This post has been written by Vanshika Darbari, a third year student of Maharaja Agrasen Institute of Management Studies, GGSIPU. The power to invest the funds of the company is the prerogative of the Board of Directors. This power is derived by the board under Section 179 of the Companies Act, 2013. However, the act contains provisions for restrictions on investments that a company can make and loans it can provide. Moreover, giving corporate guarantee is also as good as giving a loan, because the person to whom guarantee or security is given can decide to enforce the guarantee or…
Author: Vanshika Darbari
This post has been written by Vanshika Darbari, a third year law student of Maharaja Agrasen Institute of Management studies, GGSIPU. The buy-back of shares and other specified securities was allowed by the Government by propagating an Ordinance on 31st October, 1998. This provision was made effective from 31st October, 1998. The provision relating to buy back of shares in the companies act, 2013 are sections – 68,69 and 70 read with Rule 17 of the Companies (Share Capital and Debentures) Rules, 2014. The companies are allowed to buy – back their own shares and other securities subject to certain…
Rule of constructive res judicata is engrafted in explanation IV to section 11 of the Code is an artificial form of res judicata and provides that if a plea could have been taken by a party in a proceeding between him and his opponent,he should not be permitted to take that plea against the same party in a subsequent proceeding with reference to the same subject matter. Its object is to compel the plaintiff or the defendant to put forward all grounds of attack or defence that are available and of which he is aware at the time when the…
This post has been written by Vanshika Darbari, a third year law student of Maharaja Agrasen Insitute of Management Studies, GGSIPU. Insolvency and Bankruptcy Code was established in 2016 with an objective to consolidate and amend laws relating to reorganization and insolvency resolution of corporate persons in a manner that the maximum value can be derived from the assets of such corporate entities. Earlier there was no period mentioned in the code for the completion of the reorganization and insolvency resolution process of a corporate person, due to these difficulties being faced due to lack of clarity on the time…
This post has been written by Vanshika Darbari , a third year law student from Maharaja Agrasen Institute of Management Studies, GGSIPU. A company is composed of members, though it has its identity of its own. The members of the company are to people who constitute the company, as a corporate entity. However, a company being a financial institution, can not act on its own. Therefore, the decisions made by the companies are passed validly through resolutions in the companies members meeting. The members and the directors of the company are vested with the decision making powers and they can…
This post has been written by Vanshika Darbari, a third year law student from Maharaja Agrasen Institute of Management Studies, GGSIPU. Startup India is an initiative by the Government of India. It is based on an action plan aimed at promoting bank financing for startup ventures to boost entrepreneurship and encourage startups with job creation. The campaign was announced by Prime Minister Narendra Modi in his 15th august, 2015 address from the Red Fort. The ‘Startup India initiative’ was announced by the Government of India for creating a conducive environment for startups in India. The various ministers of the government…
The foreign investment policies of the country implemented in the year 1991 opened gates for foreign investments to enter Indian territory.Hence,the year 1991 turned out to be the golden year for the Indian economy.This also made Indian companies eligible to set up business abroad or making an investment abroad as the case may be. Prior to 1991, exports were the predominant way of expanding business abroad and hence the emphasis was on export promotion strategies with restrictions on cash outflows so as to conserve our foriegn exchange reserves.Till then, India’s economic integration with the rest of…
India is a developing economy and is undergoing rapid expansion, both in terms of the strong growth of existing financial firms and new entities entering the market. The sector comprises commercial banks, insurance companies, cooperatives, pension funds, mutual funds, and other smaller entities. The government of India has introduced several forms to liberalize, regulate and enhance this industry. The government and Reserve Bank of India have taken various steps to facilitate easy access to finance. One such step includes launching Non-Banking Finance Companies. Over the years they have played a dominant role in mobilization and disbursal of funds. MEANING A…
