Mohim Roy | Legistify

Mohim Roy
Answered on 20 Aug 2019

An Insolvency Professional is one who is registered with the Insolvency and Bankruptcy Board of India (IBBI). They are enrolled with an Insolvency Agency and they are involved in the dissolution process of an insolvent individual, companies, LLPs or partnerships. These professionals are authorised to act on behalf of such insolvent individual, companies etc. During the bankruptcy situation, insolvency professionals play a vital role in liquidating entity assets and other settlement processes. This process has gained momentum with the government bringing in strict norms through Insolvency and Bankruptcy Code. So, yes, the liquidator or IRP appointed in a Corporate Insolvency Resolution Process does have voting rights in the Annual General Meeting.Read More

Posted on 19 Aug 2019 | 1 Answer

Tanya Mahajan | Legistify

Tanya Mahajan
Answered on 16 Aug 2019

Following compliances are required after incorporation of a new business: Auditor Appointment Balance Sheet and P&L & Audit Report AOC 04 Form'ROC Fling Minutes of Board Meeting Minutes of AGM Income tax Returns Share Certificate (for 2 Directors) Disclosure of Interest Certificate of Commencement of Business(INC 20 A). All these are mandatory ROC Compliance filings of a company.Read More

Posted on 11 Aug 2019 | 1 Answer

Karishma Pandit | Legistify

Karishma Pandit
Answered on 05 Aug 2019

It is advisable that whenever a company amends its articles, it should ensure that subsequent to the amendment, the AOA is as per the format specified under the Companies Act, 2013. It is mandatory to pass a special resolution and file Form MGT-14 with the Registrar of Companies if you alter MOA and/or AOA as per the Companies Act, 2013. For filing your form MGT-14, you can contact a Chartered Accountant in India.Read More

Posted on 31 Jul 2019 | 1 Answer

Mohim Roy | Legistify

Mohim Roy
Answered on 03 Aug 2019

If you have defaulted on a loan, the rules do not give lenders a complete walkover. ET Wealth tells you what you should bear in mind if you find yourself in such a situation. 1. Right to ample notice: A default does not strip you of your rights or make you a criminal. Banks have to follow the process and give you time to repay dues before repossessing your assets to realise the arrears. Typically, banks initiate such proceedings under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interests (Sarfaesi) Act. If the borrower’s account is classified as a non-performing asset (NPA), where repayment is overdue by 90 days, the lender has to first issue a 60-day notice to the defaulter. If the borrower fails to repay within the notice period, the bank can go ahead with the sale of assets. However, in order to sell, the bank has to serve another 30-day public notice mentioning details of the sale. 2. Right to ensure fair value: The lender starts the process of auctioning your property to recover dues if you fail to clear what you owe or respond during the 60-day notice period. However, before doing so, they will have to issue another notice specifying the fair value of the secured asset as assessed by the banks’ valuers, along with other details like reserve price, date and time of auction. The borrower can object if the property is undervalued. He can justify his objection by conveying any better offer that he may have so that the bank can make a decision. In other words, you can look for prospective buyers on your own and introduce them to the lender if you think that the property can yield a better price. 3. Realise balance proceeds: Do not write off your asset mentally the moment it is repossessed. Keep track of the auction process—it’s easier to do so now as most lenders conduct e-auctions. Lenders are required to refund any balance after recovering the dues and all expenses of conducting the auction, the bank has to refund the amount to the borrower as the money belongs to him legitimately. 4. Right to be heard: During the notice period, you can make your representation to the authorised officer and put forth your objections to the repossession notice. The officer has to reply within seven days, giving valid reasons if he rejects the representation and objections raised by the borrower. 5. Right to humane treatment: Do not forget that banks are regulated entities that cannot behave like moneylenders while trying to collect dues. Following adverse reports about the conduct of recovery agents, the RBI had pulled up banks over the issue a few years ago. Banks too decided to voluntarily commit to certain best practices as part of their code of commitment to customers. For one, agents can contact borrowers at a place chosen by the latter. In case they have not specified a place, the agents can visit either the borrower’s residence or place of work. They are required to respect borrowers’ privacy during these visits and ensure civil and decent behaviour. Agents cannot resort to harassment or intimidation and nor can they humiliate the borrowers or their family members. For more information you can consult with our legal expert in corporate law in India who can help you in your matter.Read More

Posted on 02 Aug 2019 | 1 Answer

Saachi Khurana | Legistify

Saachi Khurana
Answered on 02 Aug 2019

To start a Money Lending Business in India you need a license from RBI other lenders like partnerships and individuals engaged in money lending must take license under State Moneylenders act. The license is known as the Money Lender License. You can consult our expert corporate law lawyer in India who will guide you in your matter.Read More

Posted on 01 Aug 2019 | 1 Answer

Team Legistify | Legistify

Team Legistify
Answered on 28 Sep 2018

Multi State Credit society is registered under Multi State Co-Operative societies act and rules. Society is not a personal institution owned by an individual but is a fully democratic organization managed by Board Of Directors who are elected by the members of the society in the Annual General Meetings and the Board Of Directors also take decisions in a collective manner with total transparency. The Department of Co-Operatives constantly reviews the functioning of the society at regular intervals. Finance companies are usually owned by individuals and frame the so called policies according to the owners. The general members/ depositors/ Investors have no role to play. There are some possibilities of the absence of transparency. Members/ Investors have virtually no knowledge of the affairs/ legal provisions of N.B.F.C. and the statutory liabilities of the N.B.F.C. are also limited. Read More

Posted on 09 May 2016 | 2 Answers

Team Legistify | Legistify

Team Legistify
Answered on 28 Sep 2018

Memorandum can be amended by approval in a special General Body Meeting called for the purpose after giving due notice and by approval another special General Body Meeting called after 30 days again. Byelaws can be amended by approval of majority of members in Special General Body Meeting. Such amended byelaws shall be filed with the Registrar within one month. Read More

Posted on 10 May 2016 | 2 Answers

Team Legistify | Legistify

Team Legistify
Answered on 28 Sep 2018

No, FDI is not allowed for One Person Company, if it does then it will lose its very nature of One Person Company. Read More

Posted on 13 Apr 2016 | 2 Answers

Team Legistify | Legistify

Team Legistify
Answered on 28 Sep 2018

In general partnerships a partner’s liability is joint and several. That means that he or she is liable individually for all the debts and liabilities of the firm irrespective of their share of the partnership. In this case it is normal for partners to give indemnities to each other so that if a creditor pursues one partner, he or she can then claim their share back from the other partners. It is usual for salaried or fixed equity partners to have indemnities from all the equity owning partners in the firm to protect them. The easiest way to limit your liability as a partner is to incorporate your partnership into a Limited Liability Partnership (LLP) where, as the name implies, your liability will be limited.Read More

Posted on 15 Jun 2016 | 2 Answers

Advocate Abhishek Singh | Legistify

Advocate Abhishek Singh
Answered on 06 Jun 2019

For an increase in paid-up capital of the company you need to first Check whether the company is authorised by the AOA to increase the share capital. If it is not you need convene the board meeting for enabling the board to call for extraordinary general meeting to get approval from the shareholders for increasing the authorised share capital. Pass the resolutions for increasing the authorised share capital of the company and corresponding alterations in Memorandum of association and Articles of Association by special resolution. Then Authorise the board to file necessary forms and resolutions with ROC having jurisdiction. Finally you will need to File the e- form SH7 with Roc by paying the requisite fee. You can consult an experienced corporate law lawyer in India, who will help you in your matter.Read More

Posted on 04 Jun 2019 | 1 Answer