Definition and Types of Manager- Business Registration in Bangalore

Meaning of the term ‘Manager’ Section 2(53) of the 2013 Act was explained the roles and responsibilities of the manager and it is reproduce section 2(24)of the(old)Companies Act, 1956.Three conditions are to be satisfied before a person may become a ‘manager‘ under section 2(24) of the 1956 Act. They are, he must be an individual as opposed to a firm or a body corporate or an association, he must have the management of the whole or substantially the whole of…

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Voting Rights of Shareholders – Business Registration

Voting Rights of Preference Shareholders Voting rights of preference shareholders have been summed up as follows: Preference shares may be cumulative or non-cumulative. The holders of preference shares have voting right on any resolution of the Company which is directly affecting their rights, for winding up of the company, for payment or reduction of share capital(whether equity or preference) Preference shareholders have a voting right on all resolutions of the company at any meeting if their dividends are in arrears…

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Promoters Contribution of a company – Business Registration

Chapter 3 Part 3 of the SEBI(ICDR) Regulations,2009 and specifically 32,33 and 34 of the said regulations provide for promoters contribution.The said provisions are explained below discussion. Minimum Promoters Contribution – Public issue The promoters of the issuer shall contribute in the public issue as follows: In case of an initial public offer,not less than twenty percent of the post issue capital;which provided that in case the post issue shareholding of the promoters is less than twenty percent. Alternative investment…

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Issue of Rights shares to Existing Shareholders- Business Registration

Companies Act 2013 : Section 62 – Issue of rights shares Section 62 of the 2013 Act was notified and has been in effect from 01-04-2014,except Sub-sections(4) to (6) which have not been notified ,at the time of going to press.Section 62 of the 2013 Act,like Section 81 of the 1956 Act,provides for issuance of shares to employees under Employee’s Stock Opinion Scheme and issue of shares on preferential basis.Sub-sections(4) to (6) of the Section 62 which have not been…

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Analysis of Relevant Provisions of Companies Act,1956 – Business Registration

Section 13 of Companies Act,1956 Section 3 of the Companies Act corresponds to section 13 of the 1956 Act and to the extend that both the provisions are similar the case law and commentary on Section 13 of the 1956 Act will be relevant to section 3 of the 2013 Act. Name clause[Section 13(1)(a) of Companies Act,1956] The name of every private company shall contain as its last words,the words “Private Limited”  and every public company shall contain as its…

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Legal Personality of the Company -Business Registration

A company is a separate legal entity not withstanding the fact that there was only one governing director.The separate legal entity  enabled a director,representing the firm,to enter into a contract of  employment with himself in his individual capacity.one of the characteristics of a company is that it is an incorporated body of persons.It is constituted into a distinct and independent person in law and it is endowed with special rights and privileges.It is not like a partnership firm or a…

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Company’s share and its types and functions

A share is a token or evidence of ownership, and each one represents a vote in the company. Any individual shareholder can have one, or many shares as they required.As every share counts as a vote in the company, the more shares you have then you get more votes.  if a person with 5 shares, he get 4 votes except him. The quantity of these votes depend on how many shares you have .commonly many shares do not be issued…

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Certificates of Shares of the limited company

Certificate of Shares   According to the provisions of the Companies Act,1956, a certificate ,under the common seal of the company,specifying any shares hold by any member,shall be evidence of the title of the member to such shares.A certificate may be renewed or a duplicate of a certificate may be issued if such certificate is provided to have been lost or destroyed ,or have been defaced or mutilated or torn is surrounded to the company.If a Company with intent to defraud…

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What is Memorandum of Association and its Clauses?

Hereby, we are going to discuss what is memorandum of association, purpose and its clauses in detail. Look at this to know some useful information about the company before you set up a business. Memorandum of association: It is the constitution of the company and provides the foundation on which the structure has been built. It is the principal document of the company and it cannot be registered without the memorandum of association. It defines the scope of the company’s…

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Everything you need to know about Mergers and Acquisition

Mergers and Acquisition: It’s a term which refers to the consolidation of the companies or assets; it can include a number of transactions such as mergers, acquisition, consolidations, purchase of assets, tender offers and management acquisitions. M&A also refers to the department at financial institutions which deals with mergers and acquisitions.  Transactions of M&A: Merger: In merger, boards of directors for two companies approve the combination and seek for shareholder’s approval. After the merger, the acquired company ceases to exist…

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