PROVISION RELATED TO COMPANY’S STATIONERY INCLUDING LETTER HEAD

As per companies Act 2013, companies are required to get its name, address of its registered office and the Corporate Identity Number along with telephone number, fax number, if any, e-mail and website addresses, if any, printed in all its business letters, billheads, letter papers and in all its notices and other official publications from 01/04/2014.

PROVISION RELATED TO DIRECTOR’S

As per companies Act, 2013 a person is allowed to hold directorship in 20 companies only, out of which not more than 10 could be public companies including private ltd companies. if the person is the director in more than the above mentioned limit then he has to resign from the other companies in the excess of above limit within one year from the commencement of the act.

Further director’s of the company has to mention their name & DIN (Director Identification Number) with their signature i.e. all the documents containing the signature of director, director’s name & DIN shall also be mentioned along with their Signature.

PROVISIONS RELATED TO ALLOTMENT OF SHARES

Companies are time bound to allot the shares within a period of sixty (60) days from the date of receiving application. If they fail to allot the shares within prescribed duration then the entire amount should be repaid by companies within 15 days to the respective applicants.

Non repayment within prescribed duration would be considered as default & from the 76th day, the whole application money held by company will be treated as deposit.

Further, application money received by the company for allotment of shares cannot be utilized for any other purpose & a separate bank account shall be maintained for receiving the application money from the applicant & all the transaction related to allotment shall be done through that account only.

In the light of above mentioned provisions, our views are that all the companies shall repay the application money held as on 31/03/2014 before 30th May 2014.

PROVISIONS RELATED TO LOAN FROM SHAREHOLDERS

All the companies who had taken Deposit shall file the return to ROC with 3 months from the commencement of this Act & repay the loan to its shareholders within one year from the date of commencement of this act.

In respect to the above provision amount taken by the company from its shareholder will also cover in the definition of deposit

PROVISION RELATED TO DIRECTORSHIP OF THE COMPANY

From the date of commencement of this Act, Every Company is required to have minimum one resident director. Here resident means “director who stayed in India for 182 days or more in previous calendar year”

For existing companies, company should fulfill the requirement of the resident director within one year from the date of notification.

Also Read- Immediate Compliance for Companies under Companies Act 2013–Part 2

(Author ‘Sagar Gupta’ is an innovative leader in delivering corporate advisory & solutions and can be reached at sgr@sgrgupta.com)

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Category : Company Law (3486)
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Tags : Companies Act (1956) Companies Act 2013 (1728) Sagar Gupta (22)

0 responses to “Immediate Compliance for Companies under Companies Act, 2013 – PART 1”

  1. neha says:

    what if company has failed to deposit the share application money pending allotment in escrow bank account? what are its consequences?

  2. neha says:

    what if company has not kept that share application money pending allotment in bank escrow account?? what are its consequences?

  3. R Kannan says:

    The revision of the Companies Act was touted as an improvement and helpful for the working of small Private Ltd companies. But in actual practice, more & more restrictions and compliance’s has been placed. How a small company can function and comply with the changed Rules. ONE WILL NEED A FULL/PART TIME COMPANY SECRETARY TO FUNCTION.

    NO DOUBT IT IS SAID THAT INDIA IS ONE OF THE MOST DIFFICULT PLACES TO DO BUSINESS IN THE WORLD.

  4. Utsav Saraf says:

    Can anyone please give the reference by which the compliance in relation to 146(3) i.e. resident director can be done one year is given.

  5. Sunil Jain says:

    “Further director’s of the company has to mention their name & DIN (Director Identification Number) with their signature i.e. all the documents containing the signature of director, director’s name & DIN shall also be mentioned along with their Signature.”

    This seems to be the wrong interpretation of the author of this Article . Section 158 reads as under:
    158. Every person or company, while furnishing any return, information or particulars as are required to be furnished under this Act, shall mention the Director Identification Number in such return, information or particulars in case such return, information or particulars relate to the director or contain any reference of any director.

    Please correct me if there is any provision in the Act which talks of mentioning of DIN along with signature on every letter , documents etc.as mentioned by the author of the above article.

  6. komal says:

    compliance time period for a resident director to fulfill the requirements of section 149(3) under companies act,2013

  7. CA Rajesh Pabari says:

    Thanks. It would have been very helpful if section reference would be given in the article at relevant places.

  8. ashish jain says:

    thanks for writing and informing .

  9. ashish jain says:

    thanks for writing and informing .

  10. PC Agrawal says:

    With reference to requirement of resident director, pl note that the Act has not provided time of one year for existing companies as mentioned in the Article. This time limit in Sec.149 is in fact for independent directors and not for resident director. In Sec.149(5) many books have wrongly given reference of “sub-section (3)” instead of “sub-section (4)”. You can refer official gazette notifying the Act for correct version.

    Thanks

  11. B.Chackrapani warrier says:

    Read. Thanks for the writing.

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