February, 2025 - MMJC - Page 3

Introduction. Companies Act 2013 (‘the Act’) provides for management of companies by the board of directors on behalf of shareholders. The Act also provides for appointment and retirement/resignation of directors. Generally speaking, all the directors are appointed by shareholders or even if appointed by board, then approved by the shareholders at general meetings. The only

Introduction Section 4 of the Companies Act 2013 (Act) requires a company’s Memorandum of Association (MOA) to state the purpose for which the company is incorporated and any matters deemed necessary to facilitate the purpose of the company. These objects are specified in the object clause of the company’s MOA. This clause is the most important

Introduction. The very concept of Limited Liability Partnership (LLP) originated from the thought that, advantages of companies and partnership firms should be combined in one entity and drawbacks thereof should be eliminated. That is the reason, an LLP has multiple features which resembles that of company. Especially after Ministry of Corporate Affairs (‘MCA’) has made

Provisions with respect to performance evaluation Performance Evaluation is a periodic process which aids the management to assess the performance of the Individual directors and the board as whole which is then further aligned with the organizational goals. Section 134 (3) (p) read with Rule 8 (4) of the Companies (Accounts) Rules, 2014 states the

Introduction The provisions of section 186 of the Companies Act, 2013 (Act) states that a Company can not give loan to any person or body corporate exceeding 60% of its paid-up share capital, free reserves, and securities premium account, or 100% of its free reserves and securities premium account, whichever is more unless a special resolution has been

Introduction. Section 2 clause 60 of Companies Act, 2013 [‘the Act’] defines the term ‘Officer in Default [‘OID’]’[1]. Certain sections of the Act hold an OID responsible for non-compliances viz. sub-section (7) of section 135 of the Act[2], sub-section (11) of section 90[3] of the Act etc., Recently it is seen that adjudicating authorities have

Introduction Over the past many years, the Ministry of Corporate Affairs has taken several steps towards Ease of Doing Business[1]. The Central Government, exercising authority under sections 396(1) and (2) of the Companies Act, 2013, has recently vide notification dated February 2[2], 2024 communicated establishment of a Central Processing Centre (‘CPC’) located at the Indian

Introduction. Ministry of corporate affairs has always been trying to make it easier for companies as well as for the regulator (registrar of companies ROC) to comply with all legal requirements and ensure good governance at India Incorporated. In continuation of these efforts, MCA has come up with a new web-based e-form, called ‘change request

Introduction to concept of corporate veil The foundational principle of company law revolves around the concept of a “separate legal entity”. According to this principle, a company is distinct from its members and is recognized as a separate legal entity. This fundamental idea is rooted in the landmark case of Salomon v. Salomon Limited and

Background: Recently, under the ROC Adjudication mechanism we have seen adjudication orders being passed with respect to start-up and small companies. In one such case, Registrar of Companies Tamil Nadu -Coimbatore (‘ROC’) passed an order against M/s. Konwert India Motors Private Limited (‘Company’/’Konwert’) on May 18, 2023. In this case, the Company was in violation