Difference between a public and a private company under Companies Act, 2013CA Sachin D Jain
Difference between a Public Limited Company and a Private Limited Company as per the provisions contained in the Companies Act, 2013 and relevant rules and regulations prescribed thereunder.
Companies Act - Companies Act, 1956 - Features - Types of Companies Act under the Act - Introduction of Companies act 2013 - Structural Comparison - Objectives of the Act - Meaning and Features of the Company - Monitoring and Regulatory Authorities - SFIO - NCLT - Challenges of Companies act 2013 - Provisions of Company Act 2013 -
This ppt. includes brief about the Memorandum of Association (MOA) and Clauses of Regulatory Framework of Companies :-
1.Introduction, meaning and importance of MOA
2.Purpose of MOA and Contents
3 Clauses of MOA well defined and tuned
1. Origin Of Companies Act in India
2. What is a Company?
3. Definition & Characteristics
4. Different Type Of Entities:
a. On Basis Of Liability
b. On Basis Of Registration
5. Small Company
6. Private Company
7. Public Company
8. Unlimited Company
9. Foreign Company
10. Government Company
11. Holding, Subsidiary, Associate Company
12. Investment Companies
13. Promoters
14. Incorporation Of Registration
15. MOA, AOA
16. Tata Sons Vs Cyrus Mistry
17. Vodafone Tax Case
Difference between a public and a private company under Companies Act, 2013CA Sachin D Jain
Difference between a Public Limited Company and a Private Limited Company as per the provisions contained in the Companies Act, 2013 and relevant rules and regulations prescribed thereunder.
Companies Act - Companies Act, 1956 - Features - Types of Companies Act under the Act - Introduction of Companies act 2013 - Structural Comparison - Objectives of the Act - Meaning and Features of the Company - Monitoring and Regulatory Authorities - SFIO - NCLT - Challenges of Companies act 2013 - Provisions of Company Act 2013 -
This ppt. includes brief about the Memorandum of Association (MOA) and Clauses of Regulatory Framework of Companies :-
1.Introduction, meaning and importance of MOA
2.Purpose of MOA and Contents
3 Clauses of MOA well defined and tuned
1. Origin Of Companies Act in India
2. What is a Company?
3. Definition & Characteristics
4. Different Type Of Entities:
a. On Basis Of Liability
b. On Basis Of Registration
5. Small Company
6. Private Company
7. Public Company
8. Unlimited Company
9. Foreign Company
10. Government Company
11. Holding, Subsidiary, Associate Company
12. Investment Companies
13. Promoters
14. Incorporation Of Registration
15. MOA, AOA
16. Tata Sons Vs Cyrus Mistry
17. Vodafone Tax Case
Introduction
Definition of company
Characteristics of company
Types of company
Formation of company
Memorandum of association
Article of association
Prospectus
Public deposits
Share & Share capital
Allotment of Shares
Members
Meetings
Winding up
Inter - I Year - Commerce - Formation of a company - Important documents - Memorandum of Association - Its Clauses - Articles of Association - Contents - Prospectus
in this presentation , explained about one person company.
it's a new concept which includes some feature of sole trading concern and some features of a company.
Introduction
Definition of company
Characteristics of company
Types of company
Formation of company
Memorandum of association
Article of association
Prospectus
Public deposits
Share & Share capital
Allotment of Shares
Members
Meetings
Winding up
Inter - I Year - Commerce - Formation of a company - Important documents - Memorandum of Association - Its Clauses - Articles of Association - Contents - Prospectus
in this presentation , explained about one person company.
it's a new concept which includes some feature of sole trading concern and some features of a company.
The Chartered Accountants community of Auditors is being exposed to new challenges and expectations while they are finalizing audits for the Financial Year ending March 31, 2015. The new provisions will ensure that all the serious and committed professional Chartered Accountants gain substantially as the value of the Audit Report and its credibility will be much higher in the light of new responsibilities and Corporate Governance Mechanism.
A new provision relating to internal audit - Dr S. ChandrasekaranD Murali ☆
A new provision relating to internal audit - Article by Dr S. Chandrasekaran published in Business Advisor dated June 10, 2013 (http://www.magzter.com/IN/Shrinikethan/Business-Advisor/Business/54223)
‘Secretarial Audit’ is introduced by recently enacted Companies Act, 2013. It is a process to check compliances made by the Company under Corporate Law & other laws, rules, regulations, procedures etc.
This slideshare contains all the provision of CARO 2015 which is applicable from 10th of April 2015.
Further relevant extract from Companies Act 2013 has been made.
Companies Act, 2013-Presentation on Accounts & AuditSASPARTNERS
A detailed presentation prepared by SAS Partners Team, Chennai which gives an insight to the important provisions on Chapter IX - Accounts & Audit under Companies Act, 2013. This can be used by the Corporates, Professionals and Students as a ready reckoner for better understanding of the provisions and easy reference.
Disclosures in Board Report by Trupti Ranjan Mohanty.pptxssuser1b54031
Insights into Disclosures in Board Report: This includes all the broad disclosures required to be given in the Board Report of a Company under Companies Act, 2013 and SEBI Listing Regulations. Various cases/litigations have been referred to indicate the significance of each disclosure.
A business is usually defined as a commercial enterprise
Some are run by only one person who carry out all of the required functions
Others employ thousands of people and provide goods and services to people all over the world
Each business can be defined or described by its type of Ownership, the goods produced or services offered, the types of jobs provided, or the functions
it performs in a community
A case study is a detailed study of a specific subject, such as a person, group, place, event, organization, or phenomenon. Case studies are commonly used in social, educational, clinical, and business research
Human transformation is an internal shift that brings us in alignment with our highest potential. It is at the heart of every major aspect of our lives. It affects how we see and relate to the world and how we understand our place in it.
Entrepreneurship is the ability and readiness to develop, organize and run a business enterprise, along with any of its uncertainties in order to make a profit. The most prominent example of entrepreneurship is the starting of new businesses.
What Is Entrepreneurship
In economics, entrepreneurship connected with land, labour, natural resources and capital can generate a profit. The entrepreneurial vision is defined by discovery and risk-taking and is an indispensable part of a nation’s capacity to succeed in an ever-changing and more competitive global marketplace.
The entrepreneur is defined as someone who has the ability and desire to establish, administer and succeed in a startup venture along with risk entitled to it, to make profits. The best example of entrepreneurship is the starting of a new business venture. The entrepreneurs are often known as a source of new ideas or innovators, and bring new ideas in the market by replacing old with a new invention.
It can be classified into small or home business to multinational companies. In economics, the profits that an entrepreneur makes is with a combination of land, natural resources, labour and capital.
In a nutshell, anyone who has the will and determination to start a new company and deals with all the risks that go with it can become an Entrepreneur.
The word ‘Research’ is comprised of two words Re + Search.
It means to search again. So research means a systematic investigation or activity to gain new knowledge of the already existing facts.
MS-WORD is a part of the bigger package called MS OFFICE, which can do much more than word processing. fact when you open up MS OFFICE you will find four main components in it.
They are MS-WORD (for word processing), MS EXCEL (for spreadsheet), MS ACCESS (for database management), and MS POWERPOINT (for presentation purposes). However, we will limit ourselves to MS-WORD only in this presentation.
PROJECT REPORT, PROJECT REPORT ON COLD STORAGE, PROJECT FINANCE, CAPACITY, TOTAL CAPITAL INVESTMENT, COOL CHAMBER, CAPACITY UTILIZATION, METHODS OF STORAGE, PATTERN OF ASSISTANCE, BASIC DESIGN OF THE COLD ROOM, ANALYSIS OF COST OF COOL CHAMBER, etc.
PROJECT FINANCE, INTRODUCTION, CONCEPT OF PROJECT, TYPES OF PROJECT, MEANING OF PROJECT FINANCING, FEATURES OF PROJECT FINANCING, ADVANTAGES OF PROJECT FINANCING, DISADVANTAGES OF PROJECT FINANCING, etc.
LINEAR ALGEBRA, WITH OPTIMIZATION; VECTORS & MATRICES, LINEAR SUB-SPACES, LINEAR INDEPENDENCE & DIMENSION; MATRIX SUB-SPACES, MATRIX RANK, MATRIX INVERSE, SYSTEMS OF EQUATIONS, etc.
BUSINESS STUDIES PROJECT ON PRINCIPLES OF MANAGEMENTCHARAK RAY
BUSINESS STUDIES PROJECT ON PRINCIPLES OF MANAGEMENT, BUSINESS STUDIES PROJECT REPORT ON PRINCIPLES OF MANAGEMENT, BUSINESS STUDIES PROJECT REPORT ON PRINCIPLES OF MANAGEMENT OF A SWEETS MAKING COMPANY.
BUSINESS STUDIES PROJECT ON MARKETING MANAGEMENTCHARAK RAY
BUSINESS STUDIES PROJECT ON MARKETING MANAGEMENT, BUSINESS STUDIES PROJECT REPORT ON MARKETING MANAGEMENT, BUSINESS STUDIES PROJECT ON MARKETING MANAGEMENT OF A PIZZA MAKING COMPANY.
WINDING UP of COMPANY, Modes of DissolutionKHURRAMWALI
Winding up, also known as liquidation, refers to the legal and financial process of dissolving a company. It involves ceasing operations, selling assets, settling debts, and ultimately removing the company from the official business registry.
Here's a breakdown of the key aspects of winding up:
Reasons for Winding Up:
Insolvency: This is the most common reason, where the company cannot pay its debts. Creditors may initiate a compulsory winding up to recover their dues.
Voluntary Closure: The owners may decide to close the company due to reasons like reaching business goals, facing losses, or merging with another company.
Deadlock: If shareholders or directors cannot agree on how to run the company, a court may order a winding up.
Types of Winding Up:
Voluntary Winding Up: This is initiated by the company's shareholders through a resolution passed by a majority vote. There are two main types:
Members' Voluntary Winding Up: The company is solvent (has enough assets to pay off its debts) and shareholders will receive any remaining assets after debts are settled.
Creditors' Voluntary Winding Up: The company is insolvent and creditors will be prioritized in receiving payment from the sale of assets.
Compulsory Winding Up: This is initiated by a court order, typically at the request of creditors, government agencies, or even by the company itself if it's insolvent.
Process of Winding Up:
Appointment of Liquidator: A qualified professional is appointed to oversee the winding-up process. They are responsible for selling assets, paying off debts, and distributing any remaining funds.
Cease Trading: The company stops its regular business operations.
Notification of Creditors: Creditors are informed about the winding up and invited to submit their claims.
Sale of Assets: The company's assets are sold to generate cash to pay off creditors.
Payment of Debts: Creditors are paid according to a set order of priority, with secured creditors receiving payment before unsecured creditors.
Distribution to Shareholders: If there are any remaining funds after all debts are settled, they are distributed to shareholders according to their ownership stake.
Dissolution: Once all claims are settled and distributions made, the company is officially dissolved and removed from the business register.
Impact of Winding Up:
Employees: Employees will likely lose their jobs during the winding-up process.
Creditors: Creditors may not recover their debts in full, especially if the company is insolvent.
Shareholders: Shareholders may not receive any payout if the company's debts exceed its assets.
Winding up is a complex legal and financial process that can have significant consequences for all parties involved. It's important to seek professional legal and financial advice when considering winding up a company.
NATURE, ORIGIN AND DEVELOPMENT OF INTERNATIONAL LAW.pptxanvithaav
These slides helps the student of international law to understand what is the nature of international law? and how international law was originated and developed?.
The slides was well structured along with the highlighted points for better understanding .
A "File Trademark" is a legal term referring to the registration of a unique symbol, logo, or name used to identify and distinguish products or services. This process provides legal protection, granting exclusive rights to the trademark owner, and helps prevent unauthorized use by competitors.
Visit Now: https://www.tumblr.com/trademark-quick/751620857551634432/ensure-legal-protection-file-your-trademark-with?source=share
PRECEDENT AS A SOURCE OF LAW (SAIF JAVED).pptxOmGod1
Precedent, or stare decisis, is a cornerstone of common law systems where past judicial decisions guide future cases, ensuring consistency and predictability in the legal system. Binding precedents from higher courts must be followed by lower courts, while persuasive precedents may influence but are not obligatory. This principle promotes fairness and efficiency, allowing for the evolution of the law as higher courts can overrule outdated decisions. Despite criticisms of rigidity and complexity, precedent ensures similar cases are treated alike, balancing stability with flexibility in judicial decision-making.
ASHWINI KUMAR UPADHYAY v/s Union of India.pptxshweeta209
transfer of the P.I.L filed by lawyer Ashwini Kumar Upadhyay in Delhi High Court to Supreme Court.
on the issue of UNIFORM MARRIAGE AGE of men and women.
How to Obtain Permanent Residency in the NetherlandsBridgeWest.eu
You can rely on our assistance if you are ready to apply for permanent residency. Find out more at: https://immigration-netherlands.com/obtain-a-permanent-residence-permit-in-the-netherlands/.
Responsibilities of the office bearers while registering multi-state cooperat...Finlaw Consultancy Pvt Ltd
Introduction-
The process of register multi-state cooperative society in India is governed by the Multi-State Co-operative Societies Act, 2002. This process requires the office bearers to undertake several crucial responsibilities to ensure compliance with legal and regulatory frameworks. The key office bearers typically include the President, Secretary, and Treasurer, along with other elected members of the managing committee. Their responsibilities encompass administrative, legal, and financial duties essential for the successful registration and operation of the society.
Introducing New Government Regulation on Toll Road.pdfAHRP Law Firm
For nearly two decades, Government Regulation Number 15 of 2005 on Toll Roads ("GR No. 15/2005") has served as the cornerstone of toll road legislation. However, with the emergence of various new developments and legal requirements, the Government has enacted Government Regulation Number 23 of 2024 on Toll Roads to replace GR No. 15/2005. This new regulation introduces several provisions impacting toll business entities and toll road users. Find out more out insights about this topic in our Legal Brief publication.
In 2020, the Ministry of Home Affairs established a committee led by Prof. (Dr.) Ranbir Singh, former Vice Chancellor of National Law University (NLU), Delhi. This committee was tasked with reviewing the three codes of criminal law. The primary objective of the committee was to propose comprehensive reforms to the country’s criminal laws in a manner that is both principled and effective.
The committee’s focus was on ensuring the safety and security of individuals, communities, and the nation as a whole. Throughout its deliberations, the committee aimed to uphold constitutional values such as justice, dignity, and the intrinsic value of each individual. Their goal was to recommend amendments to the criminal laws that align with these values and priorities.
Subsequently, in February, the committee successfully submitted its recommendations regarding amendments to the criminal law. These recommendations are intended to serve as a foundation for enhancing the current legal framework, promoting safety and security, and upholding the constitutional principles of justice, dignity, and the inherent worth of every individual.
RIGHTS OF VICTIM EDITED PRESENTATION(SAIF JAVED).pptxOmGod1
Victims of crime have a range of rights designed to ensure their protection, support, and participation in the justice system. These rights include the right to be treated with dignity and respect, the right to be informed about the progress of their case, and the right to be heard during legal proceedings. Victims are entitled to protection from intimidation and harm, access to support services such as counseling and medical care, and the right to restitution from the offender. Additionally, many jurisdictions provide victims with the right to participate in parole hearings and the right to privacy to protect their personal information from public disclosure. These rights aim to acknowledge the impact of crime on victims and to provide them with the necessary resources and involvement in the judicial process.
2. INTRODUCTION
1
The Companies Act 2013 got assent of the
President of the country on 29th August, 2013.
2
The Act comprises of 29 chapters, 470 Sections
with 7 Schedules as against 658 sections and 14
Schedules in the Companies Act, 1956
3 A total of 283 sections have been notified as
on date
3. ISSUES IN THE COMPANIES ACT 2013
CONCERNING THE PROFESSION
Rotation of Auditors (Section 139)
Fraud Reporting (Section 143 (12))
Cap on number of Audits (Section 141 (3) (g))
Reporting on Internal Financial Control (Section 143(3) (i))
Harsh Penalties (Section 147)
Prohibited Services (Section 144)
Definition of Relative in the context of Auditor and
Independent Director
Inter Company Loans (Section 185 and 186)
4. ROTATION OF AUDITORS
(SECTION 139)
Issue
Rotation of Auditors was made mandatory for all class of
companies excluding one-person companies and small
companies.
5. ROTATION OF AUDITORS- ICAI
SUGGESTIONS
Rotation shall be prospective and not retrospective.
The Rotation shall be made applicable in staggered manner. The criteria for
applicability shall be:
a) For Listed Companies only to Sensex and Nifty
companies
b) Unlisted Companies whose:
– Net worth is greater than Rs 1000 crores or
– Borrowings from public and financial institutions are greater than Rs. 500
crores.
6. ROTATION OF AUDITORS- WHAT IS
MADE APPLICABLE
Rotation of Auditors is made applicable to the following
classes of companies excluding one person companies and
small companies:-
(a) all unlisted public companies having paid up share
capital of rupees ten crore or more;
(b) all private limited companies having paid up share
capital of rupees twenty crore or more;
(c) all companies having paid up share capital of below threshold
limit mentioned in (a) and (b) above, but having public
borrowings from financial institutions, banks or public deposits
of rupees fifty crores or more.
7. FRAUD REPORTING [SEC. 143 (12)]
• Issue:
The definition of fraud as provided in explanation to the proviso in Section 447 has been
used in very generic sense.
The pith and substance of the fraud reporting is the element of ‘materiality’ which has
been completely overlooked. Any fraud reporting should be viewed from the element of
materiality, otherwise, for all stakeholders it will be immaterial.
The section casts responsibility only on the auditor by way of reporting; it does not cast
any responsibility on the management.
There is a difference between audit and investigation.
Fraud has three dimensions: (1) fraud committed by the management and (2) fraud
committed by the employees/officers on the management and (3) fraud committed by the
third party on the management. Each element has its own dimensions, verification,
investigation, and the section talks the generality of fraud and not so of specific nature
which should be material and vital. Otherwise, reporting on fraud will lose its shine and
sheen.
While fraud committed by the management may fall within the reporting requirements,
fraud committed by the third party will be outside the scope, ambit and responsibility of
the auditor.
8. FRAUD REPORTING- ICAI
SUGGESTIONS
Section 143 (12), shall be kept in abeyance.
This Section should be made applicable for the audit of the financial year 2014-2015
onwards.
Audit and Investigation should not be mixed together. If there is scope for further
investigation, special audit can be ordered for.
Since Standards on Auditing have been made mandatory, there is in-built mechanism
to take care and reporting thereof fraud under respective statement of auditing
standards. Fraud Reporting shall be in line with Standards on Auditing issued by
ICAI.
Responsibility on reporting on fraud should first be cast on the management and
accountability can be laid on the auditor thereafter.
The concept of materiality as mentioned in the auditing standards and some
threshold limit (companies having paid up capital of or above Rs. 1 crore or fraud
involving 10% of the turnover or fraud which are repetitive in nature) should be the
criteria for reporting on fraud.
9. FRAUD REPORTING- WHAT IS MADE
APPLICABLE
• The concept of materiality and threshold for reporting by the
auditors has been brought under the ambit of the Act. Now, the
auditor would be required to report fraud above mandated
threshold to the Government and below the threshold, fraud
should be reported to Audit Committee/ Board.
• Further, the amendment also provides for the companies whose
auditors have reported frauds under this sub-section to the
audit committee or the Board but not reported to the Central
Government, the Board shall disclose the details about such
frauds in the Director's responsibility statement.
10. CAP ON NUMBER OF AUDITS
(SECTION 141 (3) (G))
Issue
It may be noted that under the Companies Act, 1956, an auditor could
audit a total of 20 companies which excluded private limited companies.
Since the Companies Act, 2013 has introduced new type of companies
such as One Person Company, Small Company and Dormant Company,
and by implication, the ceiling of 20 companies includes all types of
companies in computation of the ceiling on audit assignment by an
auditor or partner of a firm.
The requirement of section 141 (3) (g) by further reducing the limit of
audit from 30 to 20 companies will only give rise to further problems to
the management of companies in the appointment of new auditor(s).
11. CAP ON NUMBER OF AUDITS-
ICAI SUGGESTIONS
It was suggested that, until the section itself is
amended, the cap on ceiling on audit assignment (i.e.
20) as stated in the section can be retained, the
exclusion of certain companies from the said limit of
20 companies may be as prescribed by the Institute of
Chartered Accountants of India.
12. CAP ON NUMBER OF AUDITS-
WHAT IS MADE APPLICABLE
With the exemptions provided to the private
companies u/s 462 of the Act, the cap of 20 excludes
one person companies, dormant companies, small
companies, and private companies having paid-up
share capital less than one hundred crore rupees.
13. REPORTING ON INTERNAL FINANCIAL
CONTROL(SECTION 143 (3) (I))
Issue
While adequacy of internal financial control system can be
reported by the auditor but it would be difficult for the auditor to
report on the operating effectiveness of such controls.
14. REPORTING ON INTERNAL FINANCIAL
CONTROL (SECTION 143 (3) (I))- ICAI
REPRESENTATION
The reporting should be limited to listed companies.
ICAI will bring out a Guidance Note on reporting of
Internal Financial Control which may be made
applicable to comply with the reporting requirements.
The reporting requirement should be restricted to the
preparation and presentation of the financial
statements.
15. REPORTING ON INTERNAL FINANCIAL
CONTROL [SEC. 143 (3) (I)]- WHAT IS
MADE APPLICABLE
Reporting on Internal Financial Control u/s 143 (3) (i) of the Companies Act,
2013 has been deferred for one year i.e., upto 31.03.2015.
The auditor may voluntarily report for the year from 01.04.2014 to
31.03.2015.
16. INTER COMPANY LOANS[SEC.185 & 186]
Issues:
The new Act completely prohibits loans between interested companies in
case of private companies. Private companies may be excluded from this
requirement of inter company lending.
17. INTER COMPANY LOANS [SEC. 185 &
186]- ICAI REPRESENTATION
Private companies may be excluded from this requirement of
prohibition of inter-company lending. Holding company’s loans
to subsidiary has been permitted under the old Act also and
needs to be reconsidered.
18. INTER COMPANY LOANS [SEC. 185 & 186]
- WHAT WAS MADE APPLICABLE
Amendments for Exemption u/s 185 (Loans to Directors)
provided for loans to wholly owned subsidiaries and
guarantees/securities on loans taken from banks by subsidiaries
has been have been passed in the Companies (Amendment) Act,
2015.
Also, some exemptions have been provided in the Notification
for giving Exemptions to private companies under Section 462
19. SOME OF THE EXEMPTIONS PROVIDED
TO PVT. COMPANIES ON 5TH JUNE, 2015
• Now, a big relief to the private companies which will help in
the capital formation is that the companies can accept deposits
from members which is not exceeding 100 % of aggregate of
the paid up share capital and free reserves.
• Further, Loan to Directors etc., may be provided by a private
company in whose share capital another body corporate has
invested any money and if the borrowings of such a company
from banks or financial institutions or any body corporate is
less than twice of its paid up share capital or fifty crore rupees,
whichever is lower, and such a company has no default in
repayment of such borrowing subsisting at the time of making
transactions under this section.
19
20. PENDING ISSUES
Harsh Penalties (Section 147 and 447)-
The penalties provided are very harsh especially those relating liabilities on
auditors. The penalty should be commensurate with the responsibilities and
consequent liabilities. We are continuously representing for review of
penalties.
Prohibited Services (Section 144)
Type of Management Services to be done by a CA should be left to ICAI
Definition of Relative in context of auditor and Independent Director
(Section 2 (77))
Definition is very wide
21. CONSTITUTION OF COMPANIES LAW
COMMITTEE
• Taking into account further difficulties and practical issues the Ministry has
constituted Companies Law Committee to make recommendations to the
Government on issues arising from the implementation of the Companies Act
2013