Company Law - Corporate Law Reporter

AMCs cannot change Unit terms without taking consent from Unitholders : SAT

Subramanian R. Venkat vs. Securities Exchange Board of India(Date of Decision 3/5/2011) CLR Note: It was held by the Securities Appelate Tribunal (SAT) that Asset Management Companies (AMCs) cannot change the terms of the issued units / securities arbitrarily without taking consent from the Unit-holders. Brief Facts: The Appellant are husband and wife who are… Read More

Business Program on IPO & Private Equity

Achromic Point together with two renowned law firms R & A Associates & Khaitan & Co is organizing a business program on IPO & Private Equity. Scheduled in Mumbai on 3rd June, Bangalore 17th June and in Chennai on 24th June. This workshop is designed to make an analysis of the pre-post challenges & issues… Read More

Cost Audit Order for Drugs, Fertilizers, Sugar, Petro, Electricity, Telecom, Alcohol Industries

( COST AUDIT ORDER ON SPECIFIC INDUSTRIES) F. NO. 52/26/CAB-2010; Dated the 2nd May, 2011 Ministry of Corporate Affairs - Cost Audit Branch CLR Note: The companies as per the circular dated 11.04.2011 where required to appoint Cost Auditor, thus with regard to the same order has been passed for specific industries to implement the same… Read More

Cost Audit Order for Cement, Tyres, Tubes, Steel Tubes, Steel Pipes, Paper Industries

F. NO. 52/26/CAB-2010; Dated the 3th May, 2011 Ministry of Corporate Affairs - Cost Audit Branch CLR Note: An order has been passed directing all companies to which the rules specified herein are applicable and their aggregate value of turnover made from sale or supply of all products or activities during the immediately preceding financial year exceeds Rs.… Read More

Whether Mens Reas necessary for Crimes by Companies

Whether Mens Reas is necessary for Crimes by Companies - Mens Rea means "Guilty Mind". Can a Company, which is an artificial person have a Guilty Mind? Hemanth beautifully provides an account in his Article below. The Hon™ble Supreme Court in Iridium India Telecom Ltd V Motorola Incorporated & Ors., had held that, the Companies… Read More

Non Payment by Guarantor will constitute debt – HC allowed winding up petition

N & S & N CONSULTANTS S.R.O Vs. SRM EXPLORATION PRIVATE LIMITED Synopsis of the Case:- The Petitioner Company is a company which was registered under the laws of Czech Republic. It had executed the agreement with M/s. Newco Prague, s.r.o. i.e. purchaser company, for sale of 100% equity interest of SP of W, a.s. at the purchase price of CZK 230,000,000. … Read More

Effective Date for Companies (Particulars of Employees) Amendment Rules, 2011

CLR Note: MCA has notified the effective date for Effective Date for Companies (Particulars of Employees) Amendment Rules, 2011 as 1st April, 2011 i.e. all Directors' Reports approved after 1st April, 2011, irrespective of the accounting year, shall be in accordance with the Amendment Rules. The Amendment Rules had increased the limit of disclosure of Particulars… Read More

MCA- 21 now allows ROC to mark companies having Management Dispute

CLR Note: MCA -21 allows the Registrar of Companies to mark a company as having management dispute in case of receiving any complaints by them thus triggering an alarm for non-approval of any documents with regard to the company. Status will be marked as work in process until it is demarked by the Registrar. General… Read More

Form 32 filed with ROC can be challenged in Court of Law

CLR Note: Form 32 taken on record by ROC through the Straight Through Process i.e. certified by Professionals, will be without prejudice to the contesting parties to the rights of the parties to settle the dispute, if any, in a court of competent jurisdiction. General Circular No. 201201 1; Government of India- Ministry of Corporate Affairs, Dated: 02.05.201 1 All Regional… Read More

MCA notifies changes in Forms 2, 3 ,18, 32 & 23C

CLR Note : The Ministry of Corporate Affairs have issued a notification dated 29th April, 2011, with regard to the changes in the E- Forms 2,3,18,23C & 32 wherein it has been observed that; In Form-2 there has been an addition of a requirement specifying as to, whether the copy of the valuation report of properties/ rights and shares… Read More

Agency to be appointed for monitoring the electronic voting process : MCA

Circular No.21 I201 1; Government of India- Ministry of Corporate Affairs; Dated: 02.05.20 1 1 CLR Note: The Green Initiative in the Corporate Governance brings again an added advantage, by providing an electronic platform for the purpose of electronic voting and for that the Ministry will soon appoint an agency which will accurately monitor the voting process and most… Read More

Exemption Circular U/s 212 of Companies Act and its applicability for Unlisted Companies

General Circular No: 22/2011; Government of India- Ministry of Corporate Affairs; Dated: 2nd May, 2011 All Regional Directors; All Registrars of Companies Subject: Clarification in respect of General Circular No: 2 /2011 dated 8th February,2011 It has been observed that certain companies are seeking clarification in respect of circular No. 2/11 dated 8.2.2011 issued by the Ministry in respect… Read More

MCA Clarifies- Now send Annual Accounts under Section 219 via e-mail

The Ministry of Corporate Affairs (MCA), has made certain elucidation vide Circular no. 18/ 2011 dated 29th April 2011 with regard to the Green Initiative in the Corporate Governance wherein, the Companies are now allowed to send the Balance sheet, Profit& Loss A/C, Auditor's Report, Director's Report and Explanatory Statement etc. via e- mode in accordance with MCA Circular… Read More