Section 41 of the Companies Act, 2013 is simply interesting provision which leave everything for legislative capacity of executives. We have discussed this provision earlier here.
Under wide powers, the Ministry framed the Companies (issue of Global Depository) Rules 2014.
In recent posts, we discussed provisions of Chapter III of the Companies Act, 2013. This is time to discuss major penal provisions in this chapter.
CRIMINAL LIABILITY FOR MIS-STATEMENT IN PROSPECTUS (SECTION 34):
Where a prospectus, issued, circulated or distributed:
a) includes any statement which is untrue or misleading in form or context in which it is included; or
b) where any inclusion or omission of any matter is likely to mislead;
Every person who authorises the issue of such prospectus shall be liable under section 447 i.e. fraud.
Posted in Chapter III - CA2013, Companies Act 2013, CorpGov, CSR, Governance and Responsibility
Tagged Abridge Prospectus, Advertisement of Prospectus, Allotment of Securities, Application Form, Board of Directors, Bonus Issue, Business, Companies Act, Companies Act 2013, Companies Bill 2012, CorpGov, CorpLaw, Corporate Governance, Corporate Law, Debentures, Deemed Prospectus, Dematerialise securities, Dematerialise Shares, Depositories, ESOPS, Fraud, Further Public Offer, GDR, Global Depository Receipt, India, Information in Prospectus, Information Memorandum, Initial Public Offer, IPO, Issue of Securities, Issue of Securities by Company, Issue of Securities by Private Company, Issue of Securities By Public Company, Legal liability, Legal Reforms, Listed Companies, Listing, Listing of Securities, Ministry of corporate affairs, Offer for Sale, Offer for Sale of Securities to the Public by an existing Shareholder, Offer Letter, Offer of Securities for Sale, Other Securities, Preferential Allotment, Private Placement, Private Placement Offer Letter, Prospectus, Public Issue, Public Offer, Red Herring Prospectus, Reforms, Registration of Prospectus, Reports with Prospectus, Return of Allotment, right issue, SEBI, Securities, Securities and Exchange Board o India, Securities and Exchange Board of India, Security (finance), Shares, Shares and Securities, Shelf Prospectus, Statement of Compliance, Statement of Expert, Stock exchange, Sweat Equity
In recent posts, we have discussed matters related to prospectus. In this post we will discuss, matters related to issue and allotment of securities following public offer.
SECURITIES IN DEMATERIALISED FORM (SECTION 29):
Under this section;
shall issue the securities only in the dematerialised form.
When any company issue its securities in dematerialised form, provisions of the Depositories Act, 1996 and regulations made under that Act shall be applicable.
There is no bar for any other company to issue its securities in any form. Any other company may convert its securities into dematerialised form.
Posted in Chapter III - CA2013, Companies Act 2013, CorpGov, CSR, Governance and Responsibility
Tagged Allotment of Securities, Bonus Issue, Companies Bill 2012, CorpGov, CorpLaw, Corporate Governance, Corporate Law, Debentures, Dematerialise securities, Dematerialise Shares, Depositories, ESOPS, GDR, Global Depository Receipt, India, Initial Public Offer, Issue of Securities, Legal Reforms, Listing, Listing of Securities, Other Securities, Preferential Allotment, Private Placement, Prospectus, Public Company, Public Issue, Public Offer, Reforms, Registrar of Companies, Return of Allotment, right issue, Securities, Securities and Exchange Board, Security (finance), Shares, Shares and Securities, Stock exchange, Sweat Equity
Writer of this blog, Aishwarya Mohan Gahrana is Practicing Company Secretary and Insolvency Professional working with M/s Aishwarya M Gahrana & Associates, a New Delhi based peer reviewed firm of company secretaries having pan India presence through friends and associates. This blog is a knowledge sharing initiative. Views expressed here is of writer; not of the organization(s) he is working with.
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