The Ministry of Corporate Affairs (MCA) notified the constitution of the National Company Law Tribunal (‘NCLT’) and National Company Law Appellate Tribunal (‘NCLAT’) in the exercise of powers conferred under sections 408 and 410 of the Companies Act, 2013. The NCLT and the NCLAT act as quasi-judicial bodies which adjudicate/decide all disputes relating to companies…
Conditions for Transfer When the transfer instrument has been presented late or lost Transfer instrument has been lost Provided that where the instrument of transfer has not been delivered within the prescribed period(within 60 days from the date of such execution)or the instrument of transfer has been lost, the company may register the transfer on…
WHAT IS A CIRP? The Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016 defines the expression “corporate insolvency resolution process” as “the insolvency resolution process for corporate persons under Chapter II of Part II of the Code.” A Corporate Insolvency Process means a process where – the financial creditors assess the viability of debtor’s…
WHAT IS INSOLVENCY? HOW IS IT DIFFERENT FROM BANKRUPTCY? Insolvent means a person who is not able to pay his/her/debts in the ordinary course of business. Insolvency is “the state of one whose assets are insufficient to pay his debts.” BANKRUPTCY. The word Bankruptcy has embedded in the trade that was carried out on Ponte Vecchio,…
The Insolvency and Bankruptcy Code, 2016 define a separate insolvency resolution process for individuals/partnership firms which is different from that provided for the corporate bodies. Chapter III of Part III provides for the insolvency resolution process (RP) for individuals and partnership firms. The Adjudicatory Authority (AA) for the process enshrined under this Part is the…
A secretarial Audit is a compliance audit, it is an effective tool for corporate compliance management. It helps to take corrective measures and detects non-compliances. It is a process to check that the company has complied with the legal and procedural requirements, and compliance with the provisions of various laws and rules/regulations/procedures, maintenance of books,…
Section 139(1) The first auditor of a company shall be appointed by the BOD within 30 Days from the date of Incorporation of the company and such auditor shall hold office till the conclusion of the 1ST AGM in the case of failure of the Board to appoint such auditor, it shall inform the members,…
Merger refers to the business arrangement between two or more companies or body corporates form a single/one company or body corporate for the benefit of both companies. There are various benefits companies enter into the transaction of merger which is as follows: It enables enterprises to achieve economies of scale Reduction of Operational cost is…
Maximum Remuneration to Managerial Personnel A public company can pay managerial remuneration to its directors, including managing director, whole-time director, and its manager in respect of any financial year, up to the maximum limit as prescribed under section 197. The remuneration computed as per section 198 shall not exceed 11% of the net profits for…
MEANING Section 447 of the company act defines fraud as follows: Fraud concerning affairs of a company or anybody corporate include Any act, Omission Concealment of any factor Abuse of position Committed by any person or any other person with the connivance in any manner, with intent to deceive, to gain undue advantage from, or…
