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…
You open a company, commission an agency to create a brand for your business, you like it, you feel it yours. Meanwhile, the business grows, the turnover too. Your name begins to circulate. Years of work are finally rewarded by the success you had always hoped for: a brand well positioned on the market and…
If you have a car, a flat, you always register it to make sure that it is your property. So why don’t we do the same when we have a company? To inform a public body that you are the owner, and prevent another from using it, what you have to do is register it…
When you are about to start a new business, you wonder whether or not you should set up a legal entity to develop that project. Perhaps you ask here and there, and doubts increase when it is reported that to establish a legal entity such as a public limited company, you must spend on a…
Section 177 of the Companies Act, 2013 and along with the various rules of Companies (Meetings of Board and its Power) Rules, 2014 lays down the constitution, composition, the roles, and responsibilities of the Audit Committees. REGULATORY FRAMEWORK OF AUDIT COMMITTEE The legal provisions regulating an Audit Committee are as follows: Section 177 of the…
The way companies act has prescribed the process for the incorporation of the company in the same way companies act has prescribed the process, conditions, and method for the closure of the company. As of date, the company act has prescribed two ways/methods to close the company: Strike of company Winding up of company As…
Shares:Section 2(84) of Companies Act, 2013 Share means share capital of a Company and it includes stocks also. Share and Debentures are movable property, and they are freely transferable in the manner provided in the AOA of the Company. Share Certificate: Share Certificate is a document issued by a company indicating that the person named…
“Members right to inspect”Under Section 171 of The Companies Act 2013 The register kept under section 170 (1), – (a) the register shall be open for inspection during business hours (9 AM TO 6 PM) and the members shall have a right to take extracts therefrom and copies thereof, and on a request by the…
“Private company” are those firms that are having a minimum paid-up share capital which may be endorsed or prescribed by its articles and which,— (i) limit the rights to transfer its shares (ii) except in the case of OPC, limits the number of its members to 200: Given that, persons will be treated as a…
Disqualification of Director: Section 164 contains the conditions in which a director can be disqualified as a director. Determining the condition by which a person cannot be appointed as a director or restricting him from becoming a director of the company covered under Disqualification of a director. Reason of disqualification can be two As per…
