Chapter 4 - Corporate Law Reporter

Section 56 of Companies Act, 2013 – Transfer and Transmission of Securities

SECTION 56. TRANSFER AND TRANSMISSION OF SECURITIES [Effective from 1st April, 2014] (1) A company shall not register a transfer of securities of the company, or the interest of a member in the company in the case of a company having no share capital, other than the transfer between persons both of whose names are… Read More

Section 55 of Companies Act, 2013 – Issue and Redemption of Preference Shares

SECTION 55. ISSUE AND REDEMPTION OF PREFERENCE SHARES [Effective from 1st April, 2014, except sub- section (3) which is effective from 1st June, 2016] (1) No company limited by shares shall, after the commencement of this Act, issue any preference shares which are irredeemable. (2) A company limited by shares may, if so authorised by… Read More

Section 54 of Companies Act, 2013 – Issue of Sweat Equity Shares

SECTION 54. ISSUE OF SWEAT EQUITY SHARES [Effective from 1st April, 2014] (1) Notwithstanding anything contained in section 53, a company may issue sweat equity shares of a class of shares already issued, if the following conditions are fulfilled, namely:— (a) the issue is authorised by a special resolution passed by the company; (b) the… Read More

Section 53 of Companies Act, 2013 – Prohibition on Issue of Shares at Discount

SECTION 53. PROHIBITION ON ISSUE OF SHARES AT DISCOUNT [Effective from 1st April, 2014] (1) Except as provided in section 54, a company shall not issue shares at a discount. (2) Any share issued by a company at a [discount] [1] shall be void. [(2A) Notwithstanding anything contained in sub-sections (1) and (2), a company may… Read More

Section 52 of Companies Act, 2013 – Application of Premiums Received on Issue of Shares

SECTION 52. APPLICATION OF PREMIUMS RECEIVED ON ISSUE OF SHARES [Effective from 1st April, 2014] (1) Where a company issues shares at a premium, whether for cash or otherwise, a sum equal to the aggregate amount of the premium received on those shares shall be transferred to a "securities premium account” and the provisions of… Read More

Section 51 of Companies Act, 2013 – Payment of Dividend in Proportion to Amount Paid-Up

SECTION 51. PAYMENT OF DIVIDEND IN PROPORTION TO AMOUNT PAID-UP [Effective from 12th September, 2013] A company may, if so authorised by its articles, pay dividends in proportion to the amount paid-up on each share. Read More

Section 50 of Companies Act, 2013 – Company to Accept Unpaid Share Capital, Although Not Called Up

SECTION 50. COMPANY TO ACCEPT UNPAID SHARE CAPITAL, ALTHOUGH NOT CALLED UP [Effective from 12th September, 2013] (1) A company may, if so authorised by its articles, accept from any member, the whole or a part of the amount remaining unpaid on any shares held by him, even if no part of that amount has… Read More

Section 49 of Companies Act, 2013 – Calls on Shares of Same Class to be made on Uniform Basis

SECTION 49. CALLS ON SHARES OF SAME CLASS TO BE MADE ON UNIFORM BASIS [Effective from 12th September, 2013] Where any calls for further share capital are made on the shares of a class, such calls shall be made on a uniform basis on all shares falling under that class. Explanation.—For the purposes of this… Read More

Section 48 of Companies Act, 2013 – Variation of Shareholders’ Rights

SECTION 48. VARIATION OF SHAREHOLDERS’ RIGHTS [Effective from 15th December, 2016] (1) Where a share capital of the company is divided into different classes of shares, the rights attached to the shares of any class may be varied with the consent in writing of the holders of not less than three-fourths of the issued shares… Read More

Section 47 of Companies Act, 2013 – Voting Rights

SECTION 47. VOTING RIGHTS [Effective from 1st April, 2014] (1) Subject to the [provisions of section 43, sub-section (2) of section 50 and sub-section (1) of section 188] [1]— (a) every member of a company limited by shares and holding equity share capital therein, shall have a right to vote on every resolution placed before… Read More

Section 46 of Companies Act, 2013 – Certificate of Shares

SECTION 46. CERTIFICATE OF SHARES [Effective from 1st April, 2014] (1) A certificate, [1][issued under the common seal, if any, of the company or signed by two directors or by a director and the Company Secretary, wherever the company has appointed a Company Secretary], specifying the shares held by any person, shall be prima facie… Read More

Section 45 of Companies Act, 2013 – Numbering of Shares

SECTION 45. NUMBERING OF SHARES [Effective from 12th September, 2013] Every share in a company having a share capital shall be distinguished by its distinctive number: Provided that nothing in this section shall apply to a share held by a person whose name is entered as holder of beneficial interest in such share in the… Read More

Section 44 of Companies Act, 2013 – Nature of Shares or Debentures

SECTION 44. NATURE OF SHARES OR DEBENTURES [Effective from 12th September, 2013] 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. Read More