Company Law - Corporate Law Reporter

MGT – 14 now under Straight Through Process Mode

The Ministry of Corporate Affairs has issued a Circular No. 28/2014 dated 9th July, 2014 in order to clarify the issues faced by the stakeholders in the approval of e-form MGT-14 which would now be filed under Straight Through Process Mode in all the cases except for change of name, change of object, resolution for… Read More

SEBI Guidelines w.r.t Delivery Instruction Slips deferred till 1st October, 2014

The Stock and Exchange Board of India has issued a circular dated 4th July, 2014 in order to clarify the issues and obstacles with regard to the earlier guidelines issued to strengthen and monitor the process of Delivery Instruction Slips with the DP's for which the body had earlier issued a guideline on 7th January,… Read More

Sweat Equity under Companies Act, 2013

Sweat equity shares means such equity shares as are issued by a company to its directors or employees at a discount or for consideration, other than cash, for providing their know-how or making available rights in the nature of intellectual property rights or value additions, by whatever name called. Employee means (a) a permanent… Read More

Ministry notified Companies (cost record and audit) Rules, 2014

The Ministry of Corporate Affairs has notified and issued the much awaited Companies (cost record and audit), Rules, 2014 dated 30.06.2014 thereby providing clarifications with respect to each and every aspect dealing with provisions of cost auditors and classes of companies requiring cost audit. The rules can be accessed at the link given below. Companies… Read More

Filing of Form DPT-4 (Deposits) deferred till 31st August, 2014

The Ministry of Corporate Affairs has issued a circular no. 27/2014 dated 30th June, 2014, providing clarification with regard to the filing of Form DPT-4 under the provisions of Companies Act, 2013. As required by section 74(1) of the Companies Act, 2013 and the rules made there under, companies are required to file a statement… Read More

Provision for offer or invitation of NCD’s u/s 42 amended

The Ministry of Corporate Affairs has issued Companies (Prospectus and Allotment of Securities) Amendment Rules, 2014 vide notification G.S.R. (E) to insert a proviso after the second proviso to sub-rule (2) of Rule 14 of Companies (Prospectus and Allotment of Securities) Rules, 2014 under the Companies Act, 2013 as the second proviso provided that in the… Read More

Summary of Related Party Transactions under CA 2013

The new Companies Act have enacted with strict compliance in relation to the provisions relating to the related party transactions.The intent of the legislature is to bar the corporates from entering into transactions which are fraudulent under the cover of sister concerns.With newly enacted provisions the transactions with the related parties will be more transparent… Read More

Bonus Issue under Companies Act, 2013

Bonus issue refers to a further issue of shares made by a company having share capital to its existing share holders without receipt of any consideration from the shareholders for issuance of the shares. It is an offer of free additional shares to existing shareholders in proportion to their holdings. For example, the company may… Read More

Good news as Ministry increases scope to set up Private Companies

The Ministry of Corporate Affairs have set a all new wave for the foreign entities to set up private companies in India by removing the erstwhile concept of Deemed public company.Now, All the India Private Companies shall be treated as private companies even if its foreign holding company is a public company under the laws… Read More

‘NOC’ from Forward Market Commission to use word Commodity Exchange

The Ministry of Corporate Affairs has issued a circular dated 27.06.2014 in continuation of circular 02/2014 dated 11.02.2014 which prohibited the companies to use the words like 'National' , 'Bank' etc. unless the company obtains NOC from the designated authorities like RBI for the use of word 'Bank' and such other words specified in the… Read More

Clarification on applicability of Resident Director

The Ministry of Corporate Affairs has issued a circular dated 26.06.2014 to provide clarification on the criteria of calculation of 182 days for the appointment of Resident Director as specified under section 149 (3) of the Companies Act, 2013 which says that a company shall have a director who has stayed in India for a… Read More

Budget could provide tax exemption to corporates for CSR

The Ministry of Finance is seriously considering the proposal made by the corporates for allowing the tax rebate to the corporate houses for the expenditure they have to make on the Social Welfare Schemes to be made as a part of their Corporate Social Responsibility (CSR). While the ministry had earlier opposed the idea of… Read More

Amendment Notification on Chapter VII Rules under CA 2013

The Ministry of Corporate Affairs has issued a notification G.S.R. (E) dated 23rd June, 2014 in exercise of the powers conferred by sub-sections contained in Chapter VII dealing with Management and Administration read with section 469 which provides the power to the Central Government to make rules under the Companies Act, 2013, by virtue of… Read More