Acceptance of Public Deposits – Company Registration in Bangalore

Restriction on Acceptance of Deposits No housing finance company shall accept or renew public deposits unless the housing finance company has obtained minimum investment grade rating for its fixed deposits form any one of the approved rating agencies for Company Registration  at least once a year and a copy of the rating is sent to the National housing bank and it is complying with all the prudential norms, provided that: A housing finance company having obtained credit rating for its…

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Sweat Equity Shares – Company Registration in Bangalore

Sweat Equity Shares Under section 79 A of the 1956 Act equity shares can be issued to employees or directors of a company at a discount or for consideration other than cash, in recognition of their contribution for providing know-how or making available intellectual property rights or value additions to the benefit of the company. The contribution made by the employees/directors generate increased profits to the company for a number of years and sweat equity provides a new form of…

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Registration of prospectus – Company Registration in Bangalore

Registration of Prospectus Section 60 of the 1956 Act, which deals with registration of prospectus also corresponds to section 26 of the 2013 Act. The need for company registration is explained by the company law committee: ” This section deals with the registration of prospectus and follow section 41 of the English Act in important respects. We have also made certain additions by providing that where a prospectus names any person as auditor, attorney, solicitor, banker or broker of the…

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Summary of Underwriting – Company Registration in Bangalore

Scope of section 76 of the Companies Act, 1956 Section 76 of the 1956 Act deals with an important subject of payment of commission to subscribers and others who procure capital for the company. It is usual in the case of public companies, when shares are offered to the public for subscription, to make certain of obtaining the necessary capital by having the issue underwriting. Without an authority like the one provided by section 76 of the 1956 Act, it…

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Alteration of Objects – Company Registration in Bangalore

Alteration of Objects Section 17(1) of the 1956 Act contained clauses (a) to (g) specifying purposes for which the object clause in the memorandum could be altered. The 2013 Act has not specified any purpose for which the object clause or any other clause of the memorandum could be altered, thus leaving the same to the wisdom of the shareholders. The only restriction or additional conditions to comply with or specified in the case of the company wishing to alter…

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Retiring Directors – Company Registration in Bangalore

Meaning of Retiring Directors Expressions “retiring directors”, “rotational directors” and “rotating directors” are frequently used synchronously to convey the same meaning. In Section 256 and section 257 “retiring director” means a director retiring by rotation. This refers to a director appointed by the company in general meeting and retiring by rotation at such meeting provided by section 256. Persons appointed as additional directors under section 260, persons appointed to fill casual vacancies under section 262, persons appointed as alternate directors…

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Rectification of Register of Members – Company Registration in Bangalore

When a request for company registration of transfer or transmission of shares or other rectification securities issued by a private company is refused by its Board of Directors. Whether such refusal is in pursuance of any power of the company under its articles or otherwise the private company should within a period of thirty days from the date on which the instrument of transfer, or the intimation of such transmission, as the case may be, was delivered to the company,…

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Do you wish to commence a new business – Company Registration in Bangalore

Do you wish to commence a new business? The memorandum of every new company shall state the objects for which the company is proposed to be incorporated and any matter considered necessary in furtherance thereof; In case of companies in existence immediately before the commencement of the 2013 Act, its objects clause may continue to state the objects in three categories viz., a) the main objects of the company which the company will pursue on its incorporation; b) the objects…

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Powers and Duties of Company Secretary – Company Registration in Bangalore

Functions of Company Secretary under the Companies Act Apart from the statutory duties enumerated above, the secretary is required to send notices of the meetings of the Board of Directors and the general meetings. The company secretary is also required to maintain minutes of the meetings and several registers as also file various returns prescribed under the Act with the Registrar and is also responsible for ensuring compliance of the various provisions of the Act including to seek approval of…

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Corporate Debt Restructuring(CDR) Mechanism – Company Registration in Bangalore

Background of Corporate Debt Restructuring (CDR) Mechanism The Reserve Bank of India had undertaken a review of the working of the Corporate Debt Restructuring (CDR) Mechanism in the month of August, 2004 and a special group was constituted in September, 2004 by the Deputy Governor, RBI as chairperson to review and suggest changes or improvements, if any, in the CDR mechanism. Based on the recommendations of special groups, Corporate Debt Restructuring (CDR) guidelines have been further revised. The changes to…

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