALIDATE ACTIONS TAKEN [Effective from 12th September, 2013] No act done by a person as a director shall be deemed to be invalid, notwithstanding that it was subsequently noticed that his appointment was invalid by reason of any defect or disqualification or had terminated by virtue… Read More

Section 175 of Companies Act, 2013 – Passing of resolution by circulation

SECTION 175. PASSING OF RESOLUTION BY CIRCULATION [Effective from 1st April, 2014] (1) No resolution shall be deemed to have been duly passed by the Board or by a committee thereof by circulation, unless the resolution has been circulated in draft, together with the necessary papers, if any, to all the directors, or members of… Read More

Section 174 of Companies Act, 2013 – Quorum for meetings of Board

SECTION 174. QUORUM FOR MEETINGS OF BOARD [Effective from 1st April, 2014] (1) The quorum for a meeting of the Board of Directors of a company shall be one-third of its total strength or two directors, whichever is higher, and the participation of the directors by video conferencing or by other audio visual means shall… Read More