The conclusion of a single lawsuit can have far-reaching consequences for a business or conglomerate of businesses, potentially damaging the interests of the company’s founders, top executives, investors, and other key constituents. Lawmakers have been cognizant of the fact that speed is of the utmost essential in arbitrating corporate issues because even a single dispute…
Chapter xx (sec270 – 365) of the Companies Act, 2013 (CA 2013) deals with the provisions related to winding up. Section 349 of CA 2013 provides for official Liquidator to make payments into public account of India. As per the section of 349 of company law in which it was given that “EVERY OFFICIAL LIQUIDATOR…
Introduction When a winding up order has been released or a provisional has been passed, no suit or other legal proceedings shall be commenced or passed, or if pending at the date of the winding up order, shall be proceeded with, by or against the company, except with the leave of the Tribunal and subject…
INTRODUCTION A company’s dissolution is the final stage of its existence. It is the process by which the company is terminated, i.e. the process by which its corporate existence ends and it is finally dissolved. A company can be wound up by a National Company Law Tribunal (“Tribunal”) or by voluntary winding up, according to…
INTRODUCTION A shareholder usually referred to a person, business, or organization that has at least one share of company stock. Since shareholders are a company’s owners, they profit from its performance in the form of a rising stock valuation. Individuals in an organization whose interest in democratic decisions made by the corporation is disregarded by majority…
In India, the first company legislation dates back to 1850, called the Joint Stock Companies Act, adapted from the English Companies Act, of 1844. After multiple amendments and additions, the Companies Act, of 1913 was passed by the Parliament. This was further amended and the Companies Act, of 1956 came into force, based on the…
The financial year was not defined under the Companies Act, of 1956. However, the Companies Act, 2013 (“the act”) amended the same and added the definition of the financial year to avoid any differing financial years. The financial year is important because it decides for which period a set of records, is to be analyzed,…
The Companies Act,2013 is a broad detailed legislation which basically governs the incorporation, dissolution, and functioning of the company. Mainly, it focuses on the pellucidity by way of detailed disclosures. Financial statement, Board’s report,etc has been mentioned under section 134 of Chapter IX of Companies Act,2013. Financial reporting is necessary for companies as it provides…
Meaning of “call on shares” The term call refers to “an order or demand for payment”. A demand made by a company, under the terms of its articles of incorporation or the terms of the issuance of the share, asking its shareholders to pay up the entire or partial nominal value of their shares is…
Introduction Law exists for different segments in a society. It can be applied in a variety of sectors whether civil or corporate. In discharging the lawful duties, law also governs companies. In respect of companies, company law is applied to regulate different matters in relation to companies. The global business community has grown rapidly in…
