Company Law - Corporate Law Reporter

Clarification under Section 185/ 186 of the CA 2013 w.r.t advancing loans to employees

The Ministry of Corporate Affairs has issued a general circular no 04/ 2015 dated 10th March, 2015 to provide clarification with respect to advancing loans to employees would attract Section 185 or 186 or not. 1.Ministry has received a number of references seeking clarification on the applicability of provisions of section 186 of the Companies… Read More

Buy Back under Companies Act, 2013: Simplified Law

PERMITTED RESOURCES AND PERMITTED METHODS FOR BUY-BACK OF EQUITY SHARES Buy-back can be done out of” (a) free reserves; (b) securities premium account; or (c) proceeds of the issue of any shares or other specified securities except out of the proceeds of an earlier issue of the same kind of shares.… Read More

Clarification in relation to filing of Form DIR-11 & DIR-12 under the CA 2013

The Ministry of Corporate Affairs has issued a circular No. 03/2015 dated 3rd March, 2015 to provide clarification relating to filing of e-Form DIR-11 & DIR-12 under the Companies Act, 2013. The difficulty arises because of automatic deactivation of DSC on filing of DIR-1 I (Notice of resignation of a director to the Registrar) by… Read More

Form GNL 4 to be filed with ROC for additional information

The Ministry of Corporate Affairs has issued a notification regarding Companies (Registration Offices & Fees) amendment rules, 2014 for the inclusion of Form GNL 4 which shall now be available for filing at the Ministry of Corporate Affairs website. Any other information which has not been able to be filed in the requisite e-form shall… Read More

Reduction of Share Capital: Analysis

Introduction:- ''Conservation of capital is one of the main purposes of Company Law.''[1] The share capital of a company is the only security on which the creditors rely. Any reduction of share capital, therefore, diminishes the fund out of which they are to be paid. For these specific reasons the companies limited by shares are… Read More

Companies (Indian Accounting Standards) Rules, 2015

The Ministry of Corporate Affairs has issued a Notification dated 16th February, 2015 and has notified the road map for the applicability of the Indian Accounting Standards (Ind AS) for compliance by the class of companies specified in the said roadmap. Further, the notification has been uploaded on www.mca.gov.in along with the Thirty Nine (39)… Read More

Tax Incentives likely for Swachh Bharat, Clean Ganga initiatives in the Budget 2015

Finance Minister is likely to provide tax incentives in Budget to encourage companies to participate in Swachh Bharat Abhiyan and Clean Ganga campaign as part of mandatory two per cent CSR spending. "The Ministry is working on tax incentives for these two major schemes of the Narendra Modi government and some announcements are likely in… Read More

Companies (Removal of Difficulties) Order, 2015

The Ministry of Corporate Affairs has issued a Companies (Removal of Difficulties) Order, 2015 dated 13th February, 2015 and has removed the difficulty with respect to the following clause: And whereas, clause (85) of section 2 of the said Act provides for definition of the term "small company"; And whereas, clause (b) of sub-section (11)… Read More

Scope of Secretarial Audit under Companies Act, 2013

The Institute of Company Secretaries of India has come out with a scope of Secretarial Audit for reporting on compliance of other laws as may be applicable specifically to the company which shall include all the laws which are applicable to specific industry. The institute with a view to facilitate the members to conduct the… Read More

Constitution of High Level Committee for Corporate Social Responsibility(CSR) under Companies Act, 2013 for monitoring compliance w.r.t CSR

The Ministry of Corporate Affairs has vide Circular No. 1 dated 3rd February, 2015 has constituted a High Level Committee for the monitoring of the provisions being properly implemented under Section 135 of the companies Act, 2013 and the rules made thereunder. The functions of the committee shall be as follows: 1. To recommend suitable… Read More

Review of Guidelines on Restructuring of Advances by NBFCs

RBI/2014-15/410 DNBR.CO.PD.No.011/03.10.01/2014-15 January 16, 2015 All NBFCs excluding Primary Dealers Dear Sirs, Review of Guidelines on Restructuring of Advances by NBFCs Please refer to circular DNBS.CO.PD.No.367/03.10.01/2013-14, dated January 23, 2014, on the captioned subject. 2. In terms of extant instructions contained in the above mentioned circulars, revisions of the date of commencement of commercial operations… Read More

Companies (Accounts) Amendment Rules, 2015

The Ministry of Corporate Affairs has issued a general notification dated 16th January, 2015 as Companies (Accounts) Amendment Rules, 2015 which shall come into force form the date of its publication in the official gazette which describe the following amendments: 1. In Rule 2 the following rule shall be inserted namely: "2A. Notice of address… Read More

SEBI tightens rules and widens the scope of Insider Trading Regulations

The Securities and Exchange Board of India has made a stricter regime of the insider trading rules by widening the scope and align it with the best international practices. The apex watchdog finalised the insider trading rules based on the recommendations of the committee deliberations. SEBI has tightened the rules by widening the definition of… Read More