Yesterday, the government has placed a draft notification for comments on the MCA Website relating to exemptions granted to private companies. Private companies are closely held business entities that are not permitted to invite the public to subscribe to their shares or accept deposits from the public. Private companies are defined under the Companies Act,... Continue Reading →

This write up provides an overview of some of the important changes with respect to meetings of board and its powers as applicable to private companies or other unlisted public companies. The Companies Act, 2013, has made sweeping changes which will affect the day-to-day functioning of private companies and other unlisted public companies. Some of the most important... Continue Reading →

Related Party Transactions Private companies can no longer be private in their operations and will now need to follow prescribed procedure and disclose the details through filings. However there is still some respite to the smaller private companies i.e. those below the prescribed threshold and those who only conduct business on an arm's length basis.... Continue Reading →

Today, SEBI has issued a Master Circular to bring the provisions of Clause 49 (Corporate Governance) and Clause 35B (E-Voting) in line with the new Companies Act. The master circular is a consolidated document and is intended to supersede all earlier circulars issued by SEBI on Clauses 35B and 49 of the Equity Listing Agreement.... Continue Reading →

The following is intended to provide a general overview of the Companies Act, 2013 (“Act”) as applicable to private limited companies. This first part deals with changes to stationery and company material as well as repayment of deposits prior to commencement of the Act: Stationery One of the changes that companies need to effect immediately... Continue Reading →

A mix-up has arisen with respect to compliance with Section 149 (3). Section 149 (3) imposes a requirement on every company that the board shall have a resident director i.e. a person who has been in India for a total period of not less than one hundred and eighty-two days in the previous calendar year.... Continue Reading →