Loans played a crucial role in financing companies alongside equity in the past. Under the Companies Act of 1956, companies were permitted to borrow from directors, shareholders, or directors' relatives. However, with the amendment of the act, the New Companies Act of 2013 removed the...
The Financial Statement is a crucial document for any company, necessitating preparation every financial year and subsequent auditing by the company's appointed auditors. It served to provide a comprehensive overview of the company's assets, liabilities, and shareholders' equity. By presenting this information, the Financial Statement...
India underwent a significant shift towards embracing social responsibility more comprehensively following the issuance of a new directive in January 2021, which underscored that Corporate Social Responsibility (CSR) became obligatory and legally binding. Back in 2014, Section 135 of the Companies Act had made it...
Committees were constituted by companies in accordance with the Companies Act, 2013. Section 177 of the Companies Act, 2013 allowed the Board of Directors to delegate specific matters to committees established for this purpose. These committees were established to enhance the efficiency and effectiveness of...
The waiver of a loan and its effects on tax obligations have long been a subject of interest within the realm of taxation. Tax regulations across various nations primarily aim to gather resources to support governmental initiatives and public welfare. In many prosperous countries, revenue...
Private placements involved offering securities to a select group of individuals or entities rather than to the general public. These offerings, often utilized by companies seeking capital without undergoing an initial public offering (IPO), target investors such as wealthy individuals, financial institutions, mutual funds, and...
In the realm of financial markets, investors traditionally received securities in exchange for their investments in a company. These securities could manifest as equity shares, preferential shares, or debentures, effectively representing ownership stakes in the company....
Establishing a legal identity by registering a company is a crucial first step for every entrepreneur who embarks on starting a business. Companies are mandated to have legal documents that delineate the operational guidelines and restrictions. The Memorandum of Association (MOA) and Articles of Association...
A dividend represents a distribution of a company's profits to its shareholders, typically in the form of cash or stock, determined by the company's Board of Directors. The Companies Act of 2013 legally defines dividends as portions of net profits allocated to shareholders. This can...
Becoming a shareholder grants individuals the right to participate in a company's performance, income, and assets. Despite this, many shareholders are unaware of their rights, which can significantly impact a company's management and decision-making processes. The Companies Act, 2013, specifically Section 48, outlines the provisions...
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