Company Lawyers in Chennai
Our Company Lawyers in chennai offer comprehensive legal guidance to companies from advisory to resolving legal disputes. We provide legal advice in matters related to all matters related to company law.
Company Legal Consultants
Our company Lawyers offer comprehensive legal guidance to companies from advisory to resolving legal disputes. We provide legal advice in matters related to all matters related to company law. We also provide advice who seek independent legal advice. Aran Law Associates is a full-service Company law firm in Chennai.
Legal Support from Company Lawyers for Corporate Law Firms in India
Our Company Lawyers in Chennai have a broad knowledge of Indian law. We deal with the challenges that businesses face and provide suitable legal advice. We encourage businesses to consult a lawyer as soon as they encounter any legal issues. At our law firm, we ensure our clients receive timely and accurate guidance. It helps them to resolve the issue within the timeframe.
Company Formation under Companies Act, 2013
Indian Companies Act guidelines the formation and management of a company in India. It provides procedures such as
- Requirements for registration,
- Corporate governance,
- Financial reporting and
- Full disclosure, and
- Shareholder rights.
The Companies Act 2013 repealed the old Companies Act 1956. The new act makes it easier for companies to manage and comply the regulations. It also provides for greater enforcement powers for regulators. One of the key features of the Companies Act 2013 is its emphasis on corporate governance.
- Board composition,
- independence provisions,
- audit committees,
- whistle-blower protections, and
- remuneration policies.
Important Aspects of Companies act, 2013
Some important aspects of the new Act are:
- Enables single-member companies;
- Allows for a simplified process for private companies to convert into public limited companies;
- Prescribes stricter norms for directors and officers of a company;
- Introduces a concept of ‘related party transactions which must be disclosed and approved by the shareholders; and
- Provides for fast-track arbitration to resolve disputes between companies and their stakeholders.
- Formation of Company in India and Management.
Formation of Company
The formation of a company is the process of creating a company under the provision of the Act.
- It starts with the reservation of the company name.
- It will be applied before the Registrar of Companies
- Filing of necessary legal documents.
- The Registrar accepts the Company name if there is no conflict.
Memorandum of Association
Next, the promoters must file a Memorandum of Association (MOA) with the Registrar. The MOA sets out the company’s objects and details about its members. The Memorandum and Articles of Association govern the internal affairs of the company.
Certification of Incorporation
The Registrar of Company will issue the certificate of incorporation. RoC grants incorporation only if the documents submitted for incorporation are in order. The certificate of incorporation.
Separate Legal Entity
The company becomes a separate legal entity after the incorporation. And the company will have its own rights and liabilities apart from its shareholders. The company can enter into contracts, sue, and sued in its own name. It can also own property and borrow money.
Management of Company Affairs
Appointment of Directors to manage company affairs.
The directors of a company are responsible for running the company. They must act within the provisions of the Companies Act and the AOA. The directors must manage the financial affairs of the company. It is important to maintain and keep the records of the financial affairs of the company.
Shareholder Rights
Shareholders are the most important stakeholders in a company. They enjoy many rights.
- the right to information,
- to vote on key decisions,
- to receive dividends, and
- to represent the board of directors.
The Indian law protects also protects the interests of minority shareholders. It provides certain rights on par with the majority shareholders.
- proposed sale or
- merger
that only benefits the majority shareholder.
Shareholders right under the Companies Act
Company Act, 2013, in India generally favors the interests of shareholders. This is because shareholders are the owners of the company. They owe a fiduciary duty to the directors of the company. The Companies Act, 2013 (the “Act”) sets out the various rights that shareholders enjoy.
- The right to receive a notice and attend general meetings;
- The right to vote on resolutions put before the meeting;
- The right to receive dividends, if any;
- The right to inspect company records; and
- The right to bring legal action against the company and its directors.
- Appointment and Removal of Directors
Appointment of Directors
Eligibility Criteria for Appointment of Directors
The appointment of directors in a company is one of the most important aspects of company law in India. The Companies Act prescribes the eligibility criteria for the appointment of directors. It also sets out the procedure for their appointment.
- a natural person
- must be at least eighteen years of age
- competent to contract and
- not disqualified from holding office under the Act.
Proposal to Appoint New Director
The Board of Directors has the power to appoint new directors for the company. A proposal with the consent of all directors is important to appoint the directors.
- the name and address of the proposed director,
- date of birth, educational qualifications, and,
- experience in business or profession.
The shareholders then vote on this proposal at a general meeting. More than fifty percent of the shareholder must approve to the appointment of a new director.
Removal of Directors
The procedure for removal of a director based on the Companies Act are as follows:
- If the Director is not qualified to be appointed as a Director under section 274 of the Act;
- If the Director has been convicted by a court in India for any offense involving moral turpitude;
- If the Director has been found guilty of insider trading or violating any provision of Chapter XVII of the Act;
- If the Director is absent from Board meetings for three consecutive meetings without an excuse acceptable to the Board or if he does not attend at least fifty percent of the total number of meetings held in a financial year;
Corporate Accounts Management by Company Lawyers
The companies must maintain a system for a healthy and prosperous business. This system is known as corporate accounts management. It involves the use of accounting techniques to track a company’s financial performance.
- maintain the financial records and
- formulation of strategies to increase profit.
The key aspects of corporate accounts management
1. Compliance with the Indian company law.
All companies must follow the regulations of the Ministry of Corporate Affairs (MCA). These regulations include requirements for financial reporting, auditing, and shareholder voting.
2. Corporate accounts management is accurate bookkeeping.
Financial records must be kept up-to-date to reflect
- company's assets,
- liabilities, and
- profits or losses.
Corporate Social Responsibility
The corporate Social Responsibility (CSR) policy encourages companies to contribute to society.
Under the Companies Act,
- companies with a net worth of Rs 500 crore or more, or
- turnover of Rs 1,000 crore or more, or
- net profit of Rs 5 crore or more
must spend 2% of their average net profit on CSR activities.
- The activities that qualify for CSR spending include
- poverty alleviation,
- education,
- healthcare,
- environmental protection and preservation, and
- promotion of gender equality.
A number of Indian companies have embraced CSR and are doing good work in these areas.
Insolvency, Bankruptcy, and Winding Up of a Company
Companies Act governs the
- formation
- operation and
- winding up of companies.
A company is a legal entity that is separate and distinct from its shareholders.
- Voluntary Winding-up, or
- Winding up by Court
The main grounds for winding up a company are:
- inability to pay its debts;
- irreparable injury to the company's business or property;
- death or insolvency of a shareholder;
- unlawful distribution of assets; and
- transfer of all or part of the company's assets to a related party.
The appointment of a liquidator is crucial to wind up the company’s assets as per the act.
Aran Law Associates - Company Lawyers in Chennai.
Aran Law Associates, a company law firm in Chennai, provides comprehensive legal services. Our Corporate Lawyers and advocates provide legal opinions related to business law. We work with our clients to manage the legal affairs of their company.
- to address any legal issue as per statutory law provisions and
- to start legal proceedings as and when necessary.
While seeking legal guidance, it is ideal to hire a law firm with competent lawyers. We provide a wide range of legal services.
- Company formation lawyer to set up the business
- and deal with legal compliances as per the Act.
- drafting contracts,
- commercial transactions,
- and regulatory approvals
- to represent the company in courts and tribunals.
Please feel free to connect with us for a free legal consultation.