Introduction: Memorandum of association is the document that governs relationship between the company and the outside. It is a charter of the company and mentions the extent and scope of its activities. Hence, memorandum of association is an important document as it defines the relationship of the company with the interest and rights of the…
In accordance with section 2(69) of the Companies Act of 2013, a “Promoter” is someone who: (a) A person who has been identified as such in a prospectus or by the company in the annual report under Section 92; (b) A person who has direct or indirect control over the affairs of the company, whether…
Due to the fact that the directors of a business are its representatives and are obligated to behave in good faith, the Companies Act of 2013 established stringent rules including Section 184 to guard against the abuse of authority by the directors. In order to prevent a director from voting or participating in discussions regarding…
Introduction The registered office of a company is the main office to which all communication relating to the company is sent by governmental departments. During incorporation, a company’s promoters must declare its registered office in its Memorandum of Association and keep certain documents, like the mandatory statutory registers, at the registered office. This article will…
Introduction Previously, a company was not allowed to purchase its own shares/ securities, except for a very exceptional cases, as given in section 67 of the 2013 Act. This structural change in the principle and philosophy of company law was brought about by Section 77-A of the Companies (Amendment) Act, 1999 [1956 Act], which stipulates…
Introduction and Meaning of Statutory Registers Statutory Registers, as the name implies, are registers that must be kept by a company in order to record certain important data about the Company. According to the Companies Act, Statutory Registers are registers containing specific records of the Company’s shareholders, directors, deposits, loan & guaranty, etc., and are…
Introduction A person or organisation associated with the reporting entity is referred to as a related party. If a person has control, joint control, or significant influence over the reporting entity, or if that person is a prominent member of its management team, then that person or a close relative of that person is related…
Section 2(84) of the Companies Act, 2013 defines shares, are the divided capital of the company.[i] The shareholding a person has in the company is their ownership in the company. A company releases shares in order to gain capital for the operations of the company, shares are some part of ownership within the company. Depending…
Introduction A promoter plays the most important role in the formation and registration of a company under the Companies Act, 2013. The promoter conceives the idea of the formation of the company and takes all preliminary steps to get the company registered. The emphasis of all the definitions of a promoter is on the kind…
INTRODUCTION A court judgment or any other legal document is only valid when it is signed by the legal fraternity, without a proper sign it will be considered invalid. The same situation arises in the corporate world, as there are so many documents that should be authorized on behalf of the company. For example- the…
