PGC NEWSLETTER22nd, April 2014 1
22nd, April 2014
THOUGHT OF THE DAY
“Follow your own inner guidance, build
your confidence, believe in yourself”
The Supreme Court allowed iron ore mining in Goa, lifting a ban
imposed about 18 months ago, but placed a cap of 20 million tonnes on
annual production from these mines.
FIPB, to consider HDFC Bank’s proposal for an increase in limit for
foreign institutional investor stake, is unlikely to approve such a move.
This is because the bank, according to the RBI, has reached its 74 per
cent FII holding cap if parent HDFC’s shareholding is considered.
CORPORATE LAW UPDATES
Hero MotoCorp, has finalised a joint venture with Bangladesh- based
Nitol Niloy Group to retail about a dozen two- wheeler brands in that
Finnish handset maker Nokia issued a statement on Monday saying it
would transfer all its global assets to Microsoft by April 25
Securities and Exchange Board of India (SEBI) could soon ask fund
houses to maintain an average AUM of Rs 20 crore for all open- ended
debt- oriented schemes, on a half- yearly basis.
IT: Reliance Industries Ltd ( RIL) s plans to develop three discoveries in
the D6 block of the Krishna- Godavari basin ( KG- D6), where it is the
operator, is being legally challenged. The ground is the company will
make an undeserved and excessive profit.
RBI / TAX LAW UPDATE
RBI: India’s central bank might have found it difficult to stem the
rupee’s sharp depreciation during the currency crisis of 2013 by using
its foreign exchange reserves, with the country’s external liabilities far
exceeding official reserves.
HC quashed sec. 179 tax recovery notice as it related to later years in
which co. was converted into a public co.
The Reserve Bank of India has said non-compete clauses will not be
allowed for foreign direct investment in the pharmaceutical sector,
except in special circumstances.
MCX CRUDE OIL
Dow Jones Industrial
PGC NEWSLETTER22nd, April 2014 2
Companies Act, 2013
Annual General Meeting
Section 96 of the Companies Act, 2013 relates to annual general meeting of a company. The change in the 2013
Act compared to the 1956 Act is that annual general meeting can now be held on all days including
on Sundays and public holidays but cannot be held on National Holidays as declared by the
Government. The Central Government has declared three days as Public Holidays i.e. 15th August –
Independence Day, 26th January – Republic Day and 2nd October – Gandhi Jayanti Day. So companies can now
hold annual general meetings on all days of the year except these three days as above. Section 96(2)
Further, the business hours have been defined in the Act itself as from 9.00 a.m. to 6.00 p.m.
which was not there in the 1956 Act.
Another new addition to the annual general meeting is that in case of listed companies (Section
121), a report on the annual general meeting, stating therein, a confirmation that the meeting was
held and conducted as per the provisions of the Act and the Rules have to be filed with the
Registrar within 30 days of the annual general meeting.
As per Rule 31(1)(c) of the Companies (Management and Administration) Rules, 2014
the report shall contain the details in respect of the following, namely:-
(i) the day, date, hour and venue of the annual general meeting;
(ii) confirmation with respect to appointment of Chairman of the meeting;
(iii) number of members attending the meeting;
(iv) confirmation of quorum;
(v) confirmation with respect to compliance of the Act and the Rules, secretarial standards made there under with
respect to calling, convening and conducting the meeting;
(vi) business transacted at the meeting and result thereof;
(vii) particulars with respect to any adjournment, postponement of meeting, change in venue; and
(viii) any other points relevant for inclusion in the report.
(d) the Report shall contain fair and correct summary of the proceedings of the meeting.
Rule 31(1)(b) states that the Report shall be dated and signed by the Chairman, or in case of his inability to sign, by
any two directors of the company one of whom shall be a Managing Director, if there is one and the Company
Secretary of the company.