As per Section 88(1), companies are required to maintain a register for different categories of members in a prescribed manner: Maintenance of Register of Members: Register of Equity and Preference Shareholders: In accordance with Section 88(1)(a), companies must maintain separate registers for equity shareholders and preference shareholders, regardless of whether they reside in India or […]
When a company decides to go public through an Initial Public Offering (IPO), it must provide prospective investors with detailed information about its business, financial standing, and associated risks. One of the most crucial documents in this process is the Red Herring Prospectus (RHP). This preliminary document offers insights into the company’s financial health, market
The Nomination and Remuneration Committee plays a vital role in identifying individuals who are suitable for the role of Directors and senior management positions, based on established criteria. It is responsible for evaluating their qualifications, integrity, and overall suitability for appointment. The Committee then makes recommendations to the Board regarding their selection or removal. Additionally,
A listed company holds the right to modify the number of shares held by its promoters and top ten shareholders if needed. This authority allows the board to increase or decrease share counts as part of their strategic decisions. When such adjustments occur, it is mandatory to file a return in a prescribed format to
The integrity of financial markets and investor confidence depend largely on transparency and truthfulness in the communication of company information. Section 36 of the Companies Act, 2013, aims to prevent fraud in securities transactions by penalizing fraudulent inducement in investments. This section applies to misleading statements or deceptive practices that persuade individuals to invest in
A company’s prospectus serves as a critical document that provides potential investors with key information about the company’s operations, financial position, and future prospects. Since investment decisions are heavily influenced by the contents of a prospectus, any false or misleading statements in it can cause financial harm to investors. Section 35 of the Companies Act,
When a company faces financial distress and ultimately goes into administration or liquidation, its financial affairs are closely scrutinized to determine whether any wrongful or illegal actions were undertaken by the directors prior to insolvency. One critical aspect of this process is examining whether preferential payments were made to certain creditors over others. The role
Section 198 of the Companies Act, 2013, provides guidelines for determining the remuneration of 16 key managerial personnel for a financial year, as specified under Section 197. The provisions under subsection (2) outline the sums to be credited, whereas subsection (3) specifies amounts that shall not be considered as credits. Further, subsections (4) and (5)
Every company is required to conduct an Annual General Meeting (AGM) as per Section 96 of the Companies Act, 2013, except for one-person companies. The AGM is scheduled on a fixed date each year to review past performance and discuss future plans. However, certain urgent matters arise outside the AGM cycle that require immediate attention.
Section 31 of the Companies Act, 2013, introduces the concept of a shelf prospectus, a significant advancement in the regulatory framework governing securities issuance in India. This provision allows certain classes of companies to issue securities multiple times within a specified period without the need to file a fresh prospectus for each offering, thereby streamlining