An investigation into the affairs of the company can be conducted by Central Government, Investigations by Serious Fraud Investigation Office (SFIO), and it can be conducted in any other case. So let’s check the investigation in different cases. 1) Investigation through the order of Central Government: The central government can order an investigation and...
Continue readingThe General Approach for Investigation
About: The general approach for investigation is a condition by the legal requirements. The general approach for investigation should, therefore, be formulated having regard to the terms of reference, scope, period, program, and procedure of the investigation and the attending legal requirements as explained below: Clarity of terms of reference The Inspector should ensure...
Continue readingRights Issue of Shares
Meaning of Right Issue of Shares: ‘Right Issue’ refers to the act of giving shares to the existing shareholder or members of the company in proportion to their current shareholding via a letter of offer. Section under its covers: SECTION 62 of Companies Act 2013 The Provisions of Section 62 of Companies Act, 2013...
Continue readingThe Negotiable Instruments
IT is a written order to pay a fixed sum of money on demand or at a certain time. A negotiable instrument can be easily transferred from one person to another. Once the instrument is transferred, the holder gets a full legal title to the instrument. Features of Negotiable Instruments: A written instrument with...
Continue readingAUDIT OF FIRM
Appointment of Auditor: – The auditor to a firm is usually appointed by the partners either on the grounds of a decision taken by them or to comply with a condition in the partnership agreement. The remuneration is also fixed by the partners. It is important that the letter of appointment should simply state...
Continue readingEmployee Stock Option Plan (ESOP)
Employees stock option means the option given to the directors, officers, or employees of a company which gives such directors, officers or employees, the benefit or right to purchase, subscribe to the shares of the company at a future date at a predetermined price. A company may issue shares to its employees under employees’...
Continue readingProcedure for Issue of Equity Shares with Differential Voting Rights
1. Check whether the Articles of Association of the company authorizes the issue of equity shares with differential rights and if not, the name and the Articles of Association of the company. 2. Hold the Board meeting to issue the notice of general meeting for issuance of equity share with differential rights. 3. Before...
Continue readingRemoval of names of companies from the register of Companies
The power of registrar to remove the name of the company from the register of Companies. He can do so on his own or he can do after receiving an application from the company. So let us see the requirements under both cases which are as follows: 1) Removal of name of the company...
Continue readingWho may become a member of the company?
Subject to the Memorandum and Articles, any a person who is competent to contract except the company itself, can become a member of a company. However, it is important to note the following points about some organizations and persons: A company as a member of another company: A company is a legal person and...
Continue readingConcurrent Audit in Bank
Meaning: It is an examination which is conducted within a few time with the occurrence of transactions. It tries to shorten the time gap between a transaction and its examination by an independent person who is not involved in its documentation. There is an emphasis in favor of deep checking in key areas rather...
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