Business

Section 42A – Arbitration And Conciliation Act, 1996

Confidentiality of information Notwithstanding anything contained in any other law for the time being in force, the arbitrator, the arbitral institution and the parties to the arbitration agreement shall maintain confidentiality of all arbitral proceedings except award where its disclosure is necessary for the purpose of implementation and enforcement of award.]

Section 42A – Arbitration And Conciliation Act, 1996 Read More »

Differences between MOA and AOA

Know the Key Differences between MOA and AOA

The MOA (Memorandum of Association) and AOA (Articles of Association) are the two foundational documents required for incorporating a company. The MOA is the constitution document of the company consisting of all its basic details and the AOA is a document which contains all the rules and regulations formulated by the company for its internal management. Detailed Difference between MOA and AOA Parameter MOA AOA Defines Basic details of the company Rules and regulations abided by the company Subordinate to Companies act Memorandum Components Clauses as defined in the following sections Can be modified as required Nature Public Private Amendable Cannot be amended retrospectively Can be amended retrospectively Required for Every company Private companies Needed during registration Yes No What is a MOA (Memorandum of Association)? The Memorandum of Association (MOA) is considered as the constitution or Charter of the Company, as it contains all the basic legal information about it, including its name, address, purpose of establishment, capital, and nature of liability of its shareholders. The document is drafted by all the directors of the company and is signed by all its shareholders. It is submitted to the ROC for registration during the incorporation of the company.The MOA of an existing company is a publicly accessible document and all the details it contains are available for public verification and inspection. So, it can also be said that a company cannot be formed without a Memorandum of Association of MOA. The MOA defines the objectives, powers and scope of the company beyond which the company is not allowed to operate, i.e. it limits the scope of the company’s activities. Every member and officer of the company, such as its shareholders, creditors, investors, etc., should be familiar with the MOA to understand the overall scope and objectives of the company. What is an AOA (Association and Article of Association)? AOA is a legal document which defines the rules and regulations of the company formulated for its internal administration and day to day management. In this context, the Articles of Association specifies the rights, responsibilities, powers and duties of the members and directors of the company, and also provides information on how a company should maintain its account and audit records.All companies should draft their Articles in a manner specific or suitable to their own needs and requirements. The document is drafted by the directors of the company and signed by all its shareholders. Like the MOA, the AOA is also required to be submitted to the ROC during the incorporation of the company. After incorporation, even the MOA becomes publicly accessible and available for public viewing and inspection. What is the Difference Between MOA and AOA? The first difference between MOA and AOA is that MOA describes the powers and objectives of the company while AOA defines its rules. In the event of any inconsistency between the Memorandum and the Articles of Incorporation as to any provision, the Memorandum of Association shall prevail over the Articles of Association. The memorandum of association contains information about the company’s powers and objectives. Conversely, articles of association provide information about the company’s rules and regulations. To amend the MOA, a special resolution must be passed at the Annual General Meeting with the prior approval of the central government, while amendments to the AOA can only be made by a Special Resolution (SR) at the Annual General Meeting (AGM). At the time of incorporation, the MOA is required to be registered with the Registrar of Companies. In the case of AOA, the company is not required to meet such requirements, although there is a provision for voluntary registration. MoA Vs AoA : Difference Table Points of Difference Memorandum of Association Articles of Association Objective The major objective of creating the MOA of a Company is to define the relationship between the Company, its shareholders, all third parties. The major objective of creating the AoA of a Company is to define the relationship between the company and its internal management. Purpose The MOA contains all the foundational legal information about the company available with the ROC, like its name, registered address, capital, liability, and primary business activity. The AOA contains the rules, regulations, and procedures involved in the internal management of the company. Legal Provisions Section 4 of the Companies Act deals with the provisions for MOA of a Company. Section 5 of the Companies Act deals with the provisions for AOA of a Company. Supremacy The MOA is drafted in accordance with the provisions of the Companies Act, 2013. So, beyond the Act, the MOA is the most supreme document of the company, and any other draftings or filings cannot contain any information or provision which violates the content of the MOA. The AOA is drafted in accordance with the Companies Act, 2013, and the MOA of the Company. So, it cannot contain any provisions which violate the provisions of the Companies Act, or the MOA of the Company. Structure & Content The content of the MOA is divided into 6 different clauses, containing specific information in each of these clauses. Among these clauses are, the name clause containing the legal name of the company, the situation clause containing its registered address, the objective clause containing all its business activities, the clauses for liability and capital containing details regarding the liabilities of the shareholders and their capital subscription respectively. The format of AOA is categorized into different tables, applicable for different kinds of companies. For instance, the AOA of a Company limited by shares is drafted according to TABLE F format. Further, each of these tabular formats are divided into articles containing the rules and regulations for the internal management of the company. Applicability It is mandatory for all types of companies to draft their Memorandum of Associations in the prescribed formats and submit to the ROC during their incorporation. Although it is mandatory for all types of companies to draft their Articles of Associations, it is not mandatory to submit the same to the ROC during incorporation. FAQs How to find the

Differences between MOA and AOA Read More »

Section 8 – Arbitration And Conciliation Act, 1996

Power to refer parties to arbitration where there is an arbitration agreement [(1) A judicial authority, before which an action is brought in a matter which is the subject of an arbitration agreement shall, if a party to the arbitration agreement or any person claiming through or under him, so applies not later than the date of submitting his first statement on the substance of the dispute, then, notwithstanding any judgment, decree or order of the Supreme Court or any Court, refer the parties to arbitration unless it finds that prima facie no valid arbitration agreement exists.] (2) The application referred to in sub-section (1) shall not be entertained unless it is accompanied by the original arbitration agreement or a duly certified copy thereof: [Provided that where the original arbitration agreement or a certified copy thereof is not available with the party applying for reference to arbitration under sub-section (1), and the said agreement or certified copy is retained by the other party to that agreement, then, the party so applying shall file such application along with a copy of the arbitration agreement and a petition praying the Court to call upon the other party to produce the original arbitration agreement or its duly certified copy before that Court.] (3) Notwithstanding that an application has been made under sub-section (1) and that the issue is pending before the judicial authority, and arbitration may be commenced or continued and an arbitral award made. UNION TERRITORY AMENDMENT JAMMU AND KASHMIR/LADAKH ♦ Sections 8A and 8B –   After section 8, insert the following sections, namely:—     “8A. Power of the court, seized of petitions under sections 9 or 11 of the Act, to refer the dispute to Mediation or Conciliation.— (1)   If during the pendency of petitions under sections 9 or 11 of the Act, it appears to the court, that there exists elements of a settlement which may be acceptable to the parties, the court may, with the consent of parties, refer the parties, for resolution of their disputes, to,— (a)   mediation; or (b)   conciliation. (2)   The procedure for reference of a dispute to mediation is as under— (a)   where a dispute has been referred for resolution by recourse to mediation, the procedure framed under that Act shall apply; (b)   in case of a successful resolution of the dispute, the Mediator shall immediately forward the mediated settlement to the referral court; (c)   on receipt of the mediated settlement, the referral court shall independently apply its judicial mind and record a satisfaction that the mediated settlement is genuine, lawful, voluntary, entered into without coercion, undue influence, fraud or misrepresentation and that there is no other legal impediment in accepting the same; (d)   the court shall record a statement on oath of the parties, or their authorised representatives, affirming the mediated settlement as well as a clear undertaking of the parties to abide by the terms of the settlement; (e)   if satisfied, the court shall pass an order in terms of the settlement; (f)   if the main petition, in which the reference was made is pending, it shall be disposed of by the referral court in terms thereof; (g)   if the main petition, in which the reference was made stands disposed of, the mediated settlement and the matter shall be listed before the referral court, which shall pass orders in accordance with clauses (iii), (iv) and (v); (h)   such a mediated settlement, shall have the same status and effect as an arbitral award and may be enforced in the manner specified under section 36 of the Act. (3)   With respect to reference of a dispute to conciliation, the provisions of Part II of this Act shall apply as if the conciliation proceedings were initiated by the parties under the relevant provision of this Act.     8B. Power of the court, seized of matters under section 34 or 37 of the Act, to refer the dispute to Mediation or Conciliation.— (1)   If during the pendency of a petition under section 34 or an appeal under section 37 of the Act, it appears to the court, that there exists elements of a settlement which may be acceptable to the parties, the court may, with the consent of parties, refer the parties, for resolution of their disputes, to:— (a)   mediation; or (b)   conciliation. (2)   The procedure for reference of a dispute to mediation is as under:— (a)   where a dispute has been referred for resolution by recourse to mediation, the procedure framed under the Act shall apply; (b)   in case of a successful resolution of the dispute, the Mediator shall immediately forward the mediated settlement to the referral court; (c)   on receipt of the mediated settlement, the referral court shall independently apply its judicial mind and record a satisfaction that the mediated settlement is genuine, lawful, voluntary, entered into without coercion, undue influence, fraud or misrepresentation and that there is no other legal impediment in accepting the same; (d)   the court shall record a statement on oath of the parties, or their authorized representatives, affirming the mediated settlement, a clear undertaking of the parties to abide by the terms of the settlement as well as statement to the above effect; (e)   if satisfied, the court shall pass an order in terms of the settlement; (f)   if the main petition, in which the reference was made is pending, it shall be disposed of by the referral court in terms thereof; (g)   if the main petition, in which the reference was made stands disposed of, the mediated settlement and the matter shall be listed before the referral court, which shall pass orders in accordance with clauses (iii), (iv) and (v); (h)   such a mediated settlement, shall have the status of a modified arbitral award and may be enforced in the manner specified under section 36 of the Act. (3)   With respect to reference of a

Section 8 – Arbitration And Conciliation Act, 1996 Read More »

Section 34 – Apprentices Act, 1961

Delegation of powers The appropriate Government may, by notification in the Official Gazette, direct that any power exercisable by it under this Act or the rules made thereunder shall, in relation to such matters and subject to such conditions, if any as may be specified in the direction, be exercisable also— (a) where the appropriate Government is the Central Government, by such officer or authority subordinate to the Central Government or by the State Government or by such officer or authority subordinate to the State Government, as may be specified in the notification; and (b) where the appropriate Government is the State Government, by such officer or authority subordinate to the State Government as may be specified in the notification.

Section 34 – Apprentices Act, 1961 Read More »

Section 21 – Apprentices Act, 1961

Holding of test and grant of certificate and conclusion of training [(1) Every trade apprentice who has completed the period of training may appear for a test to be conducted by the National Council or any other agency authorised by the Central Government to determine his proficiency in the designated trade in which he has undergone apprenticeship training.] STATE AMENDMENT MAHARASHTRA In section 21, after existing sub-section (1), the following sub-section shall be inserted w.e.f. a date yet to be notified. – Vide Maharashtra Act No.XVII of 2018 (i)   after existing sub-section (1), the following sub-section shall be inserted, namely :—     “(1A) For apprentices successfully completed the training period in the trade designated by the State Apprenticeship Council (other than the trade designated and prescribed by the Central Government), may appear for a test to be conducted by the State Council of Vocational Training or any other agency authorised by the State Government to determine his proficiency in the trade designated by the State Apprenticeship Council in which he has undergone apprenticeship training.” (2) Every [trade apprentice] who passes the test referred to in sub-section (1) shall be granted a certificate of proficiency in the trade by the National Council [or by the other agency authorised by the Central Government]. STATE AMENDMENT MAHARASHTRA In section 21, after existing sub-section (2), the following sub-section shall be inserted w.e.f. a date yet to be notified. – Vide Maharashtra Act No.XVII of 2018. (ii)   after existing sub-section (2), the following sub-section shall be inserted, namely:—     “(2A) Every apprentice, who passes the test referred to in sub-section (1A) shall be granted a certificate or proficiency in the trade by the State Council of Vocational Training or by the other agency authorised by the State Government.” [(3) The progress in apprenticeship training of every graduate or technician apprentice, [technician (vocational) apprentice] shall be assessed by the employer from time to time.] [(4) Every graduate or technician apprentice or technician (vocational) apprentice, who completes his apprenticeship training to the satisfaction of the concerned Regional Board, shall be granted a certificate of proficiency by that Board.]

Section 21 – Apprentices Act, 1961 Read More »

Section 20 – Apprentices Act, 1961

Settlement of disputes (1) Any disagreement or dispute between an employer and an apprentice arising out of the contract of apprenticeship shall be referred to the Apprenticeship Adviser for decision. (2) Any person aggrieved by the decision of the Apprenticeship Adviser under subsection (1) may, within thirty days from the date of communication to him of such decision, prefer an appeal against the decision to the Apprenticeship Council and such appeal shall be heard and determined by a Committee of that Council appointed for the purpose. (3) The decision of the Committee under sub-section (2) and subject only to such decision, the decision of the Apprenticeship Adviser under sub-section (1) shall be final.

Section 20 – Apprentices Act, 1961 Read More »

Section 16- Apprentices Act, 1961

Employer’s liability for compensation for Injury  If personal injury is caused to an apprentice, by accident arising out of and in the course of his training as an apprentice, his employer shall be liable to pay compensation which shall be determined and paid, so far as may be, in accordance with the provisions of the Workmen’s Compensation Act, 1923 (8 of 1923), subject to the modifications specified in the Schedule.  

Section 16- Apprentices Act, 1961 Read More »

Section 14 – Apprentices Act, 1961

Health, safety and welfare of apprentices Where any apprentices are undergoing training in a factory, the provisions of Chapters III, IV and V of the Factories Act, 1948 (63 of 1948), shall apply in relation to the health, safety and welfare of the apprentices as if they were workers within the meaning of that Act and when any apprentices are undergoing training in a mine, the provisions of Chapter V of the Mines Act, 1952 (35 of 1952), shall apply in relation to the health and safety of the apprentices as if they were persons employed in the mine.

Section 14 – Apprentices Act, 1961 Read More »

Section 10 – Apprentices Act, 1961

Related instruction of apprentices (1) [A trade apprentice] who is undergoing practical training in an establishment shall, during the period of practical training, be given a course of related instruction (which shall be appropriate to the trade) approved by the Central Government in consultation with the Central Apprenticeship Council, with a view to giving [the trade apprentice] such theoretical knowledge as he needs in order to become fully qualified as a skilled craftsman. [(2) Related instruction shall be imparted at the cost of employer and the employer shall, when so required, afford all facilities for imparting such instruction.] (3) Any time spent by [a trade apprentice] in attending classes on related instruction shall be treated as part of his paid period of work. [(4) In the case of trade apprentices who, after having undergone a course of institutional training, have passed the trade tests conducted by the National Council or have passed the trade tests and examinations conducted by a Board or State Council of Technical Education or any other authority which the Central Government may, by notification in the Official Gazette, specify in this behalf, the related instruction may be given on such reduced or modified scale as may be prescribed. (5) Where any person has, during his course in a technical institution, become a graduate or technician apprentice, [technician (vocational) apprentice] and during his apprenticeship training he has to receive related instruction, then, the employer shall release such person from practical training to receive the related instruction in such institution, for such period as may be specified by the Central Apprenticeship Adviser or by any other person not below the rank of an Assistant Apprenticeship Adviser authorised by the Central Apprenticeship Adviser in writing in this behalf.]

Section 10 – Apprentices Act, 1961 Read More »