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  As per second proviso to sub section 1 of section 149 , following class of companies to have at least one woman director mandatorily. As per Rule 3 of Companies (Appointment and Qualifications of Directors) Rule 2014 - Women Director on Board: Every listed company and Every Unlisted company having- (a) PSC of Rs 100 cr or more; or (b) Turnover of Rs 300 cr or more to have at least one woman director on Board. Intermittent vacancy of Women Director:- It should be filled at the earliest but not later than immediate next board meeting and within 3 months from such vacancy whichever is later. For example- Monu Steels Limited, a public company having only one women director on Board. Office of such woman director become vacant due to her sudden demise on 29.09.2020 . New women director is appointed in Board Meeting held on 10.01.2021 . The above appointment is valid as per the provisions of Rule 3 provided board meeting held on 10.01.2021 is the immediate next board meetin...

Director means a person appointed as Director by the Board of the Company. He worked as an Agent as well as the trustee of the company. Minimum No of Directors required:- As per section 149(1), minimum no of directors required in respective companies are- In a Public company- 3  In a Private company- 2  In a One Person company- 1 Maximum No of Directors permissible as per the Company's Act 2013:- As per section 149(1), maximum no of directors a company can appoint is 15. Also, as per first proviso to section 149(1), company may appoint more than 15 directors after getting an approval of members by passing an special resolution. Exemption Available:- The provision related to maximum no of directors and subsequent passing of special resolution for increasing the no of directors beyond 15, do not apply to Government companies and section 8 companies, provided they have complied with the provisions of section 92 (Annual Returns) and section 137 (Filing of Financial Statements with...

In this article, I explained the meaning of 3 similar words from the point of view of Company Law. 1. Insolvency It is a state where our liabilities are greater than our assets. One is unable to pay its debt. The word insolvent is used for both corporates and non- corporates.  In insolvency, the shareholders and directors or creditors can request the following out of court: Liquidation of the business. Administration , which involves restructuring of the business in an attempt to save it. Receivership , wherein a creditor or creditors, such as a bank or other investor, appoints an insolvency practitioner to manage the assets in order to pay off the debt as much as possible. Company voluntary arrangement , where a contract is drawn up regarding the payment of debt after an agreement is made between the company and the creditors. 2. Bankruptcy While the word bankruptcy can be used for individuals only. That is Bankruptcy is a situation where a person becomes insolvent. Here, the on...

  CARO 2016 applicable to all the companies except the following (which) are specifically excluded from its purview: A.     Banking Companies B.      Insurance Companies C.      Companies registered for Charitable Purposes D.     One Person Company E.   Small  Companies ( Companies with Paid up capital less than or equal to Rs. 50 Lakhs and Last reported turnover less than or equal to Rs. 2 Crores ) F.      The following  Private Companies  are also exempt from the requirements of CARO, 2016                                            i.            Not a holding or subsidiary of a Public company        ...

  140. Removal, resignation of auditor and giving of special notice ( 1 ) The auditor appointed under section 139 may be removed from his office before the expiry of his term only by a special resolution of the company, after obtaining the previous approval of the Central Government in that behalf in the prescribed manner: Provided that before taking any action under this sub-section, the auditor concerned shall be given a reasonable opportunity of being heard. ( 2 ) The auditor who has resigned from the company shall file within a period of thirty days from the date of resignation , a statement in the prescribed form with the company and the Registrar, and in case of companies referred to in sub-section ( 5 ) of section 139, the auditor shall also file such statement with the Comptroller and Auditor-General of India, indicating the reasons and other facts as may be relevant with regard to his resignation. ( 3 ) If the auditor does not comply with sub-section ( ...

AGM due date for the Financial Year 2019-20  has been extended by 3 Months for all companies by the latest order of ROC. A major relief has been granted by MCA by way of granting extension of 3 months for holding annual general meeting and hence Companies with AGM due date as 30.09.2020 can conduct their AGM by 31.12.2020. But If Company’s AGM due date falls on 1st September then it can held AGM by 1st December. There is no need of separate application in form GNL-1 for extension. Download the copy of order of ROC dated 8/9/2020, Uttar Pradesh- From here Or, you may visit MCA official site for AGM extension orders of different state, at the below link- http://www.mca.gov.in/MinistryV2/extensionofagm.html

  Rule 10 of Companies (Audit & Auditors) Rules, 2014: Disqualifications of Auditor (1) For the purpose of proviso to sub-clause (i) of clause (d) of sub-section (3) of section 141 , a relative of an auditor may hold securities in the company of face value not exceeding rupees one lakh : Provided that the condition under this sub-rule shall, wherever relevant, be also applicable in the case of a company not having share capital or other securities. Provided further that in the event of acquiring any security or interest by a relative, above the threshold prescribed, the corrective action to maintain the limits as specified above shall be taken by the auditor within sixty days of such acquisition or interest. (2) For the purpose of sub-clause (ii) of clause (d) of sub-section (3) of section 141 , a person who or whose relative or partner is indebted to the company or its subsidiary or its holding or associate company or a subsidiary of such holding company, in excess...

Section 141: Eligibility, Qualifications and Disqualifications of Auditors (1) A person shall be eligible for appointment as an auditor of a company only if he is a Chartered accountant : Provided that a firm whereof majority of partners practising in India are qualified for appointment as aforesaid may be appointed by its firm name to be auditor of a company. (2) Where a firm including a limited liability partnership is appointed as an auditor of a company, only the partners who are chartered accountants shall be authorised to act and sign on behalf of the firm . (3) The following persons shall not be eligible for appointment as an auditor of a company, namely:— a)      a body corporate other than a limited liability partnership registered under the Limited Liability Partnership Act, 2008; b)     an officer or employee of the company; c)      a person who is a partner, or who is in the employment, of an officer or em...