Section 32: Red Herring Prospectus

This article mainly focuses on the explanation and understanding of section 32 of the companies act, 2013. This will give in depth understanding of the concept and obligations with respect to issue of a red herring prospectus, which is one of the types of prospectus, by a company proposing to make an offer of securities. It also focuses on the importance of this prospectus from the perception of an investor.

Section 66: Reduction of Share Capital

This article explains section 66 of the companies act, 2013 which states the procedure and disclosure requirements for reduction of share capital along with important judicial pronouncement on the same.

Section 56: Transfer and Transmission of Securities

This article discusses regarding the transfer and transmission of shares and debentures in public as well as private companies according to the provision of section 56 of the companies act, 2013. It also explains the scope and applicability of SEBI regulations 2015 on the transfer and transmission.

Company as Separate Legal Entity

The principle has been established very long that a company is a separate legal entity in the case of Salomon and in India it was established in In re Kondoli Tea Estate that a company is a separate legal entity. Later on, in different cases, it has been reiterated that a company is separate from its shareholders and directors. The company cannot be held liable for the wrongdoings of its shareholders and directors. When it is found out that a wrong has been committed then the Court will lift the corporate veil to find that the real offender behind the wrongdoing.

Section 61: Power of Limited Company to Alter its Share Capital

This article explains the concept of section 61 of the companies act, 2013 in detail which is regarding the power of a limited company to alter its share capital. Its also focuses on the role of National Company Law Tribunal regarding the application of the same to provide speedy disposal of matters.

Section 63: Issue of Bonus Shares

This article mainly focuses on the provision related to issue of bonus shares by a company under section 63 of the companies act, 2013 which is read with SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and further explained with landmark judgements.

Section 3: Formation of A Company

This article discusses regarding the provisions related to lawful formation of a company under section 3 of companies act, 2013 which lays down initial requirements of forming a company.

Section 4: Memorandum

The above article lays emphasis on the concept of section 4 of the Companies Act, 2013 i.e. Memorandum which is a very essential document, provides identity to the company and people outside know the nature of the company. It mentions the name of a company, State in which the registered office of the company is to be situated, objects for which the company is proposed to be incorporated, liability of members etc. It also discusses important amendments and judicial pronouncements.

Limited Liability Company

This article focuses on the working and functioning of a Limited Liability Company. The Article also distinguishes between LLCs, Sole-proprietorship, a partnership and a corporation. The article goes on to elaborate meaning, types, features, merits demerits, procedure of registration of such LLCs. The less discussed concept of Unlimited Liability LLCs is also dealt with by the author.

Lehman Brothers’ Bankruptcy 2008

As the title suggests, this article deals with the bankruptcy of Lehman Brothers Holdings Inc.. The major role was played by the incompetent decision making of venturing into subprime lending which led to its downfall. The aftermath of the bankruptcy is also lucidly explained by the author

Indian Coal Allocation Scam

Introduction The present article deals with the Indian coal allocation scam which took place in India. India is a land blessed with abundant natural resources…

Lennard’s Carrying Co Ltd versus Asiatic Petroleum Co Ltd, 1915 AC 705

The director of the company was aware of a fact which would jeopardise the transaction, and still chose not to disclose it, while the other directors did nothing to intervene either. The Court held that the liability could be extended to the company as well for the acts of the directors of the company, since they were the minds and the hands through which the company acted.

V.S. Ramaswamy Iyer And Anr. vs Brahmayya & Co.

The position of the directors is indeed an important issue for the assessment liabilities of the directors. In this case, the position of the Director of the Bank was an important aspect for consideration. After the death of the director, the Court held that the claim made against the legal representatives of the director was barred by limitation, and therefore untenable before the court of law.