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What is a Shop and Establishment License? It is one of the most important regulations to which most businesses in India are required to comply. the Shop and Establishment Act, which is enacted state wise. This Act is enacted to regulate the wage payment, working hours, leaves, holidays and other working situations of people employed in the unorganized sector. The Shop and Establishment Act is regulated by the Department of Labor. For Shop and Establishment License or Registration one need to apply online. What is the objective of the Shops & Establishments Act? Every Indian state has enacted certain rules and regulations with regard to conditions of work. The objective is to secure uniform benefits for employees working in different establishments, from shops, commercial establishments and residential hotels to restaurants, theatres and other places of public amusement or entertainment. When is a Shops and Establishments Act license required? Every shop and es...

The draft format pertains to the Board Resolution for the Appointment of Additional Director to the Board Item No. [*] APPOINTMENT OF MR. ABC AS ADDITIONAL DIRECTOR TO THE BOARD The chairman informed that to strengthen the expertise among Board, it is proposed to appoint Mr. ABC as Additional Director to the Board and placed before the Board the consent in DIR-2, declaration in DIR-8 and notice of disclosure of interest in MBP-1. The Board discussed the matter and passed the following resolution unanimously: “RESOLVED THAT pursuant to the provisions of Section 152, 161(1) and any other applicable provisions of the Companies Act, 2013 read with Companies (Appointment and Qualification of Directors) Rules, 2014 (including any statutory modification(s) or re-enactment thereof, for the time being in force, and provisions of the Articles of Association of the Company, the Consent of the Board be and is hereby accorded to appoint Mr. ABC as Additional Non-Executive Director t...

Before knowing what is IEPF and what are the compliances, rules and other working are attached to it. We start from the very basic that is from the declaration of dividend. So, A Company declares dividend as per section 123. Section 123(4) states that  The amount of the dividend, including interim dividend, shall be deposited in a scheduled bank in a separate account within five days from the date of declaration of such dividend. Further, Section 124 provides for opening of an unpaid dividend account, w here a dividend has been declared by a company but has not been paid or claimed within thirty days from the date of the declaration to any shareholder entitled to the payment of the dividend, the company shall, within seven days from the date of expiry of the said period of thirty days. So, to summarize till here, A company declares dividend and deposit it to a dividend account for payment and then from that account if the dividend is not claimed within 30 days of de...

NBFCs are required to submit various returns to RBI in relation to their deposit acceptance, prudential norms compliance, Asset Liability Management (ALM) etc. Detailed instructions regarding submission of returns by NBFCs have been issued through various circulars and guidelines. A list of such returns to be submitted by NBFCs-D, NBFCs-ND-SI and others is as under. Types of NBFCs on the basis of activities and liabilities Typically, there are three types of NBFCs based on the kind of activities and liabilities they carry on. They are as follows: NBFCs accepting deposits (NBFCs-D); Non-deposit taking NBFCs (NBFC-ND); NBFC-ND-Systematically Important (NBFC-ND-SI). NBFC Compliance Checklist for Non-Deposit & Deposit-taking company S.   No Particulars Time Limit   Annual Compliances    1. Unaudited March Monthly return/NBS-7 On or before 30 th  June 2. Statutory Auditors certificate on Income & Assets On or before 30 th  Ju...

In this article, we will discuss procedure for private Placement of securities specifically for private limited Companies. Private Placement means any offer of securities or invitation to subscribe securities to a selected group of persons by a Company (other than by way of public offer) through issue of a private placement offer cum application letter and which satisfies the conditions specified in this section.  A company may make an offer or invitation of securities through issue of a private placement offer cum application letter in Form PAS-4. The Companies Amendment Act, 2017 has rewrapped the entire section 42 which governs the private placement by the companies. So, now we will look at the latest provisions of according to amended act. Procedure to offer or Invite for subscription of securities on Private Placement :- 1. Hold Board Meeting:- To grant in-principle approval for issue of securities on private placement basis; To identify persons t...

In today's article let us analyse the Section 184 of Companies Act, 2013. We will analyse and discuss in detail the fundamentals of this section, and also the practical situations related to this section.  1. What is the basic idea or purpose of section 184?  The fundamental philosophy is to ensure that the Directors ensures fair transparency by disclosing all the relevant details of their interests in other entities and that entity; and accordingly exclude themselves from the decision making in the matter of such contracts or arrangements wherein there is a personal interest involved. 2. There are two separate disclosure requirements in sec 184 – sec 184(1) and sec 184(2). What is the respective scheme of these two?   Disclosure u/s 184(1) is a general notice of disclosure given by every director about his concern or interest in any company(ies), bodies corporate, firms or other association of individuals, along with shareholding.This is required to ...

Recent Companies Act Amendment Update Now unlisted companies soon be required to submit their financial statements to the government on a quarterly or half-yearly basis. For this a new section 129A would going to be introduced. There are more than 11 lakh unlisted companies that are active in india and the proposal also assumes significance against the backdrop of instances of financial distress at some large unlisted entities. As of now, Listed Companies are required to disclose their financials on a quarterly basis under SEBI regulations. In the case of unlisted companies, they are currently not required to furnish any sort of  financial statements on a quarterly or half-yearly basis. Through, Section 129A, MCA is rolling out a new quarterly or half-yearly financial statement reporting norm for unlisted companies. The purpose behind it is to have updated financial details about systemically-important companies that are not listed.  Currently, ...

2. Strike off initiated by the Company :- A Company can also close to itself, but before jumping for the process, consider following points also. Important points to be considered: A. The company has to completely pay off all the liabilities. B. The company has to complete it's overdue annual filing i.e AOC-4 & MGT-7. Now, then there may be the case that RoC has already initiated it's action under 248(1) for Strike off and now the Company also wants to apply under 248(2),  then here the Company shall file all pending overdue returns in Form No. AOC-4 (Financial Statement) or AOC-4 XBRL, as the case may be, and Form No. MGT-7 (Annual Return) before filing Form No. STK-2. One thing to note that once notice in Form STK-7 has been issued by the Registrar pursuant to the action initiated under sub-section (1) of section 248, a company shall not be allowed to file an application in Form STK-2. After this, follow the below process: a). Convene a Board Meeting ...

PROCEDURE FOR ISSUE OF BONUS SHARES STEP-I Call the Board Meeting: As per Section 173(3): Issue Notice of atleast 7 days for calling meeting of Board of Directors. STEP-II Hold the Board Meeting: Check the Quorum as per Section 174(1): Quorum for the Meeting of Board of Directors is 1/3rd of total strength of Board or 2 directors, whichever is higher. Place before the Board Resolution for issue of Bonus Shares. Pass Board Resolution for issue of shares. Decide the Ratio of Shares offering to share holders. Fixing the date, time, and venue of the general meeting and authorizing a director or any other person to send the notice for the same to the members. Provisions of the Section 101 of the Companies Act 2013 provides for issue of notice of EGM in writing to below mentions atleast 21 days before the actual date of the EGM : All the Directors. Members Auditors of Company The notice shall specify the place, date, day and time of the meeting and contain a stateme...