Category Archives: Truth of Our Time

Time and Truth are 3- dimensional, we need to see all dimensions. Presenting another dimension with NO disagreement from other.

Emeritus Chairman vs Chairman


In India, most companies have designation of Chairman but there is no legally recognised office of chairman of company under the Companies Act, 2013. In Indian law, chairman or chairperson is not legal position but a momentary position in meetings.

Chairman under the company law is person appointed/elected as chairman of the Meeting of Board of Directors or meetings of members (general meetings). To avoid time to appoint/select/elect chairman in each such meeting, usually board of directors names a person as its chairman once. Chairman of the Board of Directors may act as chairman of the company (means chairman of its general meetings). However, this position usually treated as permanent designation for a person.

Section 104 of the Companies Act, 2013, talk about chairman of meetings. In some later sections term chairperson is also used in same meaning.

Indian Secretarial Standards bring some legal definition for the position of chairman.

For Indian Secretarial Standards SS – 1 dealing with meetings of Board of Directors, Chairman means the Chairman of the Board or its Committee, as the case may be, or the chairman appointed or elected for a meeting.

For Indian Secretarial Standards SS – 2 dealing with general meetings, Chairman means Chairman of the Board or the Chairman appointed or elected for a Meeting.

These definitions given in Indian Secretarial Standards give some legal backing for permanently appointed chairman of the board.

Chairman Emeritus is more ceremonial position. Chairman Emeritus is an honorary position usually given to people who have retired from the position. It is just a respect to person named so. Chairman Emeritus is like a head of family who lost all powers to younger generation but have high regards at least in society (if not in the family). More often than not, Chairman Emeritus conducts meetings just by presence and all legal responsibilities rest on named chairman.

Basic responsibility of chairman is to conduct a meeting and certify as correct the proceeding when noted down as minutes of meeting. Thus, legally chairman is higher and actual position.

In listed companies, Chairman is preferably a non – executive position and sometime independent directors need to be elected as chairman. Chairman of most committees of Board should legally be an independent director. In private companies and closely held companies managing director act as chairman. In family owned head of family acts as chairman.

This post was earlier written as Quora answer here.

 

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Limited vs Private Limited Company


 

I receive a question on Quora which may interest readers of this Blog. The question is –

What is the difference between limited company & private limited company?

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Limited in Limited Company??


I receive a question on Quora which may interest readers of this Blog. The question is –

What is limited in private limited company? I understand limited means limited liability but can someone explain with a detailed example about how this liability turns out to be limited. Please use numerical in the example. Lets consider 4 owners, each one has 25% stake in the company & the total investment is say 1 lac INR.”

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Company Incorporation version 2017.1 Form – INC – 32


Procedural aspect of company incorporation is constantly changing since implementation of the Companies Act, 2013. This registration service is most used and critical service provided by Ministry of Corporate Affairs. Government of India aims to get good rank in World Bank’s ease of doing business ranking. Now, a company may be incorporated with single simple form.

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Company Name with India


I receive a question on Quora which may interest readers of this Blog. The question is –

What is the procedure for inclusion of word ‘INDIA’ in the name of company?

My reply is as under –

Law related name of a company is governed with Section 4 of the Companies Act 2013 read with Rule 8. Under present law, there restriction related to inclusion of word “India” has been removed with effect from 1st April 2014.

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DBA Names in India


I receive a question on Quora which may interest readers of this Blog. The question is –

Doing Business As (DBA) name for a Private Limited company in India?

Typically in US, we can have a company registered name as JP Morgan Chase Limited and they have a DBA as Chase which is very business friendly name. Can I have similar DBA name for a Private Limited Company in India?

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AishMGhrana: 2016 in review


This blog always believe in ethical compliance of law, governance and responsibility. The blog has responsibility to its readers and writers. The blog regularly put here its annual reports for public information.

This blog now has secured https protocol to make reading experience more secured.

The blog was adjudged as one of the best blogs in India by Indianbloggers.org in category “law” in 2013 and continue hold this position. Indian Blog critics IndianTopBlogs.com listed this blog among best blogs on Corporate Affairs for year 2013 – 14, 2014 – 15, and 2016.

Most readers are resident of India and others are from 168 (against 148 last year) territories worldwide. Other than India; United States, United Kingdom, Malaysia, Pakistan and Singapore are important territories with more than 1,000 yearly views.

Most of our readers landed here on the blog from Search engines. Few others were referred by Social Media and friends. This year readers using mobile phone increased sharply to about 1700 in numbers.

Blog is participant of Accelerated mobile Pages (AMP) program of Google to ensure less mobile data consumption while loading.

The blog got about 3.6 lakh page views by 2.4 lakhs unique visitors this year against 4.1 lakh views by 2.7 lakh unique visitors last year. During the year, the blog posted 92 blog posts against 150 and 228 posts in 2015 and 2014 respectively. Blog now host total 571 blog posts and completed 12 lakh pageviews. The blog is thankful for testimonials sent by readers.

On readers demand – Index of Companies Law Posts is placed on home page.

Now 692 committed readers (against 545 last year) subscribed the blog over their email to get instant updates. You may also join mail subscription. 109 fellow blogger – readers read the blog on wordpress reader. About 600 person got blog updates through whatsapp. Blog has 5,274 amazing fans and committed readers.

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