company-law

Post Incorporation of a private limited company, the company is required to complete certain compliance within stipulated time frame. Below is list of compliance that a private limited company should complete post registration - Registered Office Address of the Company Every company should mandatory have a office called “Registered Office” of the Company at the time of Incorporation of the company or within 30 days from the date of incorporation. Now the company can be registered without declaring the Registered Office of the company at the time of incorporation....

Share Capital is an amount invested by the promoters while incorporating a company. As business expands, more capital is required. The capital limit set up by the promoters as and there it becomes necessary for the company to increase its authorised capital limits. What is Authorised share capital of a company? Authorised share capital is the maximum limit upto which a company can issue shares to the shareholders. This limit is mentioned in the Memorandum of Association of the company under “Capital Clause”....

What is the Registered office of a company? The Registered Office of a company is the place from where the principal business activities of a company are carried out. In short it is an office address of the company to which official letters, notices, communications will be sent by the Government authorities, Banks, Financial Institutions and various other stakeholders of the company. Why is it important to have a Registered Office of a company?...

An independent director is a non-executive director who apart from receiving managerial remuneration, does not have any pecuniary relationship with the company or its promoters or its management or its subsidiary, which otherwise affect their independence of judgement. Independent directors add credibility to the company and help the company to achieve better growth, profitability and sustainability alongside good corporate governance. An independent director is a member of the Board of Directors....

Introduction Section 149(1) of the Companies Act, 2013 requires every company to have a Board of Directors, consisting of individuals as under: For Private Limited companies - Minimum of 2 Directors For Public limited companies - Minimum of 3 directors and  For One Person company - One Director The maximum number of Directors allowed on the Board is 15 but the company by passing a special resolution at General Meeting may increase the maximum number and appoint more than 15 Directors on its Board....

Meaning and definition of Associate Company as per the Companies Act, 2013 Section 2(6) of the Companies Act, 2013 as amended by the Companies (Amendment) Act, 2017 define an Associate Company as under: “An associate company, in relation to another company, means a company in which that other company has a significant influence, but which is not a subsidiary company of the company having such influence and includes a joint venture company....

Unlike share capital, a Loan is also one of the important sources of financing for a company. The term “loan” is not defined under the Companies Act, 2013. In general parlance, a loan means any transaction wherein money is given to returning with or without interest. To meet larger or small financial requirements, companies do approach financial initiations or banks. But what if there is an urgent requirement of funds, can a company approach its Directors or shareholders for meeting such requirements?...

While the Companies Act, 2013 introduced many new concepts in the corporate world. “Small Company” was one of such, which gained a lot of attention of stakeholders and has continued till date. Let it be from the point of compliances under the Companies Act or any other Act, identifying whether the company comes within the ambit of “small company definition” plays a very crucial role. In this article, we will try to understand “Small Company” and how it impacts a company as a whole....

Ministry of Corporate Affairs vide Notification G.S.R. 206(E) dated 24th March 2021, introduced an amendment to the Rule 11 of the Companies (Audit and Auditors) Rules, 2014. These rules are called as Companies (Audit and Auditors) Amendment Rules, 2021 and they shall come into force from 1st April 2021. Vide this amendment notification the MCA omitted clause (d) of Rule 11 and inserted three new clauses i.e. clause (e), clause (f) and clause (g)....

What is a subsidiary company? In simple terms, a subsidiary company means a company that is controlled by some other company, and that some other company or controlling company is called a holding company. To become a subsidiary the holding company must have control more than one half (i.e. more than 50%) of the total voting power or power to appoint or remover the majority of the Directors of such a subsidiary....