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…
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…
