Section 185 explains Provisions under Company Law Related to Direct or Indirect Loan or Advances to Directors by Company. Loan or advances include loan represented by a book debt, to any of the directors or to any other person in whom the director is interested or give any guarantee or provide any security in connection with any loan taken by him or such other person. Article also explains filing requirement related to Loan or Advances to Directors and penalty for …
Startups and technology companies will be able to issue shares with differential voting rights (DVRs) with the government amending the Companies Act provisions to help entrepreneurs retain control even as they raise equity capital from global investors.
The Ministry of Corporate Affairs (MCA) has raised the existing cap of 26 percent of the total post issue paid up equity share capital to 74 percent of total voting power in respect of shares with DVRs of a firm.
Such shares have …
ALL ABOUT INTER-CORPORATE LOANS AND INVESTMENTS MADE BY THE COMPANY UNDER COMPANIES ACT, 2013
> Gives Loan to any person
> Investment in Body Corporate
> Provides Security to any person
> Provides Guarantee to any person
Important Note: – The word “person” does not include any individual who is in the employment of the company
Cases where Special Resolution is not required by the Company even when the above said limits exceeded:
> Where a loan or …
Telecommunications is one of the fastest growing industries in India that has undergone an innovative phase over the past few years and stands as the second largest telecommunications market in the world after China. It is due to liberalization policy that telecom sector could attract more FDI flows in private sector participation increased in total telephone connections of the nation. This led the sector to competitive stimulus, high telecom penetration and substantial reduction in tariffs. Though foreign telecom players have …
Points to remember
Issue should be authorized by Articles of Association of the Company.
Only fully paid securities to be issued and the following securities can be issue under preferential allotment.
Issuance of Equity shares.
Issuance of Fully or partly convertible debentures
Issuance of any other securities convertible into equity shares.
The preferential issue can be offered to person other than equity shareholders of the Company and prepare a list of persons (not exceeding 200 in a financial year for …
Concerned over rising foreign direct investment (FDI) inflows into strategic sectors like telecom as well as information technology (IT) and IT-enabled Services (ITeS) through the automatic route, the government is considering eliminating the security gaps through a stringent scrutiny mechanism.
The Department for Promotion of Industry and Internal Trade (DPIIT) has proposed an online filing of advance foreign investment returns on the Foreign Investment Facilitation Portal (FIFP), which will be accessible to the Reserve Bank of India (RBI), the Ministry …
The Construction/ Real Estate sector is one of the most critical sectors of the Indian economy due to its huge multiplier effect on the economy. Any impact on the Real Estate sector has a direct bearing on economic growth. Due to the well-acknowledged need for foreign investments into this sector because of the sheer demand, the Foreign Direct Investment (FDI) route has attracted foreign investors’ interest in this sector.
In the year 2005, Reserve Bank of India (RBI) issued a …
Article contains Compliance chart for Incorporation and other related compliances for wholly owned and other subsidiary Companies in India. It further explains provisions related to Directorship in Subsidiary or Wholly Owned Subsidiary Company, Mandatory Declaration to be filed under Section 89 of the Companies Act, 2013 in case of Wholly Owned Subsidiary Company and Compliances under FEMA, RBI/FDI Reporting in case the Holding Company is a Company Incorporated outside India.
Types of Subsidiary Company
Important Note: The Holding Company Holding …
Start-ups and experts welcomed the Centre’s move to encourage only genuine start-ups by introducing an amendment to the Finance Bill, passed by Lok Sabha on Thursday. This includes a penalty of 200 per cent for not complying with the conditions laid down for availing angel tax exemption.
The biggest relief for start-ups was the clarifications regarding angel tax as it had caused much headache to both investors as well as start-ups. Further extension of tax exemptions given under Section 54(g) …
Article explains Post Incorporation Compliances For Private Limited Companies which includes Compliances under Companies Act, 2013, Compliances under GST Law, Compliances under FEMA, RBI/FDI Reporting and Compliances with DGFT (Director General of Foreign Trade).
Part I: Compliances under Companies Act, 2013
♠ Hold first Board Meeting of the Company within 30 days from the date of Incorporation to discuss the agenda as written below in explanation I
♠ Opening of Bank Account within 60 days from the date of Incorporation…