tag:blogger.com,1999:blog-86331811547062386892024-03-13T23:13:16.295-07:00CS A RENGARAJANUnknownnoreply@blogger.comBlogger479125tag:blogger.com,1999:blog-8633181154706238689.post-81060978871902094092024-02-17T06:43:00.000-08:002024-02-17T06:43:57.811-08:00Admissibility of entries in the books of account <p> </p><div style="background: white; border: solid #E3E3E3 1.0pt; mso-border-alt: solid #E3E3E3 .25pt; mso-element: para-border-div; padding: 0in 0in 0in 0in;">
<p class="MsoNormal" style="background: white; border: none; line-height: normal; margin-bottom: 15.0pt; mso-border-alt: solid #E3E3E3 .25pt; mso-padding-alt: 0in 0in 0in 0in; padding: 0in;"><span style="color: black; font-family: "Segoe UI","sans-serif"; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";">The Bhartiya Sakshya
Adhiniyam 2023 (Indian Evidence Act 2023) Section 28 deals with the
admissibility of entries in the books of account as evidence in legal
proceedings. According to this section, entries in the books of account,
whether they are in physical or electronic form, are not sufficient evidence on
their own to charge any person with liability.<o:p></o:p></span></p>
<p class="MsoNormal" style="background: white; border: none; line-height: normal; margin-bottom: 15.0pt; margin-left: 0in; margin-right: 0in; margin-top: 15.0pt; mso-border-alt: solid #E3E3E3 .25pt; mso-padding-alt: 0in 0in 0in 0in; padding: 0in;"><span style="color: black; font-family: "Segoe UI","sans-serif"; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";">In simpler terms, just because something is
written or recorded in a company's financial records doesn't automatically make
it true or legally binding. The law recognizes that there can be inaccuracies,
manipulations, or errors in accounting entries, and relying solely on these
entries may not provide a complete picture or establish liability.<o:p></o:p></span></p>
<p class="MsoNormal" style="background: white; border: none; line-height: normal; margin-bottom: 15.0pt; margin-left: 0in; margin-right: 0in; margin-top: 15.0pt; mso-border-alt: solid #E3E3E3 .25pt; mso-padding-alt: 0in 0in 0in 0in; padding: 0in;"><span style="color: black; font-family: "Segoe UI","sans-serif"; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";">Therefore, if a court is inquiring into a matter
and relies solely on the entries in the books of account as evidence, Section
28 stipulates that such entries are not enough. The court will need additional
evidence to substantiate any claims or charges against a person. This ensures
that a more thorough investigation is conducted and that judgments are based on
a broader range of evidence, not just accounting records.<o:p></o:p></span></p>
<p class="MsoNormal" style="background: white; border: none; line-height: normal; margin-bottom: 5.0pt; margin-left: 0in; margin-right: 0in; margin-top: 15.0pt; mso-border-alt: solid #E3E3E3 .25pt; mso-padding-alt: 0in 0in 0in 0in; padding: 0in;"><span style="color: black; font-family: "Segoe UI","sans-serif"; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";">Other types of evidence that may be required
could include witness testimonies, documents, contracts, invoices, bank
statements, or expert opinions, depending on the specifics of the case. These
additional sources of evidence help corroborate or challenge the information
provided in the books of account, providing a more comprehensive understanding
for the court to make a fair and informed decision.<o:p></o:p></span></p>
</div>
<div style="border-bottom: solid windowtext 1.0pt; border: none; mso-border-bottom-alt: solid windowtext .75pt; mso-element: para-border-div; padding: 0in 0in 1.0pt 0in;">
<p align="center" class="MsoNormal" style="border: none; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; mso-border-bottom-alt: solid windowtext .75pt; mso-padding-alt: 0in 0in 1.0pt 0in; padding: 0in; text-align: center;"><span style="display: none; font-family: "Arial","sans-serif"; font-size: 8.0pt; mso-fareast-font-family: "Times New Roman"; mso-hide: all;">Top of Form<o:p></o:p></span></p>
</div>
<p class="MsoNormal"><o:p> </o:p></p>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-8633181154706238689.post-17764297453623833422024-01-05T19:49:00.000-08:002024-01-05T19:49:32.134-08:00Penalties and Fines under Companies Act 2013<p> </p><div style="border: solid #D9D9E3 1.0pt; mso-border-alt: solid #D9D9E3 .25pt; mso-element: para-border-div; padding: 0in 0in 0in 0in;">
<p class="MsoNormal" style="border: none; line-height: normal; margin-bottom: 15.0pt; mso-border-alt: solid #D9D9E3 .25pt; mso-padding-alt: 0in 0in 0in 0in; padding: 0in;"><span style="color: black; font-family: "Segoe UI","sans-serif"; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";">Under the Companies Act 2013, there are
provisions for penalties and fines for various non-compliances and violations.
These penalties aim to ensure that companies adhere to the prescribed rules and
regulations, maintaining transparency and accountability in their operations.
Here are some instances where penalties and fines may be imposed:<o:p></o:p></span></p>
</div>
<div style="border: solid #D9D9E3 1.0pt; margin-left: -.25in; margin-right: 0in; mso-border-alt: solid #D9D9E3 .25pt; mso-element: para-border-div; padding: 0in 0in 0in 5.0pt;">
<p class="MsoNormal" style="border: none; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .25in; margin-right: 0in; margin-top: 0in; mso-border-alt: solid #D9D9E3 .25pt; mso-list: l0 level1 lfo1; mso-padding-alt: 0in 0in 0in 5.0pt; padding: 0in; tab-stops: list .5in; text-indent: -.25in;"><!--[if !supportLists]--><span style="color: black; font-family: "Segoe UI","sans-serif"; font-size: 13.5pt; mso-fareast-font-family: "Segoe UI";"><span style="mso-list: Ignore;">1.<span style="font: 7.0pt "Times New Roman";">
</span></span></span><!--[endif]--><b><span style="color: black; font-family: "Segoe UI","sans-serif"; font-size: 13.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";">Late Filing:</span></b><span style="color: black; font-family: "Segoe UI","sans-serif"; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";">
If a company fails to submit its financial statements, annual returns, or other
required documents within the specified timeframes, penalties can be levied.
The amount of the penalty may vary based on the duration of the delay.<o:p></o:p></span></p>
<p class="MsoNormal" style="border: none; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .25in; margin-right: 0in; margin-top: 0in; mso-border-alt: solid #D9D9E3 .25pt; mso-list: l0 level1 lfo1; mso-padding-alt: 0in 0in 0in 5.0pt; padding: 0in; tab-stops: list .5in; text-indent: -.25in;"><!--[if !supportLists]--><span style="color: black; font-family: "Segoe UI","sans-serif"; font-size: 13.5pt; mso-fareast-font-family: "Segoe UI";"><span style="mso-list: Ignore;">2.<span style="font: 7.0pt "Times New Roman";">
</span></span></span><!--[endif]--><b><span style="color: black; font-family: "Segoe UI","sans-serif"; font-size: 13.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";">Non-compliance with AGM:</span></b><span style="color: black; font-family: "Segoe UI","sans-serif"; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";"> As in the case mentioned earlier, if a company fails to hold its
Annual General Meeting (AGM) within the mandated timeframe, there can be
penalties imposed by the Registrar of Companies.<o:p></o:p></span></p>
<p class="MsoNormal" style="border: none; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .25in; margin-right: 0in; margin-top: 0in; mso-border-alt: solid #D9D9E3 .25pt; mso-list: l0 level1 lfo1; mso-padding-alt: 0in 0in 0in 5.0pt; padding: 0in; tab-stops: list .5in; text-indent: -.25in;"><!--[if !supportLists]--><span style="color: black; font-family: "Segoe UI","sans-serif"; font-size: 13.5pt; mso-fareast-font-family: "Segoe UI";"><span style="mso-list: Ignore;">3.<span style="font: 7.0pt "Times New Roman";">
</span></span></span><!--[endif]--><b><span style="color: black; font-family: "Segoe UI","sans-serif"; font-size: 13.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";">Violation of Corporate Governance Norms:</span></b><span style="color: black; font-family: "Segoe UI","sans-serif"; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";"> Companies are expected to adhere to corporate
governance norms, failure of which can result in penalties. This includes
issues like non-appointment of required directors, non-maintenance of statutory
registers, etc.<o:p></o:p></span></p>
<p class="MsoNormal" style="border: none; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .25in; margin-right: 0in; margin-top: 0in; mso-border-alt: solid #D9D9E3 .25pt; mso-list: l0 level1 lfo1; mso-padding-alt: 0in 0in 0in 5.0pt; padding: 0in; tab-stops: list .5in; text-indent: -.25in;"><!--[if !supportLists]--><span style="color: black; font-family: "Segoe UI","sans-serif"; font-size: 13.5pt; mso-fareast-font-family: "Segoe UI";"><span style="mso-list: Ignore;">4.<span style="font: 7.0pt "Times New Roman";">
</span></span></span><!--[endif]--><b><span style="color: black; font-family: "Segoe UI","sans-serif"; font-size: 13.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";">Mismanagement or Misrepresentation:</span></b><span style="color: black; font-family: "Segoe UI","sans-serif"; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";"> If there is evidence of mismanagement,
misleading financial statements, or misrepresentation of facts by the company,
penalties may be imposed on the directors or officers responsible.<o:p></o:p></span></p>
<p class="MsoNormal" style="border: none; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .25in; margin-right: 0in; margin-top: 0in; mso-border-alt: solid #D9D9E3 .25pt; mso-list: l0 level1 lfo1; mso-padding-alt: 0in 0in 0in 5.0pt; padding: 0in; tab-stops: list .5in; text-indent: -.25in;"><!--[if !supportLists]--><span style="color: black; font-family: "Segoe UI","sans-serif"; font-size: 13.5pt; mso-fareast-font-family: "Segoe UI";"><span style="mso-list: Ignore;">5.<span style="font: 7.0pt "Times New Roman";">
</span></span></span><!--[endif]--><b><span style="color: black; font-family: "Segoe UI","sans-serif"; font-size: 13.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";">Non-compliance with Specific Sections:</span></b><span style="color: black; font-family: "Segoe UI","sans-serif"; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";"> The Companies Act has various sections covering
different aspects of corporate functioning. Non-compliance with any of these
sections could attract penalties or fines depending on the nature and severity
of the violation.<o:p></o:p></span></p>
</div>
<div style="border: solid #D9D9E3 1.0pt; mso-border-alt: solid #D9D9E3 .25pt; mso-element: para-border-div; padding: 0in 0in 0in 0in;">
<p class="MsoNormal" style="border: none; line-height: normal; margin-bottom: 15.0pt; margin-left: 0in; margin-right: 0in; margin-top: 15.0pt; mso-border-alt: solid #D9D9E3 .25pt; mso-padding-alt: 0in 0in 0in 0in; padding: 0in;"><span style="color: black; font-family: "Segoe UI","sans-serif"; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";">The Registrar of Companies (RoC) is generally responsible for
overseeing compliance with these regulations. The fines and penalties can vary
in amount and severity, sometimes escalating if the non-compliance persists or
if it's a repeated offense.<o:p></o:p></span></p>
<p class="MsoNormal" style="border: none; line-height: normal; margin-bottom: 5.0pt; margin-left: 0in; margin-right: 0in; margin-top: 15.0pt; mso-border-alt: solid #D9D9E3 .25pt; mso-padding-alt: 0in 0in 0in 0in; padding: 0in;"><span style="color: black; font-family: "Segoe UI","sans-serif"; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";">It's essential for companies to be aware of these provisions and
ensure strict adherence to the regulations to avoid facing penalties and fines
that can impact their financial health and reputation. Compliance not only
avoids legal issues but also ensures trust among stakeholders and investors in
the company's operations.<o:p></o:p></span></p>
</div>
<div style="border-bottom: solid windowtext 1.0pt; border: none; mso-border-bottom-alt: solid windowtext .75pt; mso-element: para-border-div; padding: 0in 0in 1.0pt 0in;">
<p align="center" class="MsoNormal" style="border: none; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; mso-border-bottom-alt: solid windowtext .75pt; mso-padding-alt: 0in 0in 1.0pt 0in; padding: 0in; text-align: center;"><span style="display: none; font-family: "Arial","sans-serif"; font-size: 8.0pt; mso-fareast-font-family: "Times New Roman"; mso-hide: all;">Top of Form<o:p></o:p></span></p>
</div>
<p class="MsoNormal"><o:p> </o:p></p>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-8633181154706238689.post-18522291780461550842024-01-05T19:47:00.000-08:002024-01-05T19:47:45.027-08:00Adjudications proceedings under Companies Act, 2013<p> </p><div style="border: solid #D9D9E3 1.0pt; mso-border-alt: solid #D9D9E3 .25pt; mso-element: para-border-div; padding: 0in 0in 0in 0in;">
<p class="MsoNormal" style="border: none; line-height: normal; margin-bottom: 15.0pt; mso-border-alt: solid #D9D9E3 .25pt; mso-padding-alt: 0in 0in 0in 0in; padding: 0in;"><span style="color: black; font-family: "Segoe UI","sans-serif"; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";">Adjudication proceedings under the Companies Act
2013 involve a legal process initiated by regulatory authorities (like the
Registrar of Companies or National Company Law Tribunal) to address
non-compliance or violations by a company or its officers. Here's a breakdown:<o:p></o:p></span></p>
</div>
<div style="border: solid #D9D9E3 1.0pt; margin-left: -.25in; margin-right: 0in; mso-border-alt: solid #D9D9E3 .25pt; mso-element: para-border-div; padding: 0in 0in 0in 5.0pt;">
<p class="MsoNormal" style="border: none; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .25in; margin-right: 0in; margin-top: 0in; mso-border-alt: solid #D9D9E3 .25pt; mso-list: l0 level1 lfo1; mso-padding-alt: 0in 0in 0in 5.0pt; padding: 0in; tab-stops: list .5in; text-indent: -.25in;"><!--[if !supportLists]--><span style="color: black; font-family: "Segoe UI","sans-serif"; font-size: 13.5pt; mso-fareast-font-family: "Segoe UI";"><span style="mso-list: Ignore;">1.<span style="font: 7.0pt "Times New Roman";">
</span></span></span><!--[endif]--><b><span style="color: black; font-family: "Segoe UI","sans-serif"; font-size: 13.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";">Nature of Proceedings:</span></b><span style="color: black; font-family: "Segoe UI","sans-serif"; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";"> Adjudication proceedings are quasi-judicial in nature, meaning
they involve a process similar to a court trial but are conducted by
administrative or regulatory bodies empowered under the law.<o:p></o:p></span></p>
<p class="MsoNormal" style="border: none; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .25in; margin-right: 0in; margin-top: 0in; mso-border-alt: solid #D9D9E3 .25pt; mso-list: l0 level1 lfo1; mso-padding-alt: 0in 0in 0in 5.0pt; padding: 0in; tab-stops: list .5in; text-indent: -.25in;"><!--[if !supportLists]--><span style="color: black; font-family: "Segoe UI","sans-serif"; font-size: 13.5pt; mso-fareast-font-family: "Segoe UI";"><span style="mso-list: Ignore;">2.<span style="font: 7.0pt "Times New Roman";">
</span></span></span><!--[endif]--><b><span style="color: black; font-family: "Segoe UI","sans-serif"; font-size: 13.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";">Purpose:</span></b><span style="color: black; font-family: "Segoe UI","sans-serif"; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";"> The primary aim is to
address alleged breaches of the Companies Act provisions, regulations, or
directives. These breaches can encompass various aspects, including non-filing or
delayed filing of statutory documents, violations related to corporate
governance, mismanagement, fraud, or any other non-compliance stipulated under
the Act.<o:p></o:p></span></p>
<p class="MsoNormal" style="border: none; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .25in; margin-right: 0in; margin-top: 0in; mso-border-alt: solid #D9D9E3 .25pt; mso-list: l0 level1 lfo1; mso-padding-alt: 0in 0in 0in 5.0pt; padding: 0in; tab-stops: list .5in; text-indent: -.25in;"><!--[if !supportLists]--><span style="color: black; font-family: "Segoe UI","sans-serif"; font-size: 13.5pt; mso-fareast-font-family: "Segoe UI";"><span style="mso-list: Ignore;">3.<span style="font: 7.0pt "Times New Roman";">
</span></span></span><!--[endif]--><b><span style="color: black; font-family: "Segoe UI","sans-serif"; font-size: 13.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";">Initiation:</span></b><span style="color: black; font-family: "Segoe UI","sans-serif"; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";">
The proceedings typically commence when the regulatory authority, upon
inspection or based on complaints or reports, identifies potential violations
by a company or its officers. The authority issues a show-cause notice
detailing the alleged non-compliance and providing an opportunity for the
company or concerned individuals to present their case.<o:p></o:p></span></p>
<p class="MsoNormal" style="border: none; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .25in; margin-right: 0in; margin-top: 0in; mso-border-alt: solid #D9D9E3 .25pt; mso-list: l0 level1 lfo1; mso-padding-alt: 0in 0in 0in 5.0pt; padding: 0in; tab-stops: list .5in; text-indent: -.25in;"><!--[if !supportLists]--><span style="color: black; font-family: "Segoe UI","sans-serif"; font-size: 13.5pt; mso-fareast-font-family: "Segoe UI";"><span style="mso-list: Ignore;">4.<span style="font: 7.0pt "Times New Roman";">
</span></span></span><!--[endif]--><b><span style="color: black; font-family: "Segoe UI","sans-serif"; font-size: 13.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";">Evidence and Hearings:</span></b><span style="color: black; font-family: "Segoe UI","sans-serif"; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";"> The entity or individuals involved in the alleged violation have
the chance to respond, provide explanations, and present evidence to defend
themselves against the accusations. Hearings or meetings may be conducted where
both parties can present their arguments and evidence.<o:p></o:p></span></p>
<p class="MsoNormal" style="border: none; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .25in; margin-right: 0in; margin-top: 0in; mso-border-alt: solid #D9D9E3 .25pt; mso-list: l0 level1 lfo1; mso-padding-alt: 0in 0in 0in 5.0pt; padding: 0in; tab-stops: list .5in; text-indent: -.25in;"><!--[if !supportLists]--><span style="color: black; font-family: "Segoe UI","sans-serif"; font-size: 13.5pt; mso-fareast-font-family: "Segoe UI";"><span style="mso-list: Ignore;">5.<span style="font: 7.0pt "Times New Roman";">
</span></span></span><!--[endif]--><b><span style="color: black; font-family: "Segoe UI","sans-serif"; font-size: 13.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";">Adjudication:</span></b><span style="color: black; font-family: "Segoe UI","sans-serif"; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";">
Following the presentation of evidence and arguments from both sides, the
adjudicating authority examines the case and delivers its judgment. This
judgment can involve imposing penalties, fines, or other corrective actions as
deemed necessary by the authority. The decision is usually based on the
severity of the breach, the impact on stakeholders, and the gravity of the
violation.<o:p></o:p></span></p>
<p class="MsoNormal" style="border: none; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .25in; margin-right: 0in; margin-top: 0in; mso-border-alt: solid #D9D9E3 .25pt; mso-list: l0 level1 lfo1; mso-padding-alt: 0in 0in 0in 5.0pt; padding: 0in; tab-stops: list .5in; text-indent: -.25in;"><!--[if !supportLists]--><span style="color: black; font-family: "Segoe UI","sans-serif"; font-size: 13.5pt; mso-fareast-font-family: "Segoe UI";"><span style="mso-list: Ignore;">6.<span style="font: 7.0pt "Times New Roman";">
</span></span></span><!--[endif]--><b><span style="color: black; font-family: "Segoe UI","sans-serif"; font-size: 13.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";">Appeals:</span></b><span style="color: black; font-family: "Segoe UI","sans-serif"; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";"> In most cases, there is
a provision for appealing the decision of the adjudicating authority to a
higher court or tribunal if the concerned party disagrees with the judgment.<o:p></o:p></span></p>
<p class="MsoNormal" style="border: none; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .25in; margin-right: 0in; margin-top: 0in; mso-border-alt: solid #D9D9E3 .25pt; mso-list: l0 level1 lfo1; mso-padding-alt: 0in 0in 0in 5.0pt; padding: 0in; tab-stops: list .5in; text-indent: -.25in;"><!--[if !supportLists]--><span style="color: black; font-family: "Segoe UI","sans-serif"; font-size: 13.5pt; mso-fareast-font-family: "Segoe UI";"><span style="mso-list: Ignore;">7.<span style="font: 7.0pt "Times New Roman";">
</span></span></span><!--[endif]--><b><span style="color: black; font-family: "Segoe UI","sans-serif"; font-size: 13.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";">Outcome:</span></b><span style="color: black; font-family: "Segoe UI","sans-serif"; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";"> Depending on the
findings, the outcome can involve imposing penalties, fines, directing
corrective actions, disqualification of directors, or other measures aimed at
rectifying the non-compliance and ensuring future adherence to the law.<o:p></o:p></span></p>
</div>
<div style="border: solid #D9D9E3 1.0pt; mso-border-alt: solid #D9D9E3 .25pt; mso-element: para-border-div; padding: 0in 0in 0in 0in;">
<p class="MsoNormal" style="border: none; line-height: normal; margin-bottom: 5.0pt; margin-left: 0in; margin-right: 0in; margin-top: 15.0pt; mso-border-alt: solid #D9D9E3 .25pt; mso-padding-alt: 0in 0in 0in 0in; padding: 0in;"><span style="color: black; font-family: "Segoe UI","sans-serif"; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";">Adjudication proceedings serve as an important mechanism to
enforce compliance with corporate laws and regulations, promoting transparency,
accountability, and good governance in the functioning of companies and their
officers.<o:p></o:p></span></p>
</div>
<div style="border-bottom: solid windowtext 1.0pt; border: none; mso-border-bottom-alt: solid windowtext .75pt; mso-element: para-border-div; padding: 0in 0in 1.0pt 0in;">
<p align="center" class="MsoNormal" style="border: none; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; mso-border-bottom-alt: solid windowtext .75pt; mso-padding-alt: 0in 0in 1.0pt 0in; padding: 0in; text-align: center;"><span style="display: none; font-family: "Arial","sans-serif"; font-size: 8.0pt; mso-fareast-font-family: "Times New Roman"; mso-hide: all;">Top of Form<o:p></o:p></span></p>
</div>
<p class="MsoNormal"><o:p> </o:p></p>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-8633181154706238689.post-60356947462482404892024-01-05T19:46:00.000-08:002024-01-05T19:46:23.735-08:00Compounding under Companies Act 2013<p> </p><div style="border: solid #D9D9E3 1.0pt; mso-border-alt: solid #D9D9E3 .25pt; mso-element: para-border-div; padding: 0in 0in 0in 0in;">
<p class="MsoNormal" style="border: none; line-height: normal; margin-bottom: 15.0pt; mso-border-alt: solid #D9D9E3 .25pt; mso-padding-alt: 0in 0in 0in 0in; padding: 0in;"><span style="color: black; font-family: "Segoe UI","sans-serif"; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";">Compounding under the Companies Act 2013
provides a mechanism for companies and their officers to settle certain
offenses or breaches of the law by paying a prescribed penalty without
undergoing a lengthy legal trial. Here's a detailed explanation:<o:p></o:p></span></p>
</div>
<div style="border: solid #D9D9E3 1.0pt; margin-left: -.25in; margin-right: 0in; mso-border-alt: solid #D9D9E3 .25pt; mso-element: para-border-div; padding: 0in 0in 0in 5.0pt;">
<p class="MsoNormal" style="border: none; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .25in; margin-right: 0in; margin-top: 0in; mso-border-alt: solid #D9D9E3 .25pt; mso-list: l0 level1 lfo1; mso-padding-alt: 0in 0in 0in 5.0pt; padding: 0in; tab-stops: list .5in; text-indent: -.25in;"><!--[if !supportLists]--><span style="color: black; font-family: "Segoe UI","sans-serif"; font-size: 13.5pt; mso-fareast-font-family: "Segoe UI";"><span style="mso-list: Ignore;">1.<span style="font: 7.0pt "Times New Roman";">
</span></span></span><!--[endif]--><b><span style="color: black; font-family: "Segoe UI","sans-serif"; font-size: 13.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";">Nature of Compounding:</span></b><span style="color: black; font-family: "Segoe UI","sans-serif"; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";"> Compounding is a process that allows for the settlement of
offenses related to non-compliance or violations of specific provisions under
the Companies Act 2013. Instead of facing prosecution, the company or its
officers can apply for compounding by admitting to the offense and paying a
prescribed penalty.<o:p></o:p></span></p>
<p class="MsoNormal" style="border: none; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .25in; margin-right: 0in; margin-top: 0in; mso-border-alt: solid #D9D9E3 .25pt; mso-list: l0 level1 lfo1; mso-padding-alt: 0in 0in 0in 5.0pt; padding: 0in; tab-stops: list .5in; text-indent: -.25in;"><!--[if !supportLists]--><span style="color: black; font-family: "Segoe UI","sans-serif"; font-size: 13.5pt; mso-fareast-font-family: "Segoe UI";"><span style="mso-list: Ignore;">2.<span style="font: 7.0pt "Times New Roman";">
</span></span></span><!--[endif]--><b><span style="color: black; font-family: "Segoe UI","sans-serif"; font-size: 13.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";">Eligibility for Compounding:</span></b><span style="color: black; font-family: "Segoe UI","sans-serif"; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";"> Not all offenses are eligible for compounding. The Act specifies
offenses that are compoundable, and these typically involve procedural or
technical lapses rather than severe breaches that require extensive legal
action. Offenses that are of a serious nature, involving fraud or substantial
harm to stakeholders, may not be compoundable.<o:p></o:p></span></p>
<p class="MsoNormal" style="border: none; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .25in; margin-right: 0in; margin-top: 0in; mso-border-alt: solid #D9D9E3 .25pt; mso-list: l0 level1 lfo1; mso-padding-alt: 0in 0in 0in 5.0pt; padding: 0in; tab-stops: list .5in; text-indent: -.25in;"><!--[if !supportLists]--><span style="color: black; font-family: "Segoe UI","sans-serif"; font-size: 13.5pt; mso-fareast-font-family: "Segoe UI";"><span style="mso-list: Ignore;">3.<span style="font: 7.0pt "Times New Roman";">
</span></span></span><!--[endif]--><b><span style="color: black; font-family: "Segoe UI","sans-serif"; font-size: 13.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";">Application Process:</span></b><span style="color: black; font-family: "Segoe UI","sans-serif"; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";"> The company or its officers must submit an application for
compounding to the Registrar of Companies (RoC) or the National Company Law
Tribunal (NCLT), depending on the nature of the offense. The application
includes details of the offense, the circumstances, and the proposed terms for
settlement.<o:p></o:p></span></p>
<p class="MsoNormal" style="border: none; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .25in; margin-right: 0in; margin-top: 0in; mso-border-alt: solid #D9D9E3 .25pt; mso-list: l0 level1 lfo1; mso-padding-alt: 0in 0in 0in 5.0pt; padding: 0in; tab-stops: list .5in; text-indent: -.25in;"><!--[if !supportLists]--><span style="color: black; font-family: "Segoe UI","sans-serif"; font-size: 13.5pt; mso-fareast-font-family: "Segoe UI";"><span style="mso-list: Ignore;">4.<span style="font: 7.0pt "Times New Roman";">
</span></span></span><!--[endif]--><b><span style="color: black; font-family: "Segoe UI","sans-serif"; font-size: 13.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";">Consideration and Approval:</span></b><span style="color: black; font-family: "Segoe UI","sans-serif"; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";"> The concerned authority evaluates the application, considering
various factors such as the nature and gravity of the offense, the impact on
stakeholders, past record of compliance, etc. If deemed fit, they may approve
the compounding application with specific terms and conditions.<o:p></o:p></span></p>
<p class="MsoNormal" style="border: none; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .25in; margin-right: 0in; margin-top: 0in; mso-border-alt: solid #D9D9E3 .25pt; mso-list: l0 level1 lfo1; mso-padding-alt: 0in 0in 0in 5.0pt; padding: 0in; tab-stops: list .5in; text-indent: -.25in;"><!--[if !supportLists]--><span style="color: black; font-family: "Segoe UI","sans-serif"; font-size: 13.5pt; mso-fareast-font-family: "Segoe UI";"><span style="mso-list: Ignore;">5.<span style="font: 7.0pt "Times New Roman";">
</span></span></span><!--[endif]--><b><span style="color: black; font-family: "Segoe UI","sans-serif"; font-size: 13.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";">Payment of Penalty:</span></b><span style="color: black; font-family: "Segoe UI","sans-serif"; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";"> Upon approval, the applicant is required to pay the prescribed
penalty amount as determined by the authority. This penalty is often a
pre-determined sum specified for each offense or a calculated amount based on
the severity and impact of the violation.<o:p></o:p></span></p>
<p class="MsoNormal" style="border: none; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .25in; margin-right: 0in; margin-top: 0in; mso-border-alt: solid #D9D9E3 .25pt; mso-list: l0 level1 lfo1; mso-padding-alt: 0in 0in 0in 5.0pt; padding: 0in; tab-stops: list .5in; text-indent: -.25in;"><!--[if !supportLists]--><span style="color: black; font-family: "Segoe UI","sans-serif"; font-size: 13.5pt; mso-fareast-font-family: "Segoe UI";"><span style="mso-list: Ignore;">6.<span style="font: 7.0pt "Times New Roman";">
</span></span></span><!--[endif]--><b><span style="color: black; font-family: "Segoe UI","sans-serif"; font-size: 13.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";">Effect of Compounding:</span></b><span style="color: black; font-family: "Segoe UI","sans-serif"; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";"> Once the penalty is paid and the compounding process is
completed, the offense is considered settled, and the company or individuals
involved will not face further legal proceedings or prosecution for that
particular offense.<o:p></o:p></span></p>
<p class="MsoNormal" style="border: none; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .25in; margin-right: 0in; margin-top: 0in; mso-border-alt: solid #D9D9E3 .25pt; mso-list: l0 level1 lfo1; mso-padding-alt: 0in 0in 0in 5.0pt; padding: 0in; tab-stops: list .5in; text-indent: -.25in;"><!--[if !supportLists]--><span style="color: black; font-family: "Segoe UI","sans-serif"; font-size: 13.5pt; mso-fareast-font-family: "Segoe UI";"><span style="mso-list: Ignore;">7.<span style="font: 7.0pt "Times New Roman";">
</span></span></span><!--[endif]--><b><span style="color: black; font-family: "Segoe UI","sans-serif"; font-size: 13.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";">Non-Compliance with Compounding Terms:</span></b><span style="color: black; font-family: "Segoe UI","sans-serif"; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";"> If the company or its officers fail to comply
with the terms and conditions specified during the compounding process, the
authority may revoke the compounding order, leading to the initiation of legal
proceedings for the original offense.<o:p></o:p></span></p>
</div>
<div style="border: solid #D9D9E3 1.0pt; mso-border-alt: solid #D9D9E3 .25pt; mso-element: para-border-div; padding: 0in 0in 0in 0in;">
<p class="MsoNormal" style="border: none; line-height: normal; margin-bottom: 5.0pt; margin-left: 0in; margin-right: 0in; margin-top: 15.0pt; mso-border-alt: solid #D9D9E3 .25pt; mso-padding-alt: 0in 0in 0in 0in; padding: 0in;"><span style="color: black; font-family: "Segoe UI","sans-serif"; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";">Compounding provides an avenue for companies and individuals to
rectify certain lapses without undergoing a full trial, promoting a quicker
resolution of minor offenses while emphasizing the importance of adhering to
statutory requirements.<o:p></o:p></span></p>
</div>
<div style="border-bottom: solid windowtext 1.0pt; border: none; mso-border-bottom-alt: solid windowtext .75pt; mso-element: para-border-div; padding: 0in 0in 1.0pt 0in;">
<p align="center" class="MsoNormal" style="border: none; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; mso-border-bottom-alt: solid windowtext .75pt; mso-padding-alt: 0in 0in 1.0pt 0in; padding: 0in; text-align: center;"><span style="display: none; font-family: "Arial","sans-serif"; font-size: 8.0pt; mso-fareast-font-family: "Times New Roman"; mso-hide: all;">Top of Form<o:p></o:p></span></p>
</div>
<p class="MsoNormal"><o:p> </o:p></p>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-8633181154706238689.post-55918082088774605242023-12-09T19:55:00.000-08:002023-12-09T19:55:06.880-08:00Renunciation in Private Placement<p> Section 62 deals with the renouncement of rights by a shareholder and how it applies to certain scenarios like a company's right issue or private placement.</p><p><br /></p><p>Right Issue: When a company decides to issue additional shares to its existing shareholders at a price usually lower than the prevailing market price, it's termed a "right issue." This gives existing shareholders the right (but not the obligation) to buy more shares in proportion to their existing holdings.</p><p><br /></p><p>Renouncement of Rights: Sometimes, a shareholder might not have the financial capability to subscribe to these additional shares, even though they have the right to do so. In such cases, Section 62 allows a shareholder to renounce their right to buy these shares by selling this right to someone else who is willing to subscribe to these shares. This action of selling the right to subscribe is termed "renouncing the right."</p><p><br /></p><p>Private Placement: Private placement is a process where a company offers shares or securities to a select group of investors without making a public offering. Section 62 (3) specifies the rules regarding private placement offers. It states that a company conducting private placement must issue an offer and application in a specific format to identified individuals or entities whose details are recorded by the company.</p><p><br /></p><p>Renunciation in Private Placement: The proviso (the part starting with "Provided that...") clarifies that in the case of private placement, the offer and application documents issued by the company cannot be transferred or renounced to another person. This means that the right to subscribe to shares or securities through private placement cannot be sold or transferred to someone else.</p><p><br /></p><p>So, while shareholders in a right issue can sell their right to subscribe to additional shares if they can't afford them, shareholders participating in a private placement cannot transfer this right to another person. This is to maintain control over who participates in the private placement and prevent the transfer of these rights to unidentified parties.</p>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-8633181154706238689.post-782341406526946132023-09-17T21:42:00.002-07:002023-09-17T21:42:30.458-07:00Exemption to Consolidation of Accounts for Wholly-Owned and Non-Listed Subsidiaries under Chapter IX of The Companies (Accounts) Rules, 2014<p> </p><div style="border: solid #D9D9E3 1.0pt; mso-border-alt: solid #D9D9E3 .25pt; mso-element: para-border-div; padding: 0in 0in 0in 0in;">
<p class="MsoNormal" style="border: none; line-height: normal; margin-bottom: 15.0pt; margin-left: 0in; margin-right: 0in; margin-top: 15.0pt; mso-border-alt: solid #D9D9E3 .25pt; mso-padding-alt: 0in 0in 0in 0in; padding: 0in;"><b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Introduction:</span></b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></p>
<p class="MsoNormal" style="border: none; line-height: normal; margin-bottom: 15.0pt; margin-left: 0in; margin-right: 0in; margin-top: 15.0pt; mso-border-alt: solid #D9D9E3 .25pt; mso-padding-alt: 0in 0in 0in 0in; padding: 0in;"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Under
Chapter IX of The Companies (Accounts) Rules, 2014, there is a provision that
allows certain companies to be exempt from the requirement of preparing
consolidated financial statements. This exemption is specified in the second
proviso of the rule related to the manner of consolidation of accounts. Here,
we provide an in-depth explanation of the conditions that a company must meet
to be eligible for this exemption:<o:p></o:p></span></p>
<p class="MsoNormal" style="border: none; line-height: normal; margin-bottom: 15.0pt; margin-left: 0in; margin-right: 0in; margin-top: 15.0pt; mso-border-alt: solid #D9D9E3 .25pt; mso-padding-alt: 0in 0in 0in 0in; padding: 0in;"><b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">1)
Wholly-Owned or Partially-Owned Subsidiary:</span></b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></p>
</div>
<div style="border: solid #D9D9E3 1.0pt; margin-left: -.25in; margin-right: 0in; mso-border-alt: solid #D9D9E3 .25pt; mso-element: para-border-div; padding: 0in 0in 0in 5.0pt;">
<p class="MsoNormal" style="border: none; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .25in; margin-right: 0in; margin-top: 0in; mso-border-alt: solid #D9D9E3 .25pt; mso-list: l0 level1 lfo1; mso-padding-alt: 0in 0in 0in 5.0pt; padding: 0in; tab-stops: list .5in; text-indent: -.25in;"><!--[if !supportLists]--><span style="font-family: Symbol; font-size: 10.0pt; mso-bidi-font-family: Symbol; mso-bidi-font-size: 12.0pt; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";">
</span></span></span><!--[endif]--><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">To qualify for the exemption, the
company in question must either be a wholly-owned subsidiary or a
partially-owned subsidiary of another company. In the case of a partially-owned
subsidiary, it is crucial that all its members, including those who do not have
voting rights, are informed in writing about the decision not to present
consolidated financial statements.<o:p></o:p></span></p>
<p class="MsoNormal" style="border: none; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .25in; margin-right: 0in; margin-top: 0in; mso-border-alt: solid #D9D9E3 .25pt; mso-list: l0 level1 lfo1; mso-padding-alt: 0in 0in 0in 5.0pt; padding: 0in; tab-stops: list .5in; text-indent: -.25in;"><!--[if !supportLists]--><span style="font-family: Symbol; font-size: 10.0pt; mso-bidi-font-family: Symbol; mso-bidi-font-size: 12.0pt; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";">
</span></span></span><!--[endif]--><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Proof of delivery of such intimation
should be available with the company, demonstrating that all relevant parties
have been duly notified.<o:p></o:p></span></p>
</div>
<div style="border: solid #D9D9E3 1.0pt; mso-border-alt: solid #D9D9E3 .25pt; mso-element: para-border-div; padding: 0in 0in 0in 0in;">
<p class="MsoNormal" style="border: none; line-height: normal; margin-bottom: 15.0pt; margin-left: 0in; margin-right: 0in; margin-top: 15.0pt; mso-border-alt: solid #D9D9E3 .25pt; mso-padding-alt: 0in 0in 0in 0in; padding: 0in;"><b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">2)
Non-Listing of Securities:</span></b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></p>
</div>
<div style="border: solid #D9D9E3 1.0pt; margin-left: -.25in; margin-right: 0in; mso-border-alt: solid #D9D9E3 .25pt; mso-element: para-border-div; padding: 0in 0in 0in 5.0pt;">
<p class="MsoNormal" style="border: none; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .25in; margin-right: 0in; margin-top: 0in; mso-border-alt: solid #D9D9E3 .25pt; mso-list: l1 level1 lfo2; mso-padding-alt: 0in 0in 0in 5.0pt; padding: 0in; tab-stops: list .5in; text-indent: -.25in;"><!--[if !supportLists]--><span style="font-family: Symbol; font-size: 10.0pt; mso-bidi-font-family: Symbol; mso-bidi-font-size: 12.0pt; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";">
</span></span></span><!--[endif]--><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">The second condition for exemption
is that the company's securities must not be listed on any stock exchange,
whether in India or outside India. In other words, the company should not be
publicly traded.<o:p></o:p></span></p>
</div>
<div style="border: solid #D9D9E3 1.0pt; mso-border-alt: solid #D9D9E3 .25pt; mso-element: para-border-div; padding: 0in 0in 0in 0in;">
<p class="MsoNormal" style="border: none; line-height: normal; margin-bottom: 15.0pt; margin-left: 0in; margin-right: 0in; margin-top: 15.0pt; mso-border-alt: solid #D9D9E3 .25pt; mso-padding-alt: 0in 0in 0in 0in; padding: 0in;"><b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">3)
Compliance with Accounting Standards:</span></b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></p>
</div>
<div style="border: solid #D9D9E3 1.0pt; margin-left: -.25in; margin-right: 0in; mso-border-alt: solid #D9D9E3 .25pt; mso-element: para-border-div; padding: 0in 0in 0in 5.0pt;">
<p class="MsoNormal" style="border: none; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .25in; margin-right: 0in; margin-top: 0in; mso-border-alt: solid #D9D9E3 .25pt; mso-list: l3 level1 lfo3; mso-padding-alt: 0in 0in 0in 5.0pt; padding: 0in; tab-stops: list .5in; text-indent: -.25in;"><!--[if !supportLists]--><span style="font-family: Symbol; font-size: 10.0pt; mso-bidi-font-family: Symbol; mso-bidi-font-size: 12.0pt; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";">
</span></span></span><!--[endif]--><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">The third condition specifies that
the ultimate or any intermediate holding company of the subsidiary should file
consolidated financial statements with the Registrar of Companies. These
consolidated financial statements must be in compliance with the applicable
Accounting Standards.<o:p></o:p></span></p>
</div>
<div style="border: solid #D9D9E3 1.0pt; mso-border-alt: solid #D9D9E3 .25pt; mso-element: para-border-div; padding: 0in 0in 0in 0in;">
<p class="MsoNormal" style="border: none; line-height: normal; margin-bottom: 15.0pt; margin-left: 0in; margin-right: 0in; margin-top: 15.0pt; mso-border-alt: solid #D9D9E3 .25pt; mso-padding-alt: 0in 0in 0in 0in; padding: 0in;"><b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Key
Takeaways:</span></b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></p>
</div>
<div style="border: solid #D9D9E3 1.0pt; margin-left: -.25in; margin-right: 0in; mso-border-alt: solid #D9D9E3 .25pt; mso-element: para-border-div; padding: 0in 0in 0in 5.0pt;">
<p class="MsoNormal" style="border: none; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .25in; margin-right: 0in; margin-top: 0in; mso-border-alt: solid #D9D9E3 .25pt; mso-list: l2 level1 lfo4; mso-padding-alt: 0in 0in 0in 5.0pt; padding: 0in; tab-stops: list .5in; text-indent: -.25in;"><!--[if !supportLists]--><span style="font-family: Symbol; font-size: 10.0pt; mso-bidi-font-family: Symbol; mso-bidi-font-size: 12.0pt; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";">
</span></span></span><!--[endif]--><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Chapter IX of The Companies
(Accounts) Rules, 2014 contains provisions related to the consolidation of
accounts by companies.<o:p></o:p></span></p>
<p class="MsoNormal" style="border: none; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .25in; margin-right: 0in; margin-top: 0in; mso-border-alt: solid #D9D9E3 .25pt; mso-list: l2 level1 lfo4; mso-padding-alt: 0in 0in 0in 5.0pt; padding: 0in; tab-stops: list .5in; text-indent: -.25in;"><!--[if !supportLists]--><span style="font-family: Symbol; font-size: 10.0pt; mso-bidi-font-family: Symbol; mso-bidi-font-size: 12.0pt; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";">
</span></span></span><!--[endif]--><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">The second proviso of the rule
grants an exemption from the requirement of preparing consolidated financial
statements under certain conditions.<o:p></o:p></span></p>
<p class="MsoNormal" style="border: none; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .25in; margin-right: 0in; margin-top: 0in; mso-border-alt: solid #D9D9E3 .25pt; mso-list: l2 level1 lfo4; mso-padding-alt: 0in 0in 0in 5.0pt; padding: 0in; tab-stops: list .5in; text-indent: -.25in;"><!--[if !supportLists]--><span style="font-family: Symbol; font-size: 10.0pt; mso-bidi-font-family: Symbol; mso-bidi-font-size: 12.0pt; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";">
</span></span></span><!--[endif]--><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">To be eligible for the exemption, a
company must:<o:p></o:p></span></p>
</div>
<div style="border: solid #D9D9E3 1.0pt; margin-left: .25in; margin-right: 0in; mso-border-alt: solid #D9D9E3 .25pt; mso-element: para-border-div; padding: 0in 0in 0in 5.0pt;">
<p class="MsoNormal" style="border: none; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .25in; margin-right: 0in; margin-top: 0in; mso-border-alt: solid #D9D9E3 .25pt; mso-list: l2 level2 lfo4; mso-padding-alt: 0in 0in 0in 5.0pt; padding: 0in; tab-stops: list 1.0in; text-indent: -.25in;"><!--[if !supportLists]--><span style="font-family: Symbol; font-size: 10.0pt; mso-bidi-font-family: Symbol; mso-bidi-font-size: 12.0pt; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";">
</span></span></span><!--[endif]--><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Be a wholly-owned or partially-owned
subsidiary.<o:p></o:p></span></p>
<p class="MsoNormal" style="border: none; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .25in; margin-right: 0in; margin-top: 0in; mso-border-alt: solid #D9D9E3 .25pt; mso-list: l2 level2 lfo4; mso-padding-alt: 0in 0in 0in 5.0pt; padding: 0in; tab-stops: list 1.0in; text-indent: -.25in;"><!--[if !supportLists]--><span style="font-family: Symbol; font-size: 10.0pt; mso-bidi-font-family: Symbol; mso-bidi-font-size: 12.0pt; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";">
</span></span></span><!--[endif]--><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Ensure that all its members are
informed in writing about the decision not to present consolidated financial
statements, with proof of delivery available.<o:p></o:p></span></p>
<p class="MsoNormal" style="border: none; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .25in; margin-right: 0in; margin-top: 0in; mso-border-alt: solid #D9D9E3 .25pt; mso-list: l2 level2 lfo4; mso-padding-alt: 0in 0in 0in 5.0pt; padding: 0in; tab-stops: list 1.0in; text-indent: -.25in;"><!--[if !supportLists]--><span style="font-family: Symbol; font-size: 10.0pt; mso-bidi-font-family: Symbol; mso-bidi-font-size: 12.0pt; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";">
</span></span></span><!--[endif]--><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Not have securities listed on any
stock exchange.<o:p></o:p></span></p>
<p class="MsoNormal" style="border: none; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .25in; margin-right: 0in; margin-top: 0in; mso-border-alt: solid #D9D9E3 .25pt; mso-list: l2 level2 lfo4; mso-padding-alt: 0in 0in 0in 5.0pt; padding: 0in; tab-stops: list 1.0in; text-indent: -.25in;"><!--[if !supportLists]--><span style="font-family: Symbol; font-size: 10.0pt; mso-bidi-font-family: Symbol; mso-bidi-font-size: 12.0pt; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";">
</span></span></span><!--[endif]--><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Have its ultimate or intermediate
holding company file consolidated financial statements in compliance with
Accounting Standards.<o:p></o:p></span></p>
</div>
<div style="border: solid #D9D9E3 1.0pt; mso-border-alt: solid #D9D9E3 .25pt; mso-element: para-border-div; padding: 0in 0in 0in 0in;">
<p class="MsoNormal" style="border: none; line-height: normal; margin-bottom: 5.0pt; margin-left: 0in; margin-right: 0in; margin-top: 15.0pt; mso-border-alt: solid #D9D9E3 .25pt; mso-padding-alt: 0in 0in 0in 0in; padding: 0in;"><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">This
exemption is designed to provide flexibility to certain companies, particularly
subsidiaries, and to ease their regulatory burden in cases where consolidated
financial statements may not be necessary or practical. Companies should
carefully assess their eligibility for this exemption and ensure compliance
with the specified conditions to avoid any regulatory issues related to the
consolidation of accounts.<o:p></o:p></span></p>
</div>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-8633181154706238689.post-71823339997352910582023-09-17T21:23:00.003-07:002023-09-17T21:23:55.589-07:00Company's Register of Charges: Compliance with Chapter VI of The Companies (Registration of Charges) Rules, 2014<p> </p><div style="border: solid #D9D9E3 1.0pt; mso-border-alt: solid #D9D9E3 .25pt; mso-element: para-border-div; padding: 0in 0in 0in 0in;">
<p class="MsoNormal" style="border: none; line-height: normal; margin-bottom: 15.0pt; margin-left: 0in; margin-right: 0in; margin-top: 15.0pt; mso-border-alt: solid #D9D9E3 .25pt; mso-padding-alt: 0in 0in 0in 0in; padding: 0in;"><b><span style="color: black; font-family: "Segoe UI","sans-serif"; font-size: 13.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";">Introduction:</span></b><span style="color: black; font-family: "Segoe UI","sans-serif"; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></p>
<p class="MsoNormal" style="border: none; line-height: normal; margin-bottom: 15.0pt; margin-left: 0in; margin-right: 0in; margin-top: 15.0pt; mso-border-alt: solid #D9D9E3 .25pt; mso-padding-alt: 0in 0in 0in 0in; padding: 0in;"><span style="color: black; font-family: "Segoe UI","sans-serif"; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";">In accordance with Chapter VI of The Companies (Registration of
Charges) Rules, 2014, every company is obligated to maintain a register of
charges at its registered office. This register, known as Form No. CHG.7,
serves as a critical document for recording and documenting various aspects of
charges imposed on the company's property, assets, or undertakings. Below, we
provide a detailed explanation of the key provisions and requirements related
to the company's register of charges:<o:p></o:p></span></p>
<p class="MsoNormal" style="border: none; line-height: normal; margin-bottom: 15.0pt; margin-left: 0in; margin-right: 0in; margin-top: 15.0pt; mso-border-alt: solid #D9D9E3 .25pt; mso-padding-alt: 0in 0in 0in 0in; padding: 0in;"><b><span style="color: black; font-family: "Segoe UI","sans-serif"; font-size: 13.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";">1) Maintenance of Form No. CHG.7:</span></b><span style="color: black; font-family: "Segoe UI","sans-serif"; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></p>
</div>
<div style="border: solid #D9D9E3 1.0pt; margin-left: -.25in; margin-right: 0in; mso-border-alt: solid #D9D9E3 .25pt; mso-element: para-border-div; padding: 0in 0in 0in 5.0pt;">
<p class="MsoNormal" style="border: none; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .25in; margin-right: 0in; margin-top: 0in; mso-border-alt: solid #D9D9E3 .25pt; mso-list: l4 level1 lfo1; mso-padding-alt: 0in 0in 0in 5.0pt; padding: 0in; tab-stops: list .5in; text-indent: -.25in;"><!--[if !supportLists]--><span style="color: black; font-family: Symbol; font-size: 10.0pt; mso-bidi-font-family: Symbol; mso-bidi-font-size: 13.5pt; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";">
</span></span></span><!--[endif]--><span style="color: black; font-family: "Segoe UI","sans-serif"; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";">Every company,
regardless of its size or structure, is required to maintain a register of
charges using the prescribed format, Form No. CHG.7.<o:p></o:p></span></p>
<p class="MsoNormal" style="border: none; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .25in; margin-right: 0in; margin-top: 0in; mso-border-alt: solid #D9D9E3 .25pt; mso-list: l4 level1 lfo1; mso-padding-alt: 0in 0in 0in 5.0pt; padding: 0in; tab-stops: list .5in; text-indent: -.25in;"><!--[if !supportLists]--><span style="color: black; font-family: Symbol; font-size: 10.0pt; mso-bidi-font-family: Symbol; mso-bidi-font-size: 13.5pt; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";">
</span></span></span><!--[endif]--><span style="color: black; font-family: "Segoe UI","sans-serif"; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";">The register should
contain comprehensive particulars of all charges that have been registered with
the Registrar of Companies. This includes details of charges imposed on the
company's property, assets, or undertakings.<o:p></o:p></span></p>
</div>
<div style="border: solid #D9D9E3 1.0pt; mso-border-alt: solid #D9D9E3 .25pt; mso-element: para-border-div; padding: 0in 0in 0in 0in;">
<p class="MsoNormal" style="border: none; line-height: normal; margin-bottom: 15.0pt; margin-left: 0in; margin-right: 0in; margin-top: 15.0pt; mso-border-alt: solid #D9D9E3 .25pt; mso-padding-alt: 0in 0in 0in 0in; padding: 0in;"><b><span style="color: black; font-family: "Segoe UI","sans-serif"; font-size: 13.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";">2) Inclusion of Charge Details:</span></b><span style="color: black; font-family: "Segoe UI","sans-serif"; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></p>
</div>
<div style="border: solid #D9D9E3 1.0pt; margin-left: -.25in; margin-right: 0in; mso-border-alt: solid #D9D9E3 .25pt; mso-element: para-border-div; padding: 0in 0in 0in 5.0pt;">
<p class="MsoNormal" style="border: none; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .25in; margin-right: 0in; margin-top: 0in; mso-border-alt: solid #D9D9E3 .25pt; mso-list: l0 level1 lfo2; mso-padding-alt: 0in 0in 0in 5.0pt; padding: 0in; tab-stops: list .5in; text-indent: -.25in;"><!--[if !supportLists]--><span style="color: black; font-family: Symbol; font-size: 10.0pt; mso-bidi-font-family: Symbol; mso-bidi-font-size: 13.5pt; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";">
</span></span></span><!--[endif]--><span style="color: black; font-family: "Segoe UI","sans-serif"; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";">The company's register
of charges must include information on the creation of new charges, any
modifications to existing charges, and the satisfaction or discharge of
charges.<o:p></o:p></span></p>
</div>
<div style="border: solid #D9D9E3 1.0pt; mso-border-alt: solid #D9D9E3 .25pt; mso-element: para-border-div; padding: 0in 0in 0in 0in;">
<p class="MsoNormal" style="border: none; line-height: normal; margin-bottom: 15.0pt; margin-left: 0in; margin-right: 0in; margin-top: 15.0pt; mso-border-alt: solid #D9D9E3 .25pt; mso-padding-alt: 0in 0in 0in 0in; padding: 0in;"><b><span style="color: black; font-family: "Segoe UI","sans-serif"; font-size: 13.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";">3) Timely Recording of Entries:</span></b><span style="color: black; font-family: "Segoe UI","sans-serif"; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></p>
</div>
<div style="border: solid #D9D9E3 1.0pt; margin-left: -.25in; margin-right: 0in; mso-border-alt: solid #D9D9E3 .25pt; mso-element: para-border-div; padding: 0in 0in 0in 5.0pt;">
<p class="MsoNormal" style="border: none; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .25in; margin-right: 0in; margin-top: 0in; mso-border-alt: solid #D9D9E3 .25pt; mso-list: l1 level1 lfo3; mso-padding-alt: 0in 0in 0in 5.0pt; padding: 0in; tab-stops: list .5in; text-indent: -.25in;"><!--[if !supportLists]--><span style="color: black; font-family: Symbol; font-size: 10.0pt; mso-bidi-font-family: Symbol; mso-bidi-font-size: 13.5pt; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";">
</span></span></span><!--[endif]--><span style="color: black; font-family: "Segoe UI","sans-serif"; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";">The company is obligated
to make entries in the register of charges promptly. This means that as soon as
a charge is created, modified, or satisfied, the relevant details must be
entered into the register without delay.<o:p></o:p></span></p>
</div>
<div style="border: solid #D9D9E3 1.0pt; mso-border-alt: solid #D9D9E3 .25pt; mso-element: para-border-div; padding: 0in 0in 0in 0in;">
<p class="MsoNormal" style="border: none; line-height: normal; margin-bottom: 15.0pt; margin-left: 0in; margin-right: 0in; margin-top: 15.0pt; mso-border-alt: solid #D9D9E3 .25pt; mso-padding-alt: 0in 0in 0in 0in; padding: 0in;"><b><span style="color: black; font-family: "Segoe UI","sans-serif"; font-size: 13.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";">4) Authentication of Entries:</span></b><span style="color: black; font-family: "Segoe UI","sans-serif"; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></p>
</div>
<div style="border: solid #D9D9E3 1.0pt; margin-left: -.25in; margin-right: 0in; mso-border-alt: solid #D9D9E3 .25pt; mso-element: para-border-div; padding: 0in 0in 0in 5.0pt;">
<p class="MsoNormal" style="border: none; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .25in; margin-right: 0in; margin-top: 0in; mso-border-alt: solid #D9D9E3 .25pt; mso-list: l3 level1 lfo4; mso-padding-alt: 0in 0in 0in 5.0pt; padding: 0in; tab-stops: list .5in; text-indent: -.25in;"><!--[if !supportLists]--><span style="color: black; font-family: Symbol; font-size: 10.0pt; mso-bidi-font-family: Symbol; mso-bidi-font-size: 13.5pt; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";">
</span></span></span><!--[endif]--><span style="color: black; font-family: "Segoe UI","sans-serif"; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";">An important requirement
is that all entries in the register of charges must be authenticated.
Authentication is typically done by one of the following:<o:p></o:p></span></p>
</div>
<div style="border: solid #D9D9E3 1.0pt; margin-left: .25in; margin-right: 0in; mso-border-alt: solid #D9D9E3 .25pt; mso-element: para-border-div; padding: 0in 0in 0in 5.0pt;">
<p class="MsoNormal" style="border: none; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .25in; margin-right: 0in; margin-top: 0in; mso-border-alt: solid #D9D9E3 .25pt; mso-list: l3 level2 lfo4; mso-padding-alt: 0in 0in 0in 5.0pt; padding: 0in; tab-stops: list 1.0in; text-indent: -.25in;"><!--[if !supportLists]--><span style="color: black; font-family: Symbol; font-size: 10.0pt; mso-bidi-font-family: Symbol; mso-bidi-font-size: 13.5pt; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";">
</span></span></span><!--[endif]--><span style="color: black; font-family: "Segoe UI","sans-serif"; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";">A director of the
company<o:p></o:p></span></p>
<p class="MsoNormal" style="border: none; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .25in; margin-right: 0in; margin-top: 0in; mso-border-alt: solid #D9D9E3 .25pt; mso-list: l3 level2 lfo4; mso-padding-alt: 0in 0in 0in 5.0pt; padding: 0in; tab-stops: list 1.0in; text-indent: -.25in;"><!--[if !supportLists]--><span style="color: black; font-family: Symbol; font-size: 10.0pt; mso-bidi-font-family: Symbol; mso-bidi-font-size: 13.5pt; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";">
</span></span></span><!--[endif]--><span style="color: black; font-family: "Segoe UI","sans-serif"; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";">The secretary of the
company<o:p></o:p></span></p>
<p class="MsoNormal" style="border: none; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .25in; margin-right: 0in; margin-top: 0in; mso-border-alt: solid #D9D9E3 .25pt; mso-list: l3 level2 lfo4; mso-padding-alt: 0in 0in 0in 5.0pt; padding: 0in; tab-stops: list 1.0in; text-indent: -.25in;"><!--[if !supportLists]--><span style="color: black; font-family: Symbol; font-size: 10.0pt; mso-bidi-font-family: Symbol; mso-bidi-font-size: 13.5pt; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";">
</span></span></span><!--[endif]--><span style="color: black; font-family: "Segoe UI","sans-serif"; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";">Any other person
authorized by the company's Board for this specific purpose.<o:p></o:p></span></p>
</div>
<div style="border: solid #D9D9E3 1.0pt; margin-left: -.25in; margin-right: 0in; mso-border-alt: solid #D9D9E3 .25pt; mso-element: para-border-div; padding: 0in 0in 0in 5.0pt;">
<p class="MsoNormal" style="border: none; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .25in; margin-right: 0in; margin-top: 0in; mso-border-alt: solid #D9D9E3 .25pt; mso-list: l3 level1 lfo4; mso-padding-alt: 0in 0in 0in 5.0pt; padding: 0in; tab-stops: list .5in; text-indent: -.25in;"><!--[if !supportLists]--><span style="color: black; font-family: Symbol; font-size: 10.0pt; mso-bidi-font-family: Symbol; mso-bidi-font-size: 13.5pt; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";">
</span></span></span><!--[endif]--><span style="color: black; font-family: "Segoe UI","sans-serif"; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";">This authentication
process ensures the accuracy and reliability of the information contained in
the register.<o:p></o:p></span></p>
</div>
<div style="border: solid #D9D9E3 1.0pt; mso-border-alt: solid #D9D9E3 .25pt; mso-element: para-border-div; padding: 0in 0in 0in 0in;">
<p class="MsoNormal" style="border: none; line-height: normal; margin-bottom: 15.0pt; margin-left: 0in; margin-right: 0in; margin-top: 15.0pt; mso-border-alt: solid #D9D9E3 .25pt; mso-padding-alt: 0in 0in 0in 0in; padding: 0in;"><b><span style="color: black; font-family: "Segoe UI","sans-serif"; font-size: 13.5pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: "Times New Roman";">Key Takeaways:</span></b><span style="color: black; font-family: "Segoe UI","sans-serif"; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></p>
</div>
<div style="border: solid #D9D9E3 1.0pt; margin-left: -.25in; margin-right: 0in; mso-border-alt: solid #D9D9E3 .25pt; mso-element: para-border-div; padding: 0in 0in 0in 5.0pt;">
<p class="MsoNormal" style="border: none; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .25in; margin-right: 0in; margin-top: 0in; mso-border-alt: solid #D9D9E3 .25pt; mso-list: l2 level1 lfo5; mso-padding-alt: 0in 0in 0in 5.0pt; padding: 0in; tab-stops: list .5in; text-indent: -.25in;"><!--[if !supportLists]--><span style="color: black; font-family: Symbol; font-size: 10.0pt; mso-bidi-font-family: Symbol; mso-bidi-font-size: 13.5pt; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";">
</span></span></span><!--[endif]--><span style="color: black; font-family: "Segoe UI","sans-serif"; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";">Compliance with Chapter
VI of The Companies (Registration of Charges) Rules, 2014 is essential for all
companies.<o:p></o:p></span></p>
<p class="MsoNormal" style="border: none; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .25in; margin-right: 0in; margin-top: 0in; mso-border-alt: solid #D9D9E3 .25pt; mso-list: l2 level1 lfo5; mso-padding-alt: 0in 0in 0in 5.0pt; padding: 0in; tab-stops: list .5in; text-indent: -.25in;"><!--[if !supportLists]--><span style="color: black; font-family: Symbol; font-size: 10.0pt; mso-bidi-font-family: Symbol; mso-bidi-font-size: 13.5pt; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";">
</span></span></span><!--[endif]--><span style="color: black; font-family: "Segoe UI","sans-serif"; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";">Form No. CHG.7 serves as
the standardized format for the company's register of charges.<o:p></o:p></span></p>
<p class="MsoNormal" style="border: none; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .25in; margin-right: 0in; margin-top: 0in; mso-border-alt: solid #D9D9E3 .25pt; mso-list: l2 level1 lfo5; mso-padding-alt: 0in 0in 0in 5.0pt; padding: 0in; tab-stops: list .5in; text-indent: -.25in;"><!--[if !supportLists]--><span style="color: black; font-family: Symbol; font-size: 10.0pt; mso-bidi-font-family: Symbol; mso-bidi-font-size: 13.5pt; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";">
</span></span></span><!--[endif]--><span style="color: black; font-family: "Segoe UI","sans-serif"; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";">The register must
contain details about charge creation, modification, and satisfaction.<o:p></o:p></span></p>
<p class="MsoNormal" style="border: none; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .25in; margin-right: 0in; margin-top: 0in; mso-border-alt: solid #D9D9E3 .25pt; mso-list: l2 level1 lfo5; mso-padding-alt: 0in 0in 0in 5.0pt; padding: 0in; tab-stops: list .5in; text-indent: -.25in;"><!--[if !supportLists]--><span style="color: black; font-family: Symbol; font-size: 10.0pt; mso-bidi-font-family: Symbol; mso-bidi-font-size: 13.5pt; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";">
</span></span></span><!--[endif]--><span style="color: black; font-family: "Segoe UI","sans-serif"; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";">Entries should be made
immediately after these events occur.<o:p></o:p></span></p>
<p class="MsoNormal" style="border: none; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .25in; margin-right: 0in; margin-top: 0in; mso-border-alt: solid #D9D9E3 .25pt; mso-list: l2 level1 lfo5; mso-padding-alt: 0in 0in 0in 5.0pt; padding: 0in; tab-stops: list .5in; text-indent: -.25in;"><!--[if !supportLists]--><span style="color: black; font-family: Symbol; font-size: 10.0pt; mso-bidi-font-family: Symbol; mso-bidi-font-size: 13.5pt; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";">
</span></span></span><!--[endif]--><span style="color: black; font-family: "Segoe UI","sans-serif"; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";">Authentication of
entries can be performed by a director, secretary, or an authorized person
designated by the Board.<o:p></o:p></span></p>
</div>
<div style="border: solid #D9D9E3 1.0pt; mso-border-alt: solid #D9D9E3 .25pt; mso-element: para-border-div; padding: 0in 0in 0in 0in;">
<p class="MsoNormal" style="border: none; line-height: normal; margin-bottom: 5.0pt; margin-left: 0in; margin-right: 0in; margin-top: 15.0pt; mso-border-alt: solid #D9D9E3 .25pt; mso-padding-alt: 0in 0in 0in 0in; padding: 0in;"><span style="color: black; font-family: "Segoe UI","sans-serif"; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";">It is imperative for companies to adhere to these rules and
maintain an accurate and up-to-date register of charges to ensure transparency
and compliance with regulatory requirements. Failure to do so may result in
legal consequences and penalties. Therefore, companies must establish robust
processes to monitor and update their registers in a timely manner, with due
attention to authentication requirements.<o:p></o:p></span></p>
</div>
<div style="border-bottom: solid windowtext 1.0pt; border: none; mso-border-bottom-alt: solid windowtext .75pt; mso-element: para-border-div; padding: 0in 0in 1.0pt 0in;">
<p align="center" class="MsoNormal" style="border: none; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; mso-border-bottom-alt: solid windowtext .75pt; mso-padding-alt: 0in 0in 1.0pt 0in; padding: 0in; text-align: center;"><span style="display: none; font-family: "Arial","sans-serif"; font-size: 8.0pt; mso-fareast-font-family: "Times New Roman"; mso-hide: all;">Top of Form<o:p></o:p></span></p>
</div>
<p class="MsoNormal"><o:p> </o:p></p>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-8633181154706238689.post-32615452844764442262023-04-28T18:40:00.003-07:002023-04-28T18:40:48.530-07:00Member under Companies Act 2013<p> </p><p class="MsoNormal" style="background: white;"><span style="color: black; font-size: 12.5pt; line-height: 115%;">Section 2<span style="mso-spacerun: yes;"> </span>sub
section 55 <o:p></o:p></span></p>
<p class="MsoNormal" style="background: white;"><span style="color: black; font-size: 12.5pt; line-height: 115%;">(55) “member”, in relation to a company, means—<o:p></o:p></span></p>
<p class="MsoNormal" style="background: white;"><span style="color: black; font-size: 12.5pt; line-height: 115%;"><o:p> </o:p></span></p>
<p class="MsoNormal" style="background: white;"><span style="color: black; font-size: 12.5pt; line-height: 115%;">(i) the subscriber to the memorandum of the
company who shall be deemed to have agreed to become member of the company, and
on its registration, shall be entered as member in its register of members;<o:p></o:p></span></p>
<p class="MsoNormal" style="background: white;"><span style="color: black; font-size: 12.5pt; line-height: 115%;"><o:p> </o:p></span></p>
<p class="MsoNormal" style="background: white;"><span style="color: black; font-size: 12.5pt; line-height: 115%;">(ii) every other person who agrees in writing to
become a member of the company and whose name is entered in the register of
members of the company;<o:p></o:p></span></p>
<p class="MsoNormal" style="background: white;"><span style="color: black; font-size: 12.5pt; line-height: 115%;"><o:p> </o:p></span></p>
<p class="MsoNormal" style="background: white;"><span style="color: black; font-size: 12.5pt; line-height: 115%;">(iii) every person holding shares of the company
and whose name is entered as a beneficial owner in the records of a depository;<o:p></o:p></span></p>
<p class="MsoNormal" style="background: white;"><span style="color: black; font-size: 12.5pt; line-height: 115%;"><o:p> </o:p></span></p>
<p class="MsoNormal" style="background: white;"><span style="color: black; font-size: 12.5pt; line-height: 115%;">Brief<o:p></o:p></span></p>
<p class="MsoNormal" style="background: white;"><span style="color: black; font-size: 12.5pt; line-height: 115%;">1)<span style="mso-spacerun: yes;">
</span>subscriber to Memorandum<o:p></o:p></span></p>
<p class="MsoNormal" style="background: white;"><span style="color: black; font-size: 12.5pt; line-height: 115%;">2)<span style="mso-spacerun: yes;"> </span>writing
to become a member of the company and name is entered in the register of
members of the company<o:p></o:p></span></p>
<p class="MsoNormal" style="background: white;"><span style="color: black; font-size: 12.5pt; line-height: 115%;">3) holding shares of the company and whose name
is entered as a beneficial owner in the records of a depository<o:p></o:p></span></p>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-8633181154706238689.post-86926022139955700712023-04-28T11:28:00.002-07:002023-04-28T11:28:30.026-07:00Foreign company<p> </p><p class="MsoNormal">Foreign company<span style="mso-spacerun: yes;">
</span>mentioned<span style="mso-spacerun: yes;"> </span>in two places<span style="mso-spacerun: yes;"> </span>in Companies Act, 2013<span style="mso-spacerun: yes;"> </span></p>
<p class="MsoNormal">Section 234<span style="mso-spacerun: yes;">
</span>explanation to sub section 2</p>
<p style="background: white; margin-bottom: 7.5pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; text-align: justify;"><span style="color: #333333; font-family: "Arial","sans-serif"; font-size: 10.0pt;">Explanation.—For the purposes of
sub-section (2), the expression “foreign company” means any company or body
corporate incorporated outside India whether having a place of business in
India or not.</span><span style="color: #333333; font-family: "Helvetica","sans-serif"; font-size: 10.5pt;"><o:p></o:p></span></p>
<p style="background: white; margin-bottom: 7.5pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; text-align: justify;"><span style="color: #333333; font-family: "Helvetica","sans-serif"; font-size: 10.5pt;"> </span>Section 2<span style="mso-spacerun: yes;"> </span>clause 42<span style="mso-spacerun: yes;">
</span>definition of foreign company</p>
<p class="MsoNormal">(42) "foreign company" means any company or body
corporate incorporated outside India which,—</p>
<p class="MsoNormal">(a) has a place of business in India whether by itself or
through an agent, physically or through electronic mode; and</p>
<p class="MsoNormal">(b) conducts any business activity in India in any other
manner.</p>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-8633181154706238689.post-59904436708604808762023-04-28T11:27:00.003-07:002023-04-28T11:27:36.778-07:00Deposit Registers Under Companies Act, 2013<p> <b><span style="background: #EAEAEA; color: #333333; font-family: "Segoe UI","sans-serif"; font-size: 9.0pt;">Rules [ Chapter V The Companies (Acceptance of Deposits)
Rules, 2014 ]</span></b></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 7.5pt;"><b><span style="color: #333333; font-family: "Arial","sans-serif"; font-size: 10.0pt; mso-fareast-font-family: "Times New Roman";"> </span></b></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 7.5pt;"><b><span style="color: #333333; font-family: "Arial","sans-serif"; font-size: 10.0pt; mso-fareast-font-family: "Times New Roman";">14 Registers of Deposits</span></b><span style="color: #333333; font-family: "Helvetica","sans-serif"; font-size: 10.5pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 7.5pt;"><span style="color: #333333; font-family: "Arial","sans-serif"; font-size: 10.0pt; mso-fareast-font-family: "Times New Roman";">(1) Every company accepting deposits shall
maintain at its registered office one or more separate registers for
deposits accepted or renewed, in which there shall be entered separately in the
case of each depositor the following particulars, namely:-</span><span style="color: #333333; font-family: "Helvetica","sans-serif"; font-size: 10.5pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 7.5pt;"><span style="color: #333333; font-family: "Arial","sans-serif"; font-size: 10.0pt; mso-fareast-font-family: "Times New Roman";">(a) name, address and PAN of the depositor/s;</span><span style="color: #333333; font-family: "Helvetica","sans-serif"; font-size: 10.5pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 7.5pt;"><span style="color: #333333; font-family: "Arial","sans-serif"; font-size: 10.0pt; mso-fareast-font-family: "Times New Roman";">(b) particulars of guardian, in case of a
minor;</span><span style="color: #333333; font-family: "Helvetica","sans-serif"; font-size: 10.5pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 7.5pt;"><span style="color: #333333; font-family: "Arial","sans-serif"; font-size: 10.0pt; mso-fareast-font-family: "Times New Roman";">(c) particulars of the nominee;</span><span style="color: #333333; font-family: "Helvetica","sans-serif"; font-size: 10.5pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 7.5pt;"><span style="color: #333333; font-family: "Arial","sans-serif"; font-size: 10.0pt; mso-fareast-font-family: "Times New Roman";">(d) deposit receipt number;</span><span style="color: #333333; font-family: "Helvetica","sans-serif"; font-size: 10.5pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 7.5pt;"><span style="color: #333333; font-family: "Arial","sans-serif"; font-size: 10.0pt; mso-fareast-font-family: "Times New Roman";">(e) date and the amount of each deposit;</span><span style="color: #333333; font-family: "Helvetica","sans-serif"; font-size: 10.5pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 7.5pt;"><span style="color: #333333; font-family: "Arial","sans-serif"; font-size: 10.0pt; mso-fareast-font-family: "Times New Roman";">(f) duration of the deposit and the date on
which each deposit is repayable;</span><span style="color: #333333; font-family: "Helvetica","sans-serif"; font-size: 10.5pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 7.5pt;"><span style="color: #333333; font-family: "Arial","sans-serif"; font-size: 10.0pt; mso-fareast-font-family: "Times New Roman";">(g) rate of interest or such deposits to be
payable to the depositor;</span><span style="color: #333333; font-family: "Helvetica","sans-serif"; font-size: 10.5pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 7.5pt;"><span style="color: #333333; font-family: "Arial","sans-serif"; font-size: 10.0pt; mso-fareast-font-family: "Times New Roman";">(h) due date for payment of interest;</span><span style="color: #333333; font-family: "Helvetica","sans-serif"; font-size: 10.5pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 7.5pt;"><span style="color: #333333; font-family: "Arial","sans-serif"; font-size: 10.0pt; mso-fareast-font-family: "Times New Roman";">(i) mandate and instructions for payment of
interest and for non-deduction of tax at source, if any;</span><span style="color: #333333; font-family: "Helvetica","sans-serif"; font-size: 10.5pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 7.5pt;"><span style="color: #333333; font-family: "Arial","sans-serif"; font-size: 10.0pt; mso-fareast-font-family: "Times New Roman";">(j) date or dates on which the payment of
interest shall be made;</span><span style="color: #333333; font-family: "Helvetica","sans-serif"; font-size: 10.5pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 7.5pt;"><span style="color: #333333; font-family: "Arial","sans-serif"; font-size: 10.0pt; mso-fareast-font-family: "Times New Roman";">(k)</span><a href="https://e-book.icsi.edu/Childwindow1.aspx?pageid=18785&type=RU&ChildTitle=Chapter%20V%20The%20Companies%20(Acceptance%20of%20Deposits)%20Rules,%202014#rec1" target="_self"><sup><span style="color: #428bca; font-family: Arial, "sans-serif"; font-size: 7.5pt; text-decoration-line: none;">1</span></sup></a><span style="color: #333333; font-family: "Arial","sans-serif"; font-size: 10.0pt; mso-fareast-font-family: "Times New Roman";">[Omitted]</span><span style="color: #333333; font-family: "Helvetica","sans-serif"; font-size: 10.5pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 7.5pt;"><span style="color: #333333; font-family: "Arial","sans-serif"; font-size: 10.0pt; mso-fareast-font-family: "Times New Roman";">(l) particulars of security or charge created
for repayment of deposits;</span><span style="color: #333333; font-family: "Helvetica","sans-serif"; font-size: 10.5pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="color: #333333; font-family: "Arial","sans-serif"; font-size: 10.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";">(m)
any other relevant particulars;<o:p></o:p></span></p>
<p class="MsoNormal">The entries specified in sub-rule (1) shall be made within
seven days from the date of issuance of the receipt duly authenticated by a
director or secretary of the company or by any other officer authorised by the
Board for this purpose</p>
<span style="background: white; color: #333333; font-family: "Arial","sans-serif"; font-size: 11.0pt; line-height: 115%; mso-ansi-language: EN-US; mso-bidi-language: AR-SA; mso-fareast-font-family: Calibri; mso-fareast-language: EN-US; mso-fareast-theme-font: minor-latin;">The register referred to in sub-rule (1) shall be preserved in good
order for a period of not less than eight years from the financial year in
which the latest entry is made in the register</span>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-8633181154706238689.post-21131079285222412562023-02-11T06:32:00.002-08:002023-02-11T06:32:11.782-08:00Section 42 Private Placement Application Money and its utlisation <p> </p><p class="MsoNormal" style="background: white; line-height: normal; margin-bottom: 7.5pt; text-align: justify;"><span style="color: #993300; font-family: "Arial","sans-serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Private Placement<span style="mso-spacerun: yes;"> </span>Section 42 (6)<span style="mso-spacerun: yes;"> </span>-<span style="mso-spacerun: yes;">
</span>Application money and its utilisation<o:p></o:p></span></p>
<p class="MsoNormal" style="background: white; line-height: normal; margin-bottom: 7.5pt; text-align: justify;"><span style="color: #993300; font-family: "Arial","sans-serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">1)<span style="mso-spacerun: yes;"> </span>After making offer allot its securities
within sixty days from the date of receipt of the application money <o:p></o:p></span></p>
<p class="MsoNormal" style="background: white; line-height: normal; margin-bottom: 7.5pt; text-align: justify;"><span style="color: #993300; font-family: "Arial","sans-serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">2)<span style="mso-spacerun: yes;"> </span>in case not able to allot<span style="mso-spacerun: yes;"> </span>the securities<span style="mso-spacerun: yes;"> </span>within that period,<span style="mso-spacerun: yes;"> </span>repay within 15 days from the expiry of<span style="mso-spacerun: yes;"> </span>sixty days<o:p></o:p></span></p>
<p class="MsoNormal" style="background: white; line-height: normal; margin-bottom: 7.5pt; text-align: justify;"><span style="color: #993300; font-family: "Arial","sans-serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">3) Failure to repay
the application money within the aforesaid period,<span style="mso-spacerun: yes;"> </span>it shall be liable to repay that money with
interest at the rate of 12% from the expiry of sixtieth day<o:p></o:p></span></p>
<p class="MsoNormal" style="background: white; line-height: normal; margin-bottom: 7.5pt; text-align: justify;"><span style="color: #993300; font-family: "Arial","sans-serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">4)<span style="mso-spacerun: yes;"> </span>After offer, the application money shall be
kept in a separate bank account in a scheduled bank and shall not be utilised
for any purpose <o:p></o:p></span></p>
<p class="MsoNormal" style="background: white; line-height: normal; margin-bottom: 7.5pt; text-align: justify;"><span style="color: #993300; font-family: "Arial","sans-serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">other than—</span><span style="color: #333333; font-family: "Helvetica","sans-serif"; font-size: 10.5pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></p>
<p class="MsoNormal" style="background: white; line-height: normal; margin-bottom: 7.5pt; text-align: justify;"><span style="color: #993300; font-family: "Arial","sans-serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">(a) for adjustment
against allotment of securities; or</span><span style="color: #333333; font-family: "Helvetica","sans-serif"; font-size: 10.5pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></p>
<p class="MsoNormal" style="background: white; line-height: normal; margin-bottom: 7.5pt; text-align: justify;"><span style="color: #993300; font-family: "Arial","sans-serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">(b) for the repayment
of monies where the company is unable to allot securities.<o:p></o:p></span></p>
<p class="MsoNormal" style="background: white; line-height: normal; margin-bottom: 7.5pt; text-align: justify;"><span style="color: #993300; font-family: "Arial","sans-serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p> </o:p></span></p>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-8633181154706238689.post-81546975085094896672022-12-24T16:44:00.003-08:002022-12-24T16:44:47.320-08:00Alternate Director <p> </p><p class="MsoNormal">Alternate Director to act on behalf of<span style="mso-spacerun: yes;"> </span>Independent Director<span style="mso-spacerun: yes;"> </span>Listed and Unlisted entity</p>
<p class="MsoNormal">According to Regulation 25 of SEBI's Listing Obligations and
Disclosure Regulations (LODR), a listed company shall not appoint an Alternate
Director for an Independent Director. However this regulation doesn't apply to
an unlisted company where an Alternate Director can be appointed for an
Independent Director Section 2<span style="mso-spacerun: yes;"> </span>clause 34
of the Companies Act, 2013<span style="mso-spacerun: yes;"> </span>defines
Director </p>
<p class="MsoNormal"><span style="background: white; color: #333333; font-family: "Arial","sans-serif";">(<i>34</i>) "director" means a director appointed
to the Board of a company<o:p></o:p></span></p>
<p class="MsoNormal"><span style="background: white; color: #333333; font-family: "Arial","sans-serif";">(<i>47</i>) "independent director" means an
independent director referred to in sub-section (6) of </span><a href="https://e-book.icsi.edu/Actpagedisplay.aspx?PAGENAME=17533" target="_blank"><span style="background: white; color: #2a6496; font-family: "Arial","sans-serif";">section 149</span></a></p>
<p class="MsoNormal">Sub section 2<span style="mso-spacerun: yes;"> </span>of
Section 161<span style="mso-spacerun: yes;"> </span>and<span style="mso-spacerun: yes;"> </span>proviso to subsection 2 of Section 161</p>
<p class="MsoNormal">(2) The Board of Directors of a company may, if so
authorised by its articles or by a resolution passed by the company in general
meeting, appoint a person, not being a person holding any alternate
directorship for any other director in the company 3[or holding directorship in
the same company], to act as an alternate director for a director during his
absence for a period of not less than three months from India:</p>
<p class="MsoNormal">Provided that no person shall be appointed as an alternate
director for an independent director unless he is qualified to be appointed as
an independent director under the provisions of this Act</p>
<p class="MsoNormal">Regulation<span style="mso-spacerun: yes;"> </span>No 25<span style="mso-spacerun: yes;"> </span>of<span style="mso-spacerun: yes;">
</span>LODR</p>
<p class="MsoNormal">No person shall be appointed or continue as an alternate
director for an independent director of a listed entity with effect from
October 1, 2018.</p>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-8633181154706238689.post-34468514137508706892022-12-23T18:01:00.003-08:002022-12-23T18:01:22.547-08:00 Dematerialisation of securities<p> </p><p class="MsoNormal" style="line-height: normal; margin-bottom: 7.5pt;"><b><span style="color: #333333; font-family: "Arial","sans-serif"; font-size: 10.0pt; mso-fareast-font-family: "Times New Roman";"><o:p> </o:p></span></b></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 7.5pt;"><b><span style="background: #EAEAEA; color: #333333; font-family: "Segoe UI","sans-serif"; font-size: 9.0pt;">Rules [ Chapter III Part I The Companies (Prospectus and
Allotment of Securities) Rules, 2014 ]</span></b><b><span style="color: #333333; font-family: "Arial","sans-serif"; font-size: 10.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></b></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 7.5pt;"><b><span style="color: #333333; font-family: "Arial","sans-serif"; font-size: 10.0pt; mso-fareast-font-family: "Times New Roman";">9 Dematerialisation of securities</span></b><span style="color: #333333; font-family: "Helvetica","sans-serif"; font-size: 10.5pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 7.5pt;"><span style="color: #333333; font-family: "Arial","sans-serif"; font-size: 10.0pt; mso-fareast-font-family: "Times New Roman";">The promoters of every public company making a
public offer of any convertible securities may hold such securities only in dematerialised
form:</span><span style="color: #333333; font-family: "Helvetica","sans-serif"; font-size: 10.5pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="color: #333333; font-family: "Arial","sans-serif"; font-size: 10.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";">Provided
that the entire holding of convertible securities of the company by the
promoters held in physical form up to the date of the initial public offer
shall be converted into dematerialised form before such offer is made and thereafter
such promoter shareholding shall be held in dematerialized form only.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="color: #333333; font-family: "Arial","sans-serif"; font-size: 10.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";">Demateralisation
of securities :<span style="mso-spacerun: yes;"> </span>The entire holding of
convertible securities of the company by the promoter held in physical form up
tothe date of initial public offer shall be converted into dematerialised form
before such officer is maed.<span style="mso-spacerun: yes;"> </span>Promoter
shareholding shall be held in demateriazlized form only <o:p></o:p></span></p>
<p class="MsoNormal"><span style="color: #333333; font-family: "Arial","sans-serif"; font-size: 10.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";">Convertible
securities :<span style="mso-spacerun: yes;"> </span>Convertible<span style="mso-spacerun: yes;"> </span>preference shares,<span style="mso-spacerun: yes;"> </span>convertible Debentures<span style="mso-spacerun: yes;"> </span>etc.are few examples.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="color: #333333; font-family: "Arial","sans-serif"; font-size: 10.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";"><span style="mso-spacerun: yes;"> </span>Convertible preference shares can
further be categorised into <o:p></o:p></span></p>
<p class="MsoNormal"><span style="color: #333333; font-family: "Arial","sans-serif"; font-size: 10.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";"><span style="mso-tab-count: 1;"> </span>Compulsorily Convertible Preference
Shares (CCPS) '<o:p></o:p></span></p>
<p class="MsoNormal"><span style="color: #333333; font-family: "Arial","sans-serif"; font-size: 10.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";"><span style="mso-tab-count: 1;"> </span><span style="mso-spacerun: yes;"> </span>Optionally Convertible Preference Shares <o:p></o:p></span></p>
<table border="1" cellpadding="0" cellspacing="0" class="MsoTableGrid" style="border-collapse: collapse; border: none; mso-border-alt: solid black .5pt; mso-border-themecolor: text1; mso-padding-alt: 0in 5.4pt 0in 5.4pt; mso-yfti-tbllook: 1184;">
<tbody><tr style="mso-yfti-firstrow: yes; mso-yfti-irow: 0;">
<td style="border: solid black 1.0pt; mso-border-alt: solid black .5pt; mso-border-themecolor: text1; mso-border-themecolor: text1; padding: 0in 5.4pt 0in 5.4pt; width: 159.6pt;" valign="top" width="213">
<p class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;"><span style="color: #333333; font-family: "Arial","sans-serif"; font-size: 10.0pt; mso-fareast-font-family: "Times New Roman";">-<span style="mso-spacerun: yes;"> </span>Convertible Debentures<o:p></o:p></span></p>
</td>
<td style="border-left: none; border: solid black 1.0pt; mso-border-alt: solid black .5pt; mso-border-left-alt: solid black .5pt; mso-border-left-themecolor: text1; mso-border-themecolor: text1; mso-border-themecolor: text1; padding: 0in 5.4pt 0in 5.4pt; width: 159.6pt;" valign="top" width="213">
<p class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;"><span style="color: #333333; font-family: "Arial","sans-serif"; font-size: 10.0pt; mso-fareast-font-family: "Times New Roman";"><o:p> </o:p></span></p>
</td>
</tr>
<tr style="mso-yfti-irow: 1;">
<td style="border-top: none; border: solid black 1.0pt; mso-border-alt: solid black .5pt; mso-border-themecolor: text1; mso-border-themecolor: text1; mso-border-top-alt: solid black .5pt; mso-border-top-themecolor: text1; padding: 0in 5.4pt 0in 5.4pt; width: 159.6pt;" valign="top" width="213">
<p class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;"><span style="color: #333333; font-family: "Arial","sans-serif"; font-size: 10.0pt; mso-fareast-font-family: "Times New Roman";">-<span style="mso-spacerun: yes;"> </span>Compulsorily convertible
Debentures,<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></p>
</td>
<td style="border-bottom: solid black 1.0pt; border-left: none; border-right: solid black 1.0pt; border-top: none; mso-border-alt: solid black .5pt; mso-border-bottom-themecolor: text1; mso-border-left-alt: solid black .5pt; mso-border-left-themecolor: text1; mso-border-right-themecolor: text1; mso-border-themecolor: text1; mso-border-top-alt: solid black .5pt; mso-border-top-themecolor: text1; padding: 0in 5.4pt 0in 5.4pt; width: 159.6pt;" valign="top" width="213">
<p class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;"><span style="color: #333333; font-family: "Arial","sans-serif"; font-size: 10.0pt; mso-fareast-font-family: "Times New Roman";">CCD<o:p></o:p></span></p>
</td>
</tr>
<tr style="mso-yfti-irow: 2;">
<td style="border-top: none; border: solid black 1.0pt; mso-border-alt: solid black .5pt; mso-border-themecolor: text1; mso-border-themecolor: text1; mso-border-top-alt: solid black .5pt; mso-border-top-themecolor: text1; padding: 0in 5.4pt 0in 5.4pt; width: 159.6pt;" valign="top" width="213">
<p class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;"><span style="color: #333333; font-family: "Arial","sans-serif"; font-size: 10.0pt; mso-fareast-font-family: "Times New Roman";">Optionally
convertible Debentures<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></p>
</td>
<td style="border-bottom: solid black 1.0pt; border-left: none; border-right: solid black 1.0pt; border-top: none; mso-border-alt: solid black .5pt; mso-border-bottom-themecolor: text1; mso-border-left-alt: solid black .5pt; mso-border-left-themecolor: text1; mso-border-right-themecolor: text1; mso-border-themecolor: text1; mso-border-top-alt: solid black .5pt; mso-border-top-themecolor: text1; padding: 0in 5.4pt 0in 5.4pt; width: 159.6pt;" valign="top" width="213">
<p class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;"><span style="color: #333333; font-family: "Arial","sans-serif"; font-size: 10.0pt; mso-fareast-font-family: "Times New Roman";">OCDs<o:p></o:p></span></p>
</td>
</tr>
<tr style="mso-yfti-irow: 3; mso-yfti-lastrow: yes;">
<td style="border-top: none; border: solid black 1.0pt; mso-border-alt: solid black .5pt; mso-border-themecolor: text1; mso-border-themecolor: text1; mso-border-top-alt: solid black .5pt; mso-border-top-themecolor: text1; padding: 0in 5.4pt 0in 5.4pt; width: 159.6pt;" valign="top" width="213">
<p class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;"><span style="color: #333333; font-family: "Arial","sans-serif"; font-size: 10.0pt; mso-fareast-font-family: "Times New Roman";">Partially
convertible Debentures<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></p>
</td>
<td style="border-bottom: solid black 1.0pt; border-left: none; border-right: solid black 1.0pt; border-top: none; mso-border-alt: solid black .5pt; mso-border-bottom-themecolor: text1; mso-border-left-alt: solid black .5pt; mso-border-left-themecolor: text1; mso-border-right-themecolor: text1; mso-border-themecolor: text1; mso-border-top-alt: solid black .5pt; mso-border-top-themecolor: text1; padding: 0in 5.4pt 0in 5.4pt; width: 159.6pt;" valign="top" width="213">
<p class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;"><span style="color: #333333; font-family: "Arial","sans-serif"; font-size: 10.0pt; mso-fareast-font-family: "Times New Roman";">PCDs<o:p></o:p></span></p>
</td>
</tr>
</tbody></table>
<p class="MsoNormal"><span style="color: #333333; font-family: "Arial","sans-serif"; font-size: 10.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="color: #333333; font-family: "Arial","sans-serif"; font-size: 10.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";"><span style="mso-spacerun: yes;"> </span><span style="mso-spacerun: yes;"> </span></span></p>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-8633181154706238689.post-48211348404146770712022-12-23T05:35:00.001-08:002022-12-23T05:35:11.518-08:00Various Farms under Charge Creation, Modification and satisfaction <p> </p><p class="MsoNormal">Rules [ Chapter VI The Companies (Registration of Charges)
Rules, 2014 ]</p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">Various<span style="mso-spacerun: yes;"> </span>Forms<span style="mso-spacerun: yes;"> </span>under<span style="mso-spacerun: yes;">
</span>Charge creation , Modification and Satisfaction</p>
<p class="MsoNormal">Rule 3</p>
<p class="MsoNormal">For registration of charge as provided in sub-section (1) of
section 77, section 78 and section 79, the particulars of the charge together
with a copy of the instrument, if any, creating or modifying the charge in Form
No.CHG-1</p>
<p class="MsoNormal">Rule 6</p>
<p class="MsoNormal">(1) Where a charge is registered with the Registrar under
sub-section (1) of section 77 or section 78, he shall issue a certificate of
registration of such charge in Form No.CHG-2</p>
<p class="MsoNormal">(2) Where the particulars of modification of charge is
registered under section 79, the Registrar shall issue a certificate of
modification of charge in Form No. CHG-3</p>
<p class="MsoNormal">Rule 8</p>
<p class="MsoNormal">(1) A company or charge holder shall within a period of
three hundred days from the date of the payment or satisfaction in full of any
charge registered under Chapter VI, give intimation of the same to the
Registrar in Form No.CHG-4 along with the fee.]</p>
<p class="MsoNormal">(2) Where the Registrar enters a memorandum of satisfaction
of charge in full in pursuance of section 82 or 83, he shall issue a
certificate of registration of satisfaction of charge in Form No.CHG-5.</p>
<p class="MsoNormal">Rule 3</p>
<p class="MsoNormal">Form No.CHG-9 (for debentures including rectification), as
the case may be, duly signed by the company and the charge holder</p>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-8633181154706238689.post-6971146738520764802022-09-14T19:47:00.004-07:002022-09-14T19:47:57.365-07:00EASING THE REQUIREMENT OF RAISING CAPITAL IN DISTRESSED COMPANIES<p> <b><span lang="EN-IN">EASING THE
REQUIREMENT OF RAISING CAPITAL IN DISTRESSED COMPANIES</span></b></p>
<p class="MsoNormal" style="line-height: 150%;"><b><span lang="EN-IN">Section :</span></b><span lang="EN-IN">Section
53<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 150%;"><b><span lang="EN-IN">Issue to
be addressed :<o:p></o:p></span></b></p>
<p class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in;"><span lang="EN-IN">Section 53 of the Act, in the present form does not permit a
Company to issue shares at discount. Accordingly, it would be difficult for
distressed companies where the market value of the shares becomes less than the
nominal value, thereby leading to difficulties in raising fresh share capital
for the revival of the company.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in;"><span lang="EN-IN"> </span></p>
<p class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in;"><span lang="EN-IN"> A</span><b><span lang="EN-IN">mendments /Proposed Recommended by the Committee</span></b></p>
<span lang="EN-IN" style="font-family: "Calibri","sans-serif"; font-size: 11.0pt; line-height: 107%; mso-ansi-language: EN-IN; mso-ascii-theme-font: minor-latin; mso-bidi-language: AR-SA; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: Calibri; mso-fareast-language: EN-US; mso-fareast-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">The
Committee recommended that distressed companies should be allowed to issue
shares at a discount to the Central Government or State Government or to such
class or classes of persons as may be prescribed, notwithstanding the
prohibition under Section 53 of CA-13. It was stated that for this purpose,
distressed companies may be categorised as such class or classes of companies
that have cash losses (otherthan those arising out of depreciation or
revaluation) for previous three consecutive years or more and fulfil such terms
and conditions and issue shares at a discount in such manner as may be
prescribed by the Central Government. To ensure further safeguards, the
Committee recommended that the registered valuers should continue to value such
issuances, failing which such issuances would be void</span>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-8633181154706238689.post-72997663707764722422022-09-06T07:21:00.002-07:002022-09-06T07:21:17.718-07:00Company Law Committee- Fractional shares <p> <b><span lang="EN-IN">3.RECOGNISING
ISSUANCE AND HOLDING OF FRACTIONAL SHARES, RSUs AND SARs</span></b></p><p class="MsoNormal" style="line-height: 150%;"><span lang="EN-IN"><o:p></o:p></span></p><p class="MsoNormal" style="line-height: 150%;"><b><span lang="EN-IN" style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">Section :</span></b><span lang="EN-IN" style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">Section
62(1)<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 150%;"><b><span lang="EN-IN" style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">Issue to
be addressed :<o:p></o:p></span></b></p>
<p class="MsoNormal" style="line-height: 150%; text-align: justify;"><span lang="EN-IN" style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">The
Act in its present form does not permit the holding of Fractional shares i.e.,
a portion of a share less than one share unit. Fractional shares may arise as a
consequence of corporate actions like mergers, issue of bonuses or rights
issues.Further, there are no provisions under the Act, in relation to the
Restricted Stock Units [RSUs] and Stock Appreciation Rights [SARs], which are
schemes linked to shares of a Company, aimed at granting its employees
ownership rights in the company.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in;"><b><span lang="EN-IN" style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">Amendments /Proposed Recommended by the Committee<o:p></o:p></span></b></p>
<p class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify;"><span lang="EN-IN" style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">The Committee felt that CA-13 should be
amended to insert provisions that enable issuance, holding and transfer of
fractionalshares for a class or classes of companies, in such manner as may be
prescribed. Such shares should only be issued in dematerialised form. For
listed companies, such prescriptions may be made in consultation with SEBI. It
is also clarified that this recommendation only pertains to cases that would
involve a fresh issue of fractional shares by the company and not to those
cases where fractional shares get created forthe time being on account of any
corporate action.With regard to Restricted Stock Units [RSUs] and Stock
Appreciation Rights [SARs], an amendment is proposed to Section 62 (1) to allow
additional employee compensation schemes linked to the value of the share
capital of a company<o:p></o:p></span></p>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-8633181154706238689.post-33850797592651325202022-09-05T20:08:00.005-07:002022-09-05T20:08:45.725-07:00Company Law committee - .Facilitating Communication in Electronic Form<p> <b><span lang="EN-IN">2.Facilitating
Communication in Electronic Form</span></b></p>
<p class="MsoNormal" style="line-height: 150%;"><b><span lang="EN-IN">Section :</span></b><span lang="EN-IN">
Section 20 of CA-13<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 150%;"><b><span lang="EN-IN">Issue to
be addressed :<o:p></o:p></span></b></p>
<p class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify;"><span lang="EN-IN">Section 20 of CA-13 outlines the different
modes by which documents can be served on a company, its officers or the RoC.
Section 20(2) stipulates that a document may be delivered to the ROC or any
other member through registered post, speed post, courier or any
other electronic mode as may be prescribed. While Section 20(2) expressly
permits the service of documents in electronic form, the Committee deliberated
whether the provision should be amended to mandate/enable certain class or
classes of companies to serve documents totheir members in electronic mode
only.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify;"><span lang="EN-IN"> </span></p>
<p class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify;"><span lang="EN-IN">Section 20(2)9 CA-13 allows a member to
request the delivery of any document through a particular mode by bearing the
fees associated with the same, which the company may determine in its annual
general meeting (“AGM”)<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in;"><span lang="EN-IN"> </span></p>
<p class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in;"><b><span lang="EN-IN">Amendments /Proposed Recommended by the Committee<o:p></o:p></span></b></p>
<p class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in;"><span lang="EN-IN"> </span></p>
<span lang="EN-IN" style="font-family: "Calibri","sans-serif"; font-size: 11.0pt; line-height: 107%; mso-ansi-language: EN-IN; mso-ascii-theme-font: minor-latin; mso-bidi-language: AR-SA; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: Calibri; mso-fareast-language: EN-US; mso-fareast-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">The
Committee recommended that Section 20 should be amended to introduce a specific
provision enabling the Central Government to prescribe Rules, with suitable
safeguards to protect the interest of investors, for such class or classes of
companies for whom it shall be adequate to serve such documents as may be
prescribed to all their members in electronic mode only for compliance with the
provisions of the Act. However, where a member has requested the company to
serve physical documents also, the company shall, as an investor friendly
measure,also serve such documents in physical mode.</span>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-8633181154706238689.post-60166374098181488962022-09-05T08:47:00.003-07:002022-09-05T08:47:42.446-07:00Company Law committee recommendation - Realign the Financial year <p> </p><p></p><p class="MsoNormal" style="line-height: 150%;"><b><span lang="EN-IN" style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">1.Realign
the Financial year</span></b><span lang="EN-IN" style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 150%;"><b><span lang="EN-IN" style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">Section :</span></b><span lang="EN-IN" style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">
Section 2(41) of CA-13<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 150%;"><b><span lang="EN-IN" style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">Issue to
be addressed :<o:p></o:p></span></b></p>
<p class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify;"><span lang="EN-IN" style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">A company which is the holding company or a
subsidiary or associate of a company incorporated outside India, and is
required to follow a different FY for consolidation of its accounts outside
India, may be allowed to follow such different FY upon making an application to
the Central Government. The Committee noted that if such a company, or body
corporate, ceases to be a holding, subsidiary or associate company of the
foreign entity, CA-13 currently contains no provision allowing such company to
revert to the FY required to be followed under CA13. This hinders the company’s
or body corporate’s ability to accurately measure its revenue and earnings in
that FY, as per Indian laws.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in;"><b><span lang="EN-IN" style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><o:p> </o:p></span></b></p>
<p class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in;"><b><span lang="EN-IN" style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">Amendments /Proposed Recommended by the Committee<o:p></o:p></span></b></p>
<p class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in;"><span lang="EN-IN" style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">The Committee said that there would also be a need to verify the
company’s status and filing position.Thus, the requirement of obtaining an
approval from Central Government should be incorporated.The Committee proposed
that such companies, which cease to be associated with a foreign entity, should
be allowed to file a fresh application with the Central Government in a
prescribed form to allow them to revert back to the FY followed under CA-13.<o:p></o:p></span></p><br /><p></p>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-8633181154706238689.post-12649596447990995622022-09-05T06:07:00.001-07:002022-09-05T06:07:22.003-07:00Section 158 Companies Act 2013 Obligation to Indicate Director Identification Number<p> <span style="background-color: white; color: #333333; font-family: Arial; font-size: small; font-weight: 700; text-align: justify;">158.</span><span style="background-color: white; color: #333333; font-family: Arial; font-size: small; text-align: justify;"> Every person or company, while furnishing any return, information or particulars as are required to be furnished under this Act, shall mention the Director Identification Number in such return, information or particulars in case such return, information or particulars relate to the director or contain any reference of any director.</span></p><p><span style="background-color: white; color: #333333; font-family: Arial; font-size: small; text-align: justify;"><br /></span></p><p><span style="background-color: white; color: #333333; font-family: Arial; font-size: small; text-align: justify;">What is special about the section?</span></p><p><span style="background-color: white; color: #333333; font-family: Arial; font-size: small; text-align: justify;">Recent days Several Registrar of Companies issuing notices to the Companies for non compliance Section 158 while submitting Balance sheet </span></p><p><span style="background-color: white; color: #333333; font-family: Arial; font-size: small; text-align: justify;">Section 134 (1) provides <b>that </b></span><span style="background-color: white; color: #333333; font-family: Arial, Verdana, sans-serif; font-size: x-small; text-align: justify; widows: 1;"><span style="font-family: Arial;"><span class="Apple-converted-space"> </span></span></span><span style="background-color: white; color: #993300; font-family: Arial, Verdana, sans-serif; font-size: 12px; text-align: justify; widows: 1;">The financial statement, including consolidated financial statement, if any, shall be approved by the Board of Directors before they are signed on behalf of the Board by the chairperson of the company where he is authorised by the Board or by two directors out of which one shall be managing director, if any, and the Chief Executive Officer, the Chief Financial Officer and the company secretary of the company, wherever they are appointed, or in the case of One Person Company, only by one director, for submission to the auditor for his report thereon.]</span></p><p><span style="background-color: white; color: #333333; font-family: Arial; font-size: small; text-align: justify;">While signing Financial statement, the Director has to mention his name, Designation and DIN No. in case only signature or signature and name was there, then it is non compliance of Section 158</span></p><p><span style="background-color: white; color: #333333; font-family: Arial; font-size: small; text-align: justify;">Not only financial statement wherever Director signing any documents, he should mention his DIN No and designation and other than financial documents also comes under Section 158</span></p><p><span style="background-color: white; color: #333333; font-family: Arial; font-size: small; text-align: justify;">The section denotes obligation to indicate Director Identification number and several notices already issued by many Registrar of companies in the above section</span></p><p><span style="background-color: white; color: #333333; font-family: Arial; font-size: small; text-align: justify;">Conclusion: Before submitting Aoc 4, the same may be verified so that the company and Directors are not punishable under Section 158</span></p><p><span style="background-color: white; color: #333333; font-family: Arial; font-size: small; text-align: justify;"><br /></span></p>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-8633181154706238689.post-79951777946677977632022-09-04T10:00:00.001-07:002022-09-04T10:00:40.386-07:00Disclosure of Board Meeting in Directors Report <p> </p><p>Now day several Roc looking into Directors report filed by companies and looking into various non compliance. Here we are going to discuss Board meeting disclosure is also very important disclosure.</p><p><br /></p><p>Please look into the Companies Act, 2013 and also SS! Disclosure and SS 4 disclosures</p><p>There is no clarity on disclosures from SS 1 and SS 4 and Companies Act, 2013</p><p>Professionals fraternity which one of the disclosure to be taken. Now Secretarial standards compliance and Board report compliance is also entirely different. The moot question how many companies following the secretarial standards disclosure in respect of Board meeting strictly</p><p>In listed companies they have mentioned in corporate governance report about who are all directors attended the meeting and date only as per listed companies director report There is no clarity on SS1 what type of information we should mention in Director report</p><p>Section 134 ( 3) (b)</p><p><span style="background-color: white; color: #333333; font-family: Arial; font-size: small; text-align: justify; widows: 1;">b) number of meetings of the Board;</span></p><p>SSI Disclosure</p><p>9. Disclosure</p><p>The Report of the Board of Directors shall include a statement on compliances of applicable Secretarial Standards.</p><p>SS 4</p><p>6.4 Board Meetings
The number and dates of meetings of the Board held
during the year shall be disclosed in the Report. </p><p>Disclosure of Board Report</p><p>19. COMPLIANCE WITH SECRETARIAL STANDARDS
The Report shall include a statement on compliance of
applicable Secretarial Standards and other Secretarial Standards
voluntarily adopted by the company</p><p><br /></p><p><br /></p>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-8633181154706238689.post-57896563413721278902022-08-27T20:55:00.003-07:002022-08-27T20:55:59.294-07:00Preservation of accounts <p> </p><p class="MsoNormal"><span style="background: white; color: #333333; font-family: "Arial","sans-serif"; font-size: 10.0pt; line-height: 115%;">Preservation of<span style="mso-spacerun: yes;"> </span>Accounts<o:p></o:p></span></p>
<p class="MsoNormal"><span style="background: white; color: #333333; font-family: "Arial","sans-serif"; font-size: 10.0pt; line-height: 115%;">Section 128 sub section 5<o:p></o:p></span></p>
<p class="MsoNormal"><span style="background: white; color: #333333; font-family: "Arial","sans-serif"; font-size: 10.0pt; line-height: 115%;"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="background: white; color: #333333; font-family: "Arial","sans-serif"; font-size: 10.0pt; line-height: 115%;">(<i>5</i>) The books of
account of every company relating to a period of not less than eight</span><span style="background: white; color: #333333; font-family: "Helvetica","sans-serif"; font-size: 11.5pt; line-height: 115%;"><span style="-webkit-text-stroke-width: 0px; float: none; font-variant-caps: normal; font-variant-ligatures: normal; orphans: 2; text-align: -webkit-left; text-decoration-color: initial; text-decoration-style: initial; text-decoration-thickness: initial; widows: 2; word-spacing: 0px;"> </span></span><span style="background: white; color: #333333; font-family: "Arial","sans-serif"; font-size: 10.0pt; line-height: 115%;">financial years immediately preceding a
financial year, or where the company had been in</span><span style="background: white; color: #333333; font-family: "Helvetica","sans-serif"; font-size: 11.5pt; line-height: 115%;"><span style="-webkit-text-stroke-width: 0px; float: none; font-variant-caps: normal; font-variant-ligatures: normal; orphans: 2; text-align: -webkit-left; text-decoration-color: initial; text-decoration-style: initial; text-decoration-thickness: initial; widows: 2; word-spacing: 0px;"> </span></span><span style="background: white; color: #333333; font-family: "Arial","sans-serif"; font-size: 10.0pt; line-height: 115%;">existence for a period less than eight years, in respect of all the
preceding years together with</span><span style="background: white; color: #333333; font-family: "Helvetica","sans-serif"; font-size: 11.5pt; line-height: 115%;"><span style="-webkit-text-stroke-width: 0px; float: none; font-variant-caps: normal; font-variant-ligatures: normal; orphans: 2; text-align: -webkit-left; text-decoration-color: initial; text-decoration-style: initial; text-decoration-thickness: initial; widows: 2; word-spacing: 0px;"> </span></span><span style="background: white; color: #333333; font-family: "Arial","sans-serif"; font-size: 10.0pt; line-height: 115%;">the
vouchers relevant to any entry in such books of account shall be kept in good
order<o:p></o:p></span></p>
<p class="MsoNormal"><span style="background: white; color: #333333; font-family: "Arial","sans-serif"; font-size: 10.0pt; line-height: 115%;"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="background: white; color: #333333; font-family: "Arial","sans-serif"; font-size: 10.0pt; line-height: 115%;"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="background: white; color: #333333; font-family: "Arial","sans-serif"; font-size: 10.0pt; line-height: 115%;">Books of account<span style="mso-spacerun: yes;"> </span>definition<span style="mso-spacerun: yes;">
</span>Section 2<span style="mso-spacerun: yes;"> </span>sub section 13<o:p></o:p></span></p>
<p style="background: white; margin-bottom: 8.1pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; text-align: justify;"><span style="color: #333333; font-family: "Arial","sans-serif"; font-size: 10.0pt;"> (<i>13</i>) "books of
account" includes records maintained in respect of—</span><span style="color: #333333; font-family: "Helvetica","sans-serif"; font-size: 11.5pt;"><o:p></o:p></span></p>
<p class="indent2" style="-webkit-text-stroke-width: 0px; background-attachment: initial; background-clip: initial; background-origin: initial; background-repeat: initial; background-size: initial; background: white; font-variant-caps: normal; font-variant-ligatures: normal; margin-bottom: 8.1pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; orphans: 2; text-align: justify; text-decoration-color: initial; text-decoration-style: initial; text-decoration-thickness: initial; widows: 2; word-spacing: 0px;"><span style="color: #333333; font-family: "Arial","sans-serif"; font-size: 10.0pt;">(<i>i</i>)
all sums of money received and expended by a company and matters in relation to
which the receipts and expenditure take place;</span><span style="color: #333333; font-family: "Helvetica","sans-serif"; font-size: 11.5pt;"><o:p></o:p></span></p>
<p class="indent2" style="-webkit-text-stroke-width: 0px; background-attachment: initial; background-clip: initial; background-origin: initial; background-repeat: initial; background-size: initial; background: white; font-variant-caps: normal; font-variant-ligatures: normal; margin-bottom: 8.1pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; orphans: 2; text-align: justify; text-decoration-color: initial; text-decoration-style: initial; text-decoration-thickness: initial; widows: 2; word-spacing: 0px;"><span style="color: #333333; font-family: "Arial","sans-serif"; font-size: 10.0pt;">(<i>ii</i>)
all sales and purchases of goods and services by the company;</span><span style="color: #333333; font-family: "Helvetica","sans-serif"; font-size: 11.5pt;"><o:p></o:p></span></p>
<p class="indent2" style="-webkit-text-stroke-width: 0px; background-attachment: initial; background-clip: initial; background-origin: initial; background-repeat: initial; background-size: initial; background: white; font-variant-caps: normal; font-variant-ligatures: normal; margin-bottom: 8.1pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; orphans: 2; text-align: justify; text-decoration-color: initial; text-decoration-style: initial; text-decoration-thickness: initial; widows: 2; word-spacing: 0px;"><span style="color: #333333; font-family: "Arial","sans-serif"; font-size: 10.0pt;">(<i>iii</i>)
the assets and liabilities of the company; and</span><span style="color: #333333; font-family: "Helvetica","sans-serif"; font-size: 11.5pt;"><o:p></o:p></span></p>
<p class="indent2" style="-webkit-text-stroke-width: 0px; background-attachment: initial; background-clip: initial; background-origin: initial; background-repeat: initial; background-size: initial; background: white; font-variant-caps: normal; font-variant-ligatures: normal; margin-bottom: 8.1pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; orphans: 2; text-align: justify; text-decoration-color: initial; text-decoration-style: initial; text-decoration-thickness: initial; widows: 2; word-spacing: 0px;"><span style="color: #333333; font-family: "Arial","sans-serif"; font-size: 10.0pt;">(<i>iv</i>)
the items of cost as may be prescribed under <a href="https://e-book.icsi.edu/Actpagedisplay.aspx?PAGENAME=17532" style="background-position-x: 0px; background-position-y: 0px;" target="_blank"><span style="color: #428bca; text-decoration: none; text-underline: none;">section 148</span></a> in
the case of a company which belongs to any class of companies specified under
that section;<o:p></o:p></span></p>
<p class="indent2" style="background: white; margin-bottom: 8.1pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; text-align: justify;"><span style="color: #333333; font-family: "Arial","sans-serif"; font-size: 10.0pt;"><o:p> </o:p></span></p>
<p class="indent2" style="background: white; text-align: justify;"><span style="color: #333333; font-family: "Helvetica","sans-serif"; font-size: 11.5pt;">148.
(1) Notwithstanding anything contained in this Chapter, the Central Government
may, by order, in respect of such class of companies engaged in the production
of such goods or providing such services as may be prescribed, direct that
particulars relating to the utilisation of material or labour or to other items
of cost as may be prescribed shall also be included in the books of account
kept by that class of companies:<o:p></o:p></span></p>
<p class="indent2" style="background: white; margin-bottom: 8.1pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; text-align: justify;"><span style="color: #333333; font-family: "Helvetica","sans-serif"; font-size: 11.5pt;">Provided that the
Central Government shall, before issuing such order in respect of any class of
companies regulated under a special Act, consult the regulatory body
constituted or established under such special Act.<o:p></o:p></span></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">Brief</p>
<p class="MsoNormal">Subsection 5<span style="mso-spacerun: yes;"> </span>of
Section 128<span style="mso-spacerun: yes;"> </span>says that<span style="mso-spacerun: yes;"> </span>books of account to be maintained not less
than<span style="mso-spacerun: yes;"> </span>8 financial years preceding
financial year </p>
<p class="MsoNormal">In case company in existence less than 8 years<span style="mso-spacerun: yes;"> </span>then they have to maintain all books of
account for those years.</p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">Books of account</p>
<p class="MsoNormal">The entire set of books of account like<span style="mso-spacerun: yes;"> </span>financial activities</p>
<p class="MsoNormal">a)<span style="mso-spacerun: yes;"> </span>all sums of money
received and<span style="mso-spacerun: yes;"> </span>expended by a company</p>
<p class="MsoNormal">b)<span style="mso-spacerun: yes;"> </span>sales and
purchases of goods and services of the company</p>
<p class="MsoNormal">c)<span style="mso-spacerun: yes;"> </span>the assets and liabilities
of the company </p>
<p class="MsoNormal">d)<span style="mso-spacerun: yes;"> </span>items of cost
prescribed under Section 148<span style="mso-spacerun: yes;"> </span>Application
of cost Record </p>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-8633181154706238689.post-39372364247487020522021-11-19T16:50:00.003-08:002021-11-19T16:50:57.567-08:00CBIC notifies rate changes for apparel, footwear and textiles from Jan 1, 2022 <p> source Economic Times</p><p>High light of CBIC notification are as follows </p><p><span style="font-size: medium;"><span style="background-color: white; font-family: Montserrat, sans-serif;">Increase in goods and service tax rate of various kinds of textiles, apparel and footwear to 12% from 5% earlier, which will be effective from January 1, 2022.</span><br style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; font-family: Montserrat, sans-serif; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;" /></span><span style="background-color: white; font-family: Montserrat, sans-serif; font-size: large;">certain synthetic fibres and yarn have been lowered from 18% to 12%</span></p><p><span style="background-color: white; font-family: Montserrat, sans-serif;"><span style="font-size: medium;">The latest notification specifies that GST rate on article of apparel of any value will be 12%, from next year</span></span></p><p><span style="font-size: medium;"><span style="background-color: white; font-family: Montserrat, sans-serif;">GST rate for Woven fabrics, Sewing thread of man-made filaments, Synthetic filament yarn other than sewing thread, synthetic monofilament, Artificial filament yarn including artificial monofilament, has been increased from 5% to 12%</span></span></p><p><span style="font-size: medium;"><span style="background-color: white; font-family: Montserrat, sans-serif;">Knotted netting of twine, cordage or rope made up of fishing nets and other made up nets, of textile materials, pile fabrics, terry fabrics, knitted or crocheted, blankets and travelling rugs, bed linen, table linen, toilet linen and kitchen linen, curtains and interior blinds, sacks and bags, of a kind used for the packing of goods, tarpaulins, awnings and sun-blinds, will also be taxed at 12%.</span><br style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; font-family: Montserrat, sans-serif; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;" /><br style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; font-family: Montserrat, sans-serif; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;" /></span></p><div style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; font-family: arial; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;"><span style="font-size: medium;">Read more at:<br style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;" /><a href="https://economictimes.indiatimes.com/news/economy/finance/cbic-notifies-rate-changes-for-apparel-footwear-and-textiles-from-jan-1-2022/articleshow/87801158.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst" style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; color: black; margin: 0px; outline: 0px; padding: 0px; text-decoration-line: none; vertical-align: baseline;">https://economictimes.indiatimes.com/news/economy/finance/cbic-notifies-rate-changes-for-apparel-footwear-and-textiles-from-jan-1-2022/articleshow/87801158.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst</a></span></div><p><span style="font-size: medium;"><br style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; font-family: Montserrat, sans-serif; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;" /></span></p><div style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; font-family: arial; font-size: 12px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;"><br /></div>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-8633181154706238689.post-65703800180717881752021-02-03T06:30:00.003-08:002021-02-03T06:30:55.698-08:00LLP update <p> </p><div style="background-color: white; box-sizing: border-box; color: #333333; font-family: "Helvetica Neue", Helvetica, Arial, sans-serif; font-size: 14px; text-align: center;"><h2 style="box-sizing: border-box; color: inherit; font-family: inherit; font-size: 30px; font-weight: 500; line-height: 1.1; margin-bottom: 10px; margin-top: 20px;">MCA initiates process of De-criminalisation of compoundable offences under Limited Liability Act, 2008<br style="box-sizing: border-box;" /><span id="m_3589736038359525137gmail-ltrSubtitle" style="box-sizing: border-box;"></span></h2></div><div style="background-color: white; box-sizing: border-box; color: #333333; font-family: "Helvetica Neue", Helvetica, Arial, sans-serif; font-size: 14px; padding-top: 20px; text-align: center;">Posted On: 03 FEB 2021 6:14PM by PIB Delhi</div><div style="background-color: white; box-sizing: border-box; color: #333333; font-family: "Helvetica Neue", Helvetica, Arial, sans-serif; font-size: 14px; padding-top: 20px;"></div><p style="background-color: white; box-sizing: border-box; color: #333333; font-family: "Helvetica Neue", Helvetica, Arial, sans-serif; font-size: 14px; text-align: justify;"><span style="box-sizing: border-box; font-size: 16px;"><span style="box-sizing: border-box; font-family: "Times New Roman", serif;">With the object of unleashing the entrepreneurial spirits of our youth and to remove the fear of criminal prosecutions for non- substantive minor and procedural omissions and commissions in the normal course of their business transactions, the Government of India in the Ministry of Corporate Affairs (MCA) decided to initiate the process of decriminalization of compoundable offences under the limited liability partnership (LLP) Act, 2008, for greater ease of doing business for law abiding LLPs.</span></span></p><p style="background-color: white; box-sizing: border-box; color: #333333; font-family: "Helvetica Neue", Helvetica, Arial, sans-serif; font-size: 14px; text-align: justify;"><span style="box-sizing: border-box; font-size: 16px;"><span style="box-sizing: border-box; font-family: "Times New Roman", serif;">The Government treats Honest and Ethical Corporate entrepreneurs as wealth creators and nation builders. The objective of the De-criminalization exercise is to remove criminality of offences from business laws where no malafide intentions are involved. In furtherance of the said objective, an exercise was undertaken to identify those provisions of the Limited Liability Partnership Act, violations of which do not result in injury to public interest but are presently criminal in nature with fine as well as punishment after conviction being provided for in the Act.</span></span></p><p style="background-color: white; box-sizing: border-box; color: #333333; font-family: "Helvetica Neue", Helvetica, Arial, sans-serif; font-size: 14px; text-align: justify;"><span style="box-sizing: border-box; font-size: 16px;"><span style="box-sizing: border-box; font-family: "Times New Roman", serif;">Principles adopted for Decriminalization of Compoundable Offences:</span></span></p><p style="background-color: white; box-sizing: border-box; color: #333333; font-family: "Helvetica Neue", Helvetica, Arial, sans-serif; font-size: 14px; text-align: justify;"> </p><ol style="background-color: white; box-sizing: border-box; color: #333333; font-family: "Helvetica Neue", Helvetica, Arial, sans-serif; font-size: 14px; list-style-type: lower-alpha; margin-bottom: 10px; margin-top: 0px;"><li style="box-sizing: border-box; margin-left: 15px; text-align: justify;"><span style="box-sizing: border-box; font-size: 16px;"><span style="box-sizing: border-box; font-weight: 700;"><em style="box-sizing: border-box;"><span style="box-sizing: border-box; font-family: "Times New Roman", serif;">Principle 1</span></em></span><em style="box-sizing: border-box;"><span style="box-sizing: border-box; font-family: "Times New Roman", serif;">: </span></em><span style="box-sizing: border-box; font-family: "Times New Roman", serif;">Offences that relate to minor/ less serious compliance issues, involving predominantly objective determinations, are proposed to be shifted to the In-house Adjudication Mechanism (IAM) framework instead of being treated as criminal offences.</span></span></li></ol><p style="background-color: white; box-sizing: border-box; color: #333333; font-family: "Helvetica Neue", Helvetica, Arial, sans-serif; font-size: 14px; text-align: justify;"> </p><ol start="2" style="background-color: white; box-sizing: border-box; color: #333333; font-family: "Helvetica Neue", Helvetica, Arial, sans-serif; font-size: 14px; list-style-type: lower-alpha; margin-bottom: 10px; margin-top: 0px;"><li style="box-sizing: border-box; margin-left: 15px; text-align: justify;"><span style="box-sizing: border-box; font-size: 16px;"><span style="box-sizing: border-box; font-weight: 700;"><em style="box-sizing: border-box;"><span style="box-sizing: border-box; font-family: "Times New Roman", serif;">Principle 2</span></em></span><span style="box-sizing: border-box; font-family: "Times New Roman", serif;">: Offences that are more appropriate to be dealt with under other laws, are proposed to be omitted from the LLP Act, 2008.</span></span></li></ol><p style="background-color: white; box-sizing: border-box; color: #333333; font-family: "Helvetica Neue", Helvetica, Arial, sans-serif; font-size: 14px; text-align: justify;"> </p><ol start="3" style="background-color: white; box-sizing: border-box; color: #333333; font-family: "Helvetica Neue", Helvetica, Arial, sans-serif; font-size: 14px; list-style-type: lower-alpha; margin-bottom: 10px; margin-top: 0px;"><li style="box-sizing: border-box; margin-left: 15px; text-align: justify;"><span style="box-sizing: border-box; font-size: 16px;"><span style="box-sizing: border-box; font-weight: 700;"><em style="box-sizing: border-box;"><span style="box-sizing: border-box; font-family: "Times New Roman", serif;">Principle 3</span></em></span><em style="box-sizing: border-box;"><span style="box-sizing: border-box; font-family: "Times New Roman", serif;">: </span></em><span style="box-sizing: border-box; font-family: "Times New Roman", serif;">For non-Compoundable offences that are very serious violations entailing an element of fraud, intent to deceive and caused injury to public interest or non- compliance of order of statutory authorities impinging on effective regulation, Status Quo would be maintained.</span></span></li></ol><p style="background-color: white; box-sizing: border-box; color: #333333; font-family: "Helvetica Neue", Helvetica, Arial, sans-serif; font-size: 14px; text-align: justify;"> </p><p style="background-color: white; box-sizing: border-box; color: #333333; font-family: "Helvetica Neue", Helvetica, Arial, sans-serif; font-size: 14px; text-align: justify;"><span style="box-sizing: border-box; font-size: 16px;"><span style="box-sizing: border-box; font-family: "Times New Roman", serif;">In all, twelve (12) offences are proposed to be decriminalized and one (1) provision (Section 73) entailing criminal liability is proposed to be omitted. The 12 de-criminalized offences would then get shifted to IAM thereby de-clogging the criminal courts from routine cases.</span></span></p><p style="background-color: white; box-sizing: border-box; color: #333333; font-family: "Helvetica Neue", Helvetica, Arial, sans-serif; font-size: 14px; text-align: justify;"> </p><p style="background-color: white; box-sizing: border-box; color: #333333; font-family: "Helvetica Neue", Helvetica, Arial, sans-serif; font-size: 14px; text-align: justify;"> </p><p style="background-color: white; box-sizing: border-box; color: #333333; font-family: "Helvetica Neue", Helvetica, Arial, sans-serif; font-size: 14px; text-align: justify;"><span style="box-sizing: border-box; font-size: 16px;"><span style="box-sizing: border-box; font-weight: 700;"><span style="box-sizing: border-box; font-family: "Times New Roman", serif;">In addition to the De-criminalization of the Act the Government also proposes Introduction of certain new concepts into the Act for greater Ease of Doing Business</span></span><span style="box-sizing: border-box; font-family: "Times New Roman", serif;">:</span></span></p><p style="background-color: white; box-sizing: border-box; color: #333333; font-family: "Helvetica Neue", Helvetica, Arial, sans-serif; font-size: 14px; text-align: justify;"> </p><ol style="background-color: white; box-sizing: border-box; color: #333333; font-family: "Helvetica Neue", Helvetica, Arial, sans-serif; font-size: 14px; list-style-type: lower-roman; margin-bottom: 10px; margin-top: 0px;"><li style="box-sizing: border-box; margin-left: 15px; text-align: justify;"><span style="box-sizing: border-box; font-size: 16px;"><span style="box-sizing: border-box; font-weight: 700;"><span style="box-sizing: border-box; font-family: "Times New Roman", serif;">Small LLP</span></span><span style="box-sizing: border-box; font-family: "Times New Roman", serif;">: It is proposed to create a class of LLP called as “</span><span style="box-sizing: border-box; font-weight: 700;"><span style="box-sizing: border-box; font-family: "Times New Roman", serif;">Small LLP” </span></span><span style="box-sizing: border-box; font-family: "Times New Roman", serif;">in line with the concept of Small Companies. Such Small LLPs would be subject to lesser compliances, lesser fee or additional fee and lesser penalties in the event of default. Thus, lower cost of compliance would incentivize unincorporated micro and small partnerships to convert into the organized structure of an LLP and derive its benefits.</span></span></li></ol><p style="background-color: white; box-sizing: border-box; color: #333333; font-family: "Helvetica Neue", Helvetica, Arial, sans-serif; font-size: 14px; text-align: justify;"> </p><ol start="2" style="background-color: white; box-sizing: border-box; color: #333333; font-family: "Helvetica Neue", Helvetica, Arial, sans-serif; font-size: 14px; list-style-type: lower-roman; margin-bottom: 10px; margin-top: 0px;"><li style="box-sizing: border-box; margin-left: 15px; text-align: justify;"><span style="box-sizing: border-box; font-size: 16px;"><span style="box-sizing: border-box; font-weight: 700;"><span style="box-sizing: border-box; font-family: "Times New Roman", serif;">Non-convertible Debentures (NCDs)</span></span><span style="box-sizing: border-box; font-family: "Times New Roman", serif;">: It is proposed to allow LLPs to raise capital through issue of fully secured Non-Convertible Debentures (NCDs) (as an alternative to equity participation) from investors who are regulated by SEBI or RBI. This will help deepen the Debt Market and enhance the capitalization of LLPs.</span></span></li></ol><p style="background-color: white; box-sizing: border-box; color: #333333; font-family: "Helvetica Neue", Helvetica, Arial, sans-serif; font-size: 14px; margin: 0px 0px 10px;"> </p><p style="background-color: white; box-sizing: border-box; color: #333333; font-family: "Helvetica Neue", Helvetica, Arial, sans-serif; font-size: 14px; text-align: justify;"> </p><p style="background-color: white; box-sizing: border-box; color: #333333; font-family: "Helvetica Neue", Helvetica, Arial, sans-serif; font-size: 14px; text-align: justify;"><span style="box-sizing: border-box; font-size: 16px;"><span style="box-sizing: border-box; font-weight: 700;"><span style="box-sizing: border-box; font-family: "Times New Roman", serif;">Reduction of Additional Fee</span></span><span style="box-sizing: border-box; font-family: "Times New Roman", serif;">: It is also proposed to amend Section 69 of the Act with a view to reduce the additional fee of Rs. 100 per day which is presently applicable for the delayed filing of forms, documents. A reduced additional fee is expected to incentivize smooth filing of records and returns of LLPs and consequently result in an updated registry for proper regulation and policy making.</span></span></p><p style="background-color: white; box-sizing: border-box; color: #333333; font-family: "Helvetica Neue", Helvetica, Arial, sans-serif; font-size: 14px; text-align: justify;"> </p><p style="background-color: white; box-sizing: border-box; color: #333333; font-family: "Helvetica Neue", Helvetica, Arial, sans-serif; font-size: 14px; text-align: center;"><span style="box-sizing: border-box; font-size: 16px;"><span style="box-sizing: border-box; font-family: "Times New Roman", serif;">****</span></span></p><p style="background-color: white; box-sizing: border-box; color: #333333; font-family: "Helvetica Neue", Helvetica, Arial, sans-serif; font-size: 14px; text-align: justify;"><span style="box-sizing: border-box; font-size: 16px;"><span style="box-sizing: border-box; font-family: "Times New Roman", serif;">RM/KMN</span></span></p><div><span style="box-sizing: border-box; font-size: 16px;"><span style="box-sizing: border-box; font-family: "Times New Roman", serif;"><br /></span></span></div>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-8633181154706238689.post-87809296739770180882020-08-25T15:47:00.001-07:002020-08-25T15:47:05.852-07:00Contributions to R&D spends on Covid-related vaccine, drugs to be considered as CSR: Govt <p>MCA has amended CSR Rules to expand CSR activity This is significant initiative and also many countries are trying to bring Covid related vaccine. Any contributions to R&D spends on Covid related drugs to be considered as CSR. It will help companies to contribute on contributions and also motivate the companies to quickly bring vaccine to the market</p><p><a href="https://economictimes.indiatimes.com/industry/healthcare/biotech/healthcare/contributions-to-rd-spends-on-covid-related-vaccine-drugs-to-be-considered-as-csr-govt/articleshow/77744246.cms">https://economictimes.indiatimes.com/industry/healthcare/biotech/healthcare/contributions-to-rd-spends-on-covid-related-vaccine-drugs-to-be-considered-as-csr-govt/articleshow/77744246.cms</a></p>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-8633181154706238689.post-20740698916789403302020-08-25T15:42:00.001-07:002020-08-25T15:42:16.670-07:00Pre-packaged insolvency resolution framework for MSMEs soon Source Economic Times<p> Pre-packaged insolvency resolution Features</p><p>Debtors arranges resolution plan with creditors' acceptance prior to court proceedings</p><p>Faster, cheaper process but can lead malafide intent being realized </p><p><br /></p><p><span style="background-color: white; font-family: Montserrat, sans-serif; font-size: 12px;">A pre-packaged resolution is one where a company prepares a restructuring plan in cooperation with its creditors before initiating insolvency proceedings</span><br style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; font-family: Montserrat, sans-serif; font-size: 12px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;" /><br style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; font-family: Montserrat, sans-serif; font-size: 12px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;" /></p><div style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; font-family: arial; font-size: 12px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">Read more at:<br style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;" /><a href="https://economictimes.indiatimes.com/small-biz/startups/pre-packaged-insolvency-resolution-framework-for-msmes-soon-say-officials/articleshow/77748240.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst" style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; color: black; margin: 0px; outline: 0px; padding: 0px; text-decoration-line: none; vertical-align: baseline;">https://economictimes.indiatimes.com/small-biz/startups/pre-packaged-insolvency-resolution-framework-for-msmes-soon-say-officials/articleshow/77748240.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst</a></div>Unknownnoreply@blogger.com0