company-law

Meaning of Cost Audit: Cost audit is nothing but the verification of cost records and accounts and checking on the accuracy in adherence to the prescribed cost accounting procedures, plans and principles.Cost audit is nothing but verification of particulars related to utilisation of material, labour and other cost related variants for a given period of time. Objectives of Cost Audit: The main motive of cost audit is to determine the costs of various fixed and variable costs....

It is mandatory for every company registered under the Companies Act, to get its accounts audited by the statutory auditor and present it before the stakeholders every year. An audit is an important activity for every business and the auditor must present his views in an unbiased way. The principle of Audit Rotation implies the periodic breaks to audit engagements and is imposed to avoid long term relationships between an auditor and the client....

What is a share certificate? Share certificate is a document issued by the company evidencing the number of shares held by a person named therein. It is the Prima facie evidence of the title of the person to such shares. In simple terms, a share certificate indicates the person so named owns the shares mentioned therein. The Companies Act, 2013 mandates every company incorporated in India and having share capital, to issue share certificate to their shareholders within such period and in such format as is prescribed under the Act....

A share certificate is a prima facie evidence of the title of the person holding the shares in the company. The shares are movable property and transferable in nature. Shares of a company can be in physical or Demat form. Every share in a company having share capital is distinguished by its distinctive number. As the shares are transferable, how to transfer them? In this article, we will understand the procedure to be followed by a shareholder when he is holding shares of a private limited company and wishes to transfer his shares....

Introduction An Auditor of the company plays the most important and vital role in the operations of the company. He is obligated by the laws to examine the accounts of the company and provide a true and fair view of the company’s financial position to the various stakeholders such as investors, government authorities, banks and other interested parties. As per Section 139 of the Companies Act, 2013, every company is required to appoint an auditor....

Introduction Most of the private limited companies are closely held with the limited number of members, or sometimes having only family members as shareholders of the company and therefore the company prefers to issue share certificates in physical form. A share certificate is a legal document that certifies the legal ownership of a specific number of shares held in a company. What if this share certificate is lost or misplaced? Does the Companies Act, 2013 provide for the issue of duplicate share certificates?...

Introduction The recent amendment to Section 204 read with Rule 9 of Companies (Appointment and Remunerations) Rules, 2014 has turned the focus of all private limited companies on the applicability of Secretarial Audit. The MCA vide Notification G.S.R. 13(E) dated 3rd January 2020 provided an amendment to the applicability rules of Secretarial Audit. The said amendment provided that “every company having outstanding loans or borrowings from banks or public financial institutions of one hundred crore rupees or more on the last date of the latest audited financial statement are required to comply with Secretarial Audit requirements”....

The MCA vide General Circular 20/2020 dated 5th May 2020 allowed companies to hold their Annual General Meetings for the calendar year 2020 through Video Conferencing (VC) / any other Audio Visual Mode (OAVM). The circular provides procedures, to be followed (i) by companies to which e-voting is mandatory (Part-A) and (ii) by companies to which e-voting is not mandatory (Part-B) for conducting AGM through VC/OAVM, Here we will understand the procedure to be followed by companies which are not required to provide the facility of e-voting under the Act, for conducting their AGM for the calendar year 2020....

Introduction A company is a separate legal entity and acts through its agents i.e. the Board of Directors. The Companies Act and Articles of Association of the company empowers the board to exercise all such powers, except the powers exercisable only in general meeting and to do all such acts and things as the company is authorised to do so. The decisions related to company affairs are taken collectively by the Board in their meetings i....

Background: As per the provisions of Section 101 (1) of the Companies Act, 2013, every general meeting of a company may be called by giving not less than twenty-one days clear notice in writing or through electronic mode in such manner as provided under Rule 18 of Companies (Management and Administration) Rules 2014. In the case of private limited companies, the period of notice can either be twenty-one days or such other period as may be provided in their Articles of Association....