Sakshi Sharda

According to Section 275 of Companies Act, 2013, provides for the Appointment of Liquidator in the Company. The Company Liquidator is appointed to bring concord and balance between the Company and Creditors of the Company. Sometimes, in a Company on account of some grounds, the Tribunal can Remove and Replace the Company Liquidator. Under Companies Act, 2013, […]

To raise subscribed share capital of a registered Company, additional capital shares are issued through Right Issue. However, instead of issuing shares to the public at large, the Company issue shares to existing shareholders of Company in proportion to their existing holding. It is an exceptionally used method to increase the share capital of the […]

In today’s corporate world, where a ton of transactions takes place at high speed, the degree of uncertainty achieves its peak form. As in our country, no one knows how our government policies will change and what will be the effect of this change on the Company. Hence, to avoid this, every Company should conduct […]

In a simple sense, the Conversion of Debentures into Equity Shares means to change the loan liability into a capital liability. After the Conversion of Debentures into Equity Shares, the Debenture Holder becomes Shareholder.  The shareholders will get the right to vote. After Conversion, until Liquidation occurs in the Company, the money invested by shareholders […]

The role of Company Liquidator in winding up of Company is to ensure a fair distribution of assets of the Company to creditors for their benefit. In a Voluntary Winding Up of Company members or creditors can wound up without the intervention of the Tribunal. So to avoid any misunderstanding between the members and the […]

Bonus Shares are given to shareholders as some additional shares, based upon the number of shares the shareholders hold in the Company. The accumulated earnings of a company sometimes are not distributed as Dividend but are issued as Bonus Shares. These shares are issued to the current shareholders without receipt of any consideration from them. […]

At the time of the incorporation of a business entity, the applicants are provided with options for selecting their class for Company based on which the Companies Act, 2013 provisions will be applied. To avail the benefits of the other classes, the Companies Act, 2013 allows changing the class post-incorporation from Private Company to Public […]

The term Due Diligence describes a general responsibility to exercise care in any operation. All the remunerations, efforts and analysis to be made by an individual or body corporate, to systematically evaluate or perform any essential deals or contracts, come under this. To perform different types of businesses and transactions in the financial world, it […]

The concept of Dormant Company is newly introduced in the Companies Act, 2013. A Dormant Company is a Company, which is not carrying out any ‘accounting transaction’ and which is formed for a future project or to hold an asset or intellectual property. The Dormant Company can obtain the status of a Dormant Company by […]

The Directors never compromise on the fiduciary position, which they occupy concerning a Company. Hence, the Directors exclude themselves from making a decision in such contracts and arrangements where personal interest is involved. Section 184 of the Companies Act, 2013, the main objective is to bring to the notice of the Directors the conflict of […]

When there are changes made in the existing share capital structure of the firm, it is known as Alteration in Share Capital. The Articles of Association (AoA) must authorize for the Alteration in Share Capital Clause. In the case of a public company, the shares are subscribed to the public at large. So, the limited […]

A person who is Director of a registered Company or Designated Partner of LLP is required to have Directors Identification Number (DIN) or Designated Partner Identification Number (DPIN). DIN came into existence, after the insertion of Sections 266A & 266B in the Act by the Companies (Amendment) Act, 2006. The primary purpose of introducing DIN […]

At a growing stage of the Companies, Employee Stock Option Plan (ESOP) plays a vital role to attract and preserve valued employees for long term altitudes. If a company proposes to increase its subscribed capital by issuance of shares, such shares issued will be offered to Employee’s under the ESOP scheme, through a resolution passed […]

The Corporate Frauds happening all over India needs some stringent provisions to tackle with them. Corporate Frauds occur when a company or entity intentionally alter and conceals subtle information. The problem came with their rise in occurrence and sternness. This high frequency of Corporate Frauds demanded rigid penalties, ideal punishment, and efficient enforcement of the […]