Appointment of Whole-time Director of the company

Appointment of Whole-time Director of the company Clarification issued under Companies Act, 1956 : It must be noted that the clarification below issued under the 1956 Act is relevant under the 2013 Act. Explanation to section 188(1) of the 2013 Act states that a director shall be held to be holding an office or place of profit where the appointment of director receives from the company anything by way of remuneration over and the above the remuneration to which he is…

Read More

All you need to know about Subsidiary Companies

All you need to know about Subsidiary Companies Section 212 of Companies Act, 1956 – Scope of Section The section is applicable to all holding companies, having a subsidiary or subsidiaries. It casts an obligation on the holding companies to attach to their balance-sheets certain documents as specified in sub-section (1). A subsidiary company is an entity distinct from the holding company and does not owe any obligation to the shareholders of the holding company regarding disclosure of its financial position.…

Read More

Removal of Auditor by the Company

Removal of Auditor by the company – Companies Act, 2013: Section 140 Overview : Section 140 was notified on 26 March 2014. This section is effective from 1 April 2014 except the second provision to sub-section (4) and sub-section (5). This section corresponds to section 225 of the 1956 Act and provides for provisions for removal of an auditor by the company, before the expiry of his term and is similar to the requirements of the Companies Act, 1956 except for the…

Read More

Liability of Managing Directors of a Company under the Companies Act

Liability of Managing Directors of a Company under the Companies Act Liability for illegal acts Where directors have used their powers to part with money of their company in a manner or for a purpose which the law forbids, it is not a defense to proceedings to make them liable for their act to plead merely that they acted in ignorance of the law. A bookshop was owned by a company. A person designated as assistant manager had day to…

Read More

Penalty for Selling Goods or Providing Services of false trademark

Penalty for Selling Goods or Providing Services of false trademark This Article prescribes penalty for selling goods or providing services to which false trademark or false trade description is applied. The penalty proposed is the same as sought to be provided for an offence in clause 103. In this clause, the court is also empowered to award a lower sentence of penalty for adequate and special reason to be mentioned in the judgment. Comments The section prescribed penalty for selling…

Read More