Companies Act

An Independent Director is a non-executive director who apart from receiving the director’s remuneration does not have any material/ pecuniary relationship or transaction with the company, its promoters, its directors, its senior management or its holding company, its subsidiaries and associates, which in judgment of the Board may affect independence of judgment of the Director

The concept of “buy back of securities” is just over a decade old and is normally resorted to reorganize the capital structure. It means buying the shares allotted to shareholders at a
predetermined price. Buy back results in cancellation of capital leading to an improved EPS in

Articles of Association of a company has always been recognized as part of the Charter Documents of any company of whatever nature incorporated under the provisions of the
Companies Act, 1956 (Act). The Charter Documents of a company are the Memorandum of

There has always been a slight confusion in the minds of first time entrepreneurs on the distinction between a proprietorship firm, a partnership firm and a company. Invariably,
most entrepreneurs who have established their business as proprietorship concerns or partnership firms refer their entity as companies. They are not clear why they want a

Many times we come across the situation where documents issued in one country need to be used in or presented to another country. These documents must be authenticated or legalized
before the other country will recognize those documents and give the documents the legal import given in the jurisdiction of origination

Background: During the last week of November, 2011, SEBI had issued an order restraining two entities of the Sahara group as well as certain promoters and directors from accessing the capital markets.

When a company is newly formed or starts a new line of business, the company engages the best executives and employees available, who bring in their know-how, skill
and expertise with them which adds great value to the growing enterprise.

The term ‘Promoter’ is common in the corporate sector and also common parlance. However it is to be noted that the term ‘Promoter’ has not been defined under the
Companies Act, 1956 (Act) and other legislations relating to corporate affairs. It is also to be noted that although the term is used under various provisions of the Act, Section 2

Given the conducive business environment more and more new entrepreneurs are emerging in the corporate sector. Among all the business entities, the most conducive
business entity/organization is a corporate entity incorporated under the provisions of the Companies Act, 1956.

Entrepreneurs and CEOs responsible for governance are often intrigued by the question – what needs to be placed before the Board for approval? which matter requires Board
deliberations/decision ? What needs to be taken to the Shareholders for approval?