Articles

A: Background: As part of Government of India’s Ease of Doing Business (EODB) initiatives, the Ministry of Corporate Affairs has notified & deployed a new Web form christened ‘SPICe+’ (Simplified Proforma for Incorporating Company Electronically Plus) (pronounced ‘SPICe Plus’) replacing the existing SPICe form. The Ministry of Corporate Affairs has in exercise of the powers …

Procedure for Incorporation of a Company post the launch of Spice+ and Agile-Pro Read More »

Interim Dividend as per Companies Act, 2013 Dividend: 1. The word dividend is derived from the Latin world “DIVIDENDUM”. 2. Dividend means- i) In accounting terms – the profit distributed to shareholders. ii) In financial terms – the return on investments. 3. Dividend is generally paid on two types of instruments viz. i) Preference shares …

Interim Dividend as per Companies Act, 2013 Read More »

What is a Limited Liability Partnership? Limited Liability partnerships (“LLP”) is viewed as an alternative corporate business vehicle that provides the benefits of Limited Liability while allowing its partners the flexibility of organizing their internal structure as a partnership based on mutually arrived agreement.Owing to its flexibility in its structure and operation, the LLP often …

LLP Settlement Scheme 2020 & Modified LLP Settlement Scheme 2020 Read More »

The Tata-Mistry clash has been one of the most high-profile and publicly fought corporate battles in India. On December 18, 2019 the NCLAT (National Company Law Appellate Tribunal) jolted the corporate world with its judgment on the Cyrus Investments Pvt. Ltd. & Anr. VS Tata Sons Ltd. & Ors. The two-judge Bench headed by Justice …

Tata vs. Mistry – Case Analysis Read More »

What is an Offence? The term offence is not defined under the Companies Act, 2013 but in general parlance, an offence means an illegal act or crime. As per Section 3(38) of the General Clauses Act, 1897 the term “Offence” shall mean any act or omission made punishable by any law for the time being …

Compounding of Offences under Section 441 of Companies Act 2013 Read More »

Background: Companies (Auditor’s Report) Order, 2020 [“CARO, 2020”] has been notified by the Ministry of Corporate Affairs (MCA) vide its order dated 25th February 2020, in exercise of the powers conferred in sub-section 11 of Section 143 of Companies Act,2013 and after consultation with the National Financial Reporting Authority (NFRA),. Companies (Auditor’s Report) Order, 2020 (CARO, 2020) …

Companies (Auditor’s Report) Order,2020 [CARO,2020] – Summary Read More »

A.        Background: In exercise of the powers conferred in the Section 203 of the Companies Act,2013 read with section 469 of the said Act, Ministry of Corporate Affairs vide its notification dated 3rd January 2020 [“Notification”] has amended the Rule 8A and Rule 9 Companies (Appointment and Remuneration of Managerial Personnel) Amendment …

Changes in rules relating to the appointment of Company Secretary and applicability of Secretarial Audit Read More »

Background: A Director is responsible for controlling, managing and directing the affairs of a Company and faces the risk of disqualification, if he/she fails to fulfill the legal responsibility prescribed under Companies Act, 2013 (Act). A detailed note on Director disqualification, consequences and process of removal of disqualification is mentioned below. Director Disqualification as per …

Director Disqualification, Consequences and process of Removal of Disqualification Read More »

Background:  Section 232(6) of Companies Act, 2013 specifies that the scheme under this section shall clearly indicate an appointed date from which it shall be effective and the scheme shall be deemed to be effective from such date and not at a date subsequent to the appointed date. The language of Section 232(6) of Companies …

Significance of appointed date in case of Merger and Amalgamation of Companies in light of the recent circular issued by MCA Read More »

Brief on Independent Directors (IDs) Databank The Ministry of Corporate Affairs (MCA) has notified Rule 6 of the Companies (Appointment and Qualification of Directors) Rules, 2019 dated 01st December 2019 which mandates all the existing and aspiring Independent Directors to register themselves in the databank. Ministry of Corporate Affairs (MCA) in association with Indian Institute …

Independent Directors Data Bank Read More »