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WHAT IS RIGHT ISSUE As per Section 62(1)(a) of the Companies Act, 2013, a right issue is explained as follows: 62(1) Where at any time, a company having a share capital proposes to increase its subscribed capital by the issue of further shares, such shares shall be offered— (a) to persons who, at the date […]
Read MorePREFERNTIAL ISSUE OF SECURITIES A “Preferential Offer” refers to the issuance of shares or other securities by a company to a selected individual or group on a preferential basis. This does not encompass shares or other securities offered through public issues, rights issues, employee stock option schemes, employee stock purchase schemes, or the issuance of […]
Read Morestatutory registers under companies act 2013 As per the Companies Act, 2013 there are twenty-three registers but out of that fifteen registers have been made mandatory by the act. The format of the Register or the contents of the Register are provided by the law under section 21 (1). Some of them apply to all […]
Read MoreWhat is Private Placement Section 42 of the Companies Act, 2013 (‘Act’) provides that a company can make a private placement to a select group of persons. Private placement by companies means offering its securities or inviting to subscribe its securities for a select group of persons through an offer letter. It is different than […]
Read MoreWhat are options to resolve dispute between directors of a company? Disagreements and dispute between directors of a company are quite common. However, if these disputes aren’t resolved quickly, they can significantly harm the business. The situation becomes even more complex if the directors involved are also shareholders. These conflicts can arise for various reasons, […]
Read MoreStrike off of a Company. Striking off a company’s name is an alternative way to wind up its operations. The Registrar of Companies (ROC) can issue a notice to strike off the company’s name from the Register of Companies for specific reasons. Alternatively, the company itself can apply to the ROC for its name to […]
Read MoreAs per provision of company law even though the company is registered in some state can its operation be conducted from some other state? Yes, It is possible for business firms to incorporate in one state and operate business in another state in India. The enterprise registration in India is carried under the law of […]
Read MoreWhen is a Director Considered Disqualified from the Position of a Director? A company functions as a legal entity via natural beings known as directors. These experts, often known as corporate officials, are in charge of managing the company’s operations. – Unsound Mind: If the court declares a director to be unsound of mind. – […]
Read MoreWhat are options to resolve dispute among directors? Disagreements among directors of a company are quite common. However, if these disputes aren’t resolved quickly, they can significantly harm the business. The situation becomes even more complex if the directors involved are also shareholders. These conflicts can arise for various reasons, such as differing opinions on […]
Read More√Loan from Shareholder: Yes, shareholders and their relatives can give a loan to the company. However, there are some important rules to keep in mind. According to Rule 3 of Chapter V (Terms & Conditions of Acceptance of Deposits) in the Companies Act, a company is restricted from accepting or renewing deposits from its members […]
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