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Company Law and Practice, 2021
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Table of Contents

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1. Preliminary

1 >>   
Various forms of business organizations 1 >>   
       -- Sole proprietorship 1 >>   
       -- HUF 1 >>   
       -- Partnership 1 >>   
       -- Co-operative society 2 >>   
       -- Registered society 2 >>   
       -- Limited Liability Partnership 2 >>   
       -- Company 2 >>   
       -- Trust 2 >>   
Company       -- Meaning and Definition of 3 >>   
Salient features of a company 4 >>   
       -- Separate legal entity 4 >>   
       -- Separate management 4 >>   
       -- Limited liability 4 >>   
       -- Perpetual succession 4 >>   
       -- Right to own property 4 >>   
       -- Free transferability of shares 4 >>   
       -- Right to sue 4 >>   
       -- Common seal 4 >>   
Advantages and disadvantages of company form of business 5 >>   
Major constituents of a company 5 >>   
       -- Members 6 >>   
       -- Directors 6 >>   
Registration as a company, when mandatory 6 >>   
       -- Mandatory registration as a company 6 >>   
       -- When an association becomes illegal 7 >>   
       -- Object of acquisition of gain is important criteria 7 >>   
       -- Non-applicability of provisions of section 464 of Companies Act, 2013 7 >>   
       -- Consequences emerging from association becoming illegal 7 >>   
Lifting of corporate veil 7 >>   
Types of companies 8 >>   
       -- Vis-a-vis liability 8 >>   
       -- Vis-a-vis control 8 >>   
       -- Vis-a-vis provision for access of public capital 8 >>   
       -- Other types of companies 8 >>   
Private company 8 >>   
Public Company 9 >>   
       -- Distinction between public and private company 10 >>   
One Person Company 10 >>   
       -- Privileges and exemptions available to OPC 11 >>   
Limited liability companies 12 >>   
       -- Company limited by shares 12 >>   
       -- Company limited by guarantee 13 >>   
Unlimited liability company 13 >>   
Holding and Subsidiary company 13 >>   
       -- Layers of subsidiaries 14 >>   
       -- Deeming provision as to control of composition of board of directors 15 >>   
       -- Circumstances in which subsidiary company can be member of holding company 15 >>   
Associate company 15 >>   
Listed and Unlisted company 16 >>   
Companies with charitable objects, etc. [Section 8 companies] 16 >>   
       -- Three important pre-requisites 16 >>   
       -- Registration of section 8 companies 17 >>   
       -- Issuance of licence by Central Government for proposed or existing company 17 >>   
       -- Privileges, exemptions and obligations 19 >>   
       -- Revocation of license 21 >>   
       -- Power of Central Government to order amalgamation or winding up 21 >>   
       -- Consequences of default 22 >>   
Government companies 22 >>   
Investment Company 22 >>   
Dormant company 22 >>   
Statutory Corporation 23 >>   
Foreign companies 23 >>   
Producer Companies 23 >>   
Public Financial Institutions 24 >>   
Non-Banking Finance Company 25 >>   
Small companies 25 >>   
Nidhis 26 >>   
Specified IFSC companies 26 >>   
Start-up company 26 >>   
ANNEXURE 26 >>   
List of Forms 26 >>   

2. Incorporation of Company and Allied Matters

28 >>   
Procedural steps for incorporation of a company 28 >>   
       -- Selecting the type of company 28 >>   
       -- Digital Signature Certificate 28 >>   
       -- Selecting and reserving name of company 28 >>   
       -- Requirement of obtaining DIN 29 >>   
       -- Filing of application for incorporation with RoC 30 >>   
       -- Details to be furnished in Part B of SPICe+ 30 >>   
       -- Filing of other necessary documents and information 31 >>   
       -- Filing of MoA and AoA 34 >>   
       -- Filing of application for registration of GSTIN/ESIC/EPFO etc. 34 >>   
       -- Payment of registration fee and stamp duty 35 >>   
       -- Provision of opportunity by Registrar for resubmission 35 >>   
       -- Issue of Certificate of Incorporation 35 >>   
       -- Allotment of Corporate Identity Number (CIN) 36 >>   
       -- Common seal 36 >>   
       -- Effect of registration of company 37 >>   
       -- Commencement of business 37 >>   
       -- Company incorporated by filing false or incorrect information 37 >>   
       -- Requirement for preservation of original documents of incorporation at registered office 38 >>   
Selecting name of company 38 >>   
       -- Baisc considerations 38 >>   
       -- Guidelines for selecting a name under the Companies Act, 2013 39 >>   
       -- Application for reservation of name 45 >>   
       -- Validity period of name reserved by Registrar for adoption 46 >>   
       -- Intimation by Registrar, CRC for name approval/rejection 46 >>   
       -- Publication of name 47 >>   
       -- Change of name of company 48 >>   
       -- Rectification of name of company on Central Government's direction 48 >>   
Registered office 49 >>   
       -- Date from which company should have registered office 50 >>   
       -- Verification of situation of registered office to Registrar 50 >>   
       -- Notice of change in situation of registered office and verification thereof 51 >>   
       -- Domicile clause in Memorandum of Association 51 >>   
       -- Publication of address of registered office 51 >>   
       -- Penal consequences 51 >>   
       -- Non-presence of registered office at the time of physical verification may lead to initiation of action for removal of name of company from Register of Companies 51 >>   
       -- Service of document on company to be at its registered office 52 >>   
Shifting of registered office from one place to another 52 >>   
       -- Alteration within local or postal limits 52 >>   
       -- Shifting of registered office outside local or postal limits of city, town or village but within the same State 52 >>   
       -- Shifting of registered office within same State but within the jurisdiction of different RoC 53 >>   
       -- Shifting of registered office from one State to another 54 >>   
Memorandum of Association (MoA) 57 >>   
       -- Companies Act to prevail over memorandum of association, etc. 57 >>   
       -- Forms of Memorandum of Association 58 >>   
       -- Contents of Memorandum of Association 58 >>   
       -- Subscribers to Memorandum of Association 62 >>   
       -- Special provision in case of company limited by guarantee not having share capital 64 >>   
       -- Signing of Memorandum of Association 64 >>   
       -- Presenting MoA to Registrar for registration and effect thereof 65 >>   
       -- Giving copies of Memorandum of Association, etc., to members 65 >>   
       -- Stamp duty on Memorandum of Association 65 >>   
Alteration of MoA 66 >>   
       -- Alteration in name clause of MoA 66 >>   
       -- Alteration in object clause of MoA 68 >>   
       -- Alteration in registered office clause of MoA 69 >>   
       -- Alteration of liability clause of MoA 69 >>   
       -- Alteration of capital clause of MoA 70 >>   
       -- Alteration in memorandum of companies registered under section 8 71 >>   
       -- Alteration of memorandum to be noted in every copy 71 >>   
Articles of Association 71 >>   
       -- Companies Act to prevail over memorandum, articles, etc. 71 >>   
       -- Articles of Association subordinate to Memorandum of Association 72 >>   
       -- Registration of articles with Registrar and its effect 72 >>   
       -- Forms of Articles of Association 72 >>   
       -- Contents of AoA 73 >>   
       -- Payment of stamp duty on Articles 75 >>   
       -- Giving of copies of Articles of Association, etc., to members 75 >>   
       -- Non-applicability of provisions to companies registered under previous law 76 >>   
       -- Doctrine of constructive notice 76 >>   
       -- Doctrine of indoor management 76 >>   
       -- Exceptions to the doctrine of indoor management 77 >>   
Alteration of Articles of Association 77 >>   
       -- Alteration in articles on conversion of private company into public company 78 >>   
       -- Alteration in articles on conversion of public company into private company 79 >>   
       -- Noting of alteration of articles in every copy 79 >>   
       -- Provision for entrenchment 79 >>   
Active Company Tagging Identities and Verification 80 >>   
       -- Companies not required to file e-Form ACTIVE 80 >>   
       -- Effect of non-filing of Form ACTIVE 81 >>   
       -- Fee for filing Form ACTIVE after due date 81 >>   
       -- Directors of company to file e-Form ACTIVE 82 >>   
Post Incorporation Compliances 82 >>   
       -- Requirements to be complied with immediately after incorporation of a company 82 >>   
       -- Other statutory requirements under Companies Act 84 >>   
A. SECRETARIAL PRACTICE 84 >>   
Procedure for Change in Name of Company 84 >>   
Procedure for Change in Name Pursuant to Direction of Registrar 85 >>   
Procedure for Rectification of Name of Company Pursuant to Direction of the Central Government 86 >>   
Procedure for Alteration in Objects of the Company 87 >>   
Procedure for Alteration in Registered Office of a Company Within Local Limits of City, Town or Village 88 >>   
Procedure for Alteration in Registered Office of a Company Outside Local Limits of City, Town or Village but Within Same RoC and State 88 >>   
Procedure for Change in Registered Office from Jurisdiction of One RoC to Another RoC Within Same State 89 >>   
Procedure for Change in Registered Office from One State to Another 90 >>   
Procedure for Alteration of Articles Other Than Conversion of Public Company into Private or Vice-versa 91 >>   
B. SPECIMEN FORMATS 92 >>   
Board Resolution for Change in Name of Company 92 >>   
General Meeting Special Resolution for Change in Name of Company 93 >>   
Board Resolution for Deletion of Words 'Limited' from the Name of Company 94 >>   
General Meeting Special Resolution for Deletion of Words 'Limited' from the Name of Company 94 >>   
General Meeting Ordinary Resolution for Rectification of Name Pursuant to Direction of RoC 95 >>   
Board Resolution to Fix Up the Location of Registered Office 96 >>   
Board Resolution for Shifting Registered Office Within Local Limits of City, Town or Village 96 >>   
General Meeting Special Resolution for Shifting Registered Office Outside Local Limits of City, Town or Village 96 >>   
Board Resolution for Change of Registered Office from the Jurisdiction of One Registrar to Another Within the Same State 97 >>   
General Meeting Special Resolution for Shifting Registered Office from Jurisdiction of One RoC to Another RoC Within Same State 97 >>   
Board Resolution for Alteration in the Articles of Association 98 >>   
General Meeting Special Resolution for Alteration of Articles of Association 99 >>   
General Meeting Special Resolution for Alteration of Object Clause of the Company 99 >>   
General Meeting Ordinary Resolution for Alteration of Share Capital 100 >>   
C. ANNEXURES 101 >>   
List of Forms 101 >>   
Emblems and Names (Prevention of Improper Use) Act, 1950 102 >>   
Schedule I 106 >>   
General Circular No. 16/2014, dt. 10-6-2014 131 >>   
FAQs on SPICe+ 132 >>   
FAQs on Incorporation and Allied Matters 132 >>   
       -- Producer Companies 149 >>   
       -- Nidhi Companies 150 >>   
Companies (Incorporation) Third Amendment Rules, 2020 150 >>   
       -- Notification dated 24-12-2020 [F. No. 1/13/2013 CL-V, Vol.III] 150 >>   
Fee Applicable 152 >>   

3. Conversions

154 >>   
Introduction 154 >>   
Conversion of public company into private company 154 >>   
       -- Alteration of Articles       -- An essential pre-requisite 155 >>   
       -- Alteration in Memorandum pursuant to change in name 155 >>   
       -- Approval from Central Government 155 >>   
       -- Manner of filing application to Regional Director 156 >>   
       -- Filing of application to Registrar for conversion 158 >>   
Conversion of private company into public company 158 >>   
       -- Alteration in Memorandum pursuant to change in name 158 >>   
       -- Alteration in Articles 158 >>   
       -- Application for conversion to Registrar 159 >>   
Conversion of One Person Company into a public or private company 159 >>   
Conversion of private company into One Person Company 160 >>   
       -- Condition for conversion into OPC 160 >>   
       -- Obtaining No Objection Certificate from members and creditors 160 >>   
       -- Filing special resolution with Registrar 160 >>   
       -- Application to Registrar for conversion 160 >>   
       -- Issue of certificate of incorporation 161 >>   
Certificate of incorporation by Registrar effecting conversion [Section 18(2)] 161 >>   
Conversion of section 8 company into any other kind 161 >>   
       -- Passing of special resolution 161 >>   
       -- Application to Regional Director 162 >>   
       -- Copy of application to the Registrar 162 >>   
       -- Publication of notice 162 >>   
       -- Notice to authorities 162 >>   
       -- Declaration by board of directors 163 >>   
       -- No objection certificate from authorities 163 >>   
       -- Filing of financial statement and annual return/statement of financial position 163 >>   
       -- Approval of authorities and report from Registrar 163 >>   
       -- Order of approval/rejection of Regional Director 163 >>   
       -- Amendment of memorandum and articles of association 164 >>   
       -- Filing of documents with Registrar 164 >>   
       -- Fresh certificate of incorporation 164 >>   
Conversion of unlisted public company or private company into Limited Liability Partnership 164 >>   
       -- Eligibility for conversion 165 >>   
       -- DIN/DPIN for designated partners 165 >>   
       -- Reservation of name 165 >>   
       -- Application for conversion alongwith incorporation document and subscriber's statement 165 >>   
       -- Registration of conversion 165 >>   
       -- Registrar's refusal to register LLP 166 >>   
       -- Effect of registration 166 >>   
       -- Continuance of pending proceedings, conviction, judgment, etc. 166 >>   
       -- No effect of conversion on existing agreements, contracts, etc. 166 >>   
       -- Effect on existing appointment, authority or power 167 >>   
       -- Notice of conversion in correspondence 167 >>   
Conversion of Limited Liability Partnership into a company 167 >>   
       -- Legal principles constituting basis of conversion under Part I of Chapter XXI of the Companies Act, 2013 167 >>   
       -- Companies capable of being registered include limited liability partnership [Section 366 of the Companies Act, 2013] 168 >>   
       -- Requirement of consent of majority of members 169 >>   
       -- Companies not capable of being registered under Part I of Chapter XXI 169 >>   
       -- LLP to be registered as a company limited by shares 169 >>   
       -- Procedural aspects of conversion of LLP into company 170 >>   
       -- Effect of registration under Part I of Chapter XXI 173 >>   
       -- Provision w.r.t. registration of unlimited company into limited company 174 >>   
       -- Vesting of property on registration 174 >>   
       -- Continuance of existing rights and liabilities or legal proceedings 174 >>   
       -- Power to stay or restrain proceedings 175 >>   
       -- Suits stayed on winding up order 175 >>   
A. SECRETARIAL PRACTICE 175 >>   
Procedure for Conversion of Public Company into Private Company 175 >>   
Procedure for Conversion of Private Company into Public Company 176 >>   
Procedure for Conversion of One Person Company into Public or Private Company 177 >>   
Procedure for Conversion of Private Company into One Person Company 178 >>   
Procedure for Conversion of Section 8 Company into Another Class of Company 179 >>   
Procedure for Conversion of Company into Limited Liability Partnership 182 >>   
Procedure for Conversion of Limited Liability Partnership into Company 183 >>   
B. SPECIMEN FORMATS 184 >>   
Board Resolution for Conversion of Public Company into Private Company 184 >>   
General Meeting Special Resolution for Conversion of Public Company into Private Company 184 >>   
Board Resolution for Conversion of Private Company into Public Company 185 >>   
General Meeting Special Resolution for Conversion of Private Company into Public Company 185 >>   
Board Resolution for Conversion of Private Company into One Person Company 186 >>   
General Meeting Special Resolution for Conversion of Private Company into One Person Company 186 >>   
Board Resolution for Conversion of Section 8 Company into Another Kind 187 >>   
General Meeting Special Resolution for Conversion of Section 8 Company into Another Kind 187 >>   
Board Resolution for Conversion of a Company into LLP 188 >>   
General Meeting Special Resolution for Conversion of Company into Limited Liability Partnership 189 >>   
C. ANNEXURE 190 >>   
List of Forms 190 >>   

4. Membership of Company

191 >>   
Member of company 191 >>   
Modes of acquiring membership 191 >>   
       -- By subscription to memorandum of association 191 >>   
       -- By agreement in writing to become member 192 >>   
       -- By holding shares as a beneficial owner in the records of depository 192 >>   
       -- By conversion of debentures 192 >>   
       -- By transfer of shares 192 >>   
       -- By transmission of shares 192 >>   
Who may become member 193 >>   
       -- Company 193 >>   
       -- Registered co-operative society 193 >>   
       -- Partnership firm 193 >>   
       -- Limited liability partnership 193 >>   
       -- HUF 193 >>   
       -- Registered Trade Union 193 >>   
       -- Minor 193 >>   
       -- Foreign national 194 >>   
       -- Illiterate person 194 >>   
Number of members 194 >>   
Joint members 194 >>   
       -- Issue of share certificate 194 >>   
       -- Liability for calls 194 >>   
       -- Transfer and transmission of shares 195 >>   
       -- Voting 195 >>   
       -- Dividend, interest etc. 195 >>   
Beneficial owner vis-a-vis registered owner 195 >>   
       -- Declaration in respect of beneficial interest in any share to company 195 >>   
       -- Filing of return in respect of declaration with the Registrar 196 >>   
       -- Non applicability of provisions of declaration in respect of beneficial interest in shares 197 >>   
       -- Exemption to certain class of persons 197 >>   
Significant Beneficial Owner 197 >>   
       -- Significant Beneficial Owner       -- Meaning of 197 >>   
       -- Declaration of holding significant beneficial ownership in shares 199 >>   
       -- Return of significant beneficial owner 199 >>   
       -- Service of notice seeking information regarding SBO 200 >>   
       -- Application to Tribunal on failure to provide information 200 >>   
       -- Order of Tribunal 200 >>   
       -- Maintenance and inspection of register of SBO [Section 90(2)] 200 >>   
       -- Non-applicability of Companies (Significant Beneficial Owners) Rules, 2018 201 >>   
       -- Punishment for non-compliance 201 >>   
Register of members 201 >>   
Rights of member 202 >>   
       -- Individual rights of a member 202 >>   
       -- Collective rights of members 202 >>   
Liability of member 203 >>   
Cessation of membership 203 >>   
       -- By valid surrender of shares 203 >>   
       -- Transfer of shares 203 >>   
       -- Foefeiture of shares 203 >>   
       -- Death of member 203 >>   
       -- Buy back of shares by company 203 >>   
       -- Sale of shares by company 203 >>   
       -- Expulsion from membership 203 >>   
Nomination of securities 204 >>   
       -- Nomination by whom 204 >>   
       -- Nomination in whose favour 204 >>   
       -- Options with nominee upon death of holder of securities 204 >>   
       -- Rights of nominee 205 >>   
       -- Cancellation of or variation in nomination 205 >>   
       -- Nomination in respect of nominee being minor 205 >>   
       -- Nomination in case of one person company 205 >>   
Transfer of securities 207 >>   
       -- Requirement as to instrument of transfer 208 >>   
       -- Non-requirement of instrument of transfer 208 >>   
       -- Appointment of share transfer agent in case of listed entity 208 >>   
       -- Requirement of PAN in case of transfer of securities of listed company 209 >>   
       -- Stamp duty on transfer of securities 209 >>   
       -- Registration of transfer 210 >>   
       -- Standardised norms for transfer in physical mode vide Circular dt. 6-11-2018 212 >>   
       -- Penalty for contravention of provisions of section 56 212 >>   
       -- Refusal of registration of transfer of securities 212 >>   
       -- Remedy for refusal of transfer of securities 212 >>   
       -- Rectification of register of members 213 >>   
Transmission of securities 214 >>   
       -- Provisions of transfer do not apply to transmission 214 >>   
       -- Documents required in case of transmission of securities 214 >>   
       -- Right to intestate property on grant of letters of administration 215 >>   
       -- Proof of legal representation 216 >>   
       -- Registration of transmission of securities 216 >>   
       -- Refusal of registration of transmission of securities 217 >>   
       -- Remedy against refusal of registration of transmission of securities 217 >>   
       -- Regulations concerning transmission of shares in Table F of Schedule I 217 >>   
       -- Transmission in case of small holdings 219 >>   
       -- Transmission in case of amalgamation 219 >>   
A. SECRETARIAL PRACTICE 219 >>   
Procedure for Transfer of Securities Held in Physical Form 219 >>   
Procedure for Transmission of Securities 221 >>   
B. SPECIMEN FORMATS 223 >>   
Board Resolution for Transfer of Shares 223 >>   
Board Resolution for Refusal to Transfer Shares with Reasons 223 >>   
Board Resolution for Transmission of Shares 223 >>   
Board Resolution for Transmission of Shares Upon Death of Joint Shareholder 224 >>   
Board Resolution for Transmission of Shares on Attainment of Majority by Minor 224 >>   
C. ANNEXURES 224 >>   
List of Forms 224 >>   
Disclosure of Significant Beneficial Ownership in the Shareholding Pattern 225 >>   
Circular No. SEBI/HO/MIRSD/DOS3/CIR/P/2018/139, Dt. 6-11-2018 225 >>   

5. Share Capital and Debentures

229 >>   
Capital'       -- Connotation of 229 >>   
Meaning of share 229 >>   
Nature of shares and related aspects thereto 229 >>   
       -- Shares are ‘movable property’ 229 >>   
       -- Shares are goods and not actionable claims 229 >>   
       -- Distinction between 'Share' and 'Securities' 230 >>   
       -- Distinction between share and share certificate 230 >>   
       -- Numbering of shares 230 >>   
       -- Situs or location of property in shares 230 >>   
Meaning of share capital 230 >>   
Classification of share capital 230 >>   
       -- Nominal, authorised or registered share capital 230 >>   
       -- Issued share capital 231 >>   
       -- Subscribed share capital 231 >>   
       -- Called up share capital 231 >>   
       -- Paid-up share capital 231 >>   
       -- Uncalled share capital 231 >>   
       -- Reserve share capital 232 >>   
Publication of authorised, subscribed and paid-up share capital 232 >>   
Types of share capital 232 >>   
Equity shares 232 >>   
       -- Meaning of equity share 232 >>   
       -- Equity shares with voting rights 233 >>   
       -- Equity shares with differential rights 233 >>   
Preference shares 236 >>   
       -- Meaning 236 >>   
       -- Kinds of preference shares 237 >>   
       -- Voting rights on preference shares 239 >>   
       -- Particulars to be entered in Register of Members 239 >>   
       -- Applicability of the SEBI Regulations 239 >>   
       -- Redemption of preference shares 239 >>   
       -- Issue and redemption of preference shares by company in infrastructural projects 242 >>   
Distinction between equity shares and preference shares 242 >>   
Variation of shareholder's rights 243 >>   
       -- Rights of dissenting shareholders 243 >>   
       -- Consequences on non-compliance of section 48 244 >>   
Share certificate 245 >>   
       -- Evidentiary value of share certificates 245 >>   
       -- Legal effect of share certificate 245 >>   
       -- Issuance of share certificates 245 >>   
       -- Format of share certificates and contents thereof 246 >>   
       -- Signature and affixing common seal on share certificates 246 >>   
       -- Entry of share certificates in register of members 246 >>   
       -- Time limit for issuance of share certificates 247 >>   
       -- Issuance of renewed share certificate 247 >>   
       -- Issuance of duplicate share certificates 248 >>   
       -- Register of renewed and duplicate share certificates 249 >>   
       -- Stamp duty on share certificates 249 >>   
       -- Maintenance of share certificate forms and related books and documents 250 >>   
Dematerialisation of securities 250 >>   
       -- Conditions as to making offer for issue of securities, buyback, bonus issue, etc. 251 >>   
       -- Reconciliation of record of demat securities 251 >>   
       -- Requisite details as to Form No. PAS-6 251 >>   
       -- Filing of grievances of security holders of unlisted public companies 252 >>   
Issuance of shares 252 >>   
       -- Issuance of shares at premium 252 >>   
       -- Issuance of shares at discount 253 >>   
Issuance of sweat equity shares 254 >>   
       -- Meaning of sweat equity shares 254 >>   
       -- Conditions for issuance of sweat equity shares 255 >>   
       -- Particulars as to explanatory statement to special resolution 255 >>   
       -- Validity of special resolution authorizing sweat equity shares 256 >>   
       -- Limits on issue of sweat equity shares 256 >>   
       -- Lock-in-period of sweat equity shares 256 >>   
       -- Valuation aspects 256 >>   
       -- Sweat equity shares for non-cash consideration 256 >>   
       -- Sweat equity shares forming part of managerial remuneration 257 >>   
       -- Accounting treatment of sweat equity shares 257 >>   
       -- Disclosure in Board's report 257 >>   
       -- Register of sweat equity shares 258 >>   
       -- Holders of Sweat Equity Shares to be ranked pari passu with other equity shareholders 258 >>   
Issuance of bonus shares 258 >>   
       -- Bonus shares       -- Meaning of 258 >>   
       -- Sources for issue of bonus shares 259 >>   
       -- Conditions for issuance of bonus shares 259 >>   
       -- No Bonus shares in lieu of dividend 259 >>   
       -- Paid-up capital after bonus shares to be within authorised share capital of company 259 >>   
       -- Filing of return of allotment for issue of bonus shares 260 >>   
       -- Disclosure in financial statements as to bonus issue 260 >>   
Further Issue of capital 260 >>   
       -- Right issue 260 >>   
       -- Employees' stock options 261 >>   
       -- Preferential Basis 266 >>   
Alteration of share capital 269 >>   
       -- Manner as to alteration of share capital 269 >>   
       -- Notice to Registrar of alteration of share capital 270 >>   
       -- Alteration of share capital consequent upon order of Government 270 >>   
Reduction of share capital 272 >>   
       -- Passing of special resolution in general meeting 272 >>   
       -- Application to Tribunal for reduction of share capital 272 >>   
       -- Issuance of notice and directions by NCLT 273 >>   
       -- Representation by various authorities 274 >>   
       -- Procedure with regard to representations and objections received [Rule 5] 274 >>   
       -- Order by Tribunal 274 >>   
       -- Accounting treatment for reduction of share capital 274 >>   
       -- Publication of order of Tribunal 274 >>   
       -- Filing of Tribunal's order with the registrar 275 >>   
       -- Liability of members in respect of reduced shares 275 >>   
       -- Penalty for concealment, etc., on officers of company 275 >>   
       -- Requirements of listing regulations as to reduction of share capital 276 >>   
Buy-back of securities 277 >>   
       -- Meaning and significance of buy-back 277 >>   
       -- Restriction on company to purchase its own shares 277 >>   
       -- Restriction on public company to finance the purchase of its own shares or of its holding company 278 >>   
       -- Sources of buy-back 280 >>   
       -- Conditions precedent for buy-back 281 >>   
       -- Contents of explanatory statement to the notice for buy-back 281 >>   
       -- Disclosures to be made in explanatory statement 282 >>   
       -- Time limit of completion of buy-back 283 >>   
       -- Mode of buy-back 283 >>   
       -- Procedure for offer 284 >>   
       -- General obligations of company regarding buy-back 285 >>   
       -- Securities of unlisted public company to be in demat form 285 >>   
       -- Extinguishment of securities bought back 285 >>   
       -- Prohibition of further issue of shares or securities 286 >>   
       -- Maintenance of register of shares or other specified securities bought back 286 >>   
       -- Filing of return with Registrar 286 >>   
       -- Consequences of non-compliance 286 >>   
       -- Transfer of certain sums to capital redemption reserve account 286 >>   
       -- Prohibition on buy-back in certain cases 287 >>   
Debentures 287 >>   
       -- Meaning of debenture 287 >>   
       -- Kinds of debentures 288 >>   
       -- Mode of issuing debentures 290 >>   
       -- Debenture stock 290 >>   
       -- Distinction between debenture and shares 290 >>   
       -- Passing of a special resolution 291 >>   
       -- Creation of debenture redemption reserve account 291 >>   
       -- Redemption of debentures 292 >>   
       -- Debenture Trustees 293 >>   
       -- Meeting of debenture holders 295 >>   
       -- Debenture trust deed 295 >>   
       -- Right to obtain copies of annual accounts 296 >>   
       -- Register of debenture holders 296 >>   
       -- Registration of charge in connection with issue of debentures of a series 296 >>   
A. SECRETARIAL PRACTICE 297 >>   
Procedure for Issue of Equity Shares with Differential Rights 297 >>   
Procedure for Issue of Redeemable Preference Shares 299 >>   
Procedure for Redemption of Preference Shares 300 >>   
Procedure for Issue of Sweat Equity Shares 301 >>   
Procedure for Issue of Bonus Shares 303 >>   
Procedure for Issue of Right Shares 305 >>   
Procedure for Issue of Shares Under Employee Stock Option Scheme 306 >>   
Procedure for Issue of Shares or Other Securities on Preferential Basis 308 >>   
Procedure for Increase in Authorised Capital in Case of a Limited Company 309 >>   
Procedure for Increasing the Authorised Capital in Case of a Company Other Than Limited Company 311 >>   
General Procedure for Buy-back of Shares or Other Specified Securities from Members by a Listed Company Through Any Method 312 >>   
Procedure for Buy-Back of Shares or Other Specified Securities by Private and Unlisted Public Companies 315 >>   
Procedure for Issuance of Debentures by Listed Companies 318 >>   
Procedure for Issuance of Debentures by Unlisted Companies 321 >>   
B. SPECIMEN FORMATS 322 >>   
Board Resolution for Issue of Shares with Differential Rights 322 >>   
General Meeting Ordinary Resolution for Issue of Equity Shares With Differential Rights 322 >>   
General Meeting Special Resolution for Issue of Redeemable Preference Shares 324 >>   
Board Resolution for Redemption of Preference Shares 325 >>   
Board Resolution for Issue of Sweat Equity Shares 326 >>   
General Meeting Special Resolution for Issuance of Sweat Equity Shares 326 >>   
Board Resolution Recommending Bonus Issue 327 >>   
General Meeting Ordinary Resolution for Issue of Bonus Shares 328 >>   
Board Resolution for Right Issue of Shares 328 >>   
Board Resolution for Issuance of Employees Stock Option Scheme 329 >>   
General Meeting Special Resolution for Issuance of Shares Under Employees Stock Option Scheme 329 >>   
Board Resolution for Approval for Issue of Equity Shares on Preferential Basis 331 >>   
General Meeting Special Resolution for Issue of Shares on Preferential Basis 332 >>   
Board Resolution for Increase in Authorised Share Capital 334 >>   
General Meeting Ordinary Resolution for Increase in Authorised Share Capital 335 >>   
General Meeting Special Resolution for Increase in Authorised Share Capital 335 >>   
Board Resolution for Consolidation of Share Capital 337 >>   
General Meeting Ordinary Resolution for Consolidation of Share Capital Where Shares are Not in Demat Form 337 >>   
General Meeting Ordinary Resolution for Consolidation of Share Capital in Case Shares are in Demat Form 338 >>   
Board Resolution for Conversion of Shares into Stock 339 >>   
General Meeting Ordinary Resolution for Conversion of Fully Paid-Up Shares into Stock 339 >>   
Board Resolution for Sub-Division of Share Capital 340 >>   
General Meeting Ordinary Resolution for Sub-Division of Share Capital 340 >>   
Board Resolution for Cancellation of Shares 341 >>   
General Meeting Ordinary Resolution for Cancelling the Shares Not Taken Up 342 >>   
General Meeting Special Resolution for Making Provision of Money for Acquisition of Shares by ESOP Trust for Implementation of ESOP Scheme 342 >>   
General Meeting Ordinary Resolution for Alteration of Share Capital 343 >>   
Board Resolution for Issue, Sealing and Signing of Share Certificates 344 >>   
Board Resolution for Renewal of Share Certcificate 345 >>   
Board Resolution for Issue of Duplicate Share Certificate in Case of Loss of Original 345 >>   
Board Resolution for Destruction of Cancelled Share Certificates 345 >>   
Board Resolution for Buy-Back of Equity Shares Upto 10% of Paid Up Capital of the Listed Company 345 >>   
Board Resolution for Buy-Back of Equity Shares Upto 10% of the Paid Up Capital of the Private or Unlisted Public Company 346 >>   
General Meeting Special Resolution for Buy-Back of Equity Shares by Private and Unlisted Public Companies 346 >>   
Board Resolution for Issue of Debentures 349 >>   
C. ANNEXURE 349 >>   
List of Forms 349 >>   

6. Allotment of Securities and Registered Valuers

351 >>   
Securities       -- Connotation of 351 >>   
Mode of issuance of securities 351 >>   
Powers of Securities and Exchange Board of India 352 >>   
Public offer 353 >>   
Meaning of 'prospectus' and 'abridged prospectus' 353 >>   
General provisions as to prospectus 353 >>   
Authority for issuance of prospectus 353 >>   
Deemed prospectus or offer for sale document 354 >>   
       -- Matters to be stated and reports to be set out in deemed prospectus 354 >>   
       -- Signing of documents 354 >>   
Offer of sale of shares by certain existing members of company 354 >>   
       -- Applicability of provisions as to prospectus 354 >>   
       -- Expenses of the offer 355 >>   
Matters to be stated and reports to be set out in prospectus 355 >>   
Inclusion of expert's statement in prospectus 355 >>   
Particulars to be stated on the face of prospectus 356 >>   
Dating of prospectus 356 >>   
Filing of copy of prospectus with the Registrar 356 >>   
Validity of prospectus 356 >>   
Consequences of contravention of provisions of section 26 356 >>   
Variation of terms of contract or objects mentioned in prospectus 356 >>   
Shelf prospectus 357 >>   
       -- Filing of shelf prospectus 357 >>   
       -- Validity period of shelf prospectus 357 >>   
       -- Filing of information memorandum 357 >>   
       -- Refund of monies received as subscription in advance 358 >>   
       -- Information memorandum together with shelf prospectus be treated as prospectus 358 >>   
Red herring prospectus 358 >>   
Abridged prospectus 359 >>   
Furnishing of copy of prospectus to public on request 359 >>   
Liability for mis-statements in prospectus 359 >>   
       -- Criminal liability for mis-statements in prospectus 359 >>   
       -- Civil liability for mis-statements in prospectus 360 >>   
       -- Punishment for fraudulently inducing persons to invest money 361 >>   
       -- Punishment for fraud under section 447 361 >>   
Remedy against mis-representation or class action suits 361 >>   
Newspaper advertisements of prospectus 362 >>   
Punishment for personation for acquisition, etc., of securities 362 >>   
       -- Person who shall be punishable 362 >>   
Meaning of allotment of securities 362 >>   
Regulatory framework in connection with issuance and allotment 362 >>   
No allotment of securities to be made without receipt of minimum subscription 362 >>   
Refund of application money and penalty in case of default 363 >>   
Return of allotment 363 >>   
Requirement of listing of securities offered to public 364 >>   
       -- Filing of application to recognised stock exchange 364 >>   
       -- Mention the name(s) of stock exchange(s) in prospectus 366 >>   
       -- Mandatory application for listing in certain circumstances 366 >>   
       -- Requirements as regards articles of association 366 >>   
       -- Minimum public offer 367 >>   
       -- Conditions precedent to submission of application for listing by Stock Exchange 367 >>   
       -- Suspension or withdrawal of admission for dealing in securities 370 >>   
       -- Restoration or re-admission to dealing in securities 370 >>   
       -- Waiver or relaxation of listing requirements 370 >>   
       -- Appeal against refusal of stock exchanges to list securities of public companies 370 >>   
       -- Appeal to Securities Appellate Tribunal against decision of recognised stock exchange 371 >>   
       -- Application moneys to be kept in a separate bank account and conditions for utilisation 372 >>   
       -- Waiver of compliance requirements not permissible 372 >>   
       -- Penalty for non-compliance 372 >>   
       -- Applications Supported by Blocked Amount (ASBA) facility 372 >>   
       -- Issue requirements 373 >>   
       -- Opening of the issue 374 >>   
       -- Book building process 374 >>   
       -- Uniform procedure for dealing with unclaimed shares by a listed company 376 >>   
Offer or Invitation of Securities on Private Placement Basis 377 >>   
       -- Private Placement       -- Meaning of 377 >>   
       -- Number of persons to whom offer can be privately placed 377 >>   
       -- Private placement no longer where offer made to more persons than prescribed 378 >>   
       -- Conditions of issuing securities on private placement basis 378 >>   
       -- Mode of receipt of application money 380 >>   
       -- Right of renunciation 380 >>   
       -- Application money to be kept in separate bank account 380 >>   
       -- Allotment of securities offered for subscription under private placement 380 >>   
       -- Filing of return of allotment 380 >>   
       -- Restriction to utilise application monies 381 >>   
       -- Consequences of non-compliance of provisions of private placement 381 >>   
Valuer eligible for valuation of securities 381 >>   
       -- Applicability of the Companies (Registered Valuers and Valuation) Rules, 2017 382 >>   
       -- Valuation to be done by the registered valuer only 382 >>   
       -- Valuation required by registered valuer under the Companies Act, 2013 382 >>   
       -- Eligibility for becoming registered valuers 383 >>   
       -- Qualifications and experience 384 >>   
       -- Application for certificate of registration 384 >>   
       -- Duties and responsibilities of valuer 385 >>   
       -- Conditions of registration 386 >>   
       -- Conduct of valuation 386 >>   
       -- Temporary surrender 387 >>   
       -- Punishment for contravention 387 >>   
       -- Punishment for false statement 388 >>   
A. SECRETARIAL PRACTICE 388 >>   
Procedure for Allotment of Securities 388 >>   
Procedure for Offering Securities Under Private Placement 390 >>   
B. SPECIMEN FORMATS 391 >>   
Board Resolution for Issue of Draft Prospectus 391 >>   
General Meeting Special Resolution for Variation of Terms of Contracts Mentioned in Prospectus 392 >>   
Board Resolution for Approval of Prospectus 392 >>   
Board Resolution for Issue of Draft Offer for Sale Document (Deemed Prospectus) 393 >>   
Board Resolution for Approval of Offer for Sale Document (Deemed Prospectus) 393 >>   
Board Resolution for Issue of Shelf Prospectus 393 >>   
Board Resolution for Approval of Information Memorandum 394 >>   
Board Resolution for Issue of Red Herring Prospectus 394 >>   
Board Resolution for Repayment of Share Application Money As Per Section 39(3) 394 >>   
Board Resolution for Making Allotments in Case of Receipt of Minimum Subscription 395 >>   
Board Resolution for Approval of Issue of Non-Convertible Debentures on Private Placement Basis 395 >>   
Special Resolution for Approval of Issue of Non-Convertible Debentures on Private Placement Basis 396 >>   
Board Resolution for Making Allotments of Non-Convertible Debentures 396 >>   
C. ANNEXURES 396 >>   
List of Forms 396 >>   
Model Code of Conduct for Registered Valuers 397 >>   
Procedure for Listing of Securities at the Stock Exchange 399 >>   

7. Directors and Managerial Personnel

401 >>   
Definition of director and Board of Directors 401 >>   
Only an individual is eligible to become a director 401 >>   
Number of directors 401 >>   
Types of directors 402 >>   
       -- First directors 402 >>   
       -- Permanent directors and retiring directors 402 >>   
       -- Executive and non-executive directors 402 >>   
       -- Additional directors 402 >>   
       -- Alternate directors 402 >>   
       -- Director appointed for filling casual vacancy 403 >>   
       -- Professional director 403 >>   
       -- Nominee directors 403 >>   
       -- Whole-time director 403 >>   
       -- Managing director 403 >>   
       -- Manager 403 >>   
       -- Chairman director 404 >>   
       -- Secretary-cum-director 404 >>   
       -- Small shareholder director 404 >>   
       -- Woman director 404 >>   
       -- Resident director 404 >>   
       -- Foreign director 405 >>   
       -- Independent director 405 >>   
Composition of Board of Directors of a listed company 406 >>   
       -- Requirement as to independent directors 407 >>   
       -- Validity of directorship on attaining age of seventy five 407 >>   
       -- Chairperson of the Board w.e.f. 1-4-2022 407 >>   
Qualifications of directors 407 >>   
       -- Grounds of disqualifications of a director 407 >>   
       -- Additional grounds of disqualifications 409 >>   
       -- Effect of certain disqualifications 409 >>   
       -- Notice of disqualification 409 >>   
       -- Rectification of defect by defaulting companies 409 >>   
       -- Removal of disqualification 409 >>   
       -- Director to furnish declaration as to his non-disqualification 409 >>   
       -- Vacation of office of director on the ground of disqualification 409 >>   
       -- Limit of directorships 409 >>   
       -- Penalty 410 >>   
Requirement of Director Identification Number 411 >>   
       -- Meaning of DIN 411 >>   
       -- Application for obtaining DIN 411 >>   
       -- Allotment of DIN 412 >>   
       -- Director to intimate Director Identification Number to the company 414 >>   
       -- Company to inform DIN to Registrar 414 >>   
       -- Intimation of DIN for KYC of Directors to Central Government 415 >>   
       -- Obligation to indicate DIN in return, etc. 415 >>   
       -- Prohibition to obtain more than one Director Identification Number 415 >>   
       -- Intimation of changes in particulars of directors 415 >>   
       -- Penalty for contravention of provisions of sections 152, 155 and 156 416 >>   
       -- Cancellation, surrender or deactivation of DIN 416 >>   
Powers of Board of Directors 417 >>   
       -- General powers of Board 417 >>   
       -- Powers exercisable only at Board meetings 417 >>   
       -- Powers to be exercised with consent of general meeting 419 >>   
Duties of Directors 421 >>   
       -- General duties 422 >>   
       -- Statutory duties 423 >>   
Liabilities of directors 424 >>   
       -- Liability for breach of warranty 424 >>   
       -- Liability of director as a guarantor to company's debts 425 >>   
       -- Liability for torts of company 425 >>   
       -- Liability in case of statutory violations by company 425 >>   
       -- Liability for ultra vires acts 427 >>   
       -- Liability in case of contempt of court 427 >>   
       -- Liability in case of personal profits 427 >>   
       -- Liability for the acts of co-director 427 >>   
       -- Liability of director of a private company in liquidation 427 >>   
       -- Liability towards company after cessation of office of director 428 >>   
Appointment of directors 428 >>   
Appointment of first directors 428 >>   
       -- Applicability of section 152(1) 429 >>   
       -- Tenure of first directors being subscribers to memorandum 429 >>   
       -- Regulations of model articles 429 >>   
       -- Details of first directors to be submitted for incorporation of company 429 >>   
Appointment of additional director 429 >>   
       -- Condition precedent for appointment of additional directors 429 >>   
       -- Articles not empowering Board of Directors of company to appoint additional directors 430 >>   
       -- Term of additional director 430 >>   
       -- Appointment of additional director by general meeting 430 >>   
       -- Appointment of additional director when the number of directors is reduced to one 430 >>   
Appointment of alternate director 431 >>   
       -- Only an independent director can be appointed as an alternate director to an independent director 431 >>   
       -- Period of office of alternate director 431 >>   
       -- Automatic reappointment provision does not apply to alternate director 431 >>   
       -- Mode of appointment of alternate director 432 >>   
       -- Alternate directorship also to be counted for the ceiling as to number of directorships 432 >>   
       -- Filing of e-forms with concerned Registrar of Companies 432 >>   
Appointment of Nominee director (Nomination by third party) 432 >>   
Appointment of directors to fill up casual vacancy 432 >>   
       -- Period up to which director appointed to fill up casual vacancy shall hold office 432 >>   
       -- As to filling up of casual vacancy 432 >>   
       -- Board's whether empowered to fill up casual vacancies 433 >>   
Appointment of small shareholders' director in listed company 433 >>   
Appointment of independent director 434 >>   
       -- Meaning of independent director 435 >>   
       -- Declaration as to meeting of criteria of independence as specified in section 149(6) 436 >>   
       -- Maintenance of databank of independent directors and manner of selection of independent directors 436 >>   
       -- Requirement of approval of company in general meeting 438 >>   
       -- Independent director and company are bound to follow the provisions of Schedule IV 438 >>   
       -- Remuneration of independent director 438 >>   
       -- Tenure of independent director 439 >>   
       -- Liability with respect to the acts of the company 439 >>   
       -- Independent director not liable to retire by rotation 439 >>   
       -- Position of section 8 company 439 >>   
       -- SEBI provisions relating to independent director 439 >>   
Appointment by shareholders in general meeting 441 >>   
Appointment of director by Tribunal 441 >>   
Consent to act as directors 441 >>   
Candidature of a person for directorship 442 >>   
       -- Eligibility 442 >>   
       -- Directors not retiring by rotation 442 >>   
       -- Information to members about candidature 442 >>   
       -- Position of section 8 companies 443 >>   
       -- Position of private company 443 >>   
       -- Position of Government Company 443 >>   
Resolution for appointment of directors 443 >>   
       -- Resolution in contravention of section 162(1) 443 >>   
       -- Position of private company 443 >>   
       -- Position of Government company 443 >>   
Proportional representation system for appointment of directors 444 >>   
Defects in appointment of directors not to invalidate the actions taken 444 >>   
Filing of return containing particulars of appointment of directors and KMP 444 >>   
Remuneration to directors 445 >>   
       -- Mode of payment of remuneration 445 >>   
       -- Cap on total managerial remuneration 445 >>   
       -- Percentage of ceiling on the remuneration of ordinary directors in case of profits 445 >>   
       -- Non-inclusion of sitting fee in ceiling limits 446 >>   
       -- Determination of remuneration 446 >>   
       -- Sitting fees to directors 447 >>   
       -- Refund of sum received in excess of limits 447 >>   
       -- Disclosure requirement for listed companies 447 >>   
       -- Penalty 448 >>   
       -- Applicability of provisions to Government company and Specified IFSC company 448 >>   
       -- Remuneration to directors of a private company 448 >>   
       -- Calculation of net profits under section 198 448 >>   
Retirement of directors by rotation 450 >>   
       -- Ascertainment of directors retiring by rotation in case of public company 450 >>   
       -- Who shall retire first 450 >>   
       -- Retirement of director(s) in case of other companies than public companies 450 >>   
       -- Filling up of vacancy created by retirement of directors by rotation 451 >>   
Vacation of office 452 >>   
       -- Grounds of vacation of office 452 >>   
       -- Additional grounds of vacation of office 452 >>   
       -- Appointment of directors by the promoter/Central Government in case of vacation of offices by all the directors 452 >>   
       -- Filing of information with the Registrar on vacation of office of a director 453 >>   
       -- Punishment for contravention of provisions 453 >>   
       -- Vacation of office on the ground of absentism from the Board meetings 453 >>   
Removal of directors 453 >>   
       -- Passing of ordinary resolution 453 >>   
       -- Requirements as to special notice 454 >>   
       -- Sending copy of notice to directors 454 >>   
       -- Sending or reading out of representation of director 454 >>   
       -- Power of Tribunal as to non reading or non sending of representations 454 >>   
       -- Filling up of vacancy caused by removal of director 454 >>   
       -- Entitlement as to compensation or damages on removal 455 >>   
       -- Removal of director by the Tribunal 455 >>   
Resignation of a director 455 >>   
       -- Action to be taken on receipt of notice 455 >>   
       -- Intimation to Registrar by director about resignation 455 >>   
       -- When resignation takes effect 456 >>   
       -- Liability of resigning director 456 >>   
       -- Appointment of directors by promoter/Central Government in case of resignation by all directors 456 >>   
Key Managerial Personnel 456 >>   
       -- Requirement of appointment of whole time key managerial personnel 457 >>   
       -- Chairman and Managing Director or CEO at the same time 457 >>   
       -- Appointment of managerial personnel 457 >>   
       -- Appointment of managing director or whole time director or manager of listed company and public company without approval of Central Government 458 >>   
       -- Appointment of managing director or whole time director or manager of listed company and public company with the Central Government's approval 460 >>   
       -- Appointment of managerial personnel in case of private company 461 >>   
       -- Filing of return with Registrar and other disclosure requirements 461 >>   
       -- Contract of employment with managing director or whole time director 461 >>   
       -- Holding of office of KMP in more than one company 462 >>   
       -- Casual vacancy to be filled by the Board of directors 462 >>   
       -- Prohibition on assignment of office 462 >>   
       -- Compensation for loss of office of MD or WTD or manager 463 >>   
       -- Exemption to certain key managerial personnel of Government company 463 >>   
       -- Punishment for contravention 463 >>   
       -- Authentication of documents, proceedings and contracts 463 >>   
       -- Functions and duties of Company Secretary 463 >>   
       -- Remuneration to managerial personnel 464 >>   
       -- Company to consider certain things while according its approval for appointment and remuneration of managerial personnel 466 >>   
       -- Obligations with respect to Board of Directors and senior management as per SEBI (LODR) Regulations, 2015 467 >>   
Maintenance of register of directors and key managerial personnel 467 >>   
Disclosure of interests by director 468 >>   
       -- Disclosure of interest in any company or body corporate, etc. 468 >>   
       -- Disclosure of interest in contract or arrangement 468 >>   
       -- Effect on contract or arrangement on failure to disclose interest 469 >>   
       -- Contracts or arrangements not covered by section 184 469 >>   
       -- Consequences of non-disclosure of interest 469 >>   
       -- Position of section 8 companies 469 >>   
       -- Register of contract or arrangement to be kept by company in which directors are interested 470 >>   
Loan to directors and provision of guarantee or security by company 470 >>   
       -- Prohibition on advancing loans, etc. to directors of company and other related persons 470 >>   
       -- Conditions on which loans, etc. given to certain category of persons 470 >>   
       -- Persons in whom director of company is interested 471 >>   
       -- Non-applicability of provisions of section 185 471 >>   
       -- Cases where section 185 becomes wholly exempted for private companies 471 >>   
       -- Consequences of contravention of provisions of section 185 472 >>   
Related Party Transactions 472 >>   
       -- Definition of related party 472 >>   
       -- Requirement as to Board of directors' approval 474 >>   
       -- Requirement of members' approval 475 >>   
       -- Non-applicability of section 188 477 >>   
       -- Contract voidable if approval of Board/member is not taken 477 >>   
       -- Disclosure in the Board's report 478 >>   
       -- Penalty for contravention of provisions of section 188 478 >>   
       -- Restriction on non cash transactions involving directors 478 >>   
       -- Contract by one person company with its sole member-director 478 >>   
       -- Related Party transactions in case of listed company [Regulation 23] 479 >>   
Punishment where no specific punishment is provided 480 >>   
A. SECRETARIAL PRACTICE 480 >>   
Procedure for Appointment of First Director(s) 480 >>   
Procedure for Appointment of Additional Director 481 >>   
Procedure for Appointment of Alternate Director 482 >>   
Procedure for Appointment of Nominee Director 483 >>   
Procedure for Appointment of Director to Fill Casual Vacancy 484 >>   
Procedure for Appointment of Small Shareholders' Director in Case of a Listed Company 485 >>   
Procedure for Appointment of Independent Director 486 >>   
Procedure for Appointment of a Person Proposed as a Candidate for the Office of Director 488 >>   
Procedure for Appointment of Directors by Proportional Representation 490 >>   
Procedure for Appointment of Director in Place of Director Retiring by Rotation 491 >>   
Procedure for Vacation of Office of Director 493 >>   
Procedure for Removal of Directors by Shareholders 494 >>   
Procedure for Related Party Transactions 495 >>   
Procedure for Appointment of Managing Director/Whole Time Director/Manager 497 >>   
Procedure for Appointment of Managing Director Who is Already Managing Director or Manager of Another Company 500 >>   
B. SPECIMEN FORMATS 501 >>   
Specimen Board Resolution for Delegation of Borrowing Powers of the Board 501 >>   
Board Resolution for Delegation of Powers to Invest Funds 502 >>   
Board Resolution for Approval of Financial Statement 502 >>   
Board Resolution for Approval of Board's Report 502 >>   
Board Resolution for Sale or Disposal of the Undertaking 502 >>   
General Meeting Special Resolution for Disposal of Substantially the Whole of the Undertaking or Any Assets of a Division 503 >>   
Board Resolution for Investment of Compensation Money Otherwise than in Trust Securities 504 >>   
General Meeting Special Resolution for Investment of Compensation Money Otherwise than in Trust Securities 504 >>   
Board Resolution for Obtaining Loan Facility from the Bank 505 >>   
General Meeting Special Resolution for Granting Authority to Director for Borrowing in Excess of Paid Up Capital, Free Reserves and Securities Premium 505 >>   
Board Resolution for Extending the Time Limit for Repayment of Debt Due from a Director 506 >>   
General Meeting Special Resolution to Extend the Time Limit for Repayment of Debts Due by a Director 507 >>   
General Meeting Ordinary Resolution to Make Contribution to Specific Charitable Funds 507 >>   
Board Resolution for Deeming Subscriber to the Memorandum of Association as First Director Under Section 152(1) 508 >>   
Board Resolution for Appointment of Additional Director Under Section 161(1) 508 >>   
General Meeting Ordinary Resolution for Appointment of Additional Director as an Ordinary Director 509 >>   
Board Resolution for Appointment of an Alternate Director Under Section 161(2) 509 >>   
General Meeting Ordinary Resolution for Authorising Board of Directors for Appointment of Alternate Director 510 >>   
Board Resolution to Appoint Nominee Director Under Section 161(3) 511 >>   
Board Resolution for Filling Up of Casual Vacancy by Board Under Section 161(4) 511 >>   
Board Resolution for Appointment of Small Shareholders Directors 512 >>   
General Meeting Ordinary Resolution for Appointment of Independent Director 512 >>   
General Meeting Ordinary Resolution for Appointment of a Person as Director Who has Offered His Candidature Under Section 160 513 >>   
General Meeting Special Resolution for Payment of Remuneration to Ordinary Directors in Excess of the Prescribed Limits Under Second Proviso to Section 197 514 >>   
General Meeting Ordinary Resolution for Increasing the Overall Ceiling Limit of Total Remuneration 515 >>   
Annual General Meeting Resolution for Re-appointment of Director Retiring by Rotation 515 >>   
Annual General Meeting Resolution for Appointment of Another Director in Place of a Retiring Director 516 >>   
Annual General Meeting Resolution for Not Filling Vacancy in the Office of Director 516 >>   
Board Resolution for Vacation of Office by Director on Account of Incurring Disqualification Under Section 164 516 >>   
Board Resolution for Vacation of Office by Director Due to Non-attendance of Board Meetings 516 >>   
Board Resolution for Vacation of Office by Director for Contravening Section 184 517 >>   
Board Resolution for Vacation of Office by Director on Being Disqualified by an Order of Court or the Tribunal 517 >>   
Board Resolution for Vacation of Office by the Director on Being Convicted for Offence 517 >>   
Board Resolution for Vacation of Office by Director on Termination of Employment of Holding Company 518 >>   
Board Resolution to Grant Leave of Absence to Director 518 >>   
SPECIMEN Notice by the Members for Removal of Director 518 >>   
Notice to Director for Intimating the Intended Resolution to be Passed for His Removal 519 >>   
Representation Letter by Concerned Director Against His Removal 519 >>   
General Meeting Ordinary Resolution for Removing a Director and Appointment of Another in His Place 520 >>   
Board Resolution for Taking Note of Resignation of Director 520 >>   
Notice of Resignation from Directorship to the Company 521 >>   
Board Resolution for Appointment of a Person as Managing Director Who is Also a Managing Director of Another Company 521 >>   
Board Resolution for Appointment of Managing Director/Whole Time Director/Manager Without the Approval of Central Government 522 >>   
General Meeting Ordinary Resolution for Appointment of Managing/Whole-Time Director/Manager Without Central Government's Approval 522 >>   
Board Resolution for Appointment of Managing Director/Whole Time Director/Manager With the Approval of the Central Government 523 >>   
General Meeting Ordinary Resolution for Appointment of Managing Director/Whole-Time Director With the Permission of Central Government 524 >>   
General Meeting Special Resolution for Appointment of Managing Director/Whole-Time Director/Manager Aged Above 70 Years 525 >>   
Board Resolution for Appointment of Company Secretary as Key Managerial Personnel 525 >>   
Board Resolution for Appointment of Chief Executive Officer as Key Managerial Personnel 526 >>   
Board Resolution for Appointment of Chief Financial Officer as Key Managerial Personnel 526 >>   
Board Resolution for Payment of Minimum Remuneration to Managing Director/Whole Time Director/Manager in Case of Inadequate or No Profits 527 >>   
General Meeting Special Resolution for Payment of Minimum Remuneration in Case of Inadequate or No Profits 527 >>   
Board Resolution for Making Loans to Whole Time Director 529 >>   
Board Resolution for Disclosure of Interest or Concern of Director in Any Company or Bodies Corporate, Etc. 530 >>   
Board Resolution for Disclosure of Direct or Indirect Concern or Interest of Director in Any Contract or Arrangement 530 >>   
Board Resolution for Granting Approval to Enter into Contract With a Related Party 531 >>   
General Meeting Ordinary Resolution for Granting Approval to Enter into Contract With a Related Party 531 >>   
C. ANNEXURES 531 >>   
List of Forms 531 >>   
Schedule IV       -- Code for Independent Directors 533 >>   
Schedule V 536 >>   
Companies (Appointment and Qualification of Directors) Fifth Amendment Rules, 2020 543 >>   
       -- Notification G.S.R. 774(E), dated 18-12-2020 [F. No. 8/4/2018-CL-I- Part I] 543 >>   

8.Committees of Board

545 >>   
Audit Committee 545 >>   
       -- Connotation of Audit Committee 545 >>   
       -- Companies required to constitute Audit Committee 545 >>   
       -- Composition of Audit Committee 546 >>   
       -- Functions of Audit Committee 546 >>   
       -- Omnibus approval by Audit committee for related party transactions 547 >>   
       -- Role of Audit committee as per SEBI (LODR) Regulations 548 >>   
       -- Powers of the Audit Committee 550 >>   
       -- Meeting of the Audit Committee 550 >>   
       -- Participation in the meetings of Audit Committee 551 >>   
       -- Vigil mechanism for directors and employees 551 >>   
       -- Provisions under SS-1 551 >>   
Nomination and Remuneration Committee 551 >>   
       -- Companies required to constitute Nomination and Remuneration Committee 552 >>   
       -- Composition of Nomination and Remuneration Committee 552 >>   
       -- Functions of Nomination and Remuneration Committee 552 >>   
       -- Role of Nomination and Remuneration committee as per SEBI (LODR) Regulations 553 >>   
       -- Right to attend general meetings of the company 554 >>   
       -- Quorum for meeting of the committee of listed entity 554 >>   
Stakeholders Relationship Committee 554 >>   
       -- Companies required to constitute stakeholders relationship committee 554 >>   
       -- Composition of stakeholders relationship committee 554 >>   
       -- Functions of stakeholders relationship committee 554 >>   
       -- Right to attend general meetings of the company 555 >>   
       -- Punishment for contravention of sections 177 and 178 555 >>   
Corporate Social Responsibility Committee 555 >>   
       -- Companies required to constitute CSR Committee 555 >>   
       -- Composition of CSR Committee 556 >>   
       -- Functions of CSR Committee 556 >>   
Risk Management Committee 556 >>   
       -- Companies required to constitute risk management committee 556 >>   
       -- Composition of risk management committee 556 >>   
       -- Functions of risk management committee 557 >>   
Other types of committees 557 >>   
SPECIMEN FORMATS 557 >>   
Board Resolution for Constitution of Audit Committee 557 >>   
Board Resolution for Constitution of Nomination and Remuneration Committee 557 >>   
Board Resolution for Constitution of Stakeholders Relationship Committee 558 >>   
Board Resolution for Constitution of Corporate Social Responsibility Committee 558 >>   

9.Company Meetings

559 >>   
Significance of company meetings 559 >>   
Pre-requisites of a valid meeting 559 >>   
Kinds of company meetings 560 >>   
Special measures under the Companies Act, 2013 in view of COVID-19 outbreak 560 >>   
I. Meetings of Board and Its Committees 561 >>   
Compliance of Secretarial Standard on Board meeting 561 >>   
Frequency of the Board meetings 561 >>   
       -- Board meetings in the year of incorporation of company 561 >>   
       -- Board meetings in subsequent years 561 >>   
       -- Power of Central Government to exempt from or modify application of section 173(1) 562 >>   
       -- Exemptions to small, dormant and OPC to have requirements for two meetings in a calendar year only 562 >>   
       -- Exemptions to a section 8 company to have only one meeting in every six months 562 >>   
       -- Contravention of section 173(1) 562 >>   
Notice of Board meeting 563 >>   
       -- Entitlement to notice of Board meetings 563 >>   
       -- Responsibility to issue notice of Board meetings 563 >>   
       -- Time period for sending notice of Board meetings 563 >>   
       -- Board meetings at shorter notice 563 >>   
       -- Mode of sending notice of Board meetings 564 >>   
       -- Contents of notice of Board meetings 564 >>   
       -- Mandatory requirement to give notice of Board meetings 564 >>   
       -- Penalty for default in sending notice of Board meetings 564 >>   
       -- Improper notice and consequences thereof 565 >>   
       -- Notice of adjourned Board meetings 565 >>   
Prior intimations of Board meeting by the listed entity 565 >>   
       -- Prior intimation of corporate actions 565 >>   
       -- Prior intimation of financial results 565 >>   
       -- Prior intimation of alteration 565 >>   
Agenda for Board meeting 566 >>   
       -- Entitlement to agenda of Board meetings 566 >>   
       -- Time limit for sending agenda 566 >>   
       -- Sending agenda at shorter period of time 566 >>   
       -- Mode of sending agenda and notes on agenda of Board meetings 566 >>   
       -- Time period for maintaining proof of sending 567 >>   
       -- Sending of agenda papers to original director also in case alternate director being appointed 567 >>   
       -- Notes on items of business in the nature of unpublished price sensitive information 567 >>   
       -- Supplementary notes on agenda items 567 >>   
       -- Details of items of business requiring approval at the meeting 568 >>   
       -- Items of business to be serially numbered 568 >>   
       -- Transaction of items of business not specified in agenda 568 >>   
Authority to convene Board meetings 568 >>   
Quorum of Board meeting 568 >>   
       -- Requisite quorum of Board meetings 568 >>   
       -- Quorum shall not consist of interested director 569 >>   
       -- Quorum reduced below statutory limit due to vacancy in Board 569 >>   
       -- Quorum where number of interested directors exceeds or is equal to two thirds of the total strength 569 >>   
       -- Import of the expression 'total strength' 570 >>   
       -- Participation of directors through electronic mode 570 >>   
       -- Time of quorum 570 >>   
       -- Adjournment of meeting for want of quorum 570 >>   
       -- Quorum for meetings of Committees 570 >>   
Appointment of Chairman of Board Meetings 571 >>   
       -- Duty of Chairman to conduct meeting 571 >>   
       -- Chairman interested in items of business transacted at meeting 571 >>   
       -- Safeguarding integrity of meeting where directors participated through electronic mode 571 >>   
       -- Casting vote of Chairman 572 >>   
Attendance of directors at Board meetings 572 >>   
       -- Manner of maintaining attendance register 572 >>   
       -- Contents of attendance register 572 >>   
       -- Signature on attendance register 572 >>   
       -- Place of keeping attendance register 573 >>   
       -- Inspection of attendance register 573 >>   
       -- Preservation of attendance register 573 >>   
       -- Custody 573 >>   
Leave of absence 573 >>   
Time, day and place of Board meetings 573 >>   
       -- Time of holding Board meetings 573 >>   
       -- Day for holding Board meetings 574 >>   
       -- Place of holding Board meetings 574 >>   
       -- Provisions in Articles of Association 574 >>   
Serial number of Board meeting 574 >>   
Proxy not to be appointed by director for Board meetings 574 >>   
Appointment of observer for Board meetings 574 >>   
Resolutions at Board meetings 575 >>   
       -- Resolutions to be passed with consent of all directors present at the meeting 575 >>   
       -- Passing of resolution by circulation 576 >>   
       -- Resolutions which are usually passed at first Board meeting 580 >>   
       -- Resolutions passed at subsequent Board meetings 580 >>   
Minutes of Board meetings 581 >>   
       -- Meaning of minutes 581 >>   
       -- Classification of minutes 581 >>   
       -- Guidelines for drafting minutes of Board meetings 582 >>   
       -- Requirement as to keeping minutes of Board meeting 582 >>   
       -- Requirement as to minutes in case of adjourned meeting 583 >>   
       -- Minutes books to be consecutively numbered 583 >>   
       -- Contents of minutes of Board meetings 583 >>   
       -- Recording of minutes 585 >>   
       -- Finalisation of minutes 586 >>   
       -- Place of keeping minutes 587 >>   
       -- Signing and dating of minutes 587 >>   
       -- Minutes to be evidence of proceedings of a meetings 587 >>   
       -- Meetings deemed to be called and held 587 >>   
       -- Alteration in minutes 588 >>   
       -- Penalty for default in adherence to provisions of section 118 588 >>   
       -- Penalty for tampering with the minutes of any meeting 588 >>   
       -- Preservation of minutes of meeting 588 >>   
       -- Inspection and extracts of minutes 588 >>   
Dissolution and cancellation of Board meeting 589 >>   
       -- Dissolution of meeting 589 >>   
       -- Cancellation of meeting 589 >>   
Participation of directors in meetings through electronic mode 589 >>   
       -- Responsibility of Chairperson and Company Secretary regarding meeting held through electronic mode 590 >>   
       -- Allowing person to accompany differently abled person in meeting 590 >>   
       -- Notice of meeting 590 >>   
       -- Intimation for attending the meeting through video conferencing 591 >>   
       -- Time period for conveying the intimation 591 >>   
       -- Contents of notice 591 >>   
       -- Roll call at the commencement of meeting 591 >>   
       -- Quorum at the meeting held through video conferencing 592 >>   
       -- Place of the meeting conducted through video conferencing 592 >>   
       -- Keeping and signing of statutory registers of meeting 592 >>   
       -- Identification of director before speaking on items of business 592 >>   
       -- Objection on any motion and voting thereon 592 >>   
       -- Access of other persons denied at the place of meeting 593 >>   
       -- Summary of decisions taken at meeting 593 >>   
       -- Minutes of meeting held through video conferencing 593 >>   
       -- Matters not to be dealt with through video conferencing or other audio visual means 593 >>   
II. General Meetings 594 >>   
Adherence to Secretarial Standard on general meetings 594 >>   
Convening and conduct of annual general meetings 595 >>   
       -- Authority to convene annual general meetings 595 >>   
       -- Holding of annual general meeting 595 >>   
       -- Date, time and place for holding an annual general meeting 596 >>   
Special provisions in case of one person company 597 >>   
Power of the Tribunal to call AGM 598 >>   
       -- Calling of AGM by the Tribunal only on application of member 598 >>   
       -- Overriding power 598 >>   
       -- Consequence of default in complying with section 96 598 >>   
       -- Giving of ancillary or consequential directions by Tribunal 598 >>   
       -- Application for calling or obtaining a direction to call annual general meeting 598 >>   
       -- Direction of Tribunal regarding single member meeting 599 >>   
       -- Meeting called by Tribunal is deemed to be AGM of the company 599 >>   
Penalty for default complying with section 96 or 97 599 >>   
Conduct of extra ordinary general meetings 599 >>   
       -- Calling and holding of EGM 600 >>   
       -- Time, day and place for holding EGM 602 >>   
Class meetings 603 >>   
       -- Variation of shareholder's rights 603 >>   
       -- Rights of dissenting shareholders 603 >>   
Types of resolutions 604 >>   
       -- Ordinary resolutions 604 >>   
       -- Special resolutions 605 >>   
       -- Resolution requiring special notice 605 >>   
       -- Entitlement of members w.r.t. giving special notice and signing the notice 606 >>   
       -- Time limit of sending special notice 606 >>   
       -- Sending special notice by company to its members 606 >>   
       -- Publication of notice in newspapers 606 >>   
       -- Resolutions requiring special notice 606 >>   
Registration of certain resolutions and agreements [Section 117] 607 >>   
       -- Filing of resolutions and agreements with Registrar of Companies 607 >>   
       -- Resolutions and agreements requiring registration 607 >>   
       -- Requirement of filing explanatory statement with copies of resolutions 608 >>   
       -- Time period of filing of resolutions and agreements 608 >>   
       -- Penalty for non-compliance 608 >>   
       -- Resolutions or agreements to be annexed to the Articles 608 >>   
Passing of resolutions by postal ballot 609 >>   
       -- Items of business required to be transacted through postal ballot system 609 >>   
Business that may be transacted through postal ballot 610 >>   
       -- Responsibility of Board regarding passing of resolution through postal ballot 610 >>   
       -- Procedure for transacting business through postal ballot 610 >>   
Circulation of members' resolution 615 >>   
Modification to resolutions passed at meetings 615 >>   
Withdrawal of resolution from agenda 616 >>   
Rescinding of resolutions passed at general meetings 616 >>   
Notice of general meetings 616 >>   
       -- Length of notice of general meeting 617 >>   
       -- Covening meeting at shorter notice 617 >>   
       -- Mode of issuing notice 618 >>   
       -- Sending notice through electronic mode 618 >>   
       -- Notice to be accompanied by attendance slip and proxy form 620 >>   
       -- Persons entitled to receive notice 620 >>   
       -- Sending of notice to recognised stock exchange 621 >>   
       -- Hosting of notice on website of company 621 >>   
       -- Prohibition on transaction of business other than those specified in the notice or specifically permitted under the Act 621 >>   
       -- Effect of accidental omission to give notice 622 >>   
       -- No postponement or cancellation of a meeting which is convened upon due notice 622 >>   
       -- Notice of general meeting adjourned for want of quorum 622 >>   
Statement to be annexed to notice 622 >>   
       -- Classification of business to be transacted at general meeting with regard to annexation of statement to notice 623 >>   
       -- Matters to be set out in statement to be annexed to notice 623 >>   
       -- Disclosure of shareholding interest of director, etc. in another (outsider) company 624 >>   
       -- Availability of documents for inspection to be stated in statement 624 >>   
       -- Disclosure of details of appointment and remuneration of directors and managerial personnel 624 >>   
       -- Disclosure of details regarding appointment of independent directors 625 >>   
       -- Consequences of non-disclosure or insufficient disclosure in the statement annexed to notice 625 >>   
       -- Penalty for non-compliance 625 >>   
Quorum at general meeting 626 >>   
       -- Minimum requisite quorum for general meetings 626 >>   
       -- Quorum is constituted by physical presence of members 627 >>   
       -- Single member quorum 628 >>   
       -- Time of quorum 629 >>   
       -- Consequences where requisite quorum is not present at the meeting in time 629 >>   
       -- Effects of absence of requisite quorum at adjourned general meeting 630 >>   
       -- Effects of absence of requisite quorum upon outsiders 630 >>   
Chairman of meetings 630 >>   
       -- Appointment of a chairman 631 >>   
       -- Demand for poll on the election of Chairman 631 >>   
       -- Secretarial Standard on appointment and role of Chairman 631 >>   
       -- Removal of a chairman 632 >>   
Presence of statutory auditor and secretarial auditor 632 >>   
Proxy at meetings 633 >>   
       -- Who can appoint a proxy 633 >>   
       -- Who can be appointed as proxy 633 >>   
       -- Disabilities of proxy 634 >>   
       -- Rights of proxy 634 >>   
       -- Obligation of company to inform members of their right to appoint proxy 634 >>   
       -- Instrument for appointing proxy 634 >>   
       -- Validity of proxy 635 >>   
       -- Stamping of proxy form 635 >>   
       -- Time limit for deposit of proxy forms 635 >>   
       -- Revocation of a proxy 636 >>   
       -- Restriction on proxy as to number of members and shareholding thereof 637 >>   
       -- Canvassing for proxy 637 >>   
       -- Inspection of proxy 638 >>   
       -- Record of proxy 638 >>   
       -- Kinds of proxies 638 >>   
Representatives at general meetings of companies 639 >>   
Voting at general meeting 639 >>   
       -- Applicability of provisions of voting and restrictions on voting rights 640 >>   
       -- Types of voting 640 >>   
       -- Voting by show of hands 640 >>   
       -- Voting through electronic means 641 >>   
       -- Voting through poll 647 >>   
       -- Restrictions on voting rights of members 651 >>   
Minutes of general meeting 651 >>   
       -- Meaning of minutes 652 >>   
       -- Requirement for keeping minutes of general meeting 652 >>   
       -- Contents of minutes of general meeting 652 >>   
       -- Requirement as to minutes in case of adjourned meeting 653 >>   
       -- Minutes books to be consecutively numbered pages 653 >>   
       -- Time limit for recording and signing of minutes of general meetings 653 >>   
       -- Place of keeping minutes of general meeting 654 >>   
       -- Keeping minutes in loose leaf form 655 >>   
       -- Responsibility to keep minutes 655 >>   
       -- Recording of minutes of meetings 655 >>   
       -- Discretion of Chairman as to contents of minutes 655 >>   
       -- Minutes to be evidence of proceedings of a meetings 656 >>   
       -- Presumption to be drawn where minutes duly drawn and signed 656 >>   
       -- Alteration in minutes 656 >>   
       -- Publication of minutes 656 >>   
       -- Penalty for tampering with the minutes of any meeting 656 >>   
       -- Penalty for default in adherence to provisions of section 118 656 >>   
       -- Sending copies of minutes of general meetings and extract thereof 657 >>   
       -- Inspection and extracts of minutes book 658 >>   
       -- Maintenance and inspection of minutes in electronic form 658 >>   
       -- Preservation of minutes and other records 659 >>   
Adjournment and postponement of general meeting 659 >>   
       -- Difference between adjournment and postponement of meeting 660 >>   
       -- Power of Board of directors to adjourn or postpone general meeting 660 >>   
       -- Modes of adjournment 662 >>   
       -- Power of Chairman vis-a-vis adjournment of general meeting 662 >>   
       -- Business to be transacted at adjourned meeting 663 >>   
       -- Day, time and place of adjourned annual general meeting 663 >>   
       -- Adjournment and filing of financial statement with Registrar 663 >>   
       -- Date of resolutions passed at adjourned meeting 664 >>   
Dissolution and cancellation of meeting 664 >>   
       -- Dissolution of meeting 664 >>   
       -- Cancellation of meeting 664 >>   
A. SECRETARIAL PRACTICE 664 >>   
Procedure for Holding of First Board Meeting 664 >>   
Procedure for Holding of Subsequent Board Meeting 666 >>   
Procedure for Passing of Resolutions by Circulation 669 >>   
Procedure for Appointment of Proxy by Non-corporate Member 670 >>   
Procedure for Appointment of Proxy by Corporate Member 671 >>   
Procedure for Holding of First Annual General Meeting 671 >>   
Procedure for Holding Subsequent Annual General Meeting 675 >>   
Procedure for Extension of Time for Holding Annual General Meeting 679 >>   
Procedure for Convening of Extraordinary General Meeting by Board of Directors on its Own Motion 680 >>   
Procedure for Convening of Extraordinary General Meeting by Board of Directors on Requisition of Members 682 >>   
Procedure for Convening of Extraordinary General Meeting by Requisitionists 684 >>   
B. SPECIMEN FORMATS 686 >>   
Board Resolution to Grant Leave of Absence to Director 686 >>   
Board Resolution for Appointment of Representative by Company for Attending Meetings 686 >>   
Board Resolution for Convening of Annual General Meeting 686 >>   
Board Resolution for Seeking Extension of Time for Convening of Annual General Meeting 687 >>   
Board Resolution for Convening Extraordinary General Meeting on Own Motion 687 >>   
Board Resolution for Convening an Extraordinary General Meeting Upon Members' Requisition 687 >>   
C. ANNEXURES 687 >>   
List of Forms 687 >>   
Notice of First Board Meeting 688 >>   
Specimen Notice of Subsequent Board Meeting 689 >>   
Specimen Notice for Cancellation of Board Meeting 691 >>   
Specimen Notice of Postponement of Board Meeting 691 >>   
Specimen Notice of Adjourned Board Meeting 692 >>   
Specimen Agenda of Board Meeting 693 >>   
Specimen Minutes of First Board Meeting 694 >>   
Specimen Minutes of Subsequent Board Meeting 696 >>   
Specimen Notice Convening Annual General Meeting 698 >>   
Specimen Notice of Annual General Meeting Providing for E-Voting Facility 701 >>   
Sample Notice Convening Extraordinary General Meeting 706 >>   
Specimen Notice of Extraordinary General Meeting by Requisitionists 710 >>   
Specimen Minutes of Annual General Meeting 713 >>   
Specimen Minutes of Extraordinary General Meeting 717 >>   
Circular for e-Voting Facility Provided by Listed Entities 720 >>   
       -- Circular No. SEBI/HO/CFD/CMD/CIR/P/2020/242, dated 9-12-2020 720 >>   
General Circular No. 11/2020 721 >>   
General Circular No. 1/2020 722 >>   
General Circular No. 17/2020 722 >>   
General Circular No. 18/2020 722 >>   
General Circular No. 20/2020 722 >>   
General Circular No. 20/2020 722 >>   
General Circular No. 28/2020 722 >>   
General Circular No. 28/2020 722 >>   

10. Acceptance of Deposits

723 >>   
Introduction 723 >>   
Applicability 723 >>   
Connotation of deposit 724 >>   
       -- Amount received from government [Rule 2(1)(c)(i)] 724 >>   
       -- Amount received from foreign government or foreign institutions [Rule 2(1)(c)(ii)] 724 >>   
       -- Amount received from bank [Rule 2(1)(c)(iii)] 725 >>   
       -- Amount received from Public Financial Institutions [Rule 2(1)(c)(iv)] 725 >>   
       -- Amount received by issue of instruments [Rule 2(1)(c)(v)] 725 >>   
       -- Amount received from any other company [Rule 2(1)(c)(vi)] 725 >>   
       -- Amount received by issuing securities [Rule 2(1)(c)(vii)] 725 >>   
       -- Amount received from directors or relative of the director of private company [Rule 2(1)(c)(viii)] 726 >>   
       -- Amount received by issue of bonds or debentures [Rule 2(1)(c)(ix)] 726 >>   
       -- Amount received from employees [Rule 2(1)(c)(x)] 726 >>   
       -- Amount received or held in trust [Rule 2(1)(c)(xi)] 726 >>   
       -- Amount received for business of company [Rule 2(1)(c)(xii)] 726 >>   
       -- Amount brought in by promoters [Rule 2(1)(c)(xiii)] 727 >>   
       -- Amount accepted by a Nidhi Company [Rule 2(1)(c)(xiv)] 727 >>   
       -- Amount received as subscription of chit fund [Rule 2(1)(c)(xv)] 728 >>   
       -- Amount received under collective investment scheme [Rule 2(1)(c)(xvi)] 728 >>   
       -- Amount received by way of a convertible note [Rule 2(1)(c)(xvii)] 728 >>   
       -- Amount received from specified funds [Rule 2(1)(c)(xviii)] 728 >>   
Definition of Depositor 728 >>   
Acceptance of deposits from members 728 >>   
Acceptance of deposits from public 729 >>   
Quantum of deposits that can be accepted 730 >>   
       -- From members 730 >>   
       -- From public 731 >>   
Tenure of deposits 731 >>   
Acceptance of deposits in joint names 732 >>   
Rate of interest or brokerage on deposits 732 >>   
Alteration in terms and conditions of deposits 732 >>   
Form and particulars of advertisements/circulars 732 >>   
       -- Form of advertisement or circular 732 >>   
       -- Publishing the circular 732 >>   
       -- Certificate of statutory auditor to be attached with form 732 >>   
       -- Requirements for issuing circular or advertisement 733 >>   
       -- Validity of circular/advertisement 733 >>   
Requirement of obtaining credit rating by eligible companies 733 >>   
Creation of security for securing deposits 734 >>   
Deposit trustee(s) 734 >>   
       -- Appointment of deposit trustee(s) 734 >>   
       -- Duties of deposit trustees 735 >>   
       -- Meeting of depositors through deposit trustee 736 >>   
Form of application and declaration by depositors 736 >>   
Nomination facility for deposit holders 736 >>   
Furnishing of deposit receipts to depositors 736 >>   
Maintenance of liquid assets and creation of Deposit Repayment Reserve Account 736 >>   
Maintenance of registers of deposits 736 >>   
Repayment of deposits 737 >>   
       -- Repayment of deposits on maturity 737 >>   
       -- Premature repayment of deposits 737 >>   
       -- Repayment of deposits accepted before commencement of Companies Act, 2013 738 >>   
Failure to repay deposits 738 >>   
       -- Procedure for obtaining relief from Tribunal in case failure in repayment of deposit 738 >>   
       -- Penal consequences w.r.t. deposits in contravention of provisions of Act 740 >>   
Filing of return of deposits 741 >>   
Disclosures in the financial statements 741 >>   
Power of the Central Government to decide certain questions 741 >>   
Punishment for contravention of rules for which no punishment is specifically provided 741 >>   
Damages for fraud 741 >>   
Consequences of default by company in repayment of deposits or interest 742 >>   
Disclosure of particulars of deposits in director's report 742 >>   
Class action suit by depositors before tribunal 742 >>   
A. SECRETARIAL PRACTICE 743 >>   
Procedure for Inviting Deposits by Companies 743 >>   
B. SPECIMEN FORMATS 745 >>   
Board Resolution for Approval of the Draft Circular Pursuant to the Provisions of Section 73 of the Companies Act, 2013 745 >>   
Board Resolution for Opening Deposit Repayment Reserve Account 746 >>   
C. ANNEXURES 746 >>   
List of Forms 746 >>   
Relevant Circulars/Notifications 746 >>   
       -- General Circular No. 05/2015, dated 30-3-2015 746 >>   
       -- General Circular No. 09/2015, dated 18-6-2015 747 >>   

11. Charges, Loans and Investments

748 >>   
I. Charges 748 >>   
Meaning of Charge 748 >>   
Various aspects relevant to charges 748 >>   
       -- Registration of charges 749 >>   
       -- Modification of charges 749 >>   
       -- Satisfaction of charges 749 >>   
Types of charges 749 >>   
       -- Fixed charge 749 >>   
       -- Floating charge 749 >>   
       -- First charge 750 >>   
       -- Second charge 750 >>   
       -- Pari passu charge 750 >>   
Registration of charge 750 >>   
       -- Registration of charges is a mandatory requirement 750 >>   
       -- Time limit for registration of charges 751 >>   
       -- Application for registration of charge       -- Whose duty 751 >>   
       -- Condonation of delay in registration of charges 751 >>   
       -- Registrar to allow further extension of time for registration of charges 752 >>   
       -- Verification of instrument evidencing creating charge 753 >>   
       -- Issue of certificate as to registration of charge 753 >>   
       -- Effects of registration of charge 753 >>   
       -- Consequences of non-registration of charge 753 >>   
       -- Liability on furnishing false information and suppression of material facts 754 >>   
       -- Registration of charges on properties acquired subject to charge 754 >>   
Modification of charge 754 >>   
       -- Provisions relating to registration of charge applicable also to modification of charge 754 >>   
       -- Application for registration of modification of charges 754 >>   
       -- Time limit for registration of modification of charges 755 >>   
       -- Verification of instrument modifying charge 755 >>   
       -- Certificate as to registration of modification of charge 755 >>   
       -- Penal consequences of non-registration of modification of charge 755 >>   
       -- Modification due to operation of law       -- Section 79(b) applicable 755 >>   
Satisfaction of charge 755 >>   
       -- Intimation as to payment or satisfaction of charge and time limit with respect thereto 756 >>   
       -- Duty of Registrar on receipt of intimation from company 756 >>   
       -- Power of Registrar to make entries of satisfaction of charge even in the absence of intimation from company 757 >>   
Register of Charges 757 >>   
       -- Register of charges kept by Registrar 757 >>   
       -- Register of charges kept by company 758 >>   
       -- Intimation of the appointment of receiver or manager for entry in register of charges 759 >>   
Rectification of register of charges by the Central Government 759 >>   
       -- Rectification of register of charges in certain circumstances 760 >>   
       -- Persons eligible to make application for extension of time in filing satisfaction of charge or rectification of register of charges 760 >>   
       -- Application for condonation of delay or rectification of register of charges 760 >>   
       -- Directions by the Central Government 760 >>   
II. Loans and Investments by Company 761 >>   
Definitions under section 186 761 >>   
       -- Investment company 761 >>   
       -- Infrastructure facilities 761 >>   
Restriction on company as to investment through more than two layers of investment companies 761 >>   
Non-applicability of provisions of the Companies (Restriction on number of layers) Rules, 2017 762 >>   
Ceiling limit upon company to make loan or investment or give guarantee or provide security 762 >>   
Requirement of approval of members by passing special resolution in general meeting 762 >>   
Mandatory disclosure in financial statements about loan, investment, etc. 763 >>   
Requirement of unanimous consent of Board 763 >>   
Restriction on companies registered under section 12 of SEBI Act, 1992 763 >>   
Rate of interest at which loan is provided by company 764 >>   
Disqualification of company for making any investment, loan, guarantee or security 764 >>   
       -- Register of loan and investment by company 764 >>   
Requirements of keeping Register 764 >>   
       -- Place for keeping Register 764 >>   
       -- Preservation of register 764 >>   
Exemption w.r.t. applicability of provisions of section 186 764 >>   
Exemption to a Government company 765 >>   
Filing of return to Registrar in case of excess of layers as specified 765 >>   
Penal consequences 765 >>   
       -- Contravention under section 186 765 >>   
       -- Contravention under the Companies (Restriction on number of layers) Rules, 2017 766 >>   
Delegation of powers of the Board under section 179(3) not to affect provisions of section 186 766 >>   
Investment to be held in its own name [Section 187] 766 >>   
       -- Circumstances in which shares can be held in other's name 767 >>   
       -- Register to be maintained 767 >>   
       -- Preservation of register of particulars of investments 767 >>   
       -- Inspection of register of particulars of investments 767 >>   
       -- Punishment for contravention 767 >>   
A. SECRETARIAL PRACTICE 768 >>   
Procedure for Registration of Charge Created on Company's Assets 768 >>   
Procedure for Registration of Modification of Charge 769 >>   
Procedure for Satisfaction of Charge 770 >>   
Procedure Regarding Loans and Investments by Company 771 >>   
B. SPECIMEN FORMATS 772 >>   
Specimen Board Resolution for Creation of Charge 772 >>   
General Meeting Special Resolution for Creating Charge on the Properties of Company 772 >>   
Board Resolution for Intimating Registrar of Companies About Satisfaction of Charge 773 >>   
Board Resolution for Making Inter Corporate Loans Within Limits 774 >>   
C. ANNEXURES 774 >>   
List of Forms 774 >>   
List of Infrastructural Facilities Under Schedule VI 775 >>   

12. Charitable and Political Contributions and Corporate Social Responsibility

777 >>   
Introduction 777 >>   
Meaning of financial year 777 >>   
Contribution to bona fide and charitable funds, etc. 778 >>   
Prohibitions and restrictions regarding contributions made for political purpose 778 >>   
       -- Applicability of section 182 778 >>   
       -- Requirement of Board resolution for authorising political contribution 778 >>   
       -- Amount constituting political contribution 779 >>   
       -- Disclosure of political contribution in Profit and Loss Account 779 >>   
       -- Mode of making political contribution 779 >>   
       -- Punishment for contravention [Section 182(4)] 779 >>   
Contribution to National Defence Fund 779 >>   
       -- Persons authorised to make contribution 780 >>   
       -- Overriding effect over other provisions in making contributions to National Defence Fund 780 >>   
       -- Disclosure of contributions to National Defence Fund, etc. in Profit and Loss Account 780 >>   
Corporate Social Responsibility 780 >>   
       -- Applicability of CSR provisions 781 >>   
       -- CSR Committee 782 >>   
       -- CSR Policy 783 >>   
       -- Actions to be taken by Board of Directors of companies to which CSR provisions are applicable 783 >>   
       -- Non-applicability of CSR provisions once applicable 784 >>   
       -- CSR Expenditure 784 >>   
       -- Treatment of unspent CSR amount arising from an ongoing project 784 >>   
       -- Penalty for contravention made 784 >>   
       -- Activities covered under CSR 785 >>   
       -- Undertaking CSR activities 786 >>   
       -- Contribution to PM CARES Fund to be qualified as CSR expenditure 787 >>   
       -- CSR Contribution 787 >>   
       -- Unspent CSR expenditure whether to be carried forward 787 >>   
       -- CSR Reporting 787 >>   
       -- Presentation and disclosure in financial statements 787 >>   
       -- Treatment of CSR expenditure under Income Tax Act, 1961 788 >>   
       -- Notice to non-complaint companies 788 >>   
       -- Changes to CSR Rules, 2014, w.e.f. 1-4-2021 788 >>   
Calculation of net profits as per section 198 788 >>   
A. SECRETARIAL PRACTICE POINTS 789 >>   
Procedure for Making Contributions to Charitable Funds 789 >>   
Procedure for Donation to Political Parties 790 >>   
Procedure for Making Contributions to National Defence Fund, Etc. 790 >>   
B. SPECIMEN FORMATS 790 >>   
Resolution for Making Contributions for Charitable Purposes 790 >>   
Board Resolution for Making Political Contribution 791 >>   
Resolution for Making Contributions to National Defence Fund or Any Other Fund Approved by the Central Government for the National Defence 791 >>   
Resolution for Making Contributions to CSR Activities 791 >>   
Format for the Annual Report on CSR Activities to be Included in the Board's Report 791 >>   
C. Frequently Asked Questions (FAQs) on CSR 792 >>   
D. Related Circulars and Notifications 798 >>   
Political Contributions       -- Prohibitions and Restrictions Regarding       -- Clarifications as to Requirements of Disclosure on Part of an Electoral Trust Company of any Amount or Amounts Co 798 >>   
Clarifications with Regard to Provisions of Corporate Social Responsibility Under Section 135       -- General Circular No. 21/2014 [No. 05/01/2014-CSR], Dt. 18-6-2014 798 >>   
Constitution of a High Level Committee to Suggest Measures for Improved Monitoring of the Implementation of Corporate Social Responsibility Policies by the Companies Under Section 135 of the Companies Act, 2013 [F. No. 05/09/2014-CSR, Dt. 3-2-2015] 802 >>   
Clarifications with Regard to Provisions of Corporate Social Responsibility Under Section 135(5)       -- General Circular No. 6/2018 [No. 08/05/2018-CSR], Dt. 28-5-2018 803 >>   
Clarification on Spending of CSR Funds for COVID-19       -- General Circular No. 10/2020 [No. 05/01/2019-CSR], Dt. 23-3-2020 804 >>   
Power of Central Government to Amend Schedules       -- Amendment in Schedule VII       -- Providing for CSR Activities, Notification [F. No. 13/18/2019-CSR], Dt. 26-5-2020 804 >>   
E. Draft CSR Policy 804 >>   

13. Accounts of Companies

809 >>   
Prologue 809 >>   
Maintenance of books of account, etc. 809 >>   
Meaning of 'books of account' 809 >>   
Place of maintenance of books of account 809 >>   
Manner of books of account to be kept in electronic mode 810 >>   
       -- Accessibility of books of account, etc. [Rule 3(1)] 810 >>   
       -- Maintenance of books of account, etc. in original form [Rule 3(2)] 810 >>   
       -- No alteration in information received from branch offices [Rule 3(3)] 810 >>   
       -- Display of information in legible form [Rule 3(4)] 810 >>   
       -- Proper system for storage, retrieval, display or prinout of electronic records [Rule 3(5)] 810 >>   
       -- Back-up of books of account kept in electronic form 810 >>   
       -- Furnishing of information to Registrar [Rule 3(6)] 810 >>   
Books of account in respect of branch office 811 >>   
Preservation of books of account 811 >>   
Inspection of books of account 811 >>   
       -- Inspection of books of account maintained within India 811 >>   
       -- Right of inspection available only to director 811 >>   
       -- Inspection of books of account of subsidiary 812 >>   
       -- Inspection of financial information maintained outside India 812 >>   
       -- Making available assistance in connection with inspection 812 >>   
Responsibility for compliance with section 128 812 >>   
Penalty for non-compliance of section 128 812 >>   
Maintenance of books of account in case of foreign companies 812 >>   
Requirement of financial statements 813 >>   
Meaning of financial statement 813 >>   
Presentation of financial statements 813 >>   
Requirement as to provide true and fair view of state of affairs 814 >>   
Exemption to specified class of companies from form and contents of financial statement 814 >>   
Presentation of consolidated financial statement 814 >>   
       -- Statement as to contain salient features of the financial statement 815 >>   
       -- Manner of consolidation of accounts 815 >>   
       -- Preparation, adoption and audit of consolidated financial statements 815 >>   
       -- Requirements of SEBI (LODR) Regulations, 2015 regarding consolidation 816 >>   
       -- Exemptions from provisions of consolidated financial statements 816 >>   
       -- No need for repeating the disclosure in Standalone and Consolidated financial statements 816 >>   
Laying down financial statements before annual general meeting 816 >>   
Financial statements to comply with Accounting Standards 816 >>   
       -- Meaning of expression "Accounting Standards" 817 >>   
       -- Compliance with Accounting Standards is mandatory 817 >>   
       -- Disclosures to be made in case of non-compliance with Accounting Standards 817 >>   
       -- Applicability of Indian Accounting Standards as well as Accounting Standards 817 >>   
Penal provisions for non-compliance of section 129 819 >>   
Periodical financial results 819 >>   
Re-opening of accounts on court's or Tribunal's orders 820 >>   
       -- Application for re-opening or re-casting 820 >>   
       -- Notice to prescribed authroity before passing order 820 >>   
       -- Revised or re-casted accounts shall be final 820 >>   
       -- Time limit for re-opening of books of account 820 >>   
Revision of financial statements or Board's report 820 >>   
       -- Time limit for revision 821 >>   
       -- Filing application for revision 821 >>   
       -- Contents of application 821 >>   
       -- Advertise the application 821 >>   
       -- Notice to Central Government and Income tax authorities by the Tribunal 821 >>   
       -- To Consider application and make order 821 >>   
       -- Disclosure of reason of revision in Board's report 821 >>   
       -- Limit on revision of financial statements or Board report 822 >>   
       -- Filing the order to Registrar 822 >>   
       -- Revised financial statements etc. to be laid before general meeting 822 >>   
       -- Revision of financial statements or report delivered to members or Registrar 822 >>   
       -- Rules in relation to revised financial statement or Board's report 822 >>   
Constitution of National Financial Reporting Authority [NFRA] 822 >>   
       -- Classes of companies and bodies corporate governed by NFRA [Rule 3] 823 >>   
       -- Functions of NFRA 823 >>   
       -- Body corporate to inform particulars of auditor to NFRA [Sub-rule (2) and (3) of Rule 3] 824 >>   
       -- Chairperson and Members of NFRA 824 >>   
       -- Time period for holding office 825 >>   
       -- Head office of NFRA 825 >>   
       -- Powers of NFRA 825 >>   
       -- Right to appeal against order of penalty or debarring member or firm 826 >>   
       -- Accounts and audit of NFRA 826 >>   
       -- Annual report 826 >>   
       -- Annual return to be filed by auditor 826 >>   
Approval and authentication of financial statements 826 >>   
       -- Approval of financial statement, Directors’ report by the Board 826 >>   
       -- Signing/authentication of the financial statements 827 >>   
Circulation of financial statements 827 >>   
       -- Right of members to receive copies of financial statements and auditors' report 827 >>   
       -- Time limit for sending financial statements 827 >>   
       -- Sending of abridged accounts by listed companies to its members 828 >>   
       -- Placement of standalone and consolidated financial statements as well as subsidiary companies on company's website 828 >>   
       -- Exemptions to a Nidhi Company 828 >>   
       -- Mode of sending financial statements to members and other entitled persons 829 >>   
       -- Manner of circulation of financial statements 829 >>   
       -- Inspection of financial statements and documents 829 >>   
       -- Issue, circulation or publication of copy of financial statement 829 >>   
       -- Penalty for default in complying with section 136 829 >>   
       -- Requirements of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 830 >>   
Filing copies of financial statements with Registrar 830 >>   
       -- Time period of filing financial statement adopted at AGM 830 >>   
       -- Form of filing financial statements 830 >>   
       -- Extensible Business Reporting Language (XBRL) for filing financial statement 830 >>   
       -- Filing of unadopted financial statements at AGM 831 >>   
       -- Financial statement adopted in adjourned annual general meeting 832 >>   
       -- Requirement as to attachment of accounts of foreign subsidiary 832 >>   
       -- Filing of financial statements where AGM not held 832 >>   
       -- Default in filing copy of financial statements 832 >>   
       -- Filing of Financial results with the stock exchange 833 >>   
A. SPECIMEN FORMATS 835 >>   
Board Resolution for Keeping Books of Account at any Other Place in India 835 >>   
B. ANNEXURES 835 >>   
List of Forms 835 >>   
Schedule III 836 >>   

14. Audits and Auditors

900 >>   
Conditions precedent to appointment of auditor 900 >>   
Appointment of first auditor in companies other than Government companies 901 >>   
       -- Appointment of first auditors by Board of Directors 901 >>   
       -- Appointment of first auditors by general meeting on Board's failure 901 >>   
       -- Tenure of office of first auditor 901 >>   
Appointment of subsequent auditor other than Government companies 901 >>   
       -- Appointment of auditor at each Annual General Meeting mandatory 901 >>   
       -- Tenure of subsequent auditor 901 >>   
       -- Appointment of auditor       -- An ordinary business 902 >>   
       -- Intimation to auditor and Registrar as to appointment 902 >>   
       -- Situation where no auditor is appointed or re-appointed at annual general meeting 902 >>   
Manner and procedure of selection and appointment of auditors in case of listed and specified companies 903 >>   
       -- Consideration of qualifications and experience of proposed auditor by the audit committee or the Board 903 >>   
       -- Recommendation of name of auditor by Audit Committee or the Board 903 >>   
       -- Recommendation of Audit Committee accepted by the Board 904 >>   
       -- Recommendation by Audit Committee not accepted by the Board 904 >>   
Appointment of auditors in Government companies 904 >>   
       -- Applicability of provisions as to appointment of auditors to Government companies 904 >>   
       -- Appointment of first auditors 905 >>   
       -- Appointment of subsequent auditors 905 >>   
Manner of audit in case of Government company 906 >>   
       -- Conducting supplementary audit 906 >>   
       -- Conducting test audit 906 >>   
Filling up of casual vacancy in office of auditor 906 >>   
       -- Casual vacancy in case of any company other than Government company 907 >>   
       -- Casual vacancy in case of Government company 907 >>   
Eligibility & qualifications of auditor 907 >>   
Disqualifications of auditor 907 >>   
       -- Persons not qualified for appointment as auditor 907 >>   
       -- Adequacy of internal financial controls 911 >>   
       -- Deemed vacation of office of an auditor in case of disqualifications 911 >>   
Mandatory rotation of auditor in the listed and specified companies 911 >>   
       -- Classes of companies on which provisions as to compulsory rotation of auditor is applied 911 >>   
       -- Compulsory rotation of auditors by companies on expiry of their term 912 >>   
       -- Cooling period for appointment of the auditors after expiry of the rotational period 912 >>   
       -- Audit firm with common partner not to be appointed 912 >>   
       -- Removal or resignation of auditor not affected by provisions of compulsory rotation 913 >>   
       -- Exemption to Specified IFSC Public and Private Company 913 >>   
       -- Manner of rotation of auditors by the companies 913 >>   
       -- Rotation of auditing partner and his team 915 >>   
Re-appointment of retiring auditor 915 >>   
Appointment of auditor other than retiring auditor by special notice 916 >>   
       -- Time limit of sending special notice 916 >>   
       -- Duty of company to send special notice to its members 916 >>   
       -- Advertisement of notice in newspapers 916 >>   
       -- Sending copy of special notice to retiring auditor 916 >>   
       -- Circulation of representation of retiring auditor 917 >>   
       -- Reading of representation at meeting if it could not be send to members 917 >>   
       -- Application to Tribunal seeking representation neither to be sent out nor to be read out 917 >>   
Removal of auditor before expiry of term of office 917 >>   
Change of auditor on Tribunal's direction 918 >>   
Resignation of auditor 918 >>   
Remuneration of auditor 919 >>   
       -- Remuneration of first auditors 919 >>   
       -- Remuneration of auditors other than first auditors appointed by Board 919 >>   
       -- Remuneration of auditors appointed to fill up casual vacancy 919 >>   
       -- Remuneration of auditor of the Government companies 919 >>   
Rights of auditor 919 >>   
       -- Right to have access to books of account and vouchers 919 >>   
       -- To access records of subsidiary and associate company 920 >>   
       -- To call for information and explanations from officers of company 920 >>   
       -- To receive notices, etc., of general meetings 920 >>   
       -- To attend general meeting 920 >>   
       -- Rights of auditor cannot be abridged 920 >>   
Duties of auditors 920 >>   
       -- Loans and advances made on the basis of security 920 >>   
       -- Transactions represented by book entries 920 >>   
       -- Sale of investments 921 >>   
       -- Loans and advances shown as deposits 921 >>   
       -- Personal expenses charged to revenue account 921 >>   
       -- Allotment of shares for cash 921 >>   
Duty to make report to members 921 >>   
Requirements as to reporting by auditor 921 >>   
Companies Auditor's Report Order, 2020 921 >>   
Duty to comply with auditing standards 922 >>   
Branch audit 922 >>   
       -- Person eligible to be appointed as an auditor of branch office 922 >>   
       -- Appointment of branch auditor 922 >>   
       -- Duties and powers of company auditor in relation to branch audit and auditor 922 >>   
       -- Report of branch auditor 923 >>   
Reporting of frauds by auditor 923 >>   
       -- Reporting of fraud to Central Government when fraud is expected to be ` one crore or more 923 >>   
       -- Reporting of fraud to Audit Committee or Board when fraud amount is lesser than one crore 923 >>   
       -- No contravention of duties in case fraud reported in good faith 924 >>   
       -- Penalty for default 924 >>   
       -- Reporting of fraud by branch auditor, cost auditor and secretarial auditor 924 >>   
       -- Reporting of fraud as per requirements of CARO, 2020 925 >>   
Punishment for contravention of provisions of audit and auditors 925 >>   
       -- Punishment upon company 925 >>   
       -- Punishment to officer in default 925 >>   
       -- Punishment upon auditor for contravention of provisions of audit and auditors 925 >>   
       -- Punishment to auditor for intention to deceive 925 >>   
       -- Liability to pay damages and refund of remuneration 925 >>   
       -- Authority to ensure prompt payment of damages 926 >>   
       -- Liability of audit firm where audit conducted in fraudulent manner 926 >>   
Cost records and audit 926 >>   
       -- Meaning of cost records 926 >>   
       -- Maintenance of cost records 926 >>   
       -- Companies required to maintain cost records 926 >>   
       -- Manner of maintaining cost records 929 >>   
       -- Mandate of cost audit 930 >>   
       -- Person competent to conduct cost audit 930 >>   
       -- Appointment of cost auditor 930 >>   
       -- Qualifications, disqualifications, rights, duties and obligations of cost auditor 931 >>   
       -- Remuneration of cost auditor 931 >>   
       -- Time limit of appointment of cost auditor 931 >>   
       -- Submission of certificate 931 >>   
       -- Intimation to auditor concerned and the Central Government 931 >>   
       -- Period of office of cost auditor 932 >>   
       -- Removal of cost auditor 932 >>   
       -- Filling up of casual vacancy in the office of a cost auditor 932 >>   
       -- Forms of statements to be sent to cost auditor after Board's approval 932 >>   
       -- Duty of company to provide assistance and facilities to cost auditor 932 >>   
       -- Cost audit report 932 >>   
       -- Compliance with the cost auditing standards 933 >>   
       -- Cost audit vis-a-vis statutory audit 933 >>   
       -- Cost audit vis-a-vis internal audit 933 >>   
       -- Punishment for default 934 >>   
Secretarial audit 934 >>   
       -- Applicability of secretarial audit 934 >>   
       -- Scope of secretarial audit 935 >>   
       -- Person competent to conduct secretarial audit 935 >>   
       -- Company to give all assistance to secretarial auditor 936 >>   
       -- Secretarial audit report 936 >>   
       -- Explanation or comments by the Board on secretarial audit report 936 >>   
       -- Fraud reporting 936 >>   
       -- Consequence for non-compliance with the provisions of secretarial audit 936 >>   
Internal audit 936 >>   
       -- Companies required to conduct internal audit 937 >>   
       -- Persons eligible to be appointed as internal auditor 937 >>   
       -- Appointment of internal auditor by Board of Directors 937 >>   
       -- Manner of conducting internal audit 938 >>   
       -- Internal auditor can even be an employee of company 938 >>   
       -- Appointment of statutory auditor as an internal auditor 938 >>   
       -- Distinction between internal audit and statutory audit 938 >>   
       -- Appointment of cost auditor as an internal auditor 938 >>   
A. SECRETARIAL PRACTICE 939 >>   
Procedure for Appointment of First Auditor by Board of Directors in Case of Company Other Than Government company 939 >>   
Procedure for Appointment of First Auditor by Members at Extraordinary General Meeting in Case of Company other than Government company 940 >>   
Procedure for Appointment of First Auditor by Board of Directors in Case of Government Company 941 >>   
Procedure for Appointment of First Auditor by Members at Extraordinary General Meeting in case of Government Company 942 >>   
Procedure for Appointment of Subsequent Auditor in Case Companies (not being Government Companies) require to constitute an Audit Committee 943 >>   
Procedure for Appointment of Subsequent Auditor Where Companies are not Required to Constitute an Audit Committee Which are not Government Companies 945 >>   
Procedure for Filling Up Casual Vacancy Caused Due to Reasons Other Than Resignation in Case of Company Other Than Government Company 946 >>   
Procedure for Filling Up Casual Vacancy Caused Due to Resignation in Case of Company Other Than Government Company 947 >>   
Procedure for Filling Up Casual Vacancy in the Office of Auditor by Board of Directors in Case of Government Company 948 >>   
Procedure for Re-appointment of Retiring Auditor 949 >>   
Procedure for Appointment of Auditor Other Than Retiring Auditor 950 >>   
Procedure for Rotation of Auditor 952 >>   
Procedure for Removal of Auditor before Expiry of Term of Office 954 >>   
Procedure for Appointment of Cost Auditor 955 >>   
Procedure for Filling Up Casual Vacancy in the Office of Cost Auditor 956 >>   
Procedure for Appointment of Internal Auditor 957 >>   
B. SPECIMEN FORMATS 958 >>   
Board Resolution for Appointment of First Auditor in Case of a Company Other Than Government Company 958 >>   
Extraordinary General Meeting Ordinary Resolution for Appointment of First Auditor in Case of a Company Other Than Government Company 958 >>   
Board Resolution for Appointment of First Auditor of Government Company 959 >>   
General Meeting Resolution for Appointment of First Auditor of Government Company 959 >>   
Annual General Meeting Ordinary Resolution for Appointment of Auditor in Case of a Company Other Than Government Company 960 >>   
Board Resolution for Appointment of Auditor to Fill Casual Vacancy in Case of a Company Other Than Government Company 960 >>   
General Meeting Ordinary Resolution for Appointment of Auditor to Fill Vacancy Caused by Resignation in Case of a Company Other Than Government Company 961 >>   
Board Resolution for Appointment of Auditor to Fill Casual Vacancy in Case of a Government Company 962 >>   
Annual General Meeting Ordinary Resolution for Reappointment of Retiring Auditor 962 >>   
Annual General Meeting Special Resolution for Appointment of Auditor Other Than Retiring Auditor 962 >>   
Board Resolution for Removal of Statutory Auditor 963 >>   
General Meeting Special Resolution for Removal of Statutory Auditor before Expiry of His Term 963 >>   
Board Resolution for Appointment of Cost Auditor 964 >>   
General Meeting Ordinary Resolution for Ratification of Remuneration Payable to Cost Auditor 964 >>   
Board Resolution for Appointment of Cost Auditor to Fill Casual Vacancy 965 >>   
Board Resolution for Appointment of Internal Auditor 965 >>   
Board Resolution for Appointment of Company Secretary in Practice as Secretarial Auditor of the Company 966 >>   
C. ANNEXURE 966 >>   
List of Forms 966 >>   

15. Dividend

967 >>   
Definition of dividend 967 >>   
Distinguish between dividend and interest 968 >>   
Types of dividend 968 >>   
       -- Interim dividend 968 >>   
       -- Final dividend 968 >>   
Recommendation of dividend by Board of directors 968 >>   
Declaration of dividend 969 >>   
Revocation of dividend 969 >>   
Determine record date / book closure in case of a listed company 970 >>   
Publication of notice of record date in case of a listed company 970 >>   
Time gap between two book closures 971 >>   
Rate of dividend recommended by Board 971 >>   
Sources for payment of dividend 971 >>   
Sources not to be used for payment of dividend 971 >>   
Providing for depreciation and previous losses before declaration of dividend 972 >>   
Transfer of profits to reserves prior to declaration of dividend 972 >>   
Dividend in case of inadequacy or absence of profits 972 >>   
Declaration and payment of interim dividend 973 >>   
       -- Authority to declare interim dividend 973 >>   
       -- Articles must authorise Board to declare interim dividend 973 >>   
       -- Declaration of interim dividend to be out of profits only 973 >>   
       -- Considering the financial results 973 >>   
       -- Quantum of interim dividend where company has incurred loss during the year 974 >>   
       -- Interim dividend not to be paid from free reserves in case of loss or inadequacy of profits 974 >>   
       -- Equity shares with differential rights as to dividend 974 >>   
       -- Applicability of other provisions 974 >>   
Restriction on declaration and payment of dividend 974 >>   
Right to dividend needs to be kept in abeyance pending registration of transfer of shares lodged with company 975 >>   
Allowability of dividend declaration for past years for which accounts have been closed 975 >>   
Distribution of discount coupons 975 >>   
Prohibition as to issuance of bonus shares instead of dividend 975 >>   
Time limit for deposit of dividend 976 >>   
Time limit for payment of dividend 976 >>   
Payment of dividend in proportion to amount paid-up on each share 976 >>   
Entitlement to dividend 976 >>   
Mode of payment of dividend 976 >>   
       -- Payment of dividend via electronic modes 977 >>   
       -- Cheque or dividend warrant may be used for payment of dividend 977 >>   
Payment of taxes 978 >>   
Payment of dividend to preference shareholders in priority to equity shareholders 978 >>   
Closure of Register of members 978 >>   
Adjustment of due amount against dividend payable 978 >>   
No interest on dividend to be charged against company 978 >>   
Provisions regarding non-payment of dividend 979 >>   
       -- Penalty or punishment on failure to distribute dividends within thirty days 979 >>   
       -- Prohibition on buy-back of securities if default in payment of dividend 980 >>   
       -- Power of SEBI/Central Government to regulate power in respect of non payment of dividend 980 >>   
Preservation of Dividend Cheques, Warrants and Dividend Registers 980 >>   
Transfer of unpaid or unclaimed dividend to Unpaid Dividend Account 980 >>   
       -- Statement as to details of unpaid and unclaimed dividend and placing the same on website 980 >>   
       -- Effect of non-transfer of dividend amount to unpaid dividend account 981 >>   
       -- Apply to company for claiming of money transferred to Unpaid Dividend Account 981 >>   
       -- Transfer of unpaid/unclaimed dividend to the Investor Education and Protection Fund 981 >>   
       -- Shares in respect of unpaid dividend also to be transferred to IEPF 982 >>   
       -- Manner of transfer of shares to IEPF 982 >>   
       -- Time period for transferring to Investor Education and Protection Fund 985 >>   
       -- Furnishing report for failure in payment of due amount to be transferred to Fund 985 >>   
       -- Penalty for non-compliance 985 >>   
Investor Education and Protection Fund 985 >>   
       -- Amount to be credited to IEPF 985 >>   
       -- Utilisation of Investor Education and Protection Fund 987 >>   
       -- Appointment of Nodal Officer 987 >>   
       -- Refund to claimants from IEPF 988 >>   
       -- Transfer of assets, liabilities, etc., of the existing IEPF to the Authority 991 >>   
       -- Administration of IEPF 991 >>   
       -- Accounting of IEPF 994 >>   
       -- Audit of IEPF by Comptroller and Auditor General of India 994 >>   
       -- Annual report of IEPF 995 >>   
       -- Protection of action taken in good faith 995 >>   
A. SECRETARIAL PRACTICE 995 >>   
Procedure for Declaration and Payment of Interim Dividend 995 >>   
Procedure for Declaration and Payment of Final Dividend 997 >>   
B. SPECIMEN FORMATS 999 >>   
Board Resolution for Declaration of Interim Dividend 999 >>   
Board Resolution for Recommendation of Dividend Out of Profits 999 >>   
Board Resolution for Recommendation of Dividend Out of General Reserves 999 >>   
Board Resolution for Determination of Book Closure Dates 1000 >>   
Board Resolution for Transfer of Profits to General Reserves of Company 1000 >>   
Annual General Meeting Ordinary Resolution for Declaration of Dividend 1000 >>   
Board Resolution for Opening Special Bank Account for Dividend 1001 >>   
C. ANNEXURE 1001 >>   
List of Forms 1001 >>   

16. Depreciation

1002 >>   
Depreciation       -- Connotation of 1002 >>   
Provisions relating to depreciation at a glance 1002 >>   
Applicability of Schedule II 1003 >>   
Components for calculating depreciation 1003 >>   
       -- Depreciable amount 1003 >>   
       -- Useful life 1003 >>   
       -- Residual value of the asset 1003 >>   
Pro-rata depreciation 1003 >>   
Methods of depreciation 1004 >>   
Useful lives of tangible depreciable assets for depreciation 1004 >>   
       -- Tangible assets 1004 >>   
       -- Intangible assets 1004 >>   
Component accounting 1005 >>   
Extra shift depreciation 1006 >>   
Depreciation on low value items 1006 >>   
Requirements of AS-26 regarding Amortisation of Intangible Assets 1006 >>   
Disclosure requirements relating to depreciation 1007 >>   
       -- Under Schedule II 1007 >>   
       -- Under Schedule III 1008 >>   
       -- Under Ind AS-16 1008 >>   
ANNEXURE 1010 >>   
Schedule II       -- Useful Lives to Compute Depreciation 1010 >>   

17. Registers, Reports and Returns

1017 >>   
Registers required to be maintained under the Companies Act, 2013 1017 >>   
Optional books and registers 1018 >>   
Register of deposits 1018 >>   
       -- Obligation on companies accepting deposits to maintain register of deposits 1018 >>   
       -- Contents of register 1019 >>   
       -- Entries in register of deposits 1019 >>   
       -- Preservation of register(s) 1019 >>   
       -- Penalty for contravention 1019 >>   
Register of charges 1020 >>   
       -- Requirement of maintaining register of charges, etc. 1020 >>   
       -- Contents of register 1020 >>   
       -- Entries in register of charges 1020 >>   
       -- Preservation of register, etc. 1020 >>   
       -- Inspection of register, etc. 1021 >>   
       -- Penalty for contravention 1021 >>   
Register of members or debenture holders or other security holders 1021 >>   
       -- Requirement of maintaining registers 1021 >>   
       -- Manner of keeping register of members, etc. 1021 >>   
       -- Entries to be made in the register of members, etc. 1022 >>   
       -- Index of register of members, debentre holders or other security holders 1023 >>   
       -- Authentication of entries and index of registers 1023 >>   
       -- Place of keeping registers and preservation thereof 1024 >>   
       -- Inspection of registers and obtaining copies or extracts thereof 1024 >>   
       -- Registers to be prima facie evidence 1025 >>   
       -- Penalty for default in maintaining register of members, etc. 1025 >>   
       -- Closure of register of members or debenture holders or other security holders 1025 >>   
Foreign register of members, etc. 1026 >>   
       -- Authorisation to keep foreign register 1026 >>   
       -- Filing of notice of situation or any change therein with the Registrar 1026 >>   
       -- Manner or form of keeping foreign register 1027 >>   
       -- Entries to be made in foreign register 1027 >>   
       -- Inspection of foreign register and obtaining extracts or copies thereof 1027 >>   
       -- Place of keeping foreign registers and its preservation 1027 >>   
       -- Decision of competent authority with regard to rectification of foreign register 1027 >>   
       -- Duplicate register 1027 >>   
       -- Distinction between registration of shares or debentures, etc. in foreign register and principal register 1028 >>   
Register of directors and key managerial personnel and their shareholdings 1028 >>   
       -- Requirement of register of directors, KMP and their shareholding 1028 >>   
       -- Contents of register 1028 >>   
       -- Filing of return with Registrar 1029 >>   
       -- Inspection of register of directors, etc. 1029 >>   
       -- Punishment for contravention 1029 >>   
Register of significant beneficial owners 1029 >>   
       -- Requirement of register of significant beneficial owners 1029 >>   
       -- Inspection of register 1030 >>   
       -- Filing of return with Registrar 1030 >>   
       -- Penalty for contravention 1030 >>   
Register of contracts or arrangements with related party and contracts, bodies corporate, etc. in which directors are interested 1030 >>   
       -- Requirement of register 1030 >>   
       -- Particulars not required to be entered in Form MBP-4 1030 >>   
       -- Entries to be made in register 1031 >>   
       -- Placement of register before board meeting and annual general meeting 1031 >>   
       -- Place of keeping register and its preservation 1031 >>   
       -- Inspection of register and obtaining extracts and copies thereof 1031 >>   
       -- Penalty for contravention 1031 >>   
Register of loans, guarantee, security and investments by company 1031 >>   
       -- Requirement to maintain register of loans, guarantee, etc. 1031 >>   
       -- Entries to be made in register 1032 >>   
       -- Place of keeping register and its preservation 1032 >>   
       -- Inspection of register and obtaining extracts and copies thereof 1032 >>   
       -- Punishment for contravention 1032 >>   
Register of investments in any shares or securities not held in its own name by the company 1032 >>   
       -- Requirement 1032 >>   
       -- Place of keeping register and its preservation 1033 >>   
       -- Inspection of register 1033 >>   
       -- Penalty for contravention 1033 >>   
Register of renewed and duplicate share certificates 1033 >>   
       -- Requirement of register of renewed and duplicate share certificates 1033 >>   
       -- Place of keeping register and its preservation 1033 >>   
       -- Authentication of register 1034 >>   
Miscellaneous Registers 1034 >>   
       -- Register of shares or securities bought back, etc. 1034 >>   
       -- Register of employees stock options 1034 >>   
       -- Register of sweat equity shares 1035 >>   
Reports under the Companies Act, 2013 1035 >>   
Auditor's report 1035 >>   
       -- Special matters to be included in auditor's report 1035 >>   
       -- Duty of auditor to inquire into matters specified under section 143(1) 1035 >>   
       -- Reporting requirements under section 143(3) 1038 >>   
       -- Companies Auditor's Report Order, 2020 1041 >>   
       -- Reason for negative or qualified answers to matters included in audit report 1048 >>   
       -- Signing of audit reports 1048 >>   
       -- Reading and inspection of Auditor's Report 1048 >>   
       -- Auditor's report in case of Government company 1048 >>   
       -- Cost audit and secretarial audit report 1049 >>   
Board's report 1049 >>   
       -- Contents of Board's report 1050 >>   
       -- Board's Report in case of one person company 1063 >>   
       -- Signing of Board's Report 1064 >>   
       -- Dissemination of copies of report to members 1064 >>   
       -- Submission of report to stock exchange 1064 >>   
       -- Disclosure not to be repeated if already included in financial statement 1064 >>   
       -- Penalty for contravention of provisions of section 134 1065 >>   
       -- Revision of Board's report 1065 >>   
Corporate Governance Report 1066 >>   
       -- Other Disclosures 1068 >>   
       -- Quarterly compliance report on corporate governance 1069 >>   
Report on annual general meeting 1069 >>   
       -- Contents of report on annual general meeting 1070 >>   
       -- Dating and signing of report on annual general meeting 1070 >>   
       -- Filing of report with Registrar of Companies 1070 >>   
       -- Penalty on failure to file report with the Registrar 1070 >>   
Secretarial Audit report 1071 >>   
       -- Provisions of SEBI (LODR) Regulations, 2015 1071 >>   
Annual Report 1071 >>   
       -- Contents of annual report 1071 >>   
       -- Disclosure regarding dividend distribution policy 1072 >>   
       -- Sending copies of annual report to shareholders 1072 >>   
       -- Sending of copies to the stock exchange [Regulation 34(1)] 1072 >>   
Annual return 1073 >>   
       -- Requirement of filing annual return 1073 >>   
       -- Contents of annual return 1073 >>   
       -- Disclosure requirements as per Secretarial Standards 1074 >>   
       -- Signing of Annual Return 1074 >>   
       -- Certification of Annual Return by Company Secretary in practice 1074 >>   
       -- Ceiling as to signing and certification of Annual Return by a Practicing Company Secretary 1075 >>   
       -- Filing of annual return with Registrar of Companies 1075 >>   
       -- Web-link of annual return in Board's report 1075 >>   
       -- Consequences of failure in filing annual return with the Registrar 1075 >>   
       -- Place of keeping copies of annual return 1075 >>   
       -- Preservation of copies of annual return 1076 >>   
       -- Inspection of copies of annual returns 1076 >>   
       -- Obtaining extracts from or copies of annual returns 1076 >>   
       -- Refusal of inspection, etc. 1076 >>   
       -- Evidential value of annual return 1077 >>   
       -- Guidance note on annual return 1077 >>   
Maintenance and inspection of records in electronic form 1077 >>   
       -- Manner of maintaining records in electronic form 1077 >>   
       -- Inspection and copies given of records maintained in electronic form 1078 >>   
A. SECRETARIAL PRACTICE 1078 >>   
Procedure for Keeping Register of Members, etc., at a Place Other Than Registered Office 1078 >>   
Procedure for Closure of Register of Members, etc. 1078 >>   
Procedure for Filing Annual Return 1079 >>   
B. SPECIMEN FORMATS 1081 >>   
General Meeting Special Resolution for Keeping Registers, etc., at a Place Other Than the Registered Office 1081 >>   
Board Resolution for Closure of Register of Members, etc. 1081 >>   
Notice to Stock Exchange Informing Book Closure Dates 1082 >>   
Board Resolution for Keeping Foreign Register of Members or Debenture Holders 1082 >>   
Board Resolution for Approval of Board's Report 1083 >>   
Specimen Auditor's Report 1083 >>   
Specimen Board's Report of a Listed Company 1087 >>   
Notice of interest by director 1101 >>   
Register of loans, guarantee, security and acquisition made by the company 1102 >>   
Register of investments not held in its own name by the company 1103 >>   
Register of contracts with related party and contracts and Bodies etc. in which directors are interested 1103 >>   
Declaration by the beneficial owner who holds or acquires beneficial interest in shares but whose name is not entered in the register of members 1110 >>   
Register of Renewed and Duplicate Share Certificates 1111 >>   
Register of Sweat Equity Shares 1112 >>   
Register of shares or other securities bought-back 1113 >>   
Register of charges 1114 >>   
C. ANNEXURES 1116 >>   
List of Forms 1116 >>   
Schedule V       -- Annual Report 1116 >>   

18. Government Companies, Foreign Companies and Nidhi Companies

1123 >>   
I. Government Companies 1123 >>   
Definition of Government company 1123 >>   
Exemptions to Government company 1123 >>   
Appointment of first auditors of Government company 1127 >>   
       -- Appointment by Comptroller and Auditor-General of India 1127 >>   
       -- Appointment by Board of Directors in case C&AG does not appoint auditor within prescribed time 1127 >>   
       -- Appointment by shareholders on failure of Board to appoint auditor 1127 >>   
       -- Tenure of office of first auditor 1127 >>   
Appointment of subsequent auditors in case of Government company 1127 >>   
Appointment of auditor in case of casual vacancy in the Government company 1128 >>   
Powers and duties of auditors and auditing standards 1128 >>   
       -- Auditor's report to the members 1128 >>   
       -- Manner in which the accounts of the Government company are to be audited 1130 >>   
       -- Conducting supplementary audit 1130 >>   
       -- Powers of the Comptroller and Auditor-General of India to conduct the test audit 1131 >>   
Filing of the copy of Company Liquidator's accounts with the Tribunal, Registrar and the Government 1131 >>   
Annual reports on working of Government company 1131 >>   
       -- Where the Central Government is a member of Government company 1131 >>   
       -- Where the State Government is a member of Government company 1132 >>   
Deposits not to be accepted in excess of certain limits 1132 >>   
Not allow to give political contribution 1132 >>   
II. Foreign Companies 1132 >>   
Definition and interpretation of various expressions 1132 >>   
       -- Meaning of business through 'electronic mode' 1132 >>   
       -- Meaning of business activity 1133 >>   
       -- Meaning of certain other expressions 1133 >>   
Setting of business operations in India 1133 >>   
Application of the Companies Act to foreign companies 1134 >>   
Requirement for delivery of documents, etc., to Registrar by foreign companies for registration 1134 >>   
       -- Particulars of directors and secretaries of foreign company 1134 >>   
       -- Requirement for filing of Form FC-1 alongwith approval of the RBI and the Charter or the Memorandum and Articles of foreign company 1135 >>   
Filing of documents for alteration in the particulars of foreign company 1135 >>   
Certification 1135 >>   
       -- If company is incorporated in a country outside the Commonwealth 1136 >>   
       -- If company is incorporated in any part of the Commonwealth 1136 >>   
       -- If company is incorporated in a country falling outside the Commonwealth 1136 >>   
Accounts of foreign company 1137 >>   
       -- Filing of attachment with financial statements to the Registrar 1137 >>   
       -- Time period for filing of financial statements 1138 >>   
       -- Audit of accounts of foreign company for the Indian Business 1138 >>   
       -- List of place of business in India of a foreign company 1138 >>   
Displaying name of foreign company outside business premises 1139 >>   
Serving of notice or other document on foreign company 1139 >>   
Debentures, Annual Return, Registration of Charges, Books of Account and their Inspection [Section 384] 1139 >>   
       -- Issuance of debenture 1139 >>   
       -- Annual return 1139 >>   
       -- Books of accounts 1140 >>   
       -- Charges 1140 >>   
       -- Inspection, inquiry and investigation 1140 >>   
Fees for registration of documents 1140 >>   
Authentication of translated documents 1140 >>   
Dating of Prospectus and Particulars to be contained therein 1141 >>   
Provisions as to expert's consent and allotment 1142 >>   
Registration of prospectus by foreign company 1142 >>   
Action for improper use or description as foreign company 1143 >>   
Empowering Central Government to frame rules for offer of Indian Depository Receipts 1143 >>   
       -- Issue of Indian Depository Receipts 1144 >>   
       -- Restriction on issuance of IDR 1144 >>   
       -- Procedure for issuance of IDR 1144 >>   
       -- Duties on Merchant Banker to deliver documents to SEBI and the Registrar 1145 >>   
       -- Issuance of application form with memorandum 1146 >>   
       -- Transfer or redemption of IDR 1147 >>   
       -- Repatriation of proceeds of IDRs [Rule 13(7)] 1147 >>   
       -- Contents of prospectus 1147 >>   
Application of sections 34 to 36 and Chapter XX 1150 >>   
Punishment for contravention 1151 >>   
Company's failure to comply with provisions of Chapter XXII not to affect validity of contracts, etc. 1151 >>   
Classes of companies to be exempted for application of provisions of Chapter XXII 1151 >>   
III. Nidhi Companies 1151 >>   
Nidhi       -- Meaning of 1151 >>   
Power of Central Government to exempt Nidhis 1152 >>   
Applicability 1152 >>   
Members of Nidhi Company 1152 >>   
Incorporation of Nidhi Company 1153 >>   
       -- Minimum paid-up capital 1153 >>   
       -- Restriction on issue of preference shares 1153 >>   
       -- No objects in Memorandum of Association other than cultivating habit of thrift 1153 >>   
       -- Use of word 'Limited' as part of name 1153 >>   
Declaration of Nidhis 1153 >>   
       -- Compliance with rule 3A by certain Nidhis 1153 >>   
       -- Form to be filed by already registered Nidhis 1154 >>   
Share capital and allotment 1154 >>   
       -- Applicability of service charge 1154 >>   
       -- Minimum allotment to deposit holder 1154 >>   
Requirements of minimum number of members, net owned fund, etc. 1154 >>   
Filing of return of statutory compliances 1155 >>   
General restrictions or prohibitions on Nidhi 1155 >>   
Mainteneance of Net Owned Funds 1156 >>   
Branches of Nidhi 1156 >>   
       -- Conditions for opening Branches of Nidhi 1156 >>   
       -- Conditions for closure of branch 1156 >>   
Acceptance of deposits by Nidhis 1156 >>   
       -- Limit of acceptance 1156 >>   
       -- Case of limit of acceptance exceeding 1156 >>   
Application form for deposit 1157 >>   
Depositors 1158 >>   
Deposits 1159 >>   
       -- Fixed deposits 1159 >>   
       -- Recurring deposits 1159 >>   
       -- Recurring deposits related to mortgage loans 1159 >>   
       -- Saving deposit 1159 >>   
Foreclosure of fixed deposit or recurring deposit account 1159 >>   
Unencumbered term deposits 1160 >>   
       -- Amount of deposit 1160 >>   
       -- Withdrawal of amount 1160 >>   
Loans 1160 >>   
       -- Who can avail loan 1160 >>   
       -- Loan limit 1160 >>   
       -- In case of default in repayment 1161 >>   
       -- Calculation of amount of deposit 1161 >>   
       -- Securities against loan given 1161 >>   
Rate of interest 1161 >>   
       -- Interest on savings deposit account 1161 >>   
       -- Interest on fixed and recurring deposit 1161 >>   
Directors of Nidhi Company 1161 >>   
       -- Who can be a director 1162 >>   
       -- Period of holding office 1162 >>   
       -- Reappointment 1162 >>   
       -- In case of tenure extended by Central Government 1162 >>   
       -- Qualification and disqualification of director 1162 >>   
Declaration of dividend 1162 >>   
Appointment of auditor 1162 >>   
Auditor's certificate 1162 >>   
Filing of half yearly return 1162 >>   
Power of RoC to enforce compliance 1163 >>   
Power of Central Government to appoint Special Officer 1163 >>   
Compliance of prudential norms 1163 >>   
Recognisation of income 1163 >>   
Prudential norms in respect of mortgage loans 1163 >>   
Provisioning rules for companies incorporated on or before 26-7-2001 1164 >>   
Disclosure in financial statements 1164 >>   
Provisions for loan against gold or jewellery 1165 >>   
Penalty for non-compliances 1165 >>   
Privileges and exemptions available to Nidhi companies 1165 >>   
A. SECRETARIAL PRACTICE 1167 >>   
Procedure for Making an Issue of Indian Depository Receipts ('IDRs') 1167 >>   
B. ANNEXURE 1167 >>   
List of Forms 1167 >>   

19. Dormant Company

1169 >>   
Acquiring status of dormant company voluntarily 1169 >>   
       -- Conditions precedent as to making an application to Registrar 1170 >>   
       -- Requirement of passing special resolution 1170 >>   
       -- Certificate of status of dormant company 1170 >>   
Granting of status of dormant company by the Registrar 1170 >>   
Formalities to be fulfilled by dormant company 1170 >>   
       -- Minimum number of directors 1170 >>   
       -- Filing of returns by dormant company 1171 >>   
Register of dormant companies to be maintained by Registrar 1171 >>   
Privileges available to dormant company 1171 >>   
Dormant company to regain status of active company 1171 >>   
       -- On an application made by dormant company 1171 >>   
       -- On an application by directors or enquiry 1172 >>   
Striking off the name of dormant company 1172 >>   
A. SECRETARIAL PRACTICE 1172 >>   
Procedure for Obtaining Status of Dormant Company 1172 >>   
B. SPECIMEN FORMATS 1173 >>   
Special Resolution for Making an Application to Registrar for Obtaining Status of Dormant Company 1173 >>   
C. ANNEXURE 1173 >>   
List of Forms 1173 >>   

20. Producer Companies

1175 >>   
Basic terminology for understanding of producer companies 1175 >>   
       -- Primary produce 1175 >>   
       -- Producer 1176 >>   
       -- Producer company 1176 >>   
       -- Producer institution 1176 >>   
Objects and activities of producer company 1176 >>   
Formation of producer company 1177 >>   
Registration of producer company 1177 >>   
Consequences of registration 1177 >>   
Liability of members limited 1177 >>   
Cost incurred to incorporate the company to be reimbursed by company 1177 >>   
Types of share capital 1177 >>   
Proportion in which shares may be held by members 1177 >>   
Special rights to active members 1177 >>   
Voting rights of members 1178 >>   
       -- Membership consists of solely of individual members 1178 >>   
       -- Membership consisting solely of producer institutions 1178 >>   
       -- Case of mixed membership 1178 >>   
Benefits to members 1178 >>   
Conditions as to membership 1179 >>   
Cessation of membership 1179 >>   
Transferability of shares 1179 >>   
Nomination of shares 1179 >>   
Surrender of shares 1179 >>   
Issue of bonus shares 1179 >>   
Preparation and filing of Memorandum and Articles of Association 1179 >>   
Memorandum of Association 1180 >>   
       -- Contents of Memorandum of Association 1180 >>   
       -- Alteration in the Memorandum of Association 1180 >>   
Articles of Association 1181 >>   
       -- Filing of Articles of Association 1181 >>   
       -- Signing of Articles of Association 1181 >>   
       -- Contents of Articles of Association 1181 >>   
       -- Amendment in the Articles of Association 1183 >>   
Number of directors 1183 >>   
Appointment of directors 1183 >>   
Tenure of directors 1183 >>   
Co-option of additional and expert directors by the Board 1183 >>   
Vacation of office by directors 1183 >>   
Board meetings 1184 >>   
       -- Frequency of meetings 1184 >>   
       -- Notice of meeting 1184 >>   
       -- Quorum of meeting 1184 >>   
       -- Fee and allowances 1184 >>   
Director's Committee [Section 378U] 1185 >>   
       -- Power of Board to constitute committee 1185 >>   
       -- Members of the committee 1185 >>   
       -- Functions of committee to be performed under direction of Board 1185 >>   
       -- Fee and allowances 1185 >>   
       -- Minutes 1185 >>   
Compulsory requirement to appoint a Chief Executive 1185 >>   
Powers and functions of Chief Executive 1185 >>   
Secretary of producer company 1186 >>   
       -- Compulsory requirement to appoint a Whole-time Secretary 1186 >>   
       -- Secretary to be a member of ICSI 1186 >>   
       -- Penalty on failure to appoint a whole-time secretary 1186 >>   
Powers of the Board 1186 >>   
Powers to be exercised only after passing of resolution at general meeting 1187 >>   
Liability of directors 1187 >>   
       -- Joint and several liability towards any loss or damage to company 1187 >>   
       -- To handover profits made to company 1187 >>   
       -- To make good the loss or damage to the company 1187 >>   
General meetings of members 1188 >>   
       -- First annual general meeting 1188 >>   
       -- Holding subsequent annual general meeting 1188 >>   
       -- Gap between annual general meetings 1188 >>   
       -- Time and place for calling of AGM 1188 >>   
       -- Notice for calling annual general meeting 1188 >>   
       -- Documents to be annexed with notice calling annual general meeting 1188 >>   
       -- Quorum for annual general meeting 1189 >>   
       -- Filing of the proceedings of Annual General Meeting 1189 >>   
       -- Representation of producer institutions 1189 >>   
       -- Extraordinary general meeting 1189 >>   
Penalty on failure to furnish information to members 1189 >>   
Penalty on directors on default in handing over the custody of books of account or non-convening meetings of members 1189 >>   
Accounts and Audit 1190 >>   
       -- Maintenance of books of account 1190 >>   
       -- Preparation of balance sheet and profit and loss account 1190 >>   
       -- Compulsory requirement for internal audit 1190 >>   
       -- Additional matters to form part of auditor's reports 1190 >>   
       -- Maintenance of general reserve 1190 >>   
Loans 1191 >>   
       -- Loan to members 1191 >>   
       -- Loans to relatives or director 1191 >>   
Investment in other companies, etc. [Section 378ZL] 1191 >>   
       -- Investment of general reserve 1191 >>   
       -- Acquisition of shares 1191 >>   
       -- Investments to be consistent with objectives of the company 1191 >>   
       -- Disposal of investments 1191 >>   
       -- Register of investments 1191 >>   
Donation or subscription 1192 >>   
       -- Purposes for which donation be made 1192 >>   
       -- Upper cap 1192 >>   
       -- Ban on contribution to political party 1192 >>   
Conversion of inter-State co-operative society into producer company 1192 >>   
       -- Application by Inter-State co-operative society 1192 >>   
       -- Who can make application 1192 >>   
       -- Documents to be annexed with application 1193 >>   
       -- Grant of registration 1193 >>   
       -- Consequences of registration 1193 >>   
       -- Effect of incorporation of producer company 1193 >>   
       -- Vesting of undertaking in producer company 1193 >>   
       -- Continuance of concession 1194 >>   
       -- Position of employees of Inter-State co-operative society 1195 >>   
Reconversion of producer company to inter-State co-operative society 1196 >>   
       -- Who can apply for reconversion 1196 >>   
       -- When an application can be made 1196 >>   
       -- To whom application be made 1196 >>   
       -- Sanction of reconversion 1196 >>   
       -- Copy of order to be annexed to the copy of memorandum 1196 >>   
       -- Stay of proceedings 1197 >>   
       -- Application for registration as Multi-State Co-operative society 1197 >>   
Amalgamation, merger and division 1197 >>   
       -- Division, etc., to form new producer companies 1197 >>   
       -- Amalgamation or merger of producer companies 1197 >>   
       -- Requisite approval from members to be obtained 1197 >>   
       -- Notice for approval of merger or division 1197 >>   
       -- Options available for non-consenting members and creditors 1197 >>   
       -- Effective date of resolution 1198 >>   
       -- Contents of the resolution for approval 1198 >>   
       -- Conveyance of assets and liabilities 1199 >>   
       -- Making arrangement for satisfying claims 1199 >>   
       -- Dissolution of producer company 1199 >>   
       -- Appeal to the Tribunal 1199 >>   
Striking off name of producer company 1199 >>   
       -- Circumstances in which name of producer company can be strike off 1199 >>   
       -- Who shall strike off the name 1200 >>   
       -- Appeal to NCLT 1200 >>   
Resolution of disputes 1200 >>   
Provisions of Chapter XXI-A to override other laws 1201 >>   
Application of provisions relating to private companies 1201 >>   
Power to modify Act in its application to producer companies 1201 >>   
Power to make rules 1201 >>   
Penalty for use of the words "Producer Company Limited" without registration under Chapter XXI-A 1201 >>   

21. Compromise, Merger and Amalgamation

1202 >>   
Compromise or arrangement with creditors and members 1202 >>   
       -- Applicaton for approval of scheme 1202 >>   
       -- Disclosures to be made by filing Affidavit 1203 >>   
       -- Directions of Tribunal to call meeting for sanctioning of scheme 1203 >>   
       -- Meeting of members and/or creditors 1204 >>   
       -- Order of the Tribunal 1207 >>   
       -- Filing of order of Tribunal with Registrar of Companies 1208 >>   
       -- Requirement for listed entity as to scheme of arrangement under SEBI (LODR) Regulations, 2015 1208 >>   
       -- Timeline for completion of compromise or arrangement 1209 >>   
       -- Buy Back of small lots of shares through a scheme of compromise arrangement is not in violation of section 68 1209 >>   
       -- Inclusion of takeover offer 1209 >>   
       -- Non applicability of provisions of section 66 on reduction of share capital 1210 >>   
       -- Powers of the Tribunal to enforce compromise or arrangement 1210 >>   
       -- Compromise or arrangement includes 'demerger' 1211 >>   
Procedure for merger and amalgamation of companies 1211 >>   
       -- Application to Tribunal for sanctioning arrangement 1211 >>   
       -- Circulation of certain documents for meeting ordered by the Tribunal 1212 >>   
       -- Directions on hearing of application 1213 >>   
       -- Provision to be made by the Tribunal to regulate transfer process 1213 >>   
       -- Filing of copy of order with the Registrar 1214 >>   
       -- Effective date of scheme 1214 >>   
       -- Filing of statement regarding compliance with the Registrar 1214 >>   
       -- Transfer of property or liability of transferor company 1214 >>   
       -- Penalty for contravention 1215 >>   
       -- Report on working of compromise or arrangement 1215 >>   
       -- Liberty to apply to Tribunal 1215 >>   
       -- Preservation of books and papers of amalgamated company 1215 >>   
Merger and amalgamation of certain companies 1215 >>   
       -- Approval of scheme for merger or amalgamation of certain companies 1215 >>   
       -- Filing of copy of the scheme with the Central Government, etc. 1216 >>   
       -- Confirmation in case of no objections or suggestions to the scheme 1216 >>   
       -- Communication of objections to the Central Government 1217 >>   
       -- Filing an application before Tribunal 1217 >>   
       -- Order by the Tribunal on receiving an application from the Central Government 1217 >>   
       -- Communication of order of Tribunal 1217 >>   
       -- Dissolution of the transferor company on registration of the scheme 1217 >>   
       -- Effect of registration of scheme with the registrar 1217 >>   
       -- Cancellation or extinguishment of shareholding of transferee company 1218 >>   
       -- Application regarding revised capital and payment of fee 1218 >>   
       -- Miscellaneous aspects 1218 >>   
Merger or amalgamation of company with foreign company 1218 >>   
       -- Applicability of provisions of section 234 1218 >>   
       -- Terms and conditions of the scheme of merger 1218 >>   
       -- Notified jurisdictions by the Central Government 1219 >>   
Scheme of taking over another company 1219 >>   
       -- Scheme to be approved by shareholders of 90% value [Section 235(1)] 1220 >>   
       -- Notice within two months to dissenting shareholders 1220 >>   
       -- Procedure of transfer of shares [Section 235(3)] 1220 >>   
       -- Consideration to be kept in trust and in bank account 1221 >>   
       -- SEBI regulations in respect of SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011 1221 >>   
Purchase of minority shareholding 1221 >>   
       -- Notification of the intention to buy remaining shares by the acquirer 1221 >>   
       -- Offer made by acquirer, person or group of persons [Section 236(2)] 1221 >>   
       -- Offer by minority shareholders 1222 >>   
       -- Consideration to be kept in separate bank account for disbursement 1222 >>   
       -- Company to act as a transfer agent 1222 >>   
       -- Procedure followed in absence of physical delivery of shares 1222 >>   
       -- Offer for sale of minority shareholding for extended period of time 1222 >>   
       -- Sharing of additional compensation among minority shareholders 1223 >>   
       -- Applicability of provisions upon residual minority 1223 >>   
Compulsory amalgamation by the Central Government 1223 >>   
       -- Member or creditor to have same interest 1223 >>   
       -- Appeal before the Tribunal 1224 >>   
       -- Laying of copy of order 1224 >>   
       -- No order under section 237 under certain circumstances 1224 >>   
       -- Provision in relation to registration of offer of schemes involving transfer of shares 1224 >>   
ANNEXURES 1225 >>   
List of Forms 1225 >>   
Schedule of Fees 1225 >>   
Companies (Compromises, Arrangements and Amalgamations) Second Amendment Rules, 2020 1226 >>   
       -- Notification G.S.R. 773(E), dated 17-12-2020 [F. No. 2/31/CAA/2013 - CL.V] 1226 >>   

22. Inspection, Inquiry and Investigation

1228 >>   
Power of Registrar to call for information, inspect books and conduct inquiries 1228 >>   
       -- Compliance by company and its officers post receiving notice by Registrar 1228 >>   
       -- Additional written notice by Registrar for production of further material 1228 >>   
       -- Scope of inquiry by Registrar 1229 >>   
       -- Power of Central Government to order inspection 1230 >>   
       -- Penalty for non-furnishing the information to the Registrar 1230 >>   
Conduct of inspection and inquiry 1230 >>   
       -- Duty of director, officer or employee 1230 >>   
       -- Right of Registrar or Inspector to take copies of books of account 1230 >>   
       -- Registrar or Inspector to have powers of Civil Court 1230 >>   
       -- Punishment for contravention by director or officer of the company 1231 >>   
Reporting of Registrar or Inspector on inspection or inquiry 1231 >>   
Search and seizure of documents by Registrar 1231 >>   
       -- Circumstances for seizure 1231 >>   
       -- Period of seizure 1231 >>   
       -- Taking of copies, placing identification marks 1231 >>   
Investigation into affairs of company 1232 >>   
       -- Investigation on order of Central Government 1232 >>   
       -- Appointment of Inspector 1232 >>   
       -- Investigation into affairs of company in other cases [Section 213] 1232 >>   
       -- Deposit of security for payment of costs and expenses of investigation 1233 >>   
Investigation into ownership of company 1234 >>   
       -- Scope of investigation 1234 >>   
       -- Scope and extent of powers of inspectors 1234 >>   
Procedure as to investigation and powers of inspector 1234 >>   
       -- Duty of present and former officers, employees etc. to provide assistance 1234 >>   
       -- Powers of inspectors 1235 >>   
       -- Punishment for disobeying order of inspector or Registrar and vacation of office on conviction [Section 217(6)] 1235 >>   
       -- Punishment for failure to produce information or appearing before inspector [Section 217(8)] 1235 >>   
       -- Central or State Government officers to provide assistance to inspector 1236 >>   
       -- Reciprocal arrangements with foreign countries vis-a-vis investigation 1236 >>   
       -- Orders from court for production of documents or papers in a foreign state 1236 >>   
       -- Action upon receipt of letter of request from another country 1237 >>   
Protection of employees during investigation 1237 >>   
       -- Tribunal’s approval required for taking any action against employee(s) 1237 >>   
       -- Where no objection received within 30 days 1237 >>   
       -- Appeal against objection raised by Tribunal 1238 >>   
       -- Decision of Tribunal shall be final 1238 >>   
Power of inspector to conduct investigation into affairs of related body corporates, etc. 1238 >>   
Seizure of documents by inspector during investigation 1238 >>   
Freezing of assets of company on inquiry and investigation 1239 >>   
       -- Tribunal to direct freezing of assets of company 1239 >>   
       -- Punishment for non-compliance 1239 >>   
Imposition of restrictions upon securities 1239 >>   
Report of inspector on investigation made 1240 >>   
       -- Interim and final reports to the Central Government 1240 >>   
       -- Report to be in writing 1240 >>   
       -- Right to obtain copy of report 1240 >>   
       -- Authentication and admissibility in legal proceedings 1240 >>   
Actions to be taken pursuant to inspector's report 1240 >>   
       -- Prosecution of person criminally liable [Section 224(1)] 1240 >>   
       -- Petition to Tribunal for winding up [Section 224(2)] 1240 >>   
       -- Winding up proceedings for recovery of damages or property [Section 224(3)] 1241 >>   
       -- Indemnification of Central Government against cost or expenses incurred 1241 >>   
       -- Application by Central Government for disgorgement of property, etc. obtained by fraud 1241 >>   
Expenses relating to investigation 1241 >>   
Voluntary winding up of company, etc., not to stop investigation 1242 >>   
Legal advisers and bankers not to disclose certain information 1242 >>   
Penalty for furnishing false statement, mutilation, destruction of documents 1242 >>   
Serious Fraud Investigation Office 1242 >>   
       -- Setting up of SFIO 1242 >>   
       -- Composition of SFIO 1243 >>   
       -- Terms and conditions of service of Director, experts, etc. of SFIO 1243 >>   
       -- Assignment of investigation into affairs of company by Central Governement 1243 >>   
       -- Other investigating agencies barred from investigation proceedings 1244 >>   
       -- Investigation by SFIO 1244 >>   
       -- Investigating Officer to exercise powers of Inspector 1244 >>   
       -- Responsibility of employees and officers of company during investigation 1244 >>   
       -- Cognizable and non-bailable offences [Section 212(6)/(7)] 1244 >>   
       -- Arrest of person guilty of an offence under section 212(8) 1245 >>   
       -- Forwarding copy of arrest order to SFIO 1245 >>   
       -- Submission of report to Central Government 1245 >>   
       -- Prosecution proceedings by SFIO 1246 >>   
       -- Sharing of information and documents related to offence during investigation 1246 >>   
Enquiry or investigation commenced prior to SEBI (LODR) Regulations, 2015 1246 >>   
ANNEXURE 1246 >>   
Companies (Arrests in connection with Investigation by Serious Fraud Investigation Office) Rules, 2017 1247 >>   
       -- Notification dated 24th August 2017 [w.e.f. 14-8-2017] 1247 >>   

23. Oppression and Mismanagement

1250 >>   
Introduction 1250 >>   
Protections being available for minority shareholders 1250 >>   
       -- Protection under common law 1250 >>   
       -- Protection under Companies Act, 2013 1251 >>   
Meaning of 'oppression' 1251 >>   
Determination regarding existence of oppression 1252 >>   
Meaning of mismanagement 1252 >>   
Determination of existence of mismanagement 1252 >>   
Relief against oppression or mismanagement via application to Tribunal 1252 >>   
       -- Right of members to apply to Tribunal for relief against oppression or mismanagement 1253 >>   
       -- Requisite number of members who can apply to Tribunal [Section 244(1)] 1253 >>   
       -- Application by some members on behalf of others 1254 >>   
       -- Right of Central Government to apply under section 241 1254 >>   
       -- Action of Tribunal in case of application for relief against oppression or mismanagement 1255 >>   
Powers of Tribunal on application made under section 241 1255 >>   
Filing copy of Tribunal's order with Registrar 1256 >>   
Power of Tribunal to make an interim order 1256 >>   
Tribunal to order on application of Central Government as to holding of office of director or management of company 1257 >>   
Order of Tribunal and alteration of MoA or AoA 1257 >>   
       -- Obligation to carry out alterations in the Memorandum or Articles 1257 >>   
       -- Cases where alterations are inconsistent with order of Tribunal 1257 >>   
       -- Effect of alterations in Memorandum and Articles by Tribunal's order 1257 >>   
       -- Filing of copy of alteration, etc., with Registrar 1257 >>   
Consequences of termination or modification of certain agreements 1257 >>   
Leave of Tribunal 1258 >>   
Non entitlement to any compensation for loss or termination of office 1258 >>   
Some Judicial Pronouncements on Oppression/Mismanagement 1258 >>   
       -- Single act can constitute oppression 1258 >>   
       -- Condition precedent for relief 1259 >>   
       -- Necessity of finding of oppression 1260 >>   
       -- Allotment of shares converting majority into minority 1260 >>   
       -- Justification of order passed by Tribunal with incomplete pleadings 1261 >>   
       -- Jurisdiction of civil court to entertain a suit filed against oppression and mismanagement 1261 >>   
       -- Reversing entries with regard to payment of unsecured loan and non-payment of guarantee commission 1262 >>   
       -- Maintainability of petition for relief 1262 >>   
       -- No forum shopping allowed while entertaining a petition for relief 1263 >>   
       -- Invocation of section 397/398 on past concluded transaction 1263 >>   
       -- Functional areas of petitioner as director withdrawn, remuneration stopped and shares illegally transferred to outsiders 1263 >>   
       -- Removal of MD without issuing notice and violation of status quo order 1264 >>   
       -- Lack of service of EGM Notice 1264 >>   
       -- Legal representative of deceased member can claim interim relief under section 397/398 of the Companies Act, 1956 1265 >>   
       -- Jurisdiction and power of Tribunal and Appellate Tribunal 1265 >>   
       -- Jurisdiction in case of deadlock in the affairs of company 1267 >>   
       -- Legality of transfer of shares against the provisions of AoA and without consideration 1267 >>   
       -- Justifiability of setting aside order of NCLT 1268 >>   
       -- Time barred petition for oppression and mismanagement 1268 >>   
       -- Modification of interim order passed in interest of party to appeal 1269 >>   
       -- Justifiability of setting aside order of Tribunal when it failed to follow related procedure 1269 >>   
       -- Justifiability of counter proceedings where application filed to sustantiate oppression and mismanagement 1269 >>   
Class Action 1269 >>   
       -- Requisite number of members who can file an application for class action 1269 >>   
       -- Grounds for filing application for class suits 1270 >>   
       -- Liability in case damage or compensation is sought against audit firm 1270 >>   
       -- Factors to be considered while considering application for class suits 1271 >>   
       -- Action taken by Tribunal 1271 >>   
       -- Non-compliance of order of Tribunal 1272 >>   
       -- Penalty for filing frivolous or vexatious application 1272 >>   
       -- Application by representative 1272 >>   
Application of certain provisions to proceedings under section 241 or section 245 1272 >>   

24. Defunct Companies and Removal of Names of Companies

1273 >>   
Meaning of "Defunct Companies" 1273 >>   
Circumstances where Registrar has power to remove the names of companies from Register of companies 1274 >>   
Procedure for striking off name from register of companies 1274 >>   
       -- Sending of notice by Registrar on suo-motu basis 1274 >>   
       -- Reply to notice sent by Registrar 1274 >>   
       -- Application by company for removal of its name 1274 >>   
       -- Signing and certification of application in Form No. STK-2 1276 >>   
       -- Publication of notice by Regsitrar 1276 >>   
       -- Intimation to regulatory authorities seeking their objections 1276 >>   
       -- Satisfaction by Registrar as to discharge of liabilities 1277 >>   
       -- Dissolution of company by publishing notice 1277 >>   
       -- Effect of company dissolved 1277 >>   
       -- Liability of director, officer etc. after dissolution 1277 >>   
       -- Tribunal may wind up company which has been removed from register 1277 >>   
Categories of companies, names of which cannot be removed from register of companies 1277 >>   
Restrictions on companies to file application for removal of their names from register of companies 1278 >>   
Consequences of filing fraudulent application by company for removal of name 1279 >>   
Appeal before Tribunal for restoration of name of company in register of companies 1279 >>   
       -- Appeal by person aggrived within three years of order of dissolution of company 1279 >>   
       -- Application by Registrar for restoration of name being struck off inadvertently 1279 >>   
       -- Application by company or member or creditor, etc. within twenty years 1279 >>   
       -- Filing of order of Tribunal with Registrar 1280 >>   
ANNEXURE 1280 >>   
List of Forms 1280 >>   

25. Winding Up of Companies

1281 >>   
Winding up by the Tribunal 1281 >>   
       -- Circumstances where company may be wound up by Tribunal 1282 >>   
       -- Persons entitled to file petition to Tribunal for winding up 1282 >>   
       -- Form for filing petition 1282 >>   
       -- Commencement of winding up by Tribunal 1283 >>   
       -- Filing of affidavit 1283 >>   
       -- Petition by company to be accompanied by statement of affairs 1283 >>   
       -- Petition by contributory 1283 >>   
       -- Petition by Registrar 1283 >>   
       -- Filing a copy of every petition to Registrar 1283 >>   
       -- Notice and advertisement of petition 1283 >>   
       -- Application for leave to withdraw petition 1284 >>   
       -- Power of Tribunal to pass order on receipt of petition 1284 >>   
       -- Appointment of provisional liquidator or company liquidator 1284 >>   
       -- Time limit for passing an order by Tribunal 1286 >>   
       -- Refusal order to wind up the company by Tribunal 1286 >>   
       -- Directions to company 1286 >>   
Jurisdiction of Tribunal 1286 >>   
Custody of company's properties 1287 >>   
Removal and replacement of liquidator 1287 >>   
       -- Grounds of removal 1287 >>   
       -- Replacement of Liquidator 1287 >>   
       -- Damages or loss to be recovered from liquidator 1287 >>   
       -- Opportunity of being heard given to liquidator 1288 >>   
Intimation about winding up to Company Liquidator, provisional liquidator and Registrar 1288 >>   
Effect of winding up order 1288 >>   
Stay of suits or pending legal proceedings 1288 >>   
Constitution of winding up Committee to assist liquidator 1288 >>   
       -- Application to Tribunal for constitution of winding up Committee 1288 >>   
       -- Liquidator's report to Tribunal 1289 >>   
Submission of report by liquidator to the Tribunal 1289 >>   
       -- Particulars of report 1289 >>   
       -- Manner of promotion or formation of notice to the Tribunal 1290 >>   
       -- Duty of providing assistance required by the company liquidator 1290 >>   
       -- Report on viability of business 1290 >>   
       -- Inspection of report by creditor or contributory 1290 >>   
Submission of periodical reports to Tribunal 1290 >>   
Directions of Tribunal on report of company liquidator 1290 >>   
       -- Fixing a time limit by Tribunal for completion of entire winding up proceeding 1290 >>   
       -- Revised time limit provided in section 282(1) 1291 >>   
       -- Order for sale of company as a going concern 1291 >>   
       -- Report of fraud committed being respect of company received from company liquidator or Central Government 1291 >>   
       -- Order to protect, preserve or enhance value of assets 1291 >>   
       -- Other orders or directions 1291 >>   
Discharging liability of company by application of assets 1291 >>   
       -- Settling list of contributories and application of assets 1291 >>   
       -- Notice of settlement to contributories 1292 >>   
       -- Variation of list 1292 >>   
       -- Distinction between the contributories in their own right and representatives of contributory 1292 >>   
       -- Conditions for inclusion in the list of contributories 1292 >>   
       -- Who cannot be a contributory 1292 >>   
Obligations of directors and managers whose liability is unlimited 1292 >>   
Payment of debts by contributory and extent of set-off 1293 >>   
       -- In case of an unlimited company 1293 >>   
       -- In case of limited company 1293 >>   
       -- In case of an unlimited or limited company 1293 >>   
Adjustment of rights of contributories 1293 >>   
Power of Tribunal to order as to costs 1293 >>   
Power of Tribunal to order examination of promoters, Directors, etc. 1293 >>   
Powers and duties of company liquidator 1294 >>   
Professional assistance to company liquidator 1295 >>   
Promoters, Directors, etc., to co-operate with company liquidator 1296 >>   
Advisory Committee 1296 >>   
       -- Functions of advisory committee 1296 >>   
       -- Composition of committee 1296 >>   
       -- Convening meeting of creditors and contributories 1296 >>   
       -- Company liquidator to report result of meeting 1296 >>   
       -- Right to inspect books of accounts and other assets 1297 >>   
       -- Chairman of the advisory committee 1297 >>   
Exercise and control of company liquidator's powers 1297 >>   
Books to be kept by company liquidator 1297 >>   
       -- Record book to be maintained by company liquidator 1297 >>   
       -- Registers and books to be maintained by company liquidator 1298 >>   
       -- To complete all incomplete accounts 1298 >>   
       -- Manner of keeping books 1299 >>   
       -- Vouchers for all payments made to be kept 1299 >>   
Audit of company liquidator's accounts 1299 >>   
       -- Obligations of company liquidator to maintain proper books of accounts 1299 >>   
       -- Presentation of books of accounts to the Tribunal 1299 >>   
       -- Audit of company liquidator's accounts 1299 >>   
       -- Registry to send copy of account to auditor 1300 >>   
       -- Circulation of copies of audited accounts of the company liquidator 1300 >>   
       -- Forward of copy of audited accounts to CG/SG in case of Government company 1300 >>   
       -- Audit certificate to be filed 1300 >>   
       -- Audited accounts to be printed and circulated 1300 >>   
Detention of person absconding 1300 >>   
Debts of all descriptions to be admitted to proof 1301 >>   
Overriding preferential payments 1301 >>   
       -- Order of payment of debts 1301 >>   
       -- Notice for proving debts 1301 >>   
       -- Mode of proof and verification thereof 1302 >>   
       -- Debts payable to be paid in full 1302 >>   
       -- Workmen's dues 1302 >>   
       -- Examination of proof 1302 >>   
       -- Acceptance or rejection of proof to be communicated 1302 >>   
Preferential payments 1302 >>   
       -- Lists of preferential payments 1302 >>   
       -- Payment made to employee on account of wages or salary or accrued holiday remuneration 1303 >>   
       -- Rank to preferential payments equally among themselves 1303 >>   
       -- Debts to be discharged so far as the assets are sufficient to meet them 1303 >>   
       -- Debts to which priority is given to be charged first 1303 >>   
       -- Remuneration as to period of holiday 1304 >>   
       -- Meaning of relevant date 1304 >>   
       -- Non-applicability 1304 >>   
Fraudulent preference 1304 >>   
       -- Meaning of fraudulent preference 1304 >>   
       -- Tribunal to declare transaction invalid 1304 >>   
Liabilities and rights of certain persons fraudulently preferred 1304 >>   
       -- Liability of persons fraudulently preferred 1304 >>   
       -- Value of interest of fraudulently preferred persons 1305 >>   
       -- Right of Tribunal to determine any question w.r.t. payments 1305 >>   
       -- Applicability 1305 >>   
Effect of floating charge 1305 >>   
Disclaimer of onerous property 1305 >>   
       -- Meaning of onerous property 1305 >>   
       -- Disclaimer of property 1305 >>   
       -- Rescission of contract 1306 >>   
       -- Making of an order for the vesting of the property 1307 >>   
       -- Where the property disclaimed is of a leasehold nature 1307 >>   
       -- Right of person affected by disclaimer 1307 >>   
Transfers to be void 1307 >>   
Certain attachments, executions, etc., in winding up by Tribunal to be void 1308 >>   
Offences by officers of companies in liquidation 1308 >>   
       -- Meaning of expression “officer” 1308 >>   
       -- List of offences which affect the property of company 1308 >>   
       -- Protection available to officer 1309 >>   
       -- Punishment for above offences 1309 >>   
Penalty for frauds by officers 1310 >>   
Liability where proper accounts not kept 1310 >>   
       -- Punishment for default 1310 >>   
       -- Defence available to officer in default 1310 >>   
       -- When it would be deemed that proper books of account have not been kept 1310 >>   
Liability for fraudulent conduct of business 1310 >>   
       -- Application by liquidator 1310 >>   
       -- Powers of Tribunal 1311 >>   
       -- Punishment for fraudulently carrying business 1311 >>   
       -- Definition of assignee and officer for the purposes of this section 1311 >>   
Power of Tribunal to assess damages against delinquent directors, etc. 1311 >>   
       -- Inquiry by Tribunal 1311 >>   
       -- Who are entitled to make application 1312 >>   
       -- Time limit for making application 1312 >>   
Liability under sections 339 and 340 to extend to partners or directors in firms or companies 1312 >>   
Prosecution of delinquent officers and members of company 1312 >>   
Company liquidator to exercise certain powers subject to sanction 1313 >>   
       -- Liquidator's right to make settlements subject to Tribunal approval 1313 >>   
       -- Power of Central Government to make rules 1313 >>   
       -- Opportunity of being heard given to applicant and liquidator 1313 >>   
Statement indicating liquidation of company 1313 >>   
Evidentiary value of books and papers 1314 >>   
Inspection of books and papers 1314 >>   
Disposal of books and papers of company 1314 >>   
       -- Manner of disposal of books and papers 1314 >>   
       -- Time period for preservation of books and papers 1314 >>   
       -- Power of Central Government to make rules 1314 >>   
       -- Contravention of provisions 1314 >>   
Information as to pending liquidations 1315 >>   
       -- Filing of liquidator’s statement of affairs 1315 >>   
       -- Audit of such statement 1315 >>   
       -- Filing of copy of statement 1315 >>   
       -- Inspection of statement 1315 >>   
       -- Penal provisions 1315 >>   
Official liquidator to make payments into Public Account of India 1315 >>   
Company liquidator to deposit monies into scheduled bank 1316 >>   
Liquidator not to deposit monies into private banking account 1316 >>   
       -- Maintenance of account in a scheduled bank 1316 >>   
       -- Amount to be credited in Company Liquidation Dividend and Undistributed Assets Account 1316 >>   
       -- Contents of statement required to be furnished to Registrar 1316 >>   
       -- Statement to accompany payment 1317 >>   
       -- Time limit for depositing amount in Company Liquidation Dividend and Undistributed Assets Account 1317 >>   
       -- Unclaimed dividends or undistributed assets under investment 1317 >>   
       -- Settlement of claim 1317 >>   
       -- Transfer of unclaimed amount to General Revenue Account 1317 >>   
       -- Consequences of default 1318 >>   
Liquidator to make returns, etc. 1318 >>   
Meetings to ascertain wishes of creditors or contributories 1318 >>   
Dissolution by Tribunal 1318 >>   
Application to Tribunal by company liquidator 1318 >>   
       -- Liquidator to pay the balance into Company Liquidation Dividend and Undistributed Assets Account 1319 >>   
       -- Furnishing copy of order with Registrar 1319 >>   
       -- Conclusion of winding up 1319 >>   
Court, Tribunal or Person, etc., before whom affidavit may be sworn 1319 >>   
       -- In India 1319 >>   
       -- In any other country 1319 >>   
Powers of Tribunal to declare dissolution of company void 1320 >>   
       -- Application for declaring the dissolution to be void 1320 >>   
       -- Filing of order with the Registrar 1320 >>   
Exclusion of certain time in computing period of limitation 1320 >>   
Appeals from orders made before commencement of Act 1320 >>   
Provisions regarding Official Liquidators 1320 >>   
       -- Official Liquidator       -- Definition and Powers 1320 >>   
       -- Summary procedure for liquidation of company 1321 >>   
       -- Sale of assets and recovery of debts due to company [Section 362] 1321 >>   
       -- Settlement of claims of creditors and appeal by creditor 1322 >>   
       -- Order of dissolution of company 1326 >>   
Winding up of unregistered companies 1326 >>   
       -- Circumstances of winding up of unregistered company 1326 >>   
       -- Unregistered company deemed to be unable to pay its debts 1327 >>   
       -- Meaning of "unregistered company" [Explanation to section 375] 1327 >>   
Power to wind up foreign companies, although dissolved 1328 >>   
Provisions of chapter not in derogation of other provisions 1328 >>   
Saving and construction of enactments conferring power to wind up partnership firm, association or company, etc., in certain cases 1328 >>   
ANNEXURE 1328 >>   
List of Forms 1328 >>   

26. Insolvency of Corporate Persons

1332 >>   
Insolvency and Bankruptcy Code, 2016 1332 >>   
Applicability of the Code 1333 >>   
Initiation of Corporate Insolvency Resolution Process 1333 >>   
       -- Initiation of CIRP by Financial Creditors 1333 >>   
       -- Initiation of CIRP by Operational Creditors 1335 >>   
       -- Initiation of CIRP by corporate applicant 1335 >>   
       -- Persons not entitled to make application 1335 >>   
Suspension of initiation of CIRP 1336 >>   
Withdrawal of application admitted 1336 >>   
Time limit for completion of CIRP 1336 >>   
Declaration of moratorium 1336 >>   
Appointment and tenure of interim resolution professional 1337 >>   
       -- Where resolution professional is proposed by financial creditor, operational creditor or corporate debtor 1337 >>   
       -- Appointment of interim resolution professional in case of no resolution professional proposed by operational creditor 1337 >>   
Public announcement 1337 >>   
Management of affairs of company by IRP 1338 >>   
Right of IRP to avail co-operation from several persons 1339 >>   
Duties of IRP 1339 >>   
Constitution of committee of creditors 1340 >>   
       -- Where person is both financial creditor and an operational creditor 1340 >>   
       -- Where any operational debt is assigned to financial creditor 1340 >>   
       -- Where there is no financial creditor or financial creditors are related parties 1340 >>   
       -- Where corporate debtor owes financial debts to two or more financial creditors as part of a consortium or agreement 1341 >>   
       -- Where financial debt is represented by any other person 1341 >>   
Appointment of resolution professional and conduct of CIRP 1341 >>   
Actions requiring approval of committee of creditors 1341 >>   
Duties of resolution professional 1342 >>   
Submission and approval of resolution plan 1343 >>   
Miscellaneous activities to be conducted on approval of resolution plan 1344 >>   
Appeals and Appellate Authority 1344 >>   
Initiation of liquidation process under IBC 1345 >>   
Appointment of Liquidator and his powers and duties 1345 >>   
Claims of creditors 1346 >>   
Secured creditors during liquidation proceedings 1347 >>   
Distribution of assets 1347 >>   
Dissolution of corporate debtor 1348 >>   
       -- Application to Adjudicating Authority 1348 >>   
       -- Order of Adjudicating Authority 1348 >>   
       -- Communication of order 1348 >>   
Punishment to liquidator for contravening the provisions of Code 1348 >>   
Fast Track Corporate Insolvency Resolution Process 1348 >>   
Voluntary liquidation of corporate persons 1349 >>   
       -- Declaration of solvency 1349 >>   
       -- Declaration to be accompanied with documents 1349 >>   
       -- Approval from members and creditors 1350 >>   
Intimation to the Registrar and commencement of voluntary liquidation 1350 >>   
Dissolution of company 1350 >>   
Penalty for fraudulent or malicious initiation of proceedings 1350 >>   
Liability for fraudulent or wrongful conduct of business 1350 >>   
       -- Application by resolution professional 1350 >>   
       -- Order of Adjudicating Authority 1351 >>   
       -- Power to give further directions 1351 >>   
       -- Order of priority of debt payment [Section 67(2)] 1351 >>   

27.Registration Offices and Fees

1352 >>   
Meaning of registrar 1352 >>   
Registration offices 1352 >>   
       -- Establishment of office and its composition 1352 >>   
       -- Working hour of the Registrar 1352 >>   
       -- Appointment of Registrars, etc. 1352 >>   
       -- Powers and duties of Registrar 1353 >>   
       -- Seal of Registrar 1353 >>   
Maintenance of documents in electronic form 1353 >>   
       -- Approval of documents by the Registrar 1353 >>   
       -- Issuance of certificates or documents by the Registrar 1354 >>   
       -- Mode of communication of documents, etc. by the Registrar to companies 1354 >>   
Admissibility of certain documents as evidence 1354 >>   
Provisions relating to filing of applications, documents, inspection, etc. in electronic form 1354 >>   
       -- Filing of attachemnts to the forms in PDF format 1355 >>   
       -- Filing of documents which are required to be filed on non-judicial stamp paper 1355 >>   
       -- Requirement as to mention DIN etc. on any correspondences 1355 >>   
       -- Stamp duty on electronic documents 1355 >>   
       -- Preservation of duly stamped document 1356 >>   
       -- Submission of documents by defaulting company 1356 >>   
Authentication of documents 1356 >>   
       -- Explanation of few expressions for understanding provision 1356 >>   
       -- Authentication by using digital signatures 1356 >>   
       -- Responsibility of authorised signatory 1357 >>   
       -- Consequences of certifying false information 1357 >>   
       -- Authentication in case of company 1358 >>   
       -- Forms which require certification 1358 >>   
Inspection, production and evidence of documents kept by Registrar 1359 >>   
       -- Documents to be kept by the Registrar for viewing and inspection 1359 >>   
       -- Electronic inspection 1359 >>   
       -- Evidentiary value of documents 1359 >>   
       -- Restrictions on inspection in certain conditions 1359 >>   
       -- Leave of Tribunal or Court for compelling the production of documents by the Registrar 1359 >>   
Electronic form to be exclusive, alternative or in addition to physical form 1360 >>   
Provision of value added services through electronic form 1360 >>   
Application of provisions of Information Technology Act, 2000 1360 >>   
Payment of filing fees 1360 >>   
       -- Time limit for delayed filing 1360 >>   
       -- Requirement for payment of additional filing fee during the period of default 1360 >>   
       -- Requirement as to payment of additional filing fee based on the delayed period of default for other documents needs to be filed 1360 >>   
       -- Requirement for payment of higher additional fee where there is default on two or more occasions in submitting, filing, registering or recording of document 1360 >>   
       -- Consequences of failure in filing, submitting document 1361 >>   
       -- Filing of documents or applications for which no e-form prescribed 1361 >>   
       -- Mode of payment 1361 >>   
       -- Fees etc. to be credited into public account 1361 >>   
Companies Fresh Start Scheme, 2020 1362 >>   
       -- USP of Scheme 1362 >>   
       -- Immunity granted under Scheme 1362 >>   
       -- Withdrawal of any appeal initiated before making application for issue of immunity certificate 1363 >>   
       -- Opportunity for inactive companies 1363 >>   
       -- Non-applicability of Scheme 1363 >>   
Procedure on receiving form, documents etc. electronically 1363 >>   
       -- Examination of application 1363 >>   
       -- Intimation for removing defects of e-form or application 1364 >>   
       -- Opportunity to be given to furnish information and rectify defects in the Forms 1365 >>   
       -- Consequences of not removing defects of e-form or application 1365 >>   
       -- Filing of additional document(s) in support of the form 1365 >>   
Vacation or removal of directors 1365 >>   
       -- Verification of documents 1365 >>   
       -- Reference to Regional Director 1365 >>   
ANNEXURES 1366 >>   
List of Forms 1366 >>   
Table of Fees 1366 >>   

28. NCLT, NCLAT and Special Courts

1375 >>   
NCLT and NCLAT 1375 >>   
Definition of 'Tribunal' 1375 >>   
Definition of 'Appellate Tribunal' 1375 >>   
Dissolution of the Company Law Board 1375 >>   
Civil Court not to have jurisdiction 1376 >>   
Transfer of certain pending proceedings to the Tribunal 1376 >>   
       -- Proceedings pending before CLB 1376 >>   
       -- Proceedings under Companies Act pending before District or High Court 1376 >>   
       -- Winding up proceedings to be dealt as initiation of CIRP under the Code 1376 >>   
Protection of action taken in good faith 1376 >>   
Specific powers under NCLT Rules 1376 >>   
       -- Inherent powers 1376 >>   
       -- Power to exempt from compliance 1376 >>   
       -- Power to extend time period 1377 >>   
Members of the Tribunal and Appellate Tribunal 1377 >>   
Qualifications of President and Members of Tribunal 1377 >>   
       -- Qualification for appointment of the president 1377 >>   
       -- Qualification for appointment of judicial member 1377 >>   
       -- Qualification for appointment of Technical member 1377 >>   
Qualifications of chairperson and Members of Appellate Tribunal 1378 >>   
Selection of Members of Tribunal and Appellate Tribunal 1378 >>   
Benches of NCLT 1378 >>   
Transfer of proceedings from one Bench to another 1379 >>   
Right to representation 1379 >>   
Delegation of powers 1380 >>   
Order of the Tribunal 1380 >>   
Specific power of Tribunal to seek assistance of Magistrate 1380 >>   
Special powers to be exercised by the Tribunal 1380 >>   
Procedure before NCLT 1382 >>   
       -- Manner of presentation of petition, application, appeal, etc. 1382 >>   
       -- Form of presenting application, petition, interlocutory application, etc. 1382 >>   
       -- Fee to be paid 1382 >>   
       -- Advertisement detailing petition, application or reference 1383 >>   
       -- Notice to be served to opposite party 1383 >>   
       -- Requirement of affidavit 1383 >>   
       -- Filing of reply and rejoinder 1383 >>   
       -- Appearance of parties and hearing of petition by Tribunal 1383 >>   
       -- Order passed by NCLT 1384 >>   
       -- Filing order of Tribunal with the RoC 1384 >>   
       -- Rectification of final order 1384 >>   
       -- Register of appeals, petitions, etc. 1384 >>   
Appeal from orders of Tribunal 1384 >>   
Procedure before NCLAT 1385 >>   
       -- Manner of filing appeal 1385 >>   
       -- Form of presenting appeal 1385 >>   
       -- Registration of appeal 1385 >>   
       -- Filing of any interlocutory application 1385 >>   
       -- Preparation of cause list and record of proceedings 1386 >>   
       -- Issue of notice and summons 1386 >>   
       -- Filing of objections or counter 1386 >>   
       -- Inspection of records by any party 1386 >>   
       -- Requirement of Affidavits 1386 >>   
       -- Issue of summons for production of documents 1386 >>   
       -- Order of NCLAT 1386 >>   
       -- Register of Special leave Petition, appeals against order of NCLAT 1387 >>   
NCLT and NCLAT to exercise powers as vested in Civil Court 1387 >>   
Expeditious disposal by Tribunal and Appellate Tribunal 1388 >>   
Power and jurisdiction to punish for contempt 1388 >>   
Applicability of Limitation Act, 1963 1388 >>   
Appeal to the Supreme Court 1388 >>   
Special Court 1388 >>   
Establishment of Special Courts 1388 >>   
Meaning of offence 1388 >>   
Constitution of Special Court 1389 >>   
Offences triable by Special Courts 1389 >>   
       -- Establishment of Special Court and custody of accused person 1389 >>   
       -- Summary Trial 1389 >>   
Appeal and revision 1390 >>   
Application of Code to proceedings before Special Court 1390 >>   
Classification of offences 1390 >>   
Offences against the Act to be cognizable only on complaint by the Registrar, shareholder or member of company or the Government 1390 >>   
Transitional provisions 1391 >>   
Compounding of offences 1391 >>   
       -- Person entitled to apply for compounding of offence 1391 >>   
       -- Powers to compound the offence 1391 >>   
       -- Additional fee paid by company is deductible from the amount ordered on compounding of offence 1392 >>   
       -- Circumstances where compounding not possible 1392 >>   
       -- Application for compounding of offence given to Registrar 1392 >>   
       -- Filing of return, account or other document by company or its officer to Registrar 1393 >>   
       -- Penalty for non-compliance of order of Tribunal, Regional Director, etc. 1393 >>   
Mediation and Conciliation Panel 1393 >>   
       -- Panel of experts 1393 >>   
       -- Apply to Central Government for proceeding and appointment of experts 1393 >>   
       -- Procedure to be followed by panel 1393 >>   
       -- Representation of parties and privacy to be maintained in holding meeting 1394 >>   
       -- Consequences of non-attendance of parties at sessions or meetings on due dates 1394 >>   
       -- Offer of settlement by parties 1394 >>   
       -- Parties alone responsible for taking decision 1395 >>   
       -- Settlement agreement 1395 >>   
       -- Fixing date of hearing for settlement 1395 >>   
       -- Filing of objection 1395 >>   
       -- Time limit for completion of mediation/conciliation 1395 >>   
       -- Matters not to be referred to the mediation or conciliation 1396 >>   
Power of Central Government to appoint company prosecutors 1396 >>   
Appeal against acquittal 1396 >>   
Compensation for accusation without reasonable cause 1396 >>   
Application of fines 1396 >>   
Factors for determining level of punishment 1396 >>   
Lesser penalties for One person companies or small companies 1397 >>   
ANNEXURES 1398 >>   
List of Forms 1398 >>   
Schedule of Fees 1398 >>   

29. Corporate Governance

1400 >>   
Corporate governance       -- Meaning of 1400 >>   
Aspects of corporate governance 1401 >>   
Significance of corporate governance 1401 >>   
Need for corporate governance 1402 >>   
Ethics for corporate governance 1403 >>   
       -- Accountability 1403 >>   
       -- Transparent system 1404 >>   
       -- Mutual confidence 1404 >>   
       -- Co-operation 1404 >>   
       -- Trust 1405 >>   
Constituents of corporate governance 1405 >>   
Board of Directors and its role in corporate governance 1406 >>   
       -- Composition of Board of Director 1406 >>   
       -- Independent director defined under the Companies Act, 2013 1407 >>   
       -- Woman director 1408 >>   
       -- Resident director 1408 >>   
       -- Permanent directors and retiring directors 1409 >>   
       -- Executive and non-executive directors 1409 >>   
       -- Additional directors 1409 >>   
       -- Directors appointed for filling casual vacancy 1409 >>   
       -- Alternate directors 1409 >>   
       -- Professional director 1410 >>   
       -- Nominee directors 1410 >>   
       -- Secretary-cum-director 1410 >>   
       -- Small shareholder director 1410 >>   
       -- Maximum number of directorships 1410 >>   
Shareholders and their role in corporate governance 1410 >>   
       -- Rights of shareholders 1410 >>   
       -- Timely information 1411 >>   
       -- Equitable treatment 1411 >>   
       -- Role of stakeholders 1411 >>   
       -- Disclosure and transparency 1412 >>   
Auditors and their role in corporate governance 1412 >>   
       -- Internal Audit 1412 >>   
       -- Secretarial Audit 1412 >>   
Stock exchange and their role in corporate governance 1413 >>   
Committees of directors 1414 >>   
       -- Audit Committee 1415 >>   
       -- Nomination and Remuneration Committee 1415 >>   
       -- Stakeholders Relationship Committee 1416 >>   
       -- Corporate Social Responsibility (CSR) Committee 1416 >>   
       -- Risk Management Committee 1416 >>   
Formulation of policy 1416 >>   
       -- Vigil mechanism 1416 >>   
       -- Related party transaction 1417 >>   
       -- Code of conduct 1418 >>   
       -- CSR policy 1418 >>   
       -- Identification of material subsidiary 1418 >>   
Management discussion and analysis report 1419 >>   
Disclosure 1419 >>   
       -- Disclosure of material events and information 1419 >>   
       -- Disclosure on stock exchange 1420 >>   
       -- Disclosure on website 1420 >>   
       -- Disclosure of information to the shareholders for appointment of directors 1420 >>   
       -- Disclosure for remuneration of directors 1421 >>   
Obligations 1421 >>   
       -- Obligations with respect to independent directors 1421 >>   
       -- Obligations with respect to employees including senior management, KMP, directors and promoters 1422 >>   
Other corporate governance requirements 1422 >>   
CEO/CFO Certification 1422 >>   
Applicability of corporate governance compliance requirements under the SEBI (LODR) Regulations, 2015 1423 >>   
ANNEXURES 1424 >>   
Schedule II 1424 >>   
Schedule III 1429 >>   
Schedule V 1432 >>   
Circular No. SEBI/HO/CFD/CMD1/CIR/P/2020/84, Dt. 20-5-2020 1432 >>   

30. Fraud, Related Penalties and Further Consequences

1436 >>   
Punishment for fraud 1436 >>   
       -- Meaning of fraud 1436 >>   
       -- Liability of punishment on committing fraud, whether or not involving public interest 1436 >>   
Punishment for false statement under section 448 1437 >>   
Punishment on giving of any false evidence 1437 >>   
Punishment for wrongful withholding of property [Section 452] 1437 >>   
       -- Liability of fine on wrongful possession or witholding of property, etc. 1437 >>   
       -- Order of Court to refund or undergo imprisonment otherwise 1437 >>   
       -- No order of imprisonment in certain circumstances 1437 >>   
Punishment for improper use of 'Limited' or 'Private Limited' 1438 >>   
Punishment where no specific penalty or punishment is provided elsewhere in the Act 1438 >>   
Punishment and penalty in case of repeated default 1438 >>   
Adjudication of penalties 1439 >>   
       -- Appointment of Adjudicating Officers by the Central Government 1439 >>   
       -- Imposition of penalty by AO 1439 >>   
       -- Notice by AO before adjudging penalty 1439 >>   
       -- Reply to notice within specified period and futher extension of period by AO 1439 >>   
       -- Notice for physical appearance by AO on hearing date and passing of order 1440 >>   
       -- Time limit for passing an order 1440 >>   
       -- Sending of order copies to the concerned company or persons 1440 >>   
       -- Powers to be exercised by AO [Rule 3(10)] 1440 >>   
       -- Factors to be considered while adjudging quantum of penalty 1440 >>   
       -- Appeal against order of AO to Regional Director [Rule 4] 1441 >>   
       -- Registration of appeal by RD [Rule 5] 1441 >>   
       -- Disposal of appeal by RD 1442 >>   
       -- Punishment on non-compliance 1442 >>   
Protection of action taken in good faith 1443 >>   
Non-disclosure of information relevant to investigation 1443 >>   
Delegation of powers and functions of the Central Government 1443 >>   
Powers of Central Government or Tribunal to accord approval, etc., and to prescribe fees on applications 1443 >>   
       -- Central Government to accord approval, confirmation, etc. subject to conditions, limitations or restrictions [Section 459] 1443 >>   
       -- Fee for application to Central Government 1444 >>   
Condonation of delay by the Central Government 1444 >>   
Annual report by Central Government 1444 >>   
Power of Central Government to exempt certain class(es) of companies from provisions of the Companies Act, 2013 1444 >>   
Power of Court to grant relief in certain cases 1444 >>   
Prohibition of association or partnership of persons exceeding certain number 1445 >>   
Applications or Forms pending before Central Government, RD or Registrar of Companies 1445 >>   
Repeal of certain enactments and savings 1446 >>   
Dissolution of CLB and consequential provisions 1447 >>   
       -- Chairman etc. of CLB would be Chairperson, President, etc. of Tribunal and AT before constitution 1447 >>   
       -- Every officer or employee of CLB to be officer and employees of Tribunal and AT on dissolution of CLB 1447 >>   
       -- Transfer of monies standing to the credit of provident fund, superannuation fund, etc. by Tribunal or AT 1448 >>   
       -- Other officers, employees, etc. of CLB to vacate offices 1448 >>   
Power of Central Government to make rules or amend Schedules 1448 >>   
       -- Central Government to make rules 1448 >>   
       -- Central Government to amend Schedule 1448 >>   
       -- Laying before each house of Parliament for approval 1448 >>   
       -- Central Government to make rules relating to winding up [Section 468] 1449 >>   
Power of Central Government to direct companies to furnish information or statistics 1449 >>   
       -- Central Government to order furnishing of information or statistics 1449 >>   
       -- Publication of order in Official Gazette 1450 >>   
       -- Central Government to order production of further records or documents 1450 >>   
       -- Penalty on non-compliance 1450 >>   
       -- Applicability on foreign company carrying on business in India 1450 >>   
Power to remove difficulties 1450 >>   
ANNEXURES 1450 >>   
General Circular No. 12/2020, dt. 30-3-2020 [F. No. 02/01/2020-CL-V] 1450 >>   
       -- Companies Fresh Start Scheme, 2020 1450 >>   
General Circular No. 30/2020, dt. 28-09-2020 [F. No. 02/01/2020-CL-V] 1456 >>   
       -- Extension of Companies Fresh Start Scheme, 2020 1456 >>   
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