No. In this post, I am not discussing any existing law. This a proposal I received in form of a query on Quora about registration of a temporary company. I received another query, how India registered so many “paper companies”.
This is a brief (not a legal) note on the advantage of public deposit made by the general public under the Companies Act. What advantage public deposit have.
I personally do not see it as a safe investment avenue for the general public. Unless you have a risk-bearing capacity to invest the same amount in the volatile stock market, it is advisable not to invest in Public Deposit.
I received an interesting query on Quora earlier this month. Another day, another reader asked on WhatsApp why Registrar of Companies or Serious Fraud Investigation Office is not taking action against “PMC Bank Limited”. The reader was ignorant of the word “co-operative” in the name of scam-hit banks. Last year, one member/shareholder of the State Bank of India queried about compliance by the bank under the Companies Act, 2013.
The founder is not a legal term in relation to a company. General Public usually uses this term to refer to the original promoters of any company.
Interestingly, the definition of the term “promoter” also do not indicate directly to “founders” as the definition is drafted with the perspective of an existing company.
Now, I must subscribers to the Memorandum of Association (MoA), the founding or constituting documents of a company are first promoters. They satisfy two conditions of the definition of promoters also.
Subscribers of the MoA took initiatives to form a company and give a legal birth to it. Sometimes one of them actually leads and recognised by other subscribers as founder subscriber.
In short, the mind has a seed of the company in it may be called the founder of the company.
Posted in Chapter II - CA2013, Companies Act 2013
What documents should I notarize or apostilled for the purpose of incorporation of a company in India? This is one common question asked by a person with citizenship or resident outside India.
In the last post PROFICIENT INDEPENDENT DIRECTORS, we discussed the introduction of “proficiency self – assessment test” by the Ministry of Corporate Affairs. The Companies (Appointment and Qualification of Directors) Fifth Amendment Rules, 2019 gives teeth to the Companies (Creation and Maintenance of database of Independent Directors) Rules, 2019. We, in this post, will discuss the Companies (Appointment and Qualification of Directors) Fifth Amendment Rules, 2019. More power is given by the Companies (Accounts) Amendment Rules, 2019.
Posted in Chapter IX - CA2013, Chapter XI - CA2013, Companies Act 2013
Tagged Boards’ Report, IICA, Independent Director, Indian Institute of Corporate Affairs, proficiency self – assessment test, the Companies (Accounts) Amendment Rules 2019, the Companies (Appointment and Qualification of Directors) Fifth Amendment Rules 2019, the Companies (Appointment and Qualification of Directors) Rules 2014, The Companies (Creation and Maintenance of database of Independent Directors) Rules 2019
What else may be the name of the youngest profession on the block of Corporate India? The new test is here to hit test-taking taste bud of Indian professionals. Rule 4(a) of the Companies (Creation and Maintenance of database of Independent Directors) Rules, 2019 introduces silently the “proficiency self – assessment test”. Ministry of Corporate Affairs by notification G.S.R. 805(E) dated 22nd October 2019 introduced these rules.
Posted in Chapter XI - CA2013, Companies Act 2013
Tagged IICA, Independent Director, Indian Institute of Corporate Affairs, proficiency self – assessment test, the Companies (Appointment and Qualification of Directors) Rules 2014, The Companies (Creation and Maintenance of database of Independent Directors) Rules 2019
We earlier here discussed law related to refund and reclaim of amount and shares from the Investor Education and Protection Fund under the amended Rules. For this purpose, the Government launched New Form IEPF-5 in its web version on 20th September 2019. In this post, we will discuss the practical aspect of filing this form.
Posted in Chapter VIII - CA2013, Companies Act 2013
Tagged Corresponding New Bank, Form IEPF – 5, IEPF Rules, Investor Education and Protection Fund, Investor Education and Protection Fund Authority, Investor Education and Protection Fund Authority (Accounting, Transfer and Refund) Rules 2016, Transfer and Refund) Second Amendment Rules 2019, unclaimed dividend, Unpaid Dividend
Originally, neither the Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules, 2016 nor the Companies Act, 2013 have any mention of Nodal Officer except Form IEPF – 5. The Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Second Amendment Rules, 2017 first time bring this term in main rules. Now the Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Second Amendment Rules, 2019 strengthen and formalized the office of Nodal Officer. New Provision came into effect with effect from 20th August 2019.
Posted in Chapter VIII - CA2013, Companies Act 2013
Tagged Audit, Form IEPF – 2, IEPF Rules, Investor Education and Protection Fund, Investor Education and Protection Fund Authority, Investor Education and Protection Fund Authority (Accounting, tagged Corresponding New Bank, Transfer and Refund) Rules 2016, Transfer and Refund) Second Amendment Rules 2019, unclaimed dividend, Unpaid Dividend
Ministry of Corporate Affairs amended the Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules, 2016. The Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Second Amendment Rules, 2019 rules published in Official Gazette on 14th August 2019. In this post, we will discuss amended provisions related to refund of such amount and shares related to unpaid dividend transferred to the Investor Education and Protection Fund Authority. Amendment relevant to this post comes into effect with effect from 20th September 2019 except fraudulent claim and deceitful impersonation related provisions under Rule 7(11) which came into effect on 20th August 2019.
Posted in Chapter VIII - CA2013, Companies Act 2013
Tagged Audit, Corresponding New Bank, Form IEPF – 5, IEPF Rules, Investor Education and Protection Fund, Investor Education and Protection Fund Authority, Investor Education and Protection Fund Authority (Accounting, Transfer and Refund) Rules 2016, Transfer and Refund) Second Amendment Rules 2019, unclaimed dividend, Unpaid Dividend
Sub – Section (6) of Section 124 mandates transfer of all shares in respect of which dividend has not been paid or claimed for seven consecutive years or more in the name of Investor Education and Protection Fund along with a statement containing such details as prescribed. Rule 5 of the Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules, 2016 prescribe the manner of such credit. We discussed procedure amended with effect from 20th August 2019 in the last post here. In this post, we will discuss the post-transfer effects and procedures.
Posted in Chapter VIII - CA2013, Companies Act 2013
Tagged Audit, Corresponding New Bank, Form IEPF – 1, Form IEPF – 4, IEPF Rules, Investor Education and Protection Fund, Investor Education and Protection Fund Authority, Investor Education and Protection Fund Authority (Accounting, Transfer and Refund) Rules 2016, Transfer and Refund) Second Amendment Rules 2019, unclaimed dividend, Unpaid Dividend
Sub – Section (6) of Section 124 mandates transfer of all shares in respect of which dividend has not been paid or claimed for seven consecutive years or more in the name of Investor Education and Protection Fund along with a statement containing such details as prescribed. Rule 5 of the Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules, 2016 prescribe the manner of such credit. The procedure is now amended with effect from 20th August 2019.
Posted in Chapter VIII - CA2013, Companies Act 2013
Tagged Form IEPF – 4, IEPF Rules, Investor Education and Protection Fund, Investor Education and Protection Fund Authority, Investor Education and Protection Fund Authority (Accounting, Transfer and Refund) Rules 2016, Transfer and Refund) Second Amendment Rules 2019, unclaimed dividend, Unpaid Dividend
Section 124 of the Companies Act, 2013 and other provisions of laws mandates credits of certain amounts to the Investor Education and Protection Fund (IEPF). Rule 5 of the Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules, 2016 prescribe the manner of such credit. The procedure is now amended with effect from 20th August 2019. We will discuss the updated process which is more logical and easy to comply.
Posted in Chapter VIII - CA2013, Companies Act 2013
Tagged Audit, Form IEPF -1A, Form IEPF – 1, Form IEPF – 2, IEPF Rules, Investor Education and Protection Fund, Investor Education and Protection Fund Authority, Investor Education and Protection Fund Authority (Accounting, Transfer and Refund) Rules 2016, Transfer and Refund) Second Amendment Rules 2019, unclaimed dividend, Unpaid Dividend
Since the introduction of Investor Education and Protection Fund (IEPF) in the year 2001, I have a keen interest in the law related to investor protection, particularly under the Companies Law. Presently, one of the significant but neglected features of the IPEF Rules is the definition of the Company. The definition has been amended several times to keep track of silent changes of several laws without much notice of the stakeholder.
On 31st July 2019, the Companies Amendment Act, 2019 was notified. The Companies Amendment Act, 2017 is still being implemented. Earlier, the Notification S.O. 2269 (E) dated 1st July 2019 appointed 15th August 2019 as the date on which the provisions of section 81 of the said Act shall come into force. Accordingly, on this 15th August 2019, Section 406 of the Companies Act, 2013 stand replaced by another old school enactment of the law. Brief Discussion on U-turns.
The Monday 5th August 2019 witnessed a powerful and joyful celebration of Indian Unity and also an unfortunate revelation of various misconceptions of minds of thousands of Indians. Social media witnessed the flow of social and legal bias established by the most lethal weapon of human history – the half-knowledge. Soon, overflowing sentiments overpowered the knowledge, understanding and interpretation even of well dignified professional minds.
A section of professionals claimed that the Indian Companies Act, 2013 shall now be applicable to state (now Union Territory) of Jammu and Kashmir. Strange!!
We will try to remove the misconception of mind here.
To bring 12th Amendment to the Companies (Appointment and Qualification of Directors) Rules, 2014, Ministry of Corporate Affairs on 25th Day of July 2019 notified the Companies (Appointment and Qualification of Directors) Third Amendment Rules, 2019 [Notification No. by GSR528(E)]. This amendment introduced a new Form DIR – 3 – KYC – WEB for annual confirmation of KYC submitted earlier. We, in this post, will discuss new provisions along with the Companies (Registration Offices and Fees) Rules, 2014.
Posted in Chapter XI - CA2013, Companies Act 2013
Tagged Chapter XI, Companies (Appointment and Qualification of Directors) Rules 2014, Form DIR – 3 – KYC – WEB, Form DIR – 6, Form DIR-3-KYC, The Companies (Appointment and Qualifications of Directors) Rules, The Companies (Registration Offices and Fees) Rules 2014
Guest Post: Adv. Nitin Kumar Kaushik (Kaushik Insolvency Professionals)
Numbers of Insolvency Professionals or Liquidators are facing the problem with respect to whether the Provident Fund/Pension Fund/Gratuity Fund is part of liquidation estate or not under Section 36 of the Insolvency and Bankruptcy Code, 2016 “IBC”. Generally, what happens, the Company had deducted the amount, in the form of provident fund or pension fund or gratuity amount, from the salary of the employee/workmen and then did not deposited or failed to deposit in the account of Employees Provident Fund Organisation “EPFO” or Pension Fund Organisation “PFO”. Thereafter, the government department i.e., EPFO or PFO attached the property of the Corporate Debtor in respect of dues of provident fund or pension fund or gratuity amount on the Corporate Debtor, even the attached property already mortgaged with any of the financial institutions or not.
This work is licensed under a Creative Commons Attribution-NonCommercial 3.0 Unported License.
AishMGhrana 