Sections 196 and 197 of the Companies Act 2013 and the rules made thereunder read together with Schedule V provide for the appointment and remuneration of a managing director, whole-time director, or manager. Appointment of a managing director, whole-time director, or manager The company must have either a managing director or a manager at the […]

In the corporate law of India, two distinct concepts are recognised: the Limited Liability Partnership (LLP) and Private Limited Company. The Limited Liability Partnership Act 2008 provides the definition of a limited liability partnership as a corporate or incorporate body formed under this act. LLPs possess a separate legal entity from their partners and enjoy

When filing your ITR return or contacting the Income Tax Department, you may come across the phrases PAN and TAN. Understanding these words ahead of time makes the ITR filing process much easier. The question “What are PAN and TAN?” What are PAN and TAN? A PAN is a Permanent Account Number, whereas a TAN is

The Companies Act, 2013 (the Act) emphasizes flexibility and rigidity in the composition of the board of directors (boards). Flexibility hereby refers to the mandatory inclusion of rotating directors in the board of directors and Rigidity ensures the inclusion of non-rotating directors in the board of directors. The mentioned combination was ordered according to Section 152, sections

Under Indian law, shares of an unlisted company may be held either in physical form (i.e., denoted by letters of allotment/share certificates issued against such shares) or in dematerialized form (i.e., with the depository participant by opening an account, “Demat account”). Section 29 (1) and Section 29 (IA) of the Companies Act, 2013 talks about the issue of securities

Share certificates issued by the Company are sometimes lost or misplaced by the shareholders due to unforeseen circumstances. The loss of share certificates can lead to huge financial losses for both the shareholders and the company. To avoid unnecessary losses to shareholders and society, the remedy is provided by the central government. When a person

Section 2(84) indicates ownership of an individual towards the company whose shares was purchased. By owning shares from a company one becomes an investor and as per Companies Act, 2013 claims the voting rights. Those who hold the share of the company fall under the category of shareholder thus they are entitled for company’s profit as well

A debenture is a legal document that represents a secure means by which a creditor can lend money to the debtor.  Debentures are a form of long-term debt instrument issued by a company to raise funds from the public. It is a popular financing tool used by companies for various purposes, including capital expenditure, expansion

In the bustling and diverse financial landscape of India, ensuring the utmost credibility and integrity of reported financial statements is paramount. This is where the National Financial Reporting Authority (NFRA) steps in, wielding its regulatory baton to safeguard investor confidence and promote ethical accounting practices. Established in October 2018, the NFRA is an independent, statutory

On March 29, 2016, the MCA issued the Companies (Auditor’s Report) Order, 2016 (CARO 2016). This order replaces the Companies (Auditor’s Report) Order, 2015, and applies to financial statements of companies whose fiscal year begins on or after April 1, 2015. MCA was of the objective that there are certain particular issues that are important