F. No. 142/11/2015-TPL Government of India , Ministry of Finance ,Department of Revenue ,Central Board of Direct Taxes Dated: 23rd December, 2015 issued Draft Guiding Principles for determination of Place of Effective Management (POEM) of a Company. Why place of effective management for Companies ? Section 6(3) of the Income-tax Act, 1961, prior to its… Read More »
One of our client companies has received share application money in April 2015 but shares have not been allotted so far. And now company doesn’t want to allot shares on the amount so received. Kindly advice whether we can return that amount now. Answer: As per Rule 11 of Companies (Prospectus & allotment of securities) rules… Read More »
Reporting of frauds by Auditor What is the limit of Reporting of frauds by auditor of Company to the Central Government ? Reporting of frauds by auditor and other matters: (1) If an auditor of a company, in the course of the performance of his duties as statutory auditor, has reason to believe that an… Read More »
MINISTRY OF CORPORATE AFFAIRS vide NOTIFICATION No [F. No. 1/6 /2015-CL. V] Dated , 14th December, 2015 notified 14th day of December, 2015 as the date on which the provisions of section 13 and 14 of the said Act shall come into force. Section 13 of Companies act 2013 Alteration of memorandum (1) Save as provided in… Read More »
MINISTRY OF CORPORATE AFFAIRS vide NOTIFICATION [F. No. 1/32/2013-CL-V-Part] Dated 14th December, 2015 notified Companies (Meetings of Board and its Powers) Second Amendment Rules, 2015. and inserted rule 6A . What are related party transactions for which approval is required from Audit Committee ? Omnibus approval for related party transactions on annual basis.- All related party transactions… Read More »
Which companies are required to follow the provisions of Corporate Social Responsibility ? As per Section 135 (1) of the Companies Act 2013 Every company having i) net worth of rupees five hundred crore or more, or (Note: Net worth defined in section 2(57) of the Act ) ii) turnover of rupees one thousand crore or… Read More »
Welfare activities under the Corporate Social Responsibility (CSR) and the Companies Act, 2013 The provisions of Corporate Social Responsibility (CSR) under Section 135 of the Companies Act, 2013 and rules made thereunder have come into force with effect from 01.04.2014. The year 2014-15 was the first year of implementation of CSR policies by companies under… Read More »
What is the definition of ” Loan ” under Companies Act 2013 ? Not defined under Companies Act 2013. A loan is defined by the Oxford English Dictionary as ‘a thing lent; something the use of which is allowed for a time, on the understanding that it shall be returned or an equivalent given; esp.,… Read More »
As per Articles of Association, the maximum number of Directors of a company is 9. The Board of Directors of the aforesaid company proposes to increase the number of Directors to 15. Advice, whether under the provisions of the Companies Act, 2013, the Board of Directors can do so? As per Section 149 of Companies… Read More »
Companies registered with Registrar of Companies (ROCs), State/UT-wise as on 26.11.2015 is at Annexure – I. Number of closed companies, State/UT-wise during the last three years and current financial year is at Annexure – II. Section 560 of the Companies Act, 1956 (corresponding provision in Companies Act, 2013 is Section 248, which is not yet… Read More »