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Showing posts from February, 2016

FRAUD REPORTING

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FRAUD REPORTING [1] Financial fraud is a phenomenon that haunts everyone alike. Not only does it mean loss of an asset for the one who has been at the receiving end of a fraud, it has the capability of shaking the roots of “confidence” and “trust” that anchor a society and/or an economy. Governments and other policy makers therefore remain keen to control the menace The Companies (Amendment) Act, 2015 is a harbinger of positive trends in the ease of doing business for Indian companies. This post is specifically with regard to Section 143 of the Companies Act, 2013 concerning the power and duties of auditors and its amendment thereof.  Prior to the new Companies Act, 2013 Fraud was largely seen as a broad legal concept.  The old Companies Act already provides punishment for fraud in various sections but the new Act has come with more specific and clear provisions relating to fraud and fraud reporting. The scope and coverage is very wide unlike Companies Act, 1956. Audit

PROCEDURE FOR THE CLOSURE OF THE LIMILTED LIABILITY PARTNERSHIP SUO MOTO

PROCEDURE FOR THE CLOSURE OF THE LIMITED LIABILITY PARTNERSHIP SUO MOTO In case the LLP wants to close down its business or where it is not carrying on any business operationsfor the period of one year or more,   , it can make an application to the Registrar of Companies for declaring the company as defunct and removing the name of the LLP from its register of LLP’s. The procedure is given below: ( clause (b) of sub rule 1 of Rule 37 of LLP Rules 2008 ) 1.       An application is required to be made in e-Form 24 to the Registrar of Companies for Striking off the name of the LLP under clause (b) of sub rule 1 of Rule 37 of LLP Rules 2008 with the consent of all partners. 2.       The Registrar shall publish a notice on its website as to the content of the application for a period of one month for the notice of the general public. 3.       Application submitted to be supported by Indemnity Bonds to indemnify any person legally claiming after the LLP to be strike off an

Comparison of Provision of Appointment and Remuneration of Managerial Personnel CA-2013 and Amendment Proposed by “Report of the Company Law Committee)

Comparison of Provision of Appointment and Remuneration of Managerial Personnel CA-2013 and Amendment Proposed by “Report of the Company Law Committee) Particular Original Provision under  CA-2013 Provision after proposed amendment, if approved. Section 197 Managerial remuneration (3) Notwithstanding anything contained in sub-sections (1) and (2), but subject to the provisions of Schedule V, if, in any financial year, a company has no profits or its profits are inadequate, the company shall not pay to its directors, including any managing or whole-time director or manager, by way of remuneration any sum exclusive of any fees payable to directors under sub-section (5) hereunder except in accordance with the provisions of Schedule V and if it is not able to comply with such provisions, with the previous approval of the Central Government (3) Notwithstanding anything contained in sub-sections (1)