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…

Read More

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…

Read More

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…

Read More

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…

Read More

Conversion of Private company into LLP – Business Registration in Bangalore

Interpretation In this Conversion Schedule, unless the context otherwise requires,- “Company” means a private company as defined in Clause (3) of Sub-section (1) of Section 3 of the Companies Act, 1956 ; “Convert”, in accordance with a private company changing into a limited liability partnership, means a transfer of their entire property, asserts, interests, rights, privileges, liabilities, obligations of organisation and the undertaking of the private company to the limited liability partnership in accordance with this Schedule. Eligibility for Conversion…

Read More

Introduction to Article – Business Registration in Bangalore

Introduction to Article – Companies Act, 1956 Section 26 of the 1956 Act dealt with Article prescribing regulations and made the article of association compulsory in cases of unlimited companies, companies limited by guarantee and a private company limited by shares. As regards public company limited by shares, there is no obligation to register articles of association. The Article of association prescribe the rules and regulations to be applied in the governance of the company. Section 27 of the 1956…

Read More

Securities Premium Account – Business Registration in Bangalore

Section 78 of Companies Act, 1956 – Introduction to Securities Premium Account The object of Section 78 of the 1956 Act was to lay down specifically how the securities premium accounts collected on the issue of shares should be utilized. The expression “premium” is not defined. It may be that if, over and above the cash payment on the shares, some further advantage measurable in terms of money is conferred on the company the value of such advantage will have…

Read More

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…

Read More

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…

Read More

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…

Read More