301 articles on Corporate & Company Law, authored by the Finin2min editorial team. Page 2 of 8.
SBO compliance is where simple cap tables often fail. Section 90 looks through direct ownership to significant beneficial ownership, including acting alone…
Small company status can simplify compliance, but it should be tested every year. Paid-up capital, turnover, exclusions and current statutory thresholds need…
Section 89 is different from the SBO regime but equally important. It applies where the registered holder and beneficial owner of shares are not the same…
Buy-back is not simply a founder exit payment. Section 68 controls sources, authorisation, approvals, limits, solvency and post-buy-back extinguishment of…
Debenture funding and dividend distribution both sit at the intersection of finance and company law. The board should review security, conversion…
An ESOP pool is not legally effective just because a founder says “10% pool”. Employee stock options need scheme approval, grant records, vesting/exercise…
Preference shares can be useful financing instruments, but Section 55 makes one point clear: irredeemable preference shares are not permitted after…
The register of members is the ownership base of the company. If it does not match PAS-3 filings, transfer records, share certificates and annual return data…
When a company proposes to increase subscribed capital, Section 62 is the starting point. The route may be rights issue to existing shareholders, ESOP, or…
A share certificate is legal evidence of shareholding, not a design file. Companies should treat issue, endorsement, duplicate certificate and cancellation as…
Share transfer is not a cap-table edit. Section 56 creates a documentary control around instrument of transfer, share certificate/letter of allotment, timing…
Sweat equity is not a shortcut to issue free shares casually. Section 54 permits sweat equity shares of a class already issued, subject to conditions including…
The Board’s Report is not a generic annual note. Section 134 makes it a formal governance document covering financial statements, director responsibility…
Books of account are not just Tally data. Section 128 requires proper books and records, and digital accounting should be audit-ready, backed up and aligned…
Some finance decisions are too material for simple board approval. Section 180 restricts board powers for specified actions and requires company consent by…
Section 134 refers to directors devising proper systems to ensure compliance with applicable laws. That statement should be backed by trackers, ownership and…
Financial statements are the base document for audit, Board’s Report, AOC-4 and investor/lender review. Section 129 makes the quality of accounts a legal…
Annual return certification is only as good as the records behind it. Shareholding, directors, indebtedness, penalties and filings should be reconciled before…
Company contributions can be reputationally and legally sensitive. Finance teams should not process political or charitable payments without checking board…
Financial statements are not casually reopened because management found an error. Companies Act has specific routes for reopening and voluntary revision, and…
Not every shareholder approval is the same. Some matters need ordinary resolution, some need special resolution, and some resolutions must be filed with…
MCA forms show filings; statutory registers show the company’s legal memory. Missing or inconsistent registers become painful during audit, funding, due…
The LLP agreement is the operating constitution of an LLP. When profit share, contribution, partner rights or management clauses change, the agreement and MCA…
LLP annual compliance is lighter than a company in some areas, but missing Form 8, Form 11, partner records or books can still create penalties and diligence…
Section 34 makes LLP accounts a statutory record. Even where audit is not applicable, books should support Form 8, tax filing, partner balances and…
LLP contribution is not always cash. It can involve property, tangible/intangible assets or services, but the agreement, valuation, books and partner records…
Designated partners are the compliance face of an LLP. They sign filings, maintain statutory discipline and should have clear internal responsibility for…
Form 11 is the LLP’s annual return snapshot. It should reflect correct partner, designated partner and contribution data as at the relevant period.
Form 8 is not just a numbers form. It connects LLP books, solvency declaration, partner responsibility and audit status under the LLP Act framework.
Changing LLP name or registered office is more than updating letterhead. Partner approval, address evidence, statutory records, tax/GST/bank updates and MCA…
Partner change is both a legal and operational event. Admission, resignation, contribution, profit-sharing and bank/signing authority must be updated together.
Stopping LLP business is not the same as closing the LLP. Closure should settle assets, liabilities, bank accounts, tax registrations, partner accounts and MCA…
Conversion from firm to LLP can improve legal structure, but it must preserve continuity of partners, assets, liabilities, contracts and registrations. The…
Company-to-LLP conversion can simplify future compliance, but the conversion itself is a major legal and accounting event. Shareholders, assets, liabilities…
LLP statutory audit and income-tax audit are different compliance tracks. One comes from LLP law and accounting records; the other from tax law thresholds and…
Changing a designated partner affects signing authority, compliance ownership and statutory responsibility. The change should be paired with DPIN/DIN checks…
Banks and investors do not review only revenue. They check whether the LLP legally exists, partners are correctly recorded, accounts are filed, contribution is…
LLP incorporation is not just name approval and certificate generation. The incorporation file should align name, partners, designated partners, contribution…
An LLP name should be defensible, available and aligned with business activity. A name change also triggers agreement, stationery, contracts, bank, tax and…
LLP late filing usually starts as calendar failure and becomes a cost, partner frustration and diligence problem. A simple compliance tracker prevents most…