As a business expands, it may consider growing in terms of operations, size, scope, or structure. To achieve this growth, it might be necessary to infuse more capital into the company, thereby increasing its share capital. Sometimes, the required capital may exceed the current allowable limit. Authorized capital is the maximum amount of capital a […]
What is Form CHG-4? Form CHG-4 is filed to notify the RoC about the payment or complete satisfaction of any registered charge within 30 days from the date of such payment. This form plays a vital role in ensuring transparency and compliance in corporate financial dealings. Legal Framework: Want to File CHG-4: File With Legal […]
Corporate Social Responsibility (CSR) regulations in India mandate eligible companies to allocate a minimum of 2% of their average net profit from the preceding three financial years towards CSR projects. These regulations apply to companies meeting certain financial thresholds, including: A CSR committee is required to be constituted by compliant companies, responsible for formulating annual […]
Insider trading, the act of trading in a company’s securities based on material non-public information, is rigorously regulated in India under both the Companies Act, 2013, and the Securities and Exchange Board of India (SEBI) regulations. This discussion will explore the specific sections of the Companies Act and the relevant SEBI regulations governing insider trading, […]
In the intricate landscape of corporate governance, whistleblower protection and vigil mechanisms have emerged as essential safeguards to fortify the ethical fabric of businesses. Enshrined within the Companies Act, 2013, these provisions encourage transparency, accountability, and the disclosure of wrongdoing. This article delves into the Whistleblower Protection framework, citing relevant sections, and explores the significance […]
The Prevention of Oppression and Mismanagement provisions embedded in Sections 241 to 246 of the Companies Act, 2013, stand as bulwarks against injustices within the corporate realm. These sections serve to protect minority shareholders and stakeholders from oppressive acts and ensure that the principles of equity and good conscience prevail in corporate governance. Section 241: […]
Section 290 of the Companies Act, 2013 lays down that subject to directions by the tribunal, if any, in this regard, the Company liquidator, in a winding up of a company by the tribunal, shall have the power – Professional Assistance to Company Liquidator The Company liquidator may, with the sanction of the tribunal, appoint […]
Definition of Related Party Transaction According to SEBI (Listing Obligations And Disclosure Requirements) Regulations, 2015 Regulation 2(1) (zc), a “related party transaction” refers to a transfer of resources, services, or obligations between a listed entity and a related party. This includes transactions where a price is charged, and it encompasses both single transactions and a […]
Every company is obligated to maintain one or more registers in Form MBP 4, providing detailed information about all contracts or arrangements. The register should include the following particulars: Entries in the register must be made promptly and chronologically whenever there is a cause to do so. The entries should be authenticated by the company […]
On January 21, 2023, the Ministry of Corporate Affairs (MCA) issued the Companies (Share Capital and Debentures) Amendment Rules, 2023, to modify the existing Companies (Share Capital and Debentures) Rules of 2014. The primary focus of these amendments is the revision of various forms, including SH-7, SH-8, SH-9, SH-11, and SH-14. These changes, effective from […]