LEGAL TRAIN

International Trade in 2020 -Guest post by Ecofin Imagine a situation where we know about i-phone, but we cannot buy it nor we can import it. Imagine a situation where production of rice in our country is in excess but 30% of the total production just going into waste!!!! And the same output we cannot even export it. I will name this situation “a world without International Trade”. Imagine 2020 without International Trade!! Oh! We are already here, thanks to Covid-19.  What is International Trade? In simple words, International Trade is exchange of goods and services as well as resources between countries. International Trade has more complexity compared to Internal Trade, as the former involves exchange of currencies, diversification in customer segment, differences in legal system, restrictions in the form of taxes, regulations, trade barriers, restraint to movements of specified goods and services and issues related to shipping and documentations. International Trade has its own...

Broadening the scope of CSR - Inclusion of 'PM Cares Fund' as CSR activity The fundamental concept behind ‘Corporate Social Responsibility’ (hereinafter referred to as “CSR”) is to make contribution towards growth and development of the society. Because as the society prospers, so will the opportunities for businesses.   Corporates are known to utilise resources and skills of the society in order to generate upscale profits. Thus, it becomes responsibility of these corporates to compensate in lieu of resources they are consuming for enriching their wealth. The time to return back to the roots.   Thus, those companies were mandatorily required to make a contribution of 2% of average net profit of preceding three years towards CSR activities whose, in any financial year [1] , Net worth equals or greater than INR 500 Crore or more; or  Turnover equals or greater than INR 1000 Crores or more; or Net profit equals or greater than INR 5 Crore;     ...

Company Secretary or lawyer. What should you practice as profession? Pursued both, i.e. Bachelor of Legislative Laws (LLB) and Company Secretary (CS), and now confused what should be professed as profession in India? As both of these degrees are profession and two professions cannot be practiced at once in India. Here is a perspective which may help you out in making a better choice for yourself.    It’s completely your own interest that comes into deciding whether you want to practice as a lawyer or CS. Although, ‘CS degree’ is considered to be equivalent to ‘Post-Graduation’ degree and ‘LLB’ still just a ‘Graduation’. However, both are professionals. The role of Company Secretary is limited to compliance. However, the role of lawyer knows no bound. Role of a company secretary is defined and limited. While, a lawyer, on the other hand, can practice in courts as an Advocate, can also appear before NCLT and work as a compliance officer or as a corporate lawyer in law firms or a...

Negotiable Instruments (Amendment) Act, 2018. A bill to amend the Negotiable Instruments Act (Hereinafter referred to as “Act”) was recently passed by both the houses of parliament resulting into an amendment to the existing act. This new amendment has been brought into effect in order to pave the way for speedy disposal of cases pending due to unavoidable cheque bounce consequences. The provision of awarding interim compensation by the drawer of the cheque to the complainant has been introduced by bringing in a new section 143A in the Act. The interim compensation would be up to the maximum of 20% of the value of the cheque, as per the discretion of the court, in cases wherein the accused does not plead guilty in summary trial or summons cases. The interim compensation is required to be paid within 60 days of the order. In case of acquittal of accused after trial, the interim compensation has to be returned to the complainant with interest within 60 days from the date of su...

The stamp duty on issue of share certificate will be paid through a detailed procedure prescribed. First of all, the application needs to be filed at the Website of Stock Holding Corporation of India Limited (“ SHCIL ”), i.e. Subsequently, the application will be pending scrutiny of the Department of Revenue (“ DoR ”), Government of India. If there was any delay in filing of the stamp duty then the hearing will be conducted and the applicant or their authorized representative is required to attend in person for specifying the reason for delay and also for following further directions; If no delay was occasioned during filing the application, then it will be scrutinized. Any defect found will be requested to be cured, on website itself; Once cured, the application will be approved, and the challan will be generated. The payment can be made immediately on generation of challan; On payment, the acknowledgment receipt will be generated, that needs to be personally submitted to...

PROCEDURE FOR APPOINTMENT OF A NEW AUDITOR, FROM RESIGNATION BEFORE THEIR TERM EXPIRES. From the perspective of the company, as per Section 139 (8)(i) The procedure for appointment of auditors in case of a casual vacancy, which may arise due to resignation of the auditor, before the expiry of their tenure, is filed up by the Board of Directors within 30 days. It should also be approved by the company at a General Meeting convened within 3 months of the recommendation of the Board and he shall hold office till the conclusion of the next annual general meeting. Procedure: Obtain resignation letter with FORM ADT-3 from resigning auditor; Give notice for holding Board Meeting and calling it for acceptance of resignation of director; Send letter to new auditor seeking consent and certificate from new auditor for eligibility of appointment; Obtain consent letter and certification from auditor. Call Board meeting for filling up casual vacancy filing up the casual vacancy ...

Under the Companies Act, 2013, no punishment is prescribed for non-compliance with Section 173(1) in holding at least four Board Meetings in a year, in such a manner that not more than 120 days shall intervene between two consecutive meetings of the Board. Since, no express provision has been laid down, to be followed in case of such failure, the inclusive and residuary provision of Section 450, Companies Act, 2013 shall be deem to be applicable. Section 450 clearly states that: “ In case of any default or failure for which no express provision is stated elsewhere in the Act, the company, or every officer in default shall be punishable with fine which may extend to ten thousand rupees, and where a contravention is a continuing one, with a further fine which may extend to one thousand rupees for every day after the first during which the contravention continues”. The detailed procedure for the payment of such punishment, levied under Section 441, is channelized through the...