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…
ECBs are commercial loans/borrowing raised by eligible resident entities/companies from recognized Non-resident entities/companies and should equal to parameters such as: – minimum maturity, permitted and non-permitted end-uses, maximum all-in-cost ceiling, etc. The parameters apply in totality and not on a standalone basis. ECB comprises the following three tracks for raising loans: – Form of…
Every company shall maintain and keep the books of account and papers and financial statement (FS) at its registered office for every financial year which give a true and fair view of The state of the affairs of the company, Including that of its branch office, if any, and Explain the transactions entered between the…
Introduction The Ministry of Corporate Affairs has amended the Companies (Prospectus and Allotment of Securities) Rules, 2014,and now has inserted a new Rule 9A with its applicability from 2nd October 2018.With the insertion of the new rule,every unlisted Public Company must providean opportunity to every shareholder to convert their shareholding into Dematerialized form. Rule 9A:…
Section 188 of the Companies Act, 2013 prescribes the related party transactions of the companies. A company, in the course of conduct of its business, enters into various transactions with different parties, which also include its related parties. Companies also carry on their business activities through their subsidiary companies and associate companies. Accordingly, related party…
According to Section 185of the Companies Act, 2013 read with the Companies (Amendment) Act,2017, Effective from 7th May 2018, a company shall not provide any loan, guarantee, or security-related to any loan taken by— any director of the company, or any director ofa company which is its holding company or any partner or relative of…
The company has to mandatorily file the financial statements to give the exact financial position of the company, to the shareholders. AOC-4 is used to file the financial statements for each financial year with the registrar of companies (ROC). If a company has its’ subsidiary company the company must file consolidated financial statements in the…
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…
