MAJORITY SHAREHOLDERS: Those who own more than 50% shares of the company. It is a cardinal rule of company law that evidentially all the resolutions are passed according to the will of the majority. Resolution of majority shareholders passed at a duly convened general meeting,is binding upon the majority and consequently upon the company. Hence,…
The Ministry of corporate affairs has vide its notifications dated 11th February 2022, has notified Companies (Accounts) Amendment Rules, 2022, and inserted rule 1A in rule 12 of Companies (Accounts) Rules 2014. As per amended rules, every company covered under u/s 135 shall furnish a report on Corporate Social Responsibility in E-Form CSR-2 to the…
MINORITY SHAREHOLDERS: To protect minority shareholders from misuse of authority, company law provides some rights to the minority which restricts the powers of the majority and allows the minority to express their grievances against the wrongdoing of the majority. The abovementioned rights are called minority rights which enable them to make an application to the…
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,…
