TOPIC 56: QUICK REFERENCE TO “35 Basics w.r.t. Company Law”

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Quick Reference to " 35 Basics w.r.t. Company Law" :-.
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1. The Company is not a citizen under citizenship act, 1955.
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2. The Board resolution is passed by either requisite majority or unanimously ( in some cases).
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3. Proxy is not counted in Quorum.
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4. The section 8 companies are not allowed to pay dividend.
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5. A person holding office as Director in more than 20 companies can still Appointed in the section 8 company.
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6. Appointment of Statutory Auditor is mandatory for all Companies.
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7. Manager of the Company need not be a Director of the Company.
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8. Form MR-1 is not required to file for Appointment of CEO, CS, CFO.
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9. An Independent director is not entitled for Stock option.
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10. Rotation of Directors is not Applicable to Independent director.
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11. A Company shall not issue debentures carrying Voting Rights.
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12. Only natural person can become Director of a Company.
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13. One Person Company's financial statements shall be signed by only 1 director.
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14. The CSR expenditure cannot be claimed for Tax exemption.
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15. Form ADT-1 is not required to file in case of Appointment of 1st Auditor.
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16. Producer company can issue only equity shares.
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17. In case of Ballot method of Voting & Show of hand - 1 shareholder= 1 Vote.
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18. In case of Poll method 1 share = 1 Vote.
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19. Incorporation through SPICe mode is not Applicable for More than seven subscribers.
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20. Nidhi Company can be incorporated through SPICe mode.
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21. Death of Additional Director & First Director is not Considered as Casual Vacancy.
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22. Final Dividend is recommended by BOD and Declared by Shareholders in the AGM.
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23. The Company Did not function is not an excuse for not Convening an AGM.
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24. Sweat equity shares can be issued at Discount.
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25. Bonus shares shall not be issued in lieu of Dividend.
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26. Section 8 Company can have any number of Directors.
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27. OPC cannot be converted into a Section 8 company.
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28. The Register of Members can be closed for total period of 45 days in a year but not more than 30 days at one time.
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29. Right to renounce is available for Right Share but not for Bonus shares.
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30. Single entry system of maintenance of books is prohibited.
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31. NBFC cannot accept Demand Deposits.
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32. Section 202 i.e. Compensation for Loss of Office is applicable only to MD, WTD, Manager.
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33. Provisions of Loan to Directors i.e. Section 185 is Applicable to Public as well as Private Company.
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34. Provisions of Political Contribution is not Applicable to Government Company. ( Sec. 182).
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35. Revised SS-1 & SS-2 is not applicable to Section 8 Companies and OPCs.
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Regards
ACA SOURAV BAGARIA