ADDITIONAL STEPS IN CASE SHARES ARE BEING SUBSCRIBED BY A NON-RESIDENT PROMOTER / INVESTOR  This Article was earlier part of Post Incorporation Compliances. We have now split the same into two parts. This is the second part covering Subscription of Shares by NR post Company Incorporation. Through this blog, we have…

Independent Directors. 1. Which companies are required to appointed Independent Director in the composition of its Board? All Listed companies shall have at least one-third of its Board as Independent Directors (IDs). All Unlisted public companies having paid up share capital of INR 10 Crore more or turnover of INR…

The existing pricing guidelines for FDI applicable to transfer/issue of shares have undergone change vide RBI Circular dated 15th July, 2014. Here we have summarised the provisions as applicable to an Unlisted Company. Issue of Shares: Price of shares issued to persons resident outside India from now on shall be…

(as revised on August 3, 2016)   Voting by electronic mode means a process for recording votes by the members using a computer based machine. The system displays an electronic ballot and enables a shareholder to record the vote. The number of votes polled in favour or against a resolution…

Section 108 of the Companies Act, 2013 (‘Act, 2013’) read with Rule 20 of the Companies (Management and Administration) Rules, 2014 (‘MGT Rules’) had made it mandatory for every listed company and company having not less than 1000 shareholders to provide e-voting facility at general meetings. Rule 20 states as follows:. (1) Every listed…

Status of a subsidiary of a Foreign Company as per Companies Act, 2013 With the legislation of the new Act, it has been clarified that a body corporate incorporated outside India is not prohibited from incorporating subsidiaries as private/public companies. This implies that the earlier criteria (Sec 4(7) of the…

In UK, the concept of authorised share capital (ASC) was done away with through a notification of the Companies Act, 2006. Authorised share capital is the maximum number of shares a company can issue multiplied by its par value or the nominal value. Even in Singapore, incorporated companies are no…

Postal ballot means voting by post or through any electronic mode.(Sec2(65) of the CA 2013) Earlier, Section 192A of the Companies Act, 1956, read with the Companies (Passing of the  Resolution by Postal Ballot) Rules, 2001 (the Rules) obligated the listed companies to conduct certain businesses only by way of…

Please note that as per Section 2(52), “listed company” means a company which has any of its securities [See footnote 1] listed on any recognised stock exchange. This means that a Private Limited company which has its Debentures listed shall also be deemed to be a listed company for the…

We updated earlier about the correction in the letter head of the Company in order to comply with the requirement of the Companies Act, 2013. Another thing the company has to be careful about is Disclosure of Director’s interest. Disclosure of Director’s Interest.... Every director shall disclose his concern or…