Key Takeaways:
Restricted transactions relating to loans / quasi-loans to directors
Loans to company / LLP connected to directors with prior approval
Allowing company to indemnify directors against potential liability
SEBI(LODR) Regulations, 2015 - Obligations on listing of specified securities...DVSResearchFoundatio
Key Takeaways:
Disclosures of material events or information
Holding of specified securities and shareholding pattern
Conditions for re-classification of a person as promoter / public
Statement of deviations or variations
Companies Act 2013 : Loans, Advances and Related Party Transactions (Sec. 185...Chintan N. Patel
Presentation to simplify the important and critical sections of Companies Act 2013 : Sec. 185, 186, 188 on Loans, Advances and Related Party Transactions
SEBI(LODR) Regulations, 2015 - Obligations on listing of specified securities...DVSResearchFoundatio
Key Takeaways:
Disclosures of material events or information
Holding of specified securities and shareholding pattern
Conditions for re-classification of a person as promoter / public
Statement of deviations or variations
Companies Act 2013 : Loans, Advances and Related Party Transactions (Sec. 185...Chintan N. Patel
Presentation to simplify the important and critical sections of Companies Act 2013 : Sec. 185, 186, 188 on Loans, Advances and Related Party Transactions
Presentation on Acceptance of Deposits under Companies Act, 2013SASPARTNERS
Presentation on Acceptance of Deposits under Companies Act, 2013 prepared by SAS Partners Team which gives an insight to the new concepts and changes in the provisions for acceptance of deposits under the new regime. This presentation shall be helpful for Professionals, Corporates and Students at large.
Jai prakash Associate Court Order For Fixed Deposit Repayment atul baride
This the court case order in Case of Fixed Deposit Investor Refund of the Investment. Jaiprakash Associate and others are old players in company FD Market. The Few Percentile of higher interest attracted many investor
Key Takeaways:
Restrictions on allotment and commencement of business
Allotment of shares by private and public companies
Rights and powers attaching shares
Issue of shares with differential voting rights
Powers and Restrictions for companies to make Inter-Corporate Loans or Investments as per the provisions of Section 186 of the Companies Act, 2013 read with Rules 11 to 13 of Companies (Meeting of Board and its Powers) Rules, 2014
Section 185 and 186 - Loans and Investments by CompanySaurabh Dugar
Investments by company - Section 185 and 186 of Companies Act, 2013
Procedural Aspects, carve outs, implication of violations, etc.
Have included the probe of the proposed changes of Companies (Amendment) Bill, 2016.
Presentation on Acceptance of Deposits under Companies Act, 2013SASPARTNERS
Presentation on Acceptance of Deposits under Companies Act, 2013 prepared by SAS Partners Team which gives an insight to the new concepts and changes in the provisions for acceptance of deposits under the new regime. This presentation shall be helpful for Professionals, Corporates and Students at large.
Jai prakash Associate Court Order For Fixed Deposit Repayment atul baride
This the court case order in Case of Fixed Deposit Investor Refund of the Investment. Jaiprakash Associate and others are old players in company FD Market. The Few Percentile of higher interest attracted many investor
Key Takeaways:
Restrictions on allotment and commencement of business
Allotment of shares by private and public companies
Rights and powers attaching shares
Issue of shares with differential voting rights
Powers and Restrictions for companies to make Inter-Corporate Loans or Investments as per the provisions of Section 186 of the Companies Act, 2013 read with Rules 11 to 13 of Companies (Meeting of Board and its Powers) Rules, 2014
Section 185 and 186 - Loans and Investments by CompanySaurabh Dugar
Investments by company - Section 185 and 186 of Companies Act, 2013
Procedural Aspects, carve outs, implication of violations, etc.
Have included the probe of the proposed changes of Companies (Amendment) Bill, 2016.
Objectives & Agenda :
Companies procure funds from various stakeholders by way of debentures, bonds, etc. In addition, they procure funds by way of inviting / accepting deposits from the public. In order to protect the interest of the depositors, stringent provisions are laid down in Companies Act, 2013 read with Companies (Acceptance of Deposits) Rules. This webinar provides an overview of the term deposits, inclusions and exclusions, eligible companies to accept deposits, conditions for acceptance of deposits, procedural aspects, penal provisions and income tax implications.
Related Party Transactions by Dipti Mehta Partner Mehta & Mehta Company Secretary
Both under the 2013 Act , requirements concerning related party transactions may be divided into four key parts, viz., identification of related parties, related party transactions, approval process and disclosure requirements. It is clear from discussion below that in most cases, The definition of ‘related party’ under RC49 is likely to result in identification of significantly higher number of related party. Unlike the 2013 Act, RC49 does not exempt related party transactions from special resolution of disinterested shareholders based on criteria, viz., (i) transaction is in the ordinary course of business and at arm’s length, or (ii) prescribed threshold regarding transaction value and share capital are not breached.
Disclaimer: Disclaimer: This presentation is based on my internal research. It is notified that the presenter and any other person related to him shall be responsible for any damage or loss of any action taken based on this presentation. It is suggested to seek professional advice before initiating any action.
WHAT IS DEPOSITS AND WHAT IS NOT DEPOSITS UNDER COMPANIES ACT 2013.The Legal Magister
Theory lecture of Deposits and what is not deposits under Companies Act ,2013.
For Law related articles please visit our Blog- http://thelegalmagister.blogspot.com/
Thank you for watching the video :)
DEBENTURE TRUST DEED FORMAT
FREE LEGAL AND ACCOUNTANT FORMATS
KANOON KE RAKHWALE INDIA
HIRE LAWYER ONLINE
LAW FIRMS IN DELHI
CA FIRM DELHI
VISIT : https://www.kanoonkerakhwale.com/
VISIT : https://hirelawyeronline.com/
Key Takeaways:
Provisions governing RPT under Companies Act, 2013, SEBI (LODR), IND AS
Statutory compliances for RPT
Approval requirements for RPT
Disclosures norms for RPT under various statutes
Characteristics of Insolvency Act 2063 - Nepal by Prajwal BhattaraiPrajwal Bhattarai
The court can order to appoint a qualified person to fill vacant position if the office of the restructuring manager or liquidator falls vacant due to suspension or cancellation of license by court. (s 67)
The court fixes the remuneration of inquiry official, restructuring manager or liquidator if it can’t be fixed by the meeting of creditors from time to time. (s 68)
The court has the power to remove a restructuring manager or liquidator if they fail to execute duties prescribed or if their conduct is found to be contrary to the Act. However, the latter is given the chance to defend himself. (s 70)
The court can inquire a restructuring manager or liquidator for any action done or taken by him or her and in such an event, the latter has to reply promptly. (s 71)
CONVERTIBLE DEBENTURE PURCHASE AGREEMENT FORMAT
FREE LEGAL AND ACCOUNTANT FORMATS
KANOON KE RAKHWALE INDIA
HIRE LAWYER ONLINE
LAW FIRMS IN DELHI
CA FIRM DELHI
VISIT : https://www.kanoonkerakhwale.com/
VISIT : https://hirelawyeronline.com/
Objectives & Agenda :
Issue by way of private placement of debentures provides a reliable source of finance to meet the long term funding needs of an enterprise. It can be issued by public and private companies. The webinar covers the statutory provisions under Companies Act, 2013 for issue of debentures on private placement basis, various procedures, compliance aspects involved and judicial precedents.
Similar to Loans to Directors under Singapore Companies Act (20)
SCRAPPING OF RETRO TAX PROVISIONS : A REVIVAL OF OVERSEAS INTEREST IN INDIADVSResearchFoundatio
Key Takeaways:
- Scrapping of Restrospective effect of Taxation
- Indirect transfer of assets not taxable before 28th May 2012
- Vodafone case analysis
- Draft notification to implement the amendment
Key Takeaways: - Analysis of section 45(4), section 9B of the Income Tax Act...DVSResearchFoundatio
Key Takeaways:
- Analysis of section 45(4), section 9B of the Income Tax Act and Rule 8AA and Rule 8AB of Income Tax Rules
- Illustrations to understand the relevant impact
- Critical Issues concerned with the provisions
Key Takeaways:
- Facts of the case
- Issues and Orders of the case
- Contention of the parties
- Observations by Honourable Supreme Court
- Conclusions
Key Takeaways:
- Facts of the case
- Issues and Orders of the case
- Contention of the parties
- Observations by Honourable Supreme Court
- Conclusions
FALLACIOUS DISREGARDING OF TRANSACTIONS THAT RESULT IN A TAX BENEFIT TO THE A...DVSResearchFoundatio
Key Takeaways:
- Facts of the case
- AO's contention
- Ruling of CIT(A) and issues for consideration of the ITAT
- Observations of ITAT
- Final Ruling
- Way Forward
ALLOWABILITY OF OUTSTANDING INTEREST CONVERTED INTO DEBENTURES AS AN EXPENSE ...DVSResearchFoundatio
Key Takeaways:
- Facts and issues of the case
- Rationale behind the section
- Ruling of lower jurisdiction authorities
- Rival submissions before the Honourable Supreme Court
- Observations and final rulings of Honourable Supreme Court
- Way Forward
Key Takeaways:
- Facts of the case
- Issues and Orders
- Contention of the parties
- Observations of Honourable Supreme Court
- Conclusion and way forward
Key Takeaways:
- Background and Overview of Legal Provision
- Facts of the Case
- Contentions of the Assessee and Revenue
- Supreme Court’s Verdict
- Key Learnings and Way Forward
Key Takeaways:
- Background and Overview of Legal Provision
- Facts of the Case
- Contentions of the Assessee and Revenue
- Supreme Court’s Verdict
- Key Learnings and Way Forward
AUTOMATIC VACATION OF STAY GRANTED BY TRIBUNALDCIT v. PEPSI FOODS LTD. [2021]...DVSResearchFoundatio
Key Takeaways:
- Background and Overview of Legal Provision
- Facts of the Case
- Contentions of the Assessee and Revenue
- Supreme Court’s Verdict
- Key Learnings and Way Forward
Memorandum Of Association Constitution of Company.pptseri bangash
www.seribangash.com
A Memorandum of Association (MOA) is a legal document that outlines the fundamental principles and objectives upon which a company operates. It serves as the company's charter or constitution and defines the scope of its activities. Here's a detailed note on the MOA:
Contents of Memorandum of Association:
Name Clause: This clause states the name of the company, which should end with words like "Limited" or "Ltd." for a public limited company and "Private Limited" or "Pvt. Ltd." for a private limited company.
https://seribangash.com/article-of-association-is-legal-doc-of-company/
Registered Office Clause: It specifies the location where the company's registered office is situated. This office is where all official communications and notices are sent.
Objective Clause: This clause delineates the main objectives for which the company is formed. It's important to define these objectives clearly, as the company cannot undertake activities beyond those mentioned in this clause.
www.seribangash.com
Liability Clause: It outlines the extent of liability of the company's members. In the case of companies limited by shares, the liability of members is limited to the amount unpaid on their shares. For companies limited by guarantee, members' liability is limited to the amount they undertake to contribute if the company is wound up.
https://seribangash.com/promotors-is-person-conceived-formation-company/
Capital Clause: This clause specifies the authorized capital of the company, i.e., the maximum amount of share capital the company is authorized to issue. It also mentions the division of this capital into shares and their respective nominal value.
Association Clause: It simply states that the subscribers wish to form a company and agree to become members of it, in accordance with the terms of the MOA.
Importance of Memorandum of Association:
Legal Requirement: The MOA is a legal requirement for the formation of a company. It must be filed with the Registrar of Companies during the incorporation process.
Constitutional Document: It serves as the company's constitutional document, defining its scope, powers, and limitations.
Protection of Members: It protects the interests of the company's members by clearly defining the objectives and limiting their liability.
External Communication: It provides clarity to external parties, such as investors, creditors, and regulatory authorities, regarding the company's objectives and powers.
https://seribangash.com/difference-public-and-private-company-law/
Binding Authority: The company and its members are bound by the provisions of the MOA. Any action taken beyond its scope may be considered ultra vires (beyond the powers) of the company and therefore void.
Amendment of MOA:
While the MOA lays down the company's fundamental principles, it is not entirely immutable. It can be amended, but only under specific circumstances and in compliance with legal procedures. Amendments typically require shareholder
The world of search engine optimization (SEO) is buzzing with discussions after Google confirmed that around 2,500 leaked internal documents related to its Search feature are indeed authentic. The revelation has sparked significant concerns within the SEO community. The leaked documents were initially reported by SEO experts Rand Fishkin and Mike King, igniting widespread analysis and discourse. For More Info:- https://news.arihantwebtech.com/search-disrupted-googles-leaked-documents-rock-the-seo-world/
Remote sensing and monitoring are changing the mining industry for the better. These are providing innovative solutions to long-standing challenges. Those related to exploration, extraction, and overall environmental management by mining technology companies Odisha. These technologies make use of satellite imaging, aerial photography and sensors to collect data that might be inaccessible or from hazardous locations. With the use of this technology, mining operations are becoming increasingly efficient. Let us gain more insight into the key aspects associated with remote sensing and monitoring when it comes to mining.
Premium MEAN Stack Development Solutions for Modern BusinessesSynapseIndia
Stay ahead of the curve with our premium MEAN Stack Development Solutions. Our expert developers utilize MongoDB, Express.js, AngularJS, and Node.js to create modern and responsive web applications. Trust us for cutting-edge solutions that drive your business growth and success.
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3.0 Project 2_ Developing My Brand Identity Kit.pptxtanyjahb
A personal brand exploration presentation summarizes an individual's unique qualities and goals, covering strengths, values, passions, and target audience. It helps individuals understand what makes them stand out, their desired image, and how they aim to achieve it.
As a business owner in Delaware, staying on top of your tax obligations is paramount, especially with the annual deadline for Delaware Franchise Tax looming on March 1. One such obligation is the annual Delaware Franchise Tax, which serves as a crucial requirement for maintaining your company’s legal standing within the state. While the prospect of handling tax matters may seem daunting, rest assured that the process can be straightforward with the right guidance. In this comprehensive guide, we’ll walk you through the steps of filing your Delaware Franchise Tax and provide insights to help you navigate the process effectively.
Discover the innovative and creative projects that highlight my journey throu...dylandmeas
Discover the innovative and creative projects that highlight my journey through Full Sail University. Below, you’ll find a collection of my work showcasing my skills and expertise in digital marketing, event planning, and media production.
Unveiling the Secrets How Does Generative AI Work.pdfSam H
At its core, generative artificial intelligence relies on the concept of generative models, which serve as engines that churn out entirely new data resembling their training data. It is like a sculptor who has studied so many forms found in nature and then uses this knowledge to create sculptures from his imagination that have never been seen before anywhere else. If taken to cyberspace, gans work almost the same way.
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Cracking the Workplace Discipline Code Main.pptxWorkforce Group
Cultivating and maintaining discipline within teams is a critical differentiator for successful organisations.
Forward-thinking leaders and business managers understand the impact that discipline has on organisational success. A disciplined workforce operates with clarity, focus, and a shared understanding of expectations, ultimately driving better results, optimising productivity, and facilitating seamless collaboration.
Although discipline is not a one-size-fits-all approach, it can help create a work environment that encourages personal growth and accountability rather than solely relying on punitive measures.
In this deck, you will learn the significance of workplace discipline for organisational success. You’ll also learn
• Four (4) workplace discipline methods you should consider
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• Three (3) key tips to maintain a disciplined workplace.
RMD24 | Retail media: hoe zet je dit in als je geen AH of Unilever bent? Heid...BBPMedia1
Grote partijen zijn al een tijdje onderweg met retail media. Ondertussen worden in dit domein ook de kansen zichtbaar voor andere spelers in de markt. Maar met die kansen ontstaan ook vragen: Zelf retail media worden of erop adverteren? In welke fase van de funnel past het en hoe integreer je het in een mediaplan? Wat is nu precies het verschil met marketplaces en Programmatic ads? In dit half uur beslechten we de dilemma's en krijg je antwoorden op wanneer het voor jou tijd is om de volgende stap te zetten.
Taurus Zodiac Sign_ Personality Traits and Sign Dates.pptxmy Pandit
Explore the world of the Taurus zodiac sign. Learn about their stability, determination, and appreciation for beauty. Discover how Taureans' grounded nature and hardworking mindset define their unique personality.
What are the main advantages of using HR recruiter services.pdfHumanResourceDimensi1
HR recruiter services offer top talents to companies according to their specific needs. They handle all recruitment tasks from job posting to onboarding and help companies concentrate on their business growth. With their expertise and years of experience, they streamline the hiring process and save time and resources for the company.
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
3. 3
Legends used in the Presentation
3
AGM Annual General Meeting
IMP Immovable Property
IPR Intellectual Property Rights
LLP Limited Liability Partnership
Sec Section
Sub-sec Sub-section
VCC Variable Capital Company
4. 4
Presentation Schema
Loans and quasi-loans to
directors, credit
transactions and related
arrangements
Approval of company for
loans and quasi-loans
Exception for expenditure
on defending proceedings
Exception for expenditure in
connection with regulatory
action/ investigation
4
5. Section 162- Loans and quasi-loans to
directors, credit transactions and related
arrangements
1
5
6. 6
Sec 6- Where a corporation-
a) is a holding company of another corporation
b) is a subsidiary of another corporation or
c) is a subsidiary of the holding company of another corporation
The above said corporation and any of the parties shall be deemed to be related for the purpose of this Act
Sub-sec 1 – The following shall be treated as restricted transaction for the purpose of this sec.
a) If a company makes a loan/ quasi-loans to a director-
• of a company or
• of a company deemed to be related to that company as
referred to in sec. 6
These directors are referred herein as relevant director
7. Contd.
7
b) enters into any guarantee/ provides any security for a loan or quasi-loan made to a relevant director by
any other person
c) enters into a credit transaction as creditor for the benefit of a relevant director
d) enters into any guarantee/ provides any security for a credit transaction entered into by any
person for the benefit of a relevant director
e) (i) takes part in an arrangement in which another person enters into a transaction that, if it had
been entered into by the company, would have been a restricted transaction under paragraph
(a), (b), (c), (d) or ( f) and
e) (ii) that person obtains benefit from the company or a company referred to in sec 6 pursuant to
such an arrangement.
f) arranges the assignment to the company, or assumption by the company, of any rights, obligations or
liabilities under a transaction that, if it had been entered into by the company, would have been a
restricted transaction under paragraphs (a) to ( e).
If the company-
8. Contd.
8
Sub-sec 2- Subject to sub-sec (3) and (4) and sec 163A and 163B, a company (other than an exempt
private company) shall not make a restricted transaction
Sec 163A- Exception
for expenditure on
defending
proceedings, etc.
Sec 163B- Exception
for expenditure in
connection with
regulatory action or
investigation
9. Contd.
9
Non-Applicability of Sec
Sub-sec 3- This sec shall not apply to any transaction which is made to or the benefit of the relevant
director which would otherwise be a restricted transaction subject to sub-sec (4)
a) to meet expenditure incurred or to be incurred by him for the purposes of the company or for the purpose
of enabling him to properly perform his duties as an officer of the company;
b) who is engaged in the full-time employment of the company/ a corporation that is deemed to be related
to the company, as the case may be, for the purpose of purchasing/ otherwise acquiring a home occupied/
to be occupied by the director
c) who is engaged in the full-time employment of the company/ a corporation that is deemed to be related
to that company, as the case may be, where at a GM a scheme has been approved for making such
transaction to/ for the benefit of employees of the company and the restricted transaction is in accordance
with that scheme or
d) in the ordinary course of business of a company including lending of money/ giving of guarantees in
connection with loans, quasi-loans/ credit transactions made/ entered into by other persons if the activities
of that company are regulated by any written law relating to banking, finance companies/ insurance/ are
subject to supervision by the Monetary Authority of Singapore.
Exception: not > 1 such restricted transaction may
be outstanding at any time
10. Contd.
10
Sub-sec 4- Sub-sec 3(a) or (b) shall authorise the
restricted transaction only-
•with the prior approval at GM for the purpose of expenditure
and amount or extent of restricted transaction or
•If the above approval is not given, on a condition that at or
before the next AGM, the amount or liability under restricted
transaction shall be repaid or discharged within 6 months from
the conclusion of that meeting
Sub-sec 5- If the prior approval is not given as said in sub-sec 4 (b), the directors who authorise
the restricted transaction shall be jointly and severally liable to indemnify against any loss
arising there from
11. Contd.
11
•Penal Provision:
• If a company contravenes this sec, the director who authorise the same
shall be liable for-
•Fine- <SGD 20,000 or Imprisonment - < 2 years
•This sec shall not prevent the company from recovering the amount of any
loan, quasi-loan, credit transaction or arrangement for which the company
becomes liable
•under any guarantee entered into or in respect of any security given contrary
to this sec
•Reference to a director or relevant director as said in sub-sec 1 includes
director’s-
Spouse,
Son, Adopted son, Step-son,
Daughter, Adopted daughter and Step-daughter
Sub-sec 6
Sub-sec 7
Sub-sec 8
12. 12
Contd.
•For transaction as said in sub-sec 1(e) the
determination of restricted transaction shall
commence from the date of entering into the
arrangement
Sub-sec 9
•The prior approval required under this sec shall
not include any approval given after the
restricted transaction is made, provided or
entered into
Sub-sec 10
13. Contd.
13
Sub-sec 11- Definitions
Conditional Sale
Agreement
• Means an agreement for the sale of goods under
which the purchase price or part of it is payable by
instalments, and
• the property in the goods is to remain in the owner
(notwithstanding that hirer is to be in possession of
the goods) until such conditions as to payment of
instalments or otherwise as may be specified in that
agreement are fulfilled
14. Contd.
14
a) Supplies any goods or
disposes of any IMP under hire
purchase agreement or a
conditional sale agreement
b) Leases or hires any IMP or
goods in return for periodic
payments or
c) Otherwise disposes of IMP or
supplies goods or services on the
understanding that payment
(whether in a lump sum/
instalments / periodic payments
/ otherwise) is to be deferred
Credit transaction – means a
transaction under which a
creditor
15. Contd.
15
Quasi-loans
Means a
transaction under
which a creditor
agrees to pay or
pays to a borrower
by an agreement
or
agrees to
reimburse or
reimburses the
expenditure
incurred by the
borrower by an
agreement
a) On terms that the
borrower (or a person
on his behalf) will
reimburse the creditor
or
b) In circumstances
giving rise to a liability
on the borrower to
reimburse the creditor
Services
Means anything other than goods or IMP
16. Contd.
16
•a) A reference
to person to
whom a
quasi-loan is
made is a
reference to
the borrower
•b) The
liabilities of
the borrower
under a quasi-
loan include
the liabilities
of any person
who has
agreed to
reimburse the
creditor on
behalf of the
borrower
•c) A reference to the
person for whose
benefit a credit
transaction is entered
is a reference to the
person to whom
goods, IMP or
services are supplied,
sold, lease, hired or
otherwise disposed
of under the
transaction and
d) A reference to
the supply of
services means
the supply of
anything other
than goods or
IMP and includes
the transfer or
disposal of things
in action or of IPR
Sub-sec 12- For the purpose pf sub-sec 11
17. Section 163- Approval of company required for loans and
quasi-loans to, and credit transactions for benefit of, persons
connected with directors of lending company etc.
17
18. Contd.
18
Sub-sec 1- It shall be unlawful for a company to make following transactions, subject to this sec
and Sec 163A and 163B
a) To make loan or
quasi-loan to another
company, LLP or VCC
c) To enter into a credit
transaction as a
creditor for the benefit
of another company,
LLP or VCC or
b) To enter into any
guarantee or provide
security for a loan or
quasi-loan made to
another company, LLP
or VCC by a person
other than the first
mentioned company
d) To enter into any
guarantee or provide
security for a credit
transaction entered
into by a person for the
benefit of another
company, LLP or VCC,
• if a director or directors of the
first mentioned company is or
together are interested in 20%
or more of the total voting
power in other company, LLP or
VCC,
• a prior approval for making of,
provision for or entering into
the loan quasi-loan, credit
transaction, guarantee or
security has to be obtained in
GM
• in which interested directors or
directors and his or their family
members shall abstain from
voting
19. Contd.
19
Sub-sec 2- It shall be unlawful for a company to make following transactions (other than an exempt
private company)
Where such company or LLP is
incorporated or formed outside
Singapore, if a director or
directors of the first mentioned
company have interest in the
other company or LLP
a) A loan or quasi-loan made
by a company to another
company or LLP
b) A credit transaction made
by a company for the benefit
of another company or to a
LLP and c) A guarantee entered into
or security provided by a
company to a loan or quasi-
loan or a credit transaction
made for the benefit of
another company or LLP by a
person other than the first
mentioned company,
20. Contd.
20
Sub-sec 3 – For the purpose of sub-sec 2, a director or directors of a company-
a) Have an interest in other company if-
b) Have an interest in LLP, if a director or directors is or together are
interested in 20% or more of the total voting power in a LLP
(i) In case of a company with share capital, the director or
directors is or together are interested in 20% or more of
voting power in the other company or
(ii) In case of a company without share capital, the director or
directors exercises or together exercises control over the
company (power to appoint director or otherwise) or
21. Contd.
21
Sub-sec 3A- subject to this section, sec 163A and 163B- A company (other than an exempt private
company) shall not involve in the following transactions unless a prior approval is obtained in the GM
for such transaction and the directors and their family members shall abstain from voting
a) Take part in an arrangement under which-
b) arrange the assignment to it, or assumption by it, of any rights,
obligations or liabilities under a transaction that, if it had been entered
by the company would require approval
(i) another person enters into a transaction, if it had been
entered into by the company, would have required approval
under Section 163 and
(ii) that person, because of that arrangement, obtains a benefit
from the company or related company or
22. Contd.
22
Sub-sec 3B- For the purpose of sub-sec 3A where a transaction
requires approval if it had been entered into by the company,
the transaction shall commence from the date of entering into
the arrangement
Sub-sec 3C- Directors or their family members shall abstain
from voting at GM as per sub-sec 1 and 3A is not applicable if
all the shareholders of the company have voted to approve the
arrangement
23. Contd.
23
Sub-sec 3D – For the purpose of this sec-
a) Where a company makes a loan or quasi-loan to another company or VCC,
• enters into credit transaction for the benefit of another company or VCC,
• gives a guarantee or provides security to a loan, quasi-loan or credit transaction
made to or entered for the benefit of another company or VCC, or
• enters into an arrangement as said in sub-sec 3A, a director or directors of the first
said company shall not be treated as having interest in the shares of the other
company or VCC
• by reason only that the first mentioned company has an interest in the shares of
other company or VCC and director or directors have an interest in shares in the
first mentioned company
b) The expression ‘interest in shares’, in relation to a company, has the meaning
assigned to it in sec 7 and, in relation to a VCC, has meaning assigned to it in sec 7 as
applied by sec 2 (6) of the VCC Act read with sec 2(7) of that ACT
24. Contd.
24
c) A person who has an interest in a share of a company or a VCC is treated as having an
interest in the voting power on the holder by that share
d) Prior approval required under sub-sec 1 shall not include any approval given after the loan,
quasi-loan, credit transaction, guarantee or security is made, provided for or entered into by
the company
e) Prior approval required under sub-sec 3A shall not include any approval given after the
arrangement is entered into by the company
25. Contd.
25
Sub-sec 4- Non-Applicability of the sec
a) To anything done by a company where the other company (whether
incorporated in Singapore or not) or VCC is its subsidiary or holding or
subsidiary of its holding company or
b) To a company, whose ordinary business includes-
• the lending of money or giving of guarantees in connection with loans
made by another persons,
• to anything done by the company in the ordinary course of that
business,
• if the activities of that company are regulated by any written law
• relating to banking, finance companies or insurance or are subject to
supervision by the Monetary Authority of Singapore
26. Contd.
26
• a) an interest of a member of a director’s family shall be treated as the
interest of director and
• b) reference to director’s family includes
Spouse,
Son, adopted son, step-son,
Daughter, adopted daughter and step-daughter
• This sec shall not prevent the company from recovering the amount of any
loan, quasi-loan, credit transaction or arrangement or the enforcement of
any guarantee or security made or given by the company or any other person
• Penal Provision:
If a company contravenes this sec, the director who authorise the same shall
be liable for-
Fine- <SGD 20,000 or Imprisonment - < 2 years
Sub-sec 5
Sub-sec 6
Sub-sec 7
28. Contd.
28
Sub-sec 1-
Sec 162- Loans and quasi loans to directors
Sec 163- Approval of company for such loans and quasi loans shall not apply
to anything done by a company on terms provided in sub-sec 2 -
a) to provide any loan to a director of the company to meet expenditure
incurred or to be incurred by him -
(i) in defending any criminal or civil proceedings in connection with any alleged
negligence, default, breach of duty or breach of trust by him in relation to the
company or
(ii) In connection with an application for relief or
b) to enable any such director to avoid incurring such expenditure
29. Contd.
29
Sub-sec 2- The terms referred in sub-sec 1 are:
-the director being convicted in the
proceedings
-judgement given against the director
in the proceedings or
-the court refusing to grant relief to
the director on an application and
-the date when the conviction
becomes final
-the date when the judgement
becomes final or
-the date when refusal of relief
becomes final
a) The loan has to be
repaid or any liability
incurred has to be
discharged, in the
event of-
b) it has to be repaid
or discharged not
later than 14 days
after-
30. Contd.
30
(i) If it is not appealed against, at the end of the period for bringing an appeal or
(ii) If it is appealed against, when the appeal(or any further appeal) is disposed of
a) a conviction, judgement
or refusal of relief becomes
final-
(i) If it is determined and there is no right of further appeal, or there is right to
further appeal but, the period for bringing any further appeal has ended
(ii) If it is abandoned or otherwise ceases to have effect andb) An appeal or further
appeal is disposed of-
A reference to the repayment of a loan includes the payment of any interest
which is chargeable under the terms of loan givenc)
Sub-sec 3- For the purpose of this sec
31. Contd.
31
Sub-sec 4-
The application of relief under this sec is an application of relief
under:
Sec 76A (13)- Extension of relief
Sec 391- Power to grant relief
32. Section 163 B- Exception for expenditure in connection
with regulatory action or investigation
32
33. Contd.
33
Sec 162- Loans and quasi loans to directors
Sec 163- Approval of company for such loans and quasi loans
Sec 172- Provisions protecting officers from liability shall not apply to
anything done by the company-
a) to provide any loan to a director of the company to meet expenditure
incurred or to be incurred by him in defending himself-
(i) in an investigation by a regulatory authority or
(ii) against any action proposed to be taken by a regulatory authority
in connection with any alleged negligence, default, breach of duty or breach of trust by him in
relation to the company
b) to enable any such director to avoid incurring such expenditure