Bonus Issue and Share Split Under Companies Act, 2013
INTRODUCTION Bonus issue and split of shares are ways of rewarding the shareholders. Bonus shares are additional shares given to the current shareholders without any additional cost, based upon the number of shares that a shareholder owns. These are the company’s accumulated earnings which are not given out in the form of dividends but are converted […]
Committees Under Companies Act, 2013 And Securities Exchange Board Of India (Listing Obligations And Disclosure Requirement) Regulations, 2015
INTRODUCTION: A board committee consists of board members for supporting the board’s work. Committees are formed to perform specific expertise work. Members of the committee have expertise in specific field. Committees improve the efficiency and effectiveness of Board in areas where more focused, specialized and technical discussions are required. Committee function in accordance with the […]
Importance of a Non-Disclosure Agreement
Often, the biggest concern of a business entity is protecting its confidential information that keeps its business unique and competitive. Whether it be protecting the intellectual property at its early stages, or just wanting to keep early commercial discussions private, or ensuring that information may not be disclosed by the employees of the organisation, the solution […]
Founders’ Agreement and its Importance
In today’s world, it is quite frequent to observe likeminded individuals engaging into partnerships in every spectrum of the business sector. Gradually, most of these partnership converts into a company with an aim to diversify and in order to expand the size of the business. Alternatively, many individuals also prefer to directly incorporate a startup […]
Legal Recourse For Defamation
A. INTRODUCTION The essential concept of defamation law is that a person’s reputation, the respect in which he is regarded by society, the credibility and confidence it places in his knowledge, dignity, and ethics, all of these are important assets for him, and they ought to be protected by the law. The pursuit of reputation […]
Compounding of offences under the Companies Act, 2013
Introduction: An “offence” shall mean any act or omission made punishable by any law for the time being in force. The “compounding” refers to the process of voluntarily admitting the contravention, pleading guilty and seeking redressal. A compounding of offense consists of three basic elements: (1) knowledge of the offence; (2) the agreement not to […]
Procedure for Conversion of Private Company to Public Company
1. INTRODUCTION: Pursuant to provisions of Companies Act, 2013 (“Act”), a private company by its articles restricts the right to transfer its shares and limits the number of its members to two hundred. On the other hand, a public company has no such restrictions. A Company of any class already registered under the Act can […]
Borrowings by Private Companies Under Companies Act, 2013
1.INTRODUCTION: Every company needs additional capital for its business from time to time. The company can meet such requirement of capital, to an extent, by the issue of share, and at times has to raise loans. Borrowing can be defined as a means through which companies arrange financial funds through external sources like bank loans, […]
Startup India Registration / Recognition
Startup India was launched in January, 2016 as a clarion call to the innovators, entrepreneurs and thinkers of the nation to lead from front in driving India sustainable economic growth and create large scale employment opportunities. Startup India laid the foundation for building a self reliant India and harness the potential of a nation bestowed […]
Analysis of the supreme court ruling in the TATA-MISTRY case
In January, 2020, Tata Sons and Ratan Tata moved to Supreme Court and challenged the decision given by the NCLAT before the Supreme Court. The Supreme Court on March 26, 2021, pronounced its judgement. The judgement was pronounced by a bench of Supreme Court headed by Chief Justice S.A Bobde and comprising Justice V. Ramasubramanian […]