gfk

Thursday, 20 June 2019

Company Registration in Salem

Company Registration in Salem

Company Registration in Salem

Investment Companies

An investment company is a company the principal business of which consists in acquiring, holding and dealing in shares and securities. The word 'investment', no doubt, suggests only the acquisition and holding of shares and securities and thereby earning income by way of interest or dividend etc. But investment companies in actual practice earn their income not only through the acquisition and holding but also by dealing in shares and securities i.e., by buying with a view to selling later on at higher prices and selling with a view to buying later on at lower prices.If a company is engaged in any other business to an appreciable extent, it will not be treated as an investment company. The following two sets of legal opinions are quoted below as to the meaning of an investment company:
According to one set of legal opinion, an "investment company" means company which acquires and holds shares and securities with an intent to earn income only from them by holding them. On the other hand, another school of legal opinion holds that "an investment company means a company, which acquires shares and securities for earning income by holding them as well as by dealing in such shares and other securities". According to section 2 (10A) of the Insurance Act, 1938, an investment company means a company whose principal business is the acquisition of shares, stocks, debentures or other securities.

Producer Companies

Companies (Amendment) Act, 2002 has added a new part IX A to the main Companies Act, 1956 consisting of 46 new sections from 581A to 581ZT. According to the provisions as prescribed under Section 581 A(I), a producer company is a body corporate having objects or activities specified in Section 581B and which is registered as such under the provisions of the Act, The membership of producer companies is open to such people who themselves are the primary producers, which is an activity by which some agricultural produce is produced by such primary producers.

For Company Registration in Salem -> Click here 
 

Tuesday, 18 June 2019

Company Registration in Salem

Company Registration in Salem

Company Registration in Salem


 True and fair – Department’s views under Companies Act, 1956


The requirements of the Act are that the auditors should specifically certify whether the published accounts give a true and fair view of the company’s state of affairs and of the profit and loss for the financial year (as compared with the requirements of certification as true and correct under the 1913 Act, this requirement has imposed an obligation on the auditors to make observations in respect of matters which were not previously commented upon in the auditors certificate under the Companies Act, 1913. An examination of the company accounts duly audited by the auditors, and filed by the companies discloses that there is as yet no adequate realization of this obligation by a majority of the auditors. In a large number of cases, it has been observed that the auditors have given clean certificate on the company accounts audited by them without looking into matters which were clearly relevant to a ‘true and fair view’ of the affairs of the companies concerned. In this connection, some of the auditors have contended legalistically and on the basis of an unduly narrow interpretation of the letter of section 227 of the Act, that the certificate is required to be based only on the result of the scrutiny of the books of account maintained by a company under the provisions of section 209 of the Act, and that the auditors are not required to report to the shareholders of the company, the infringements of the provisions of the Companies Act or those of the other important laws, much less to draw their attention to inadequate provision of depreciation, to under or over valuation of current assets like stock in trade, to improper allocation of reserves to improper classification of debts and loans etc., although these defects may come to their notice in course of their carrying out the audit of the companies concerned. Such omissions are not, however, in accordance with the best traditions of audit practice and in the view of the Department of Company Law Administration it would not be a proper in their reports. For, it would be difficult to hold that an audit report which ignores such important matters as must necessarily have a close bearing on the fortunes of a company could give a true and fair view of its affairs. On the contrary, the clear certificates issued by auditors in such cases would tend to mislead the shareholders as well as the general public who might have to deal with the companies concerned.                                                                                                                                                  

For Company Registration in Salem -> Click here

Monday, 10 June 2019

Company Registration in Salem

Company Registration in Salem

Company Registration in Salem

Examination of person suspected of having property of LLP

Application for examination of persons suspected of having property
  •  An application for the examination of any officer of the LLP or person known or suspected to have in his possession any property or books or papers of the LLP or known or suspected to be indebted to the LLP or any person whom the Tribunals deem capable of giving information concerning the formation, trade, dealings, property, book or papers or affairs of the LLP may be made, provided that where the application is made by any person other than the liquidator, notice of the application shall be given to the liquidator.
  • The summons shall be in Form No. 67 and, where the application is by the Liquidator, it shall be accompanied by a statement signed by him setting forth the facts on which the application is based. Where the application is made by a person other than the Liquidator, the summons shall be supported by an affidavit of the applicant setting forth matters in respect of which the examination is sought and the grounds, relied on in support of the summons.

Examination on commission or by interrogation

The Tribunal may, if it thinks fit, instead of issuing a summons to any person for his appearance before the Tribunal for examination, issue a commission to any person or authority authorized by the Tribunal within whose jurisdiction such person of the company resides for the examination or make an order for his examination  by interrogatories, as the Tribunal may think fit.

Service of Summons

When the summons is served in person there shall be paid or tendered to the person summoned along with the summons a reasonable sum for his expenses to be fixed by the member or Registrar of Tribunal with due regard to the scale of fees in force in the Tribunal. When the summons is served by registered or speed post, such sum shall be sent to such person by any other manner.

For Company Registration in Salem -> Click here

Tuesday, 4 June 2019

Company Registration in Salem

Company Registration in Salem


 Company Registration in Salem


 A company is a juristic person and therefore it has to act through human beings. Anything done on behalf of a company has to be under the authority of the Board of company. Section 21 of the 2013 Act statutorily recognizes this legal position. Section 21 of the 2013 Act corresponds to s 51  1956 Act with certain modifications. As per S.21 of the 2013 Act, documents, proceedings and contracts can be authenticated by any key managerial personnel or an officer of the company duly authorized by the Board. The words director, manager, secretary as were appearing in s. 54 of the 1956 Act have been replaced with Key Managerial Personnel' in s. 21 of the 2013 Act. Thus, S. 21 of the 2013 Act has expanded the scope of personnel who can authenticate the documents.
Key Managerial Personnel is defined under s. 2(51) of the 2013 Act and means the Chief Executive Officer or the managing director or the manager, the company the whole-time director, the Chief Financial Officer, and such other officer as may be prescribed.
Section 21 of the 2013 Act is also applicable to contracts made by or on behalf of the company, thereby expanding the scope of the section as compared to s 54 of the 1956 Act, its corresponding provision, which dealt with documents and proceedings alone. It is pertinent to note that in s.21 of the 2013 Act the qualification requiring authentication by a company' is with respect to documents and proceedings and not to contracts made by or on behalf of the company. Section 21 of the 2013 Act has omitted the words "and need not be under its common seal" as was existing under s. 54 of the 1956 Act. Every document, proceeding or contract need not necessarily be under the common seal of the company, unless otherwise insisted upon by the executing party with the company or as per the procedural formalities of the executing party with company or as mandated by any other law for the time being in force and hence the words "need not be under its common seal" existing under the 1956 Act is superfluous and rightly omitted under the 2013 Act.

For Company Registration in Salem -> Click here

Thursday, 23 May 2019

Company Registration in Salem

Company Registration in Salem

Company Registration in Salem

Where the petition is made by any other person, enclose the following documents:
  • Documentary evidence in support of the statements made in the petition including the copy of the letter written by the petitioner to the company for purpose of registering the transfer of, or the transmission of the right to, any share, or interest in, or debentures as also a copy of the letter of refusal of the company.
  • Copies of the documents returned by the company.
  • Any other relevant document
  •  Affidavit verifying the petition
  • Bank draft evidencing payment of application fee.
  • Memorandum of appearance with copy of the Board's Resolution or the executed Vakalatnama, as the case may be.
  • Two extra copies of the petition.
  • Please note that the petitioner must serve an advance notice with a copy of the petition, reference or application on the respondent(s) and shall produce evidence of such service at the time of presentation of such petition, reference or application in CLB.
  • Where the number of respondents is more than five,  Secretary or Bench officer may permit the petitioner to file extra copies of the petition at the time of issue of notice to the respondents. The petitioner shall serve the copy of the reference ;or petition other than a petition under sections 49,79, 80A, 111 and/or 111A  and 113,118,144,163196,219,225,284,304 and 307 of the companies of the 1956 Act and under sections 58 and 59 of the 2013 act upon the concerned ROC having jurisdiction over the company and shall attach to and to present with his petition, reference an acknowledgement from the office of the ROC receiving copy of the petition or reference so served.
  • The general heading of the petition should also be as in Form NO.1 in Annexure 2.\In the petition, please give the requisite particulars and enclose the required documents and please give a concise statement of facts in a chronological order, each paragraph containing as nearly as possible a separate issue, fact or otherwise. There should be a declaration that the petition has been made within the applicable period of intimation. The petitioner further declares that he had not previously filed any application, writ petition or suit regarding the matter in respect of which this petition has been made, before any court of law or any other authority or any other Bench or the Board and not any such application, writ petition or suit is pending before any of them. Further the petitioner must set out the relief(s) prayed for.
  • The petition should be presented by the petitioner in person through authorized representative to the office of the bench or be sent by registered post with acknowledgement due addressed to the Secretary or Bench officer of the bench concerned , as the case may be.
  • Please note that the CLB has powers to direct the company or any other person concerned who is a respondent in the petition to pay damages to the person who is aggrieved and in the interregnum the CLB has powers to suspend the voting rights too on the shares or other securities which from the subject matter of the petition.
  • Please note that complicated question questions of fact involving questions of fact involving questions of the title to shares or other securities may not be adjudicated by CLB.
  • If issue arise, whether the applicant is the owner of the shares ; whether there is fraud or forgery in holding the shares or the very title to the shares, then such issues will be beyond the jurisdiction of the company court and will have to be decided by the Civil Court.
  • Please note that any default in complying with the order of the Tribunal will entail a fine of not less than Rs. 1,00,000 but which may extend to Rs. 5,00,000 and every officer of the company who is in default shall be punishable with imprisonment for a term which may extend to 1 year or with fine which shall not less than Rs. 1,00,000 but which may extend to Rs.3,00,000 or with both.

For Company Registration in Salem-> Click here

Tuesday, 7 May 2019

Company Registration in Salem

Company Registration in Salem

Company Registration in Salem


Registers of Deposits

Every company accepting deposits shall maintain at its registered office one or more separate registers for deposits accepted or renewed, in which there shall be entered separately in the case of each depositor the following particulars, namely
·         name, address and PAN of the depositor/s;
·         particulars of guardian, in case of a minor;
·         particulars of the nominee;
·         deposit receipt number;
·         date and the amount of each deposit;
·         duration of the deposit and the date on which each deposit is repayable;
·         rate of interest or such deposits to be payable to the depositor;
·         due date for payment of interest;
·         mandate and instructions for payment of interest and for non-deduction of tax at source, if any;
·         Date or dates on which the payment of interest shall be made;
·         details of deposit insurance including extent of deposit insurance;
·         particulars of security or charge created for repayment of deposits;
·         any other relevant particulars.
The entries specified above shall be made within seven days from the date of issuance of the receipt duly authenticated by a director or secretary of the company or by any other officer authorized by the Board for this purpose. The register referred to above shall be preserved in good order for a period of not less than eight years from the financial year in which the latest entry is made in the register.


For Company Registration in Salem -> Click here

Monday, 22 April 2019

Company Registration in Salem

Company Registration in Salem

Company Registration in Salem


Ceiling on processing and maintenance charges

The Reserve Bank of India exercising its powers under Residuary Non-banking Companies (Reserve Bank) Directions, 1987 (para.4A as amended by notification, dated 19-4-1993) reduced the period of deposit and this was held to be valid but the fixation of the ceiling of Rs. 10 per customer as maintenance and processing charges was held to be arbitrary because it was insufficient to meet the expenses involved in collection and issue of deposit receipts and maintenance of deposit accounts. Peerless General Finance and Investment Co. Ltd versus Reserve Bank of India. The matter came before the Supreme Court in Reserve Bank of India v. Peerless General Finance and Investment Co. .Ltd., wherein it was found that no material was put before the court to show that Rs. 10 per customer by way of expenses was inadequate. Hence, there was no occasion for the court to interfere in the matter. The court said that the aggrieved companies should make a representation to the Reserve Bank itself.

Investment of amount equivalent to deposits maturing in revolving deposits

Liquid deposits were earlier covered under Rule 3A of Companies (Acceptance of Deposits) Rules, 1975 read with s. 58A of the 1956 Act and are now covered under section 73(2)(c) of the  2013 Act which also provides for utilization of revolving deposits.
Section 73(2)(c) of the 2013 Act provides that every company proposing to accept deposits shall before accepting deposits, deposit a sum equal to 15% of the deposits maturing during the financial year and the financial year next following in a scheduled bank in a separate bank account called Deposit Repayment Reserve Account which shall be utilized only for the purpose of repayment of deposits. However, a recurring deposit which complies with the provisions of sub-section (2)(c) of section 73 of the 2013 Act would be sufficient compliance such that the amount so invested shall not at any time fall below 15% of the amount of deposits maturing during the relevant period. The requirement of investing in liquid assets was earlier covered under the Companies (Acceptance of Deposits) Rules, 1975.

For Company Registration in Salem -> Click here