The Ministry of Home Affairs issued a notification on 01 June 2022 seeking to amend the Companies (Appointment and Qualification of Directors) Rules, 2014. According to the amendment, it will be mandatory to obtain security clearance for persons from countries sharing a land border with India before being appointed as directors on the boards of…
The Company’s name is its identity throughout its lifetime should be well thought out and constructed to be sustainable with the future growth of the company. The Companies Act governs the process of naming a company from its selection to any changes made thereafter. Let us discuss the procedure for the change of name of…
Many people invest their money in shares and forget to claim it, or many expire before they claim it. In such cases, money remains unclaimed for many years. The Ministry of Corporate Affairs (MCA) therefore introduced the Investor Education and Protection Fund (IEPF) to ensure that unclaimed shares can be transferred and received by the…
When a company pays dividends before the company’s Annual General Meeting (AGM) and the publication of financial statements, it is known as an interim dividend. Payment is made either quarterly or semi-annually. The board of directors declares an interim dividend and the company’s shareholders ultimately approve it. The company declares and pays an interim dividend…
Internal auditing refers to the process of evaluating an organization’s internal controls, procedures, processes, and methods. The objective of the internal audit is to check the effectiveness of the operating standards established by the organization. It is carried out either by an employee of the organization or by an expert appointed by the board of…
Every company must be registered within thirty days of its incorporation under the Companies Act 2013 (the “Act”). The company should be domiciled all the time until it exists. The registered office of the company is stated in the memorandum of association (MOA) and the articles of association (AOA). However, the company may be required…
The Ministry of Corporate Affairs (MCA) on 11 October 2018 amended Schedule III of the Companies Act, 2013. Schedule III of the Companies Act, 2013 provides the format of financial statements of companies that comply with Accounting Standards (AS) and Ind AS under their Division I and Division II. Now Schedule III will apply to…
A Private Company is proscribed from having more than 200 Shareholders. Private Companies get listed so that they can extensively raise funds from the Public. A listed company can trade its shares on the stock exchanges. Companies, like Reliance Power, have raised 11,560 crores in the past from Initial Public Offering. Much Private Equity /Venture…
Transfer of shares between two residents (of India) involves payment of consideration and execution of share transfer deed. Share transfer deed to be duly stamped @ 0.25% of the consideration amount. When the transaction is between a resident and a non-resident, there are many regulations. That is concerning inward and outward remittance of funds, valuation…
Any business’s smooth running depends on a capable management team. Only when an organization is led by competent management will it be successful in achieving its objectives. For the nomination of members of the management team of any company, such as the Managing Director (MD), whole-time director, or manager, a systematic procedure and set of…