Companies Act does not have any specific provisions related to holding shareholders’ meetings through video conferencing or audio visual mode. During COVID-19, MCA allowed holding of AGM or EGM through video conferencing of other audio visual means through Circular No. 14/2020 dated 8th April, 2020 and Circular No. 20/2020 dated 5th May, 2020.
Government has mandated such provisions of dematerialisation for unlisted public companies as well vide notification dated 10th September, 2018 through insertion of Rule 9A to Companies (Prospectus and Allotment of Securities) Rules, 2014.
Concept of Special Purchase Acquisition Companies (SPACs) is not new. This concept has existed for the last 3 Decades. However, this method of funds raising has gain popularity since the advent of COVID-19 pandemic.
Often, we hear about a new unicorn making a turnover in millions and contributing to the growth of our country. With the help of overseas funding and IPOs, many businesses have started adopting a company structure. A company right from its incorporation till its winding up has to adhere to the provisions of all applicable laws of Country be it Company law or Income Tax laws or Goods and Service Tax law, etc. Therefore, it becomes essential that business operators must know essential formalities which are to be completed by a company.
Filing of Form LLP-II has become completely online and simple with the introduction of Single Master Form (“SMF”). SFM was introduced with an objective to integrate the reporting structure of various types of Foreign Investment in India.
Hearing the term ‘search’ or ‘investigation’ brings people in a terrified state. In India, various laws have different rules and regulations pertaining to search or investigation such as Income tax law, Good and Service Law etc.
Bonus shares increase the investments of a shareholder automatically without paying any cost. Therefore, Cost per unit of shares decreases and it results in higher profits.
If new registered office is situated outside the city, village or town, then as per Section 12(5) of Companies Act, 2013, the company is required to obtain prior approval of shareholder. Accordingly, the company has to make following compliances.
Apart from Loans from Banks and NBFCs, companies do have options to borrow funds from shareholders or members. However, since funds are involved of the shareholders, therefore, company law contains detailed provisions related to loans and deposits from Member or shareholders. Companies are required to follow detailed procedure to obtain deposits and also are required to repay the same within committed time.
Companies are always in need of funds and it keeps on looking for various sources of funds such as share capital, Loans from banks or Financial institutions, loans from other persons etc. Issuance of shares involves a lot of compliances and it compromises shareholding as well. Similarly, loans from banks and NBFC is subject to detailed compliances, availability of mortgage or security and timely payment of interest and principal amount. Therefore, companies prefer acceptance of loans from other persons.
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