A director is the member of the Board of Directors. “Director means a director appointed to the board of a company” sec 2(34) According to the companies act states the board of directors in relation to a company refers to a collective body of the directors of the company. SecRead More →
Meaning of Company Secretary According to the Companies Act, a company secretary means a company secretary as defined in sec 2(1)(c) of the company secretaries Act, 1980, who is appointed by a company to perform the functions of a company secretary under this Act (sec 2(24)). According to sec 2(1)(c)Read More →
Doctrine of Constructive Notice – After a company is registered, its memorandum and articles of association become “public documents”. The memorandum and articles of association of a company are public documents and are open to inspection by anyone by payment of a nominal fee. Hence it is presumed that everyRead More →
Meaning of Doctrine of Ultra Vires The doctrine of ultra vires applies to the memorandum of association of a company. The memorandum of association contains the permitted range of activities in its objects clause and a company cannot practice any other activity which is not defined under the scope of objectives mentionedRead More →
A bill is a negotiable money market instrument used to finance trade related transactions. According to the Indian Negotiable Instruments Act, 1881, “It is an instrument in writing containing an unconditional order, signed by the maker of the bill, directing a certain person to pay a certain sum ofRead More →
The procedure for the incorporation of a company can be understood through the following steps – Selection of the type of a company- The first step for incorporation of a company is to select the type of company the promoters or owners wish to form i.e. one person company, privateRead More →
Meaning of Articles of Association Articles of association is a secondary document (primary document – memorandum) containing the laws regarding internal management of the company. According to sec 2(5) of the Companies Act, 2013 ‘Articles’ means the “Articles Of Association of a company as originally framed or as altered from timeRead More →
In order to understand the key difference between Public Company and Private Company, one must know the main features both. A private company means a company, which has a minimum paid up share capital of Rs. 1 lakh or such higher capital as may be prescribed and which by itsRead More →
Background of the Companies Act 2013 The Companies Bill 2012 was passed by the Lok Sabha on 18th, December, 2012 and by the Rajya sabha on 8th, August, 2013. On receiving the assent of the honi’ble President of India on 29th, August, 2013 it was notified on 30th, August,Read More →
Memorandum of Association is simply the constitution or charter of a company. According to the companies Act, 2013, “memorandum” means “memorandum of association of a company as originally framed or as altered from time to time in pursuance of any previous company law or of this Act.” The memorandum of associationRead More →
The term ‘promoter’ has been defined under section 2(69) of the Companies Act, 2013. As per this section it refers to a person- a) Who has been named as such in the prospectus or is identified by the company in the annual return; b) Who has control over the affairsRead More →
According to sec 2(20) of the companies act, 2013 “’A company is a company formed under the companies Act 2013 or under any of the previous acts relating to companies.” A company may be defined as “an incorporated association which is an artificial person, having a separate legal entity, withRead More →