[The following post is contributed by Abhishek Bansal and Stuti Bansal, Corporate Professionals, Advisors & Advocates. The authors can be reached at [email protected] and [email protected] respectively) This post discusses the concept of deposits as provided under Chapter V of the Companies Act, 2013 (hereinafter the Act of 2013) and the Companies (Acceptance of Deposits) Rules, 2014...
Guest Post: MCA Finalises Cost Audit Rules
[The following post is contributed by Nivedita Shankar of Vinod Kothari & Company. She can be reached at [email protected]] Putting all speculation to rest, the Ministry of Corporate Affairs (MCA) on June 30, 2014 finally came out with the final rules relating to cost audit and cost records. Although, the rules are yet to be gazetted, yet the finalized rules have surely given an...
Guest Post: MCA’s ‘Deemed’ Clarification on Foreign Subsidiary Status
[The following post builds upon two previous posts, here and here. In this, Esha Chakraborty and Shampita Das of Vinod Kothari & Co. raise some further concerns regarding the recent clarification issued by the Ministry of Corporate Affairs. The authors may be contacted at [email protected] and [email protected] respectively.] Continuing with the intent of infusing clarity to...
MCA Clarifies on Status of Private Subsidiary of a Foreign Company
Earlier this year, we had raised and discussed a vexed issue under the Companies Act, 2013 (the 2013 Act) regarding “the status of a private company in India that is the subsidiary of a foreign company (being a public company). The specific question relates to whether the Indian private company can continue with its status or whether that would become a public company by virtue of becoming a...
Shareholder E-Voting Requirements Deferred
India is one of the forerunners in mandating e-voting by shareholders. It was first introduced by SEBI for top listed companies, and then codified in the Companies Act, 2013 (section 108). However, due to operational difficulties and delays, the MCA last week issued a clarification postponing the mandatory nature of the e-voting requirements. It has also clarified certain operational matters...
Proposed Relaxations to Private Companies
One of the difficult tasks for any companies’ legislation is that it must be flexible and dynamic to be in position to deal with varying types of companies. Such companies can range from the one-person company, a private limited company, a public unlisted company to finally a public listed company. Despite widely differing characteristics that operate in each of these companies, the legislative...
MCA Clarification on CSR
The provisions of the Companies Act, 2013 and the relevant Rules thereunder relating to corporate social responsibility (CSR) have come into effect from April 1, 2014. Since this concept is novel in India from a regulatory standpoint, several difficulties are bound to rise in its implementation. Matters are compounded further because the nature of the Act and Rules are extremely prescriptive in...
Guest Post: MCA notification on Audit Committee
[The following post is co-authored by Yogesh Chande and Manendra Singh. Yogesh is an Associate Partner and Manendra is an Associate with ELP. Views of the authors are personal.] In terms of section 177(1) of the Companies Act, 2013 (Act) read with rule 6 of the Companies (Meetings of Board and its Powers) Rules, 2014 (Rules), following companies are required to constitute an audit committee:...
Guest Post: Identifying KMPs under Companies Act, 2013
[The following post is contributed by Shampita Das, who is an Associate at Vinod Kothari & Company. She can be contacted at [email protected]]...
Director Liability Under the New Regime
Types of Liability Being fiduciaries, directors are exposed to liabilities as a consequence of a breach of their duties. While liabilities may arise under various statutes, the focus here is on liabilities arising under company law. The first set of liabilities is statutory in nature, being specifically set forth in the Companies Act, 2013 (the 2013 Act). These could be either civil liability...
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