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TIME TO GET SERIOUS ABOUT SECRETARIAL AUDIT
Why Secretarial Audit is needed? The objective of Secretarial Audit is to assure various stakeholders and regulators that the affairs of the company are being carried out in accordance with the laws, rules and regulations applicable to the Company. Applicability of Secretarial Audit As per Section 204(1) read with Rule 9 of The Companies...Continue Reading
CHECKPOINTS WHEN A COMPANY GIVES LOANS, SECURITY, GUARANTEE
Can a Company grant Loans/ Security/ Guarantee? A company, whether Public or Private, is allowed to grant any loan, guarantee, any loan represented by a book debt or book entry, or provide any security against any loan, to persons other than specified under Section 185. Whom Company cannot grant Loans/ Security/ Guarantee? Section 185 prohibits...Continue Reading
WHAT YOU SHOULD KNOW AS A DIRECTOR? HOW DOES A DIRECTOR SAFEGUARD ITSELF FROM NON-COMPLIANCES?
Mentioning Director Identification Number (DIN): Every Director while signing any document in the capacity of Director shall mention his/ her Director Identification Number along with address as provided to the Ministry of Corporate Affairs. Duties of Directors: It is the very first time that the Companies Act, 2013 has specifically mentioned the duties of Directors....Continue Reading
DEPOSITS RE-DEFINED UNDER COPMPANIES ACT, 2013
The Companies Act, 2013 by way of Section 73 to 76 has bought many changes in respect to acceptance of Deposits by any Company, including Private Limited Company. What is considered as ‘Deposit’? The following will be included in the definition of Deposit: Any amount received against subscription to any securities including...Continue Reading
INSIGHT ON FUND RAISING – THROUGH PRIVATE PLACEMENT
New Companies Act, 2013 makes the capital investment challenging by introducing new provisions regarding fund raising in any form of Company. There are various modes of raising funds by any Company, as listed below: Public Company: Public Offer Private Placement Right Issue or Bonus Issue Private Company: Private Placement Right Issue or Bonus Issue...Continue Reading
KEY TIMELINES FOR SECRETARIAL COMPLIANCES
IMPORTANT DUE DATES FOR FILING MANDATORY DOCUMENTS WITH MINISTRY OF CORPORATE AFFAIRS: COMPLIANCES REQUISITE FORMS DUE DATE OF FILING Board Resolution for acceptance of Disclosures of Directors in Form MBP-1 e-Form MGT-14 Within 30 days of the Board Meeting in which noting of disclosures has been made Board Resolution for Adoption of Financial Statements,...Continue Reading
QUICK RECAP FOR PRIVATE OR PUBLIC COMPANIES
COMPLIANCES APPLICABLE GENERALLY TO EVERY COMPANY: Changes in official stationery Certain changes were required to be made in official stationery to comply with Companies Act, 2013 Alteration of Charter Documents Amendment of existing Memorandum (MOA) and Articles of Association (AOA) to incorporate the relevant provisions of the Companies Act, 2013 Updation of Statutory Registers Maintenance...Continue Reading
CHANGING ROLES AND RESPONSIBILITIES OF DIRECTORS
The new Companies Act expects a lot of discipline from the Directors. Explicit provisions relating to duties of Directors have been introduced for the first time which attempts to create high responsibility on Directors. With the requirement of inducting Independent Directors with enhanced eligibility norms, Women Directors, Resident Directors on the Boards of the Companies,...Continue Reading