“No one can give what they don’t have”. In most of the cases, beneficial interest is created through a contract between the registered owner and the beneficial owner, which also governs the rights of nominee/registered holder relating to transfer of shares, right to receive dividend, right to vote, etc. However,…

Beneficial Ownership in shares is a well-accepted concept domestically as well as internationally, which means to have a beneficial interest in property, goods or securities/shares without being registered as an owner in the records. The law permits a shareholder to transfer the beneficial interest in a share to another person…

Section 135 of the 2013 Act prescribes a mandatory spending of two percent of average net profits of the company on CSR activities made during the three immediately preceding financial years for all companies that meet the specified financial thresholds. The company is required to undertake activities in areas or…

Updated as on 26 June 2021 The mother provision for Video Conference (VC) are contained in Section 173 (2) of the Companies Act, 2013 which allows directors to participate in person or through a VC or other Audio-Visual means. The word ‘in person’ in Sec. 173 (2) should be read…

A company when incorporated obtains the status of an artificial person. This artificial person has an identity separate from its members. In order to safeguard the interest of the members and for efficient management of the affairs of the company, the reins of the company are given in the hands…

Updated as on 26 June 2021 Every company (except small and one-person company) is required to hold a minimum number of four meetings of its Board of Directors every year in such a manner that the maximum interval between any two consecutive meetings should not be more than 120 days.…

Updated as on 26 June 2021 Viruses know no boundaries! The novel COVID -19 virus has hit populations across the globe and has restricted free movement of people, thereby hampering businesses and day to day functioning of companies all around the world. The Coronavirus outbreak has presented an alarming situation…

For a company limited by shares, the creditors of the company rely on the capital invested by the shareholders or the net worth of the company. Whenever, a creditor gives loan to the company, he analyses the source of funds and application thereof. Any reduction of share capital diminishes the…

The start-ups offer ESOP as measure to retain talented employee as it’s a cashless perquisite. ESOPs are taxable at the time of exercise as a perquisite. When the employee has exercised the option, basically agreed to buy; the difference between the FMV (on exercise date) and the exercise price is…

As we all are aware that the Institute of Company Secretaries of India (ICSI) and the Institute of Chartered Accountants of India (ICAI) had come out with an innovative concept of Unique Documents Identification Number (UDIN,) which needs to be generated and to mention on the certificate/report/financial issued by the…