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 […]
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
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Merger is a legal consolidation of two entities into one as a result of which the ownership, risk, assets, liabilities and functions are also consolidated. The term Merger is not defined in any Act. A merger usually takes place when a smaller company folds into a larger one through exchange of shares or cash. But
NEW ERA OF COMPLIANCE MONITORING MCA STARTED USING ARTIFICIAL INTELLIGENCE (AI) TO MONITOR COMPLIANCE UNDER THE COMPANIES ACT, 2013/1956. The AI driven mechanism called MCA Compliance Monitoring System (MCA-CMS) is now functional. Introduction The present Indian Government is highly determined to improve India’s ranking in the world bank list of ease of doing business. In
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Introduction: Small Companies are basically the companies with limited amount of investment and having the privilege of special status under the Companies Act, 2013. The concept of “small company” has been introduced for the first time by the Companies Act, 2013. The Act identifies some companies as small companies based on their capital and turnover
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The Ministry of Corporate Affairs (MCA) recently introduced the concept of Active Company Tagging Identities and Verification (ACTIVE) which required filing of new e-Form INC- 22A effective from February 25, 2019. Companies which complied with the requirement were tagged as ACTIVE and Compliant while the Companies which did not comply with the requirement were tagged
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Companies that do not intend to carry on their operations can apply for removal of their names from the Register of Companies (ROC) and the ROC can remove their names if it has reasonable cause to believe so. Striking off of the company’s name by the Register of Companies (RoC) is an alternative to winding
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INTRODUCTION The Board of Directors are responsible for the Company’s management and for ensuring good corporate governance. The Board should run the affairs in a transparent manner and the decisions should not be prejudicial to the interest of all its stakeholders. The Company must not be run for the material benefit of a few. Therefore, the concept of Independent Directors on the Board
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COMPANY A Company is a separate legal entity distinct from its Members. It is an artificial judicial person with many rights, obligations, powers, and duties prescribed by law. A company incorporated under the Companies Act, 2013 is vested with a corporate personality so it bears its own name and acts under the name. Therefore, it
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The Companies Act, 2013 and the Secretarial Standards prescribed by the Institute of Company Secretaries of India provide for the rules and regulations regarding the appointment of Directors, conduct of Board Meetings and their roles and responsibilities. I. Meaning: As per Section 2(34) of Companies Act, 2013: “Director” means a director appointed to the Board of
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