Category: Uncategorized

Personal Liability of Directors or Members Notwithstanding the cardinal principles of “limited liability” and “corporate personality”, the Companies Act, 1956 has specifically provided that in certain cases the advantages of distinct entity and limited liability of personal may not be allowed to be enjoyed. Such cases are: Reduction of Membership: Where the number of members falls below the statutory minimum […]

Period of Appointment It is a point worth noting here that while in the case of a managing director Section 317 restricts the period for which he may be appointed at a time up to five years, there is no such restriction on the appointment of a whole-time director of the company, so that he may be appointed for a […]

Buy-back from existing security holders A Company may buy-back its specified securities from its existing security holders on a proportionate basis in accordance with the provisions of this Chapter. Additional disclosures The explanatory statement annexed to the notice under section 173 of the Companies Act, or the public notice under sub-regulation (1) of regulation 5A shall contain the disclosures mentioned […]

Managing Director The Companies Act, 1956 is well established Act and it declares and defines the concept of managing director in Section 2 (26). Managing Director means a person who, by virtue of an agreement with the company or of a resolution passed by the company in general meeting or by its Board of directors or by virtue of its […]

Freelancer is a person who works for themselves as freelance without accompanying the company or association. Sometimes, the freelancer takes the work of the company or organization as a contract and perform the contract ultimately self-employment. They deal the multiple clients at the same time. Operating as a freelancer, for all practical and personal reasons, is really just a business or […]

Eligibility for registered Valuers A person shall be eligible to be a registered valuer if he- is a valuer member of a registered Valuers organization; Explanation- For the purposes of this clause, “a valuer member” is a member of a registered Valuers organization who possesses the requisite educational qualifications and experience for being registered as a valuer;  is recommended by […]

One Person Company – A short description One Person Company is a type of company registration and provides more and more benefits to the entrepreneur. This concept was newly enacted and get popular among the entrepreneurs who starts their business in stating stage. The companies Act, 1956 cannot have the one person company concept. The Companies (Amendment) Act, 2013 introduced […]

Short title and Commencement of Companies Amendment Act These rules may be called the Companies (Authorized to Register) Second Amendment Rules, 2018. They shall come into force with effect from 15th August 2018. In the Companies (Authorized to Register) rules, 2014 (hereinafter referred to as the said rules), in rule 2, in sub-rule (1), after clause (g), the following clauses […]

Introduction Non-banking Financial Companies Acceptance of Public Deposits (Reserve Bank) Directions, 2016 were issued by the Reserve Bank of India in the year 2016 with effect from 25th August, 2016 for the purpose of enabling it to regulate the credit system to the advantage of the country. These directions were issued in supersession of the earlier directions in Notification No. […]

Introduction Director Identification Number (DIN) means an identification number allotted by the Central Government to any individual, intending to be appointed as director or to any exiting director of a company, for the purpose of his identification as a director of a company: Provided that the Director Identification Number (DIN) obtained by the individuals prior to the notification of these […]