Can a director also be a shareholder?
Can a director also be a shareholder?
Shareholders and directors are two very distinct roles within a limited company. In simple terms, shareholders own the business, and directors run it. The interesting thing, however, is that the same person can be both a shareholder and a director.
What is Section 88 of Companies Act 2013?
—(1) A company which has share capital or which has issued debentures or any other security may, if so authorised by its articles, keep in any country outside India, a part of the register of members or as the case may be, of debenture holders or of any other security holders or of beneficial owners, resident in that …
What is Section 73 of Companies Act 2013?
Provided that in case where a company does not secure the deposits or secures such deposits partially, then, the deposits shall be termed as “unsecured deposits” and shall be so quoted in every circular, form, advertisement or in any document related to invitation or acceptance of deposits.
What is Section 8 of Companies Act?
A company is referred to as Section 8 Company when it registered as a Non-Profit Organization (NPO) i.e. when it has motive of promoting arts, commerce, education, charity, protection of environment, sports, science, research, social welfare, religion and intends to use its profits (if any) or other income for …
Is Closure of Register of Members compulsory?
There is no compulsion on the company to close its Register of Members or any other book for any period. A company is not bound to close its Register of Members for any single day. But if the company whether public or private limited company, intended to close.
Who is entitled to present a petition for winding up of a company?
(3) A contributory shall be entitled to present a petition for winding up a company, notwithstanding that he may be the holder of fully paid- up shares, or that the company may have no assets at all, or may have, no surplus assets left for distribution among the share- holders after the satisfaction of its liabilities.
Is section 73 applicable to private companies?
Exemption. Exemptions private limited companies are now entitled to with regards to section 73 dictate that private limited companies can grant loans against the following conditions: Shouldn’t have any other body corporate shareholder in the lending company.
Can private company accept public deposits?
A private company cannot invite and accept deposits from the general public. However, it can accept deposits from its directors, relatives of directors and members provided it has satisfied certain conditions required by law.
Can director take salary in Section 8 company?
There is not any restriction in payment of remuneration to Page 25 FAQs on Section 8 Companies 21 an employee/director. Yes a section 8 company can take loan from its members and pay interest thereupon, subject to the provisions of Chapter V of the Act read with rules made thereunder.
How many days register of members can be closed?
(1) A company may close the register of members or the register of debenture-holders or the register of other security holders for any period or periods not exceeding in the aggregate forty-five days in each year, but not exceeding thirty days at any one time, subject to giving of previous notice of at least seven days …
Why register of members is closed?
The closure of Register is cloaked with the right to refuse the transfer of shares/debentures. Record date is an alternate for closing the registers. The purpose of closing the register is to get registers update and to fix a cutoff date for the purpose of payment of dividend or issue of right and bonus shares.
Who Cannot make a petition for compulsory winding up?
If the majority of the creditors in value oppose, and the court having regard to the company’s assets and liabilities considers the opposition reasonable, it may refuse to pass a winding up order.
What is the difference between winding up and dissolution?
Meaning Winding up is one of the method by which dissolution of a company is brought about. Dissolution is the end result of winding up. Existence of Company Legal entity of the company continues at the commencement of the winding up. Dissolution brings about an end to the legal entity of the company.