Sweat equity shares, as defined by section 2(88), are equity shares that a company issues to its directors or employees at a discount or for something other than cash in exchange for their expertise, or in exchange for making available rights in the form of intellectual property rights or value additions, by whatever name called.…
View detailsA company whose control lies with another company is called a subsidiary company. The company controlling the subsidiary company is called a holding company. The holding company owns a majority of the shares of the subsidiary company, and thus, exercises control as the majority shareholder or has a controlling interest in the company. Holding companies…
View detailsAccording to Section 16 of the Companies Act, if a company (whether on its first registration or on its registration under a new name) is registered by a name that is identical to or too nearly resembles the name of a company already in existence, rectification of the name of the company is required to be…
View detailsINTRODUCTION Sec 241 deal with application to tribunal for relief in case of oppression, ETC. The terms oppression and mismanagement are not defined under the Companies Act, 2013. These terms are to be interpreted by the court depending upon the facts of each case. Mismanagement refers to practices of managing the company incompetently and dishonestly.…
View detailsIntroduction India is among the world’s largest consumer markets and top global economy. The fact that India is a fast-paced developing economy makes it an attractive destination for corporates all around the globe to invest and have commercial ventures in India. Hence, we see a growing number of foreign corporates have their branch office registration…
View detailsIntroduction: There are certain provisions imposed for the attachment, execution in winding up by the Tribunal to be avoided. It was affected by 15-12-2016, wherein any company, if it is being wound up by the Tribunal if it is attached, distress or executed by the force, without leave of the Tribunal against the Estate or…
View detailsThe Companies Act, 2013 defines a prospectus under section 2 (70) Prospectus can be defined as “any document which is described or issued as a prospectus”. This also includes any notice, circular, advertisement or any other document acting as an invitation to offers from the public. Such an invitation to offer should be for the purchase…
View detailsINTRODUCTION Depository receipt is a negotiable certificate issued by a bank representing shares in a foreign company traded on a local stock exchange. Stock exchange is a marketplace where financial instruments like shares, commodities and bonds are traded. The main purpose of stock exchange is to accept listed securities as collateral and extend credit facilities…
View detailsOne of the chief-characteristics of the Indian Constitution is the way in which the normal federal Constitution can be adapted to emergency situations. A merit of our Constitution is that it visualizes the circumstances in which the strict application of the federal principles could destroy its basic assumptions. WHAT IS EMERGENCY? When the normal…
View detailsINTRODUCTION A company is formed when a number of people come together for achieving a specific purpose. This purpose is generally commercial in nature. The main purpose of business is to earn profit from as much as possible from the business activities. Every company has its own rules and regulations to be followed while running…
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