India Companies Act- 98 Sections of the New Companies Act Notified (Sunnyvale, CA) - The Ministry of Company Affairs (MCA) has notified 98 sections of the new law which is spread over 470 sections on 12th September, 2013. The remaining sections of the Companies Act, 2013, will be enforced in phases. Important definitions that have come into force include:
Associate Company Chief Executive Officer
Chief Financial Officer Private Limited Company (Such companies can now have up to 200 members) Public Limited Company Employees’ Stock Option Financial Statement Global Depository Receipt Related party Key Managerial Personnel
Significant highlights of the key provisions of various sections that have come into force include: DIRECTORS
Appointment of additional directors: If the articles of association of a company permit, the Board of Directors can employ an additional director. However, such candidate should not have failed to get appointed as a director in a general meeting. Such person will be able to hold office up to the following annual general meeting or the last date, on which the yearly annual general meeting would be held, whichever is earlier. New widened restrictions on loans to directors. Restrictions on non-cash transactions involving directors.
Provisions pertaining to quorum in general meetings. Unless the articles of the company provide for a larger number— For a public company, certain numbers of members need to personally attend meetings, if the total number of members as per the meeting date are as follows: If there are up to 1000 members: At least 5 members.
If there are more than 1000 but less than 5000 members: At least 15 members. If there are more than 5000 members: At least 30 members.
In the case of a private company, two members personally present, shall be the quorum for a meeting of the company. Provisions concerning:
Extra ordinary general meetings of the members of a company. Voting in meetings through proxies. Circulation of members’ resolution. Ordinary and special resolutions.
A subsidiary company cannot hold shares in its holding company. Every share in a company having a share capital should be distinguished by its distinctive number. Provisions pertaining to buy back of shares.
New provisions concerning foreign companies in India.
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The Ministry of Company Affairs (MCA) has notified 98 sections of the new law which is spread over 470 sections on 12th September, 2013. The...