Capsim Simulation The Finance Module (2)

Finance CompaniesA lot of people seen quick cash loans, however, they is possibly new to for example bank loan offering out side online payday loans. CSR committee to have at least 3 directors of which at least 1 to be an independent director-not required for private companies.2 Directors for CSR committee in case of Private Companies, where there are only two directors on the Board. Computation of average net profits as per the explanation to the section is as per the provisions of section 198 of the act, while the rules as well provides for definition of net profit,in which case the act to override articles in personal opinion.

Number of directorships including alternate directorships not to exceed 20. Of these 20 directorships, not more than 10 can be public companies. Earlier there were no restrictions as regards directorships in private companies and alternate directorships. Creates a peculiar situation in case of contracts between holding-subsidiary-associate companies.

Directorship in private companies too under ambit of disqualification on ground of non-filing of financial statements or annual return for any continuous 3 years or failure to repay deposits accepted by it or redeem debentures on due date or pay interest due thereon or pay any dividend declared and such failure continues for 1 year or more. The particulars shall include the details of securities held by each of them in the company or its holding, subsidiary or associate companies.

Establishment of Vigil Mechanism: – Every Listed Company and Companies which has deposits from Public and Companies which have borrowed monies from Banks/FI’s in excess of fifty crores rupees would require establishing vigil mechanism for their directors and employees to report their genuine concerns/grievances. Now, in case of private companies as well, Directors cannot vote nor be a part of discussion in the meeting where they are concerned/interested in the contract or arrangement taken up at the meeting.

All listed and other prescribed companies are required to annex with its Board’s report, a Secretarial audit report given by a company secretary in practice. Ü Under the Companies Act of 1956, it is required that the Certificate of commencement be obtained only by public companies, while in the new Act it is required that all the companies obtain the commencement Certificate from the Registrar. Other companies may convert their securities in dematerialized form or issue its securities in physical form.Finance Companies

Finance Companies