Significant Beneficial Owner

Posted on June 19, 2018 | 6 comments

The law stated in this post was valid from 14th June 2018 till 7th February 2019. The post on the law applicable from 8th February 2019 is posted here.

Section 90 of the Companies Act 2013 substituted by a new set of law. It is a drastic change to understand and need urgent attention for all companies. Amended Section 90 and rules made thereunder has been notified with effect from 13th June 2018 and 14th June 2018. The significant deadline is on 12th September 2018 with a lot of working and follow up required, coincide with all Annual General Meeting, Annual filing and tax returns. In this post, we will discuss what constitutes Significant Beneficial Ownership.

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Posted in Chapter VII – CA2013, Companies Act 2013

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Effective Provisions of the Companies Amendment Act 2017 w.e.f. 13 June 2018

Posted on June 18, 2018 | 2 comments

With Four Notifications; S.O. 351(E) dated 23rd January 2018, S.O. 630(E) dated 9th February 2018, S.O. 1833(E) dated 7th May 2018 and S.O. 2422(E) dated 13th June 2018 most provisions of the Companies (Amendment) Act, 2017 (1 of 2018) come into force. Here is a bird’s eye view.

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Posted in Chapter I - CA2013, Chapter VII – CA2013, Chapter XIV - CA2013, Chapter XVII - CA2013, Companies Act 2013, Truth of Our Time

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Qualification of Independent Director

Posted on June 15, 2018 | Leave a comment

The qualification of independent director is among few provisions where the Companies Act, 2013 become stringent after amendments. The Companies Amendment Act, 2017 read with Notification S.O. 1833(E) dated 7th May 2018 amended sub-section (6) of 149.

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Posted in Chapter XI - CA2013, Companies Act 2013

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Curious Case of IEPF – 7

Posted on June 8, 2018 | Leave a comment

Ministry of Corporate Affairs on 22nd May 2018 notified the Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Third Amendment Rules, 2017 to amend Rule 6 of principal Rules and to insert Form IEPF – 7. The nomenclature of these amendments charily indicates that thought process to introduced Form IEPF -7 was started during the year 2017 but somehow delayed. Let us discuss these amendments.

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Posted in Chapter VIII - CA2013, Companies Act 2013

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Compounding

Posted on June 1, 2018 | 1 comment

The Companies (Amendment) Act 2017 increased importance of compounding of offence manifold. Section 90 of the Companies (Amendment) Act, 2017 read with notification Notification S. O. 630(E) dated 9th February 2018 amended law related to compounding with effect from that date. However, provision of Section 441, as amended, of the Companies Act, 2013 gain momentum with notification Notification S.O. 1833(E) dated 7th May 2018. This notification notified amendment in Section 403. Most compounding application comes due to the late filing of forms constituting the violation of Section 403. Continue reading →

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Posted in Chapter XXVIII - CA2013, Companies Act 2013

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Fee for Filing

Posted on May 25, 2018 | 1 comment

The Companies Amendment Act, 2017 read with Notification S.O. 1833(E) dated 7th May 2018 amended law related to fee for the filing of forms. This may be considered most strict amendment introduced by the Amendment Act. As a result, companies need to pay an increased filing fee calculated on daily basis. Presently only first proviso related to additional fee for annual forms has been notified. The second and third proviso may be notified soon. The third proviso is harsh in nature.

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Posted in Chapter XXIV - CA2013, Companies Act 2013

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Ratification of Auditor –Bye Bye

Posted on May 18, 2018 | 5 comments

Effect of non – ratification of the appointment of the auditor was one of the wonders of the Companies Act, 2013. There were so many queries regarding effects of non – ratification of auditor and removal of an auditor. Now, all these long discussions came to end. The Companies Amendment Act, 2017 read with Notification S.O. 1833(E) dated 7th May 2018 deletes provision of annual ratification of the appointment of auditor.

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Posted in Chapter X - CA2013, Companies Act 2013

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Criminal Liability in case of Audit Firm

Posted on May 14, 2018 | Leave a comment

Recently, after the Companies (Audit and Auditor) (2nd) Amendment Rules, 2018 some section of media reported that an audit firm shall be criminally liable under the company law for a fraudulent act of an audit partner, while few others have view that there is some new position of law regarding criminal liability of audit firms. Both of these are slightly wrong interpretations.

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Posted in Chapter X - CA2013, Companies Act 2013

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Effective Provisions of the Companies Amendment Act, 2017

Posted on May 11, 2018 | 1 comment

With three Notifications S.O. 351(E) dated 23rd January 2018, S.O. 630(E) dated 9th February 2018 and S.O. 1833(E) dated 7th May 2018 most provisions of the Companies (Amendment) Act, 2017 (1 of 2018) come into force. Here is a bird’s eye view.

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Posted in Companies Act 2013

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Determination of Punishment

Posted on May 4, 2018 | Leave a comment

The Companies Act, 2013 like most other laws dealing with offences did not have any scheme to determine the level of punishment. This is always the discretionary power of a court to determine a punishment within minimum (if any) and maximum punishment provided under law. Presently, the legislature and executives of the country want to control discretionary powers of the third organ – judiciary to all possible extent. Though discretion may result in higher corruption, subordinate courts governed by precedents and do very little use of discretion. The companies Amendment Act, 2017 introduces new Sections 446A to guide the discretionary powers. Amount of fine and/or imprisonment also reduced in several cases.

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Posted in Chapter XXIX - CA2013, Chapter XXVIII - CA2013, Companies Act 2013

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List of special courts – Companies Act 2013

Posted on April 27, 2018 | Leave a comment

Since our earlier discussion earlier here on law related to Special Courts, there are several new special courts have been notified. Here is an updated list of special courts as on date.

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Posted in Chapter XXVIII - CA2013, Companies Act 2013

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Signing Share Certificate

Posted on April 20, 2018 | 2 comments

Subordinate legislation should avoid repeating a provision of the main legislation. Sub-rule (3) of rule 5 of the Companies (Share Capital and Debentures) Rules, 2014 is a good example. Rule 5(3) corresponds to Section 46 of the Companies Act, 2013. Section 46 was amended by the Companies Amendment Act, 2015 with effect from 29th May 2015. Correspondingly, Schedule I of the Companies Act, 2013 also amended this time in the line of these amendments in Section 46. Due to oversight, there was no corresponding amendment in Schedule since 29th May 2015. Now, corrective action is taken by with effect from 10th April 2018.

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Posted in Chapter IV - CA2013, Companies Act 2013

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Naming of a company – Running of RUN

Posted on April 13, 2018 | Leave a comment

Seemingly, ease of doing business become a childish target for the Government of India. There is a practical gap of only 60 days between the Companies (Incorporation) Amendment Rules, 2018  and the Companies (Incorporation) 2nd Amendment Rules, 2018. The hardship caused by the earlier amendment is not attempted to cure by this amendment. Once again, there is a half-hearted effort lacking full automation of name approval. We discuss Rule 9 of the Companies (Incorporation) Rules, 2014 amended twice in a single calendar quarter.

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Posted in Chapter II - CA2013, Companies Act 2013

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To be director democratically – post 9th February 2018

Posted on April 6, 2018 | 2 comments

The Companies Amendment Act, 2017 read with notification dated 9th February 2018 amended law related to the right of a person to be appointed as director of a company under Section 160 of the Companies Act, 2013. Section 160, in its original form, as applicable from 1st April 2014 until 8th February 2018. Section 160 is well ignored but the strong pillar of corporate governance and democracy. We shall discuss amended section 160 here along with its limitations and challenges present before it.

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Posted in Chapter XI - CA2013, Companies Act 2013

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Tracking of Directors

Posted on April 1, 2018 | 1 comment

After numerous many leakages of sensitive information on faulty governance and unearthing of scam, Government is facing firework from ruling party and its parent organisations. The friendly government of corporate houses with allegedly better relationship with corny – capitalists business organisations, once again looking towards corporate jungle for next round of its killing hunt. As per primary level media reports, Ministry of Corporate Affairs preparing for additional information from directors to nab them at first sounding of the alarm bell. This is in public domain now; government is going to ask passport information of directors who are a citizen of India. This news is bigger than it appears in earlier newspaper reports.
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Posted in Chapter XI - CA2013, Companies Act 2013, Prank

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Copies of Financial Statements – post 9th February 2018

Posted on March 30, 2018 | Leave a comment

The Companies Amendment Act, 2017 read with notification dated 9th February 2018 amended law related to the rights of a member to copies of audited financial statements under Section 136 of the Companies Act, 2013. Section 136, in its original form, as applicable from 1st April 2014 until 8th February 2018. We shall discuss amended section 136 here.

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Posted in Chapter IX - CA2013, Companies Act 2013

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Dividend – post 9th Feb 2018

Posted on March 16, 2018 | 2 comments

Dividend usually is a payment made by a company to its shareholders out of distributable profit. In layman term, it is a share of profit for a shareholder. The Companies Amendment Act, 2017 read with notification dated 9th February 2018 amended law related to declaration of dividend. This post discusses law related to dividend after recent amendment in the Companies Act, 2013.

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Posted in Chapter VIII - CA2013, Companies Act 2013

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Triggering Unlimited Liability for Members

Posted on March 9, 2018 | 1 comment

The Companies Amendment Act, 2017 read with notification S. O. 630(E) dated 9th February 2018 reintroduced unlimited liability for members in certain cases. A  similar provision was there earlier in the companies Act, 1956.we have no intention to go into history, but to examine this provision in light of justice and equity.

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Posted in Chapter II - CA2013, Companies Act 2013

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AishMGhrana BLOG RANKED AS ONE OF THE TOP 40 INDIAN LAW BLOGS

Posted on March 8, 2018 | Leave a comment

Among Top 40 Indian Law Blogs

Among Top 40 Indian Law Blogs

 We are extremely proud to announce to our readers that this Blog – AishMGhrana Law Governance Responsibility – has been ranked as one of the Top 40 Indian Law Blogs, published by Feedspot. This list is based on, among others, the quality and consistency of posts, social media presence. The entire list can be accessed here.

This blog already among Top Hundred Law blogs globally.

We are extremely grateful to our readers for their encouragement and support, without which we couldn’t have reached here. We hope to perform even better this year and achieve many more milestones.

If you have any suggestions for our blog, please do write to us at aishwaryam_gahrana@yahoo.com

Guest posts are welcome.

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Posted in Truth of Our Time