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Dividends are to be only in cash, if otherwise specified in the AOA. In exceptional cases, even the central government may permit the payment of interest to shareholders , even though there is no profit. There can be alternate directors, additional directors, casual directors. The third parties can appoint the directors Other than the shareholders and the first directors ,the central government and NCLT may also appoint directors. If provided in the MOA, the liability may be unlimited, for a limited company, otherwise it may be altered.
Liability may be for breach of fiduciary duties The directors are personally liable for the following a Ultra vires acts b malafide acts c negligent acts d liability for the acts of third parties 64 Criminal Liability Liability of the director for any untrue statement in the prospectus Inviting any deposits in contravention of the law Liability for false advertisement Failure to repay the application money, which was excess Concealing the names of the creditors Failure to lay the balance sheet.
Failure to provide information to the auditor etc 65 Company Meetings A meeting may be convened by the director, requisitionist, or the NCLT Notice to be given by the secretary after the time and place have been fixed by the directors Even the shareholders can call a meeting as an extraordinary general meeting EGM The NCLT can call an Annual General Meeting AGM 66 Classification of Meetings Shareholders meetings a Statutory meetings which happens only once in the lifetime of the company b EGM- Convened to transact some special or important decision to be taken c Class meetings- This is the meeting of the shareholders- which is convened by the class of shareholders based on the kind of shares they hold.
The meetings may be conducted to call on shares, issue debentures, borrow money, to make loans, To invest the funds etc 68 How to conduct meeting? Written notice to be given Notice to be issued under the authority of the company In case of failure to give a notice, the persons concerned may be punished with fine and the proceedings of the meeting will be rendered invalid.
The resolution in the General body meetings can be an ordinary resolution Simple majority and special resolution. Special resolution- notice of 21 days to be given the notice has to specify the purpose. The number of votes to be cast in favour of the resolution is to be three times the number vote cast against. Public company minimum Five and private company minimum of 2 The quorum must be those members who are eligible to vote in respect of the agenda of the meeting.
If the quorum is not present within half an hour from the appointed time, either the meeting stands dissolved or may be adjourned in the same day next week or any other as may be determined by the directors A person in case of being incapable to attend a meeting and who is eligible to vote may appoint a proxy in writing to attend the meeting of the member and vote on his or her behalf. The proxy can only vote and cannot participate in the discussions. Arrangement includes all forms of reconstructing.
It has been broadly defined as all forms of capital reorganizations either by consolidation of shares or division of shares or both Reorganization and arrangement are done when there is only one company is involved continued. To do so the meeting or the members or the separate class of the shareholders has to be conducted or in case of winding up the meeting to be called by the liquidator Even a banking company sick bank may be reconstructed or amalgamated by the central government on the basis of the Reserve Banks application for a fixed period of time.
The reconstruction or amalgamation can be done with any other banking institution. After the scheme is approved by voting, the court has to sanction the scheme or reject, if it is against the public interest or if it feels that the scheme is not beneficial. The legal provisions vary based the mode of scheme adopted by the company. The shareholders selling the shares are compensated either by cash or with the shares of the acquiring company.
Amalgamation can take place even for the sake of Public interest by the central government. In such cases, it will be notified in the official gazette. Fusion of two or more corporations by the transfer of all property to a single corporation. It is used as a synonym for amalgamation.
Even the Act makes no distinction between merger and amalgamation. In acquisition, it is acquiring the ownership in the property is the purchase of a controlling interest in the share capital of another existing company.
It is an act of acquiring asset and management of the company. During this process a liquidator is appointed to take control of the company. The liquidator will be responsible for the assets, debts and final distribution of the surplus to the members. It is the process for discharge of liabilities and returning the surplus to those who are entitled for it. But even a company which is making profit can be wound up is the special feature of winding up , which is different from that of the process of insolvency.
By passing a special resolution If there is a default in holding the statutory meeting Failure to commence the business If there is reduction in the membership of the minimum number of members as per the statutory requirement If it not able to pay its debts 79 Modes of winding up Compulsory winding up under the supervision of the court Reasons as stated in the previous slide Compulsory winding up may happen for just and equitable reasons also.
The just and equitable grounds can be like loss of substratum , where there is dead lock in the management, etc Voluntary winding up Members voluntary winding up and creditors voluntary winding up Voluntary winding up subject to the supervision of the court. It can dismiss the petition or pass an order of winding up 81 Dissolution of the company When the company ceases to exist as a corporate entity for all practical purposes it is said to have been dissolved.
Dissolution has to be declared by the court. It will not be extinct and will be kept under suspension for 2 Years. The order has to be forwarded by the liquidator to the Registrar of the Companies within 30 days from the date of the order of dissolution. Latest Highest Rated. Related More from user. CrystalGraphics Presentations. World’s Best PowerPoint Templates – CrystalGraphics offers more PowerPoint templates than anyone else in the world, with over 4 million to choose from.
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Company law assignment helps with fulfilling the needs of the students who seek the assignment help. It provides the details of corporate governance and corporate finance that fulfills essential characteristics of business, also highlight the reality. PowerPoint PPT presentation free to view. Company formations and Secretarial – Register your company formation process with season associates. We have the best cost-effective and efficient company formation service for your companies.
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Our website design and online reputation management services for law firms deliver unique experiences, responsive design, conversion-centric layout, hosting, maintenance, and content management to convert visitors to prospects. The call may be for full amount or part of it. In case of default the allottee may approachof allotment. As shareissued by the company under its common seal. As share warrant is a negotiable instrument, it is transferred bywarrant is a negotiable instrument, it is transferred by endorsement and by mere delivery like any otherendorsement and by mere delivery like any other negotiable instrumentnegotiable instrument..
Participating preferential shares. It is aAOA provides for the procedure of transfer of shares. It is a voluntary action of the shareholder. Specifically for the private company etc, the Buy Backfor the private company etc, the Buy Back Securities Rules will be applicable. Securities Rules will be applicable.
It can be paid after presenting the balanceIt can be paid after presenting the balance sheet and profit and loss account in thesheet and profit and loss account in the AGMAGM Rather theycan get the dividends. Rather they are the first ones to get theare the first ones to get the dividends.
Failure to lay the balance sheet. The meetings may be conducted tothe decisions. The meetings may be conducted to call on shares, issue debentures, borrow money,call on shares, issue debentures, borrow money, to make loans, To invest the fundsto make loans, To invest the funds etcetc How to conduct meeting?
The number ofThe number of votes to be cast in favour of thevotes to be cast in favour of the resolution is to beresolution is to be three timesthree times thethe number vote cast against. The proxy can only vote andher behalf. The proxy can only vote and cannot participate in the discussions.
The shareholderscompany or on its behalf. The shareholders selling the shares are compensated eitherselling the shares are compensated either by cash or with the shares of the acquiringby cash or with the shares of the acquiring company.
In such cases, it will begovernment. In such cases, it will be notified in the official gazette. It is used asof all property to a single corporation. It is used as a synonym for amalgamation.
Even the Act makesa synonym for amalgamation. Even the Act makes no distinction between merger and amalgamation. Itthe share capital of another existing company. It is an act of acquiring asset and management ofis an act of acquiring asset and management of the company. The liquidator will be responsible for theThe liquidator will be responsible for the assets, debts and final distribution of theassets, debts and final distribution of the surplus to the members.
How can be company be woundHow can be company be wound up? It can dismiss the petition ornecessary orders. It can dismiss the petition or pass an order of winding uppass an order of winding up You just clipped your first slide!
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WebMessage: +1 , Company law is study of the legalities that is involved in the . AdDownload Millions of Presentations, Graphic Assets, Fonts & More. Browse for Free! All the Creative Assets you Need Under One Subscription!Types: The Top Powerpoint Themes, Best Mockup Templates, Users Favourite Brochures. AdGet Unlimited Access to 20,+ PowerPoint Templates, % Editable & CompatibleOur team of designers create editable slides with professional layouts and graphics. WebCompany Law PowerPoint PPT Presentations. All Time. Show: Recommended. Sort by: COMPANIES ACT, PowerPoint PPT presentation | free to download. .