CS ALOK QUALIFIED AS ADVOCATE AND COMPANY SECRETARY FELLOWMEMBER OF ICSI NEW DELHI TEACHING FROM 2011 TOCA CS, CMA, LAWSTUDENTS CORPORATE LAW CONSULTANT -PCS
MODERNISATION OF COMPANY LAW FOR GLOBAL COMPETITIVNESS A fair modern and effective framework of company law is crucial to the performance of anv economy and societv To achieve competitiveness, it is essential that the law must balance the needs of many interests, like directors, shareholders, employees, creditors and customers. The process of creating common standards across the Global standards has been started about a decade ago in most countries, so as to achieve global competitiveness.
MODERNISATION OF COMPANY LAW FOR GLOBAL COMPETITIVNESS Before 'Transfer of Shares' was a criminal offence and they did not included Limited Liability for their members. There is need to simplify Corporate Laws in the current complex business operations so that it can be clearly interpreted and shall facilitate faster economic growth. Bringing such Corporate Laws which encourage Good Corporate Governance and must also avoid unnecessary burden.
UNITED KINGDOM THE COMPANIES ACT 2006
INTRODUCTION: The UK Companies Act, 2006 received Royal Assent on 8th November 2006. It had the distinction of being the longest Act irn British Parliamentary history: with 1,300 sections and covering nearly 700 pages, and containing 16 schedules. The Act has replaced the previous companies legislation with the exception of provisions relating to company investigations and community interest companies. The Act was brought into force in stages, with the final provision being commenced on 1 October 2009. It superseded the Companies Act 1985.
SAILENT FEATURES INCORPORATION [SEC 171: Any one or two persons who wants to form a company for lawful purpose, can incorporate it by making an Application in 'FORM INO1' and comply with the requirement of the Act. They shall have their own MOA and AOA. V SHARE CAPITAL: A Public Company shall have minimum authorized capital of 50000 euro equivalent or such other sum as the secretary of the state specify by order.
TREASURY SHARES: A company has shares of only one class, the aggregate nominal value of shares held as treasury shares. The company may hold shares or deal with any of them COMPANY SECRETARY: A Private Company is not required to have a Secretary. A Public Company must have a Secretary. He/she should have the one or more specified qualification. It is duty of director to take reasonable steps to secure them and register of secretaries must be maintained.
DIRECTOR'S: a)Every public company shall have minimum two directors and b)every private company is required to have minimum one director. Their duties have been codified for the first time, including an obligation to promote the success of the company, to consider the community and the environment, the interests of employees, and to be fair to shareholders, The register must be maintained REMOVEL OF DIRECTORS AND AUTITORS: The company has to pass ordinary resolution at the meeting before the expiry of their period of office removing director and auditor from office.
V ANNUAL RETURN ISEC 854-8571:Every Company must deliver its Annual Return to Registrar. It contains the following details: a)General details-address, type of company, particulars of directors. b)Information about Share Capital. c) Information about Shareholder. ACCOUNTING RECORDS: Company's Accounting records must be kept at its Registered Office. It shall be preserved for 3 years in case of Private Company and 6 years in case of Public Company. Must keep adequate accounting information.
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Advocate and Company Secretary, Corporate law consultant, Youtuber. Teaching is my passion and teaching since 2010