PGC NEWSLETTER17th, April 2014 1
17th, April 2014
THOUGHT OF THE DAY
“Choose to look on the bright side.”
Security Appellate Tribunal (SAT) adjourned the hearing on Wednesday
of an appeal by Reliance Industries Ltd (RIL) in an insider trading case.
The authors and distributors of the book ―Gas Wars — Crony Capitalism
and the Ambanis‖ have been served legal notices on behalf of Reliance
Industries Ltd (RIL) and its chairman Mukesh Ambani.
Ajay Piramal, who last week became richer by 8,900 crore by selling his
stake in Vodafone India, is back to deal- making. He is picking up a20
per cent stake in Chennai- based finance group Shriram Capital,
spending a little more than 2,000 crore.
CORPORATE LAW UPDATES
Stamp Act revamp to benefit Treasury: According to the draft,
circulated by the Union Finance Ministry for commencement, penalties
for various Offences are proposed to be increased substantially.
There was some relief for Sahara group Chief Subrata Roy on
Wednesday, as a Bench of Supreme Court judges observed it was
contemplating relaxing the terms for his release from jail.
Securities Exchange Board of India (SEBI) is probing atleast three large
global banks and many Indian Companies for alleged round-tripping
funds by way of multi-layered transactions.
Mexican Mobile Phone Operator Iusacell SA de CV sued IBM Corp on
Wednesday accusing the US Technology Giant of making fradulent
representations that caused it to loose $2.5billion in profits.
RBI / TAX LAW UPDATE
RBI: The Reserve Bank of India (RBI) has asked the Fixed Income
Money Market and Derivatives Association of India (FIMMDA) and the
Foreign Exchange Dealers’ Association of India (FEDAI) to act as
administrators of the Indian rupee interest rate and foreign exchange
IT: HC advises reference to articles and memorandum to identify
principal business of co. for purposes of sec. 73
MCX CRUDE OIL
Dow Jones Industrial
PGC NEWSLETTER17th, April 2014 2
COMPANIES ACT, 2013
WOMEN DIRECTOR ON THE BOARD
Mandatory presence of Woman Director in the Board
The 2nd proviso to Sub section 1 of Section 149 of Act prescribes that such class or classes of companies as may be
prescribed, shall have at least one woman director.
Applicability of provisions
This requirement is not applicable for all companies. According to Rule 3 of The Companies (Appointment and
Qualification of Directors) Rules, 2014 the following class of companies shall appoint at least one woman director-
(i) every listed company;
(ii) every other public company having -
(a) paid–up share capital of 100 crore rupees or more; or
(b) turnover of 300 crore rupees or more
Time Limit of Compliance
According to 1st proviso to Rule 3 of The Companies (Appointment and Qualification of Directors) Rules, 2014, the new
companies which will be incorporated under Companies Act, 2013 and are covered in class of companies as provided in
Rule 3 shall comply with such provisions within a period of six months from the date of incorporation.
Time limit for filling the vacancy
According to 2nd proviso to Rule 3 of The Companies (Appointment and Qualification of Directors) Rules, 2014 any
intermittent vacancy of a woman director shall be filled-up by the Board at the earliest but not later than immediate
next Board meeting or three months from the date of such vacancy whichever is later. This means that the company has
to fill the vacancy of woman director with another woman director before the immediate next Board meeting, subject to
the maximum time period of 3 months.