TOPIC 33: QUICK REFERENCE TO “FAQs related to Company Law PART -1”

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Quick Reference to " FAQs related to Company Law  PART -1"
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1. Can Company pay Underwriting Commission out of Profit of the Company only ??
∆ No. Company can pay Underwriting Commission out of Profit as well as Proceeds of the issue of Shares.
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2. Whether ordinary resolution is Sufficient for conversion of Section 8 Company into another kind of Company?
∆ No. Special Resolution is mandatory for the same.
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3. Whether debenture trustee is allowed to beneficially hold Shares in the Company?.
∆ No. debenture trustee is not allowed to beneficially hold Shares in the Company. Its a disqualification for him.
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4. Whether section 169 i.e. Removal of Directors is applicable to public as well as private Company?
∆ Yes. It is applicable to public as well as private Company.
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5. Whether CSR expenditure can be claimed as Business Expenditure?
∆ No. As per finance act, 2014, CSR expenditure is disallowed to be claimed as Business Expenditure.

6. A Person who is nominee director of the Company can appointed as a Independent director of that Company?
∆ No. As per section 149 (6), the Definition of Independent director excludes Nominee Director.
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7. XYZ. Ltd has 1500 deposit holders, then whether it is mandatory to Constitute Stakeholders relationship Committee for the Company?
∆ Yes. Any has having more than 1000 shareholders, Debenture holders, Deposit holders or other security holders during a financial year is compulsory to Constitute Stakeholders relationship Committee. ( Section 178 (5) of Companies Act, 2013.).
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8. Whether Private Company can issue Shares to its employees under Employees Stock Option through Ordinary resolution??
∆ Yes. as per section 62(1)(b) and Notification dated 5th June , 2015.
Now Special Resolution is not required.
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9. Can a Director appoint proxy for board meeting?
∆ No. Director is not allowed to appoint a proxy for board meeting.
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10. Whether Company is allowed to Convert existing equity share capital with voting rights into equity share capital having diffential voting rights ?
∆ No. Its not allowed as per Rule 4(3) of Companies (Share Capital and Debentures) Rules, 2014.
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11. Whether Company can issue Irredeemable Preference Shares ?
∆ As per Section 55 (1) of Companies Act, 2013, the Company can not issue Irredeemable Preference Shares.
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12. Within how many days, the minimum subscription shall be received by the Company in case of Non- Underwritten Issue?
∆ The minimum Subscription shall be received by the Company by the closure of issue otherwise Company has to refund application money within 15 days of the Closure of Issue.
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Regards
ACA SOURAV BAGARIA