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Showing posts from October, 2017

Number - Layers of Investment in Subsidiaries

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Number - Layers of Investment in Subsidiaries MCA has issue [1] Notification on 20 th September, 2017 in respect of “Numbers of Layers of Investment in Subsidiaries” of Company. These rules called as Companies (Restriction on number of layers) Rules, 2017 This is article no. 280 of the series of editorials written by the author on corporate laws {Including Companies Act, 2013, SEBI, RBI Regulations, IBC , LLP Act, 2008 etc.}. Allowed Numbers - Layers of Investment No Company other than below mentioned 4 categories of company shall have more than two layers of subsidiaries. Companies on which rules above not applicable Companies: ·          Banking Company ·          Non-banking Financial Company ·          Insurance Company ·          Government Company Exemption to the Companies:         i.             Acquiring Company incorporated outside India: These provisions shall not affect a company from acquiring a Company incorporated outside India wi

Transfer (Deemed Transmission) of Shares to Investor Education and Protection Fund (IEPF)

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Transfer (Deemed Transmission) of Shares to Investor Education and Protection Fund (IEPF) MCA has issue [1] Notification on 13 th October, 2017 in respect of clarification on transfer of shares of Company to “IEPF”. As per Section 124(6) of Act, 2013 All shares in respect of which  dividend has not been paid or claimed for seven consecutive years or more shall be  transferred  by the company in the name of Investor Education and Protection Fund. As per Rule 6(1) The shares shall be credited to DEMAT Account of the Authority to be opened by the Authority for the said purpose, within a period of thirty days of such shares becoming due to be transferred to the Fund. NOTE – I: As per above mentioned provisions of the Act Company have to transfer the “ SHARES ” to IEPF within 30 days of from the date of completion of 7 years.   Relaxation by Ministry: However, MCA has amended the Rules by Second Amendment Rules, dated 13.10.2017 i.e. “ in cases where the p

REGISTER VALUER & VALUATION

Register Valuer & Valuation   Short Summary: The Ministry of Corporate Affairs by Notification Dated: 18 th October, 2017 has notified that [1] Section 247shall come into force w.e.f. 18.10.2017. MCA further vide [2] notification Dated: 18 th October, 2017 has published rules called the Companies (Registered Valuers and Valuation) Rules, 2017. In this editorial the author shall discuss the provisions of Section 447 Register Valuer and Valuation along with rules relating to same. 18th October, 2017 onwards, any person who will possess the prescribed qualifications and pass the valuation examination conducted by the Designated Agency, shall be allowed to act as the Registered Valuers. INTRODUCTION: Section 247 is new sections under Companies Act. 2013. There is No Corresponding Provision in Companies Act 1956. The Companies Act, 2013 provides statutory backing to the Valuation, its required that in