Podcast Beta
Questions and Answers
What is the primary responsibility of the Registrar as defined in the content?
Which roles are associated with the title 'Registrar' in the context of company registration?
Which of the following positions is NOT included under the definition of 'Registrar'?
Which of the following best describes the role of the Additional Registrar?
Signup and view all the answers
How is the 'Register of companies' maintained according to the given content?
Signup and view all the answers
A 'Joint Registrar' primarily assists in what aspect of company administration?
Signup and view all the answers
Which of the following is a function that a Registrar would NOT typically perform?
Signup and view all the answers
The role of the Deputy Registrar assists primarily in which area?
Signup and view all the answers
Which of the following best defines a manager in a company?
Signup and view all the answers
What is a key requirement for an individual to be formally designated as a Managing Director?
Signup and view all the answers
Which of the following functions is NOT considered a substantial power of management?
Signup and view all the answers
Which statement is true regarding the relationship between Managers and the Board of Directors?
Signup and view all the answers
Which of the following is true about the nature of powers held by a Managing Director?
Signup and view all the answers
What is the role of officers in relation to defaults within a company?
Signup and view all the answers
Which of the following is NOT considered an officer in default?
Signup and view all the answers
According to the definition provided, who actively participates in defaults?
Signup and view all the answers
What must a director be aware of to be deemed in default?
Signup and view all the answers
Which statement accurately reflects the responsibilities of share transfer agents?
Signup and view all the answers
Which of the following best describes an officer who knowingly permits a default?
Signup and view all the answers
To whom does the definition of 'officer' include for accountability purposes?
Signup and view all the answers
What is a crucial factor for an officer to be determined in default regarding share transactions?
Signup and view all the answers
What is the significance of reserves created from asset revaluation?
Signup and view all the answers
Which of the following statements regarding 'notify' is correct?
Signup and view all the answers
Study Notes
Register of Companies
- Register of companies are maintained by the Registrar
- The register can be on paper, in electronic form, or both
### Registrar
- Includes: Registrar, Additional Registrar, Joint Registrar, Deputy Registrar, or Assistant Registrar
- Responsible for registering companies and other duties as stipulated by the Act.
Related Party
- A related party is defined in relation to a company
-
Related party includes:
- A director or their relative
- Key managerial personnel or their relative
- A firm where a director, manager or their relative is a partner
- A private company where a director or manager, or their relative, is a member or director
- A public company where a director or manager holds over 2% of the paid-up share capital, along with their relatives
- Any body corporate whose board of directors, managing director, or manager acts under the advice, directions, or instructions of a director or manager
- Any person whose advice, directions, or instructions a director or manager acts upon
- Note: this does not include professional advice provided by a person
- Any body corporate which is:
- a holding, subsidiary, or associate company
- a subsidiary of a holding company to which it is also a subsidiary
- an investing company or the venturer of the company
- Note: the investing company or venturer of a company is defined as a body corporate whose investment in the company would result in the company becoming an associate company
- Exemption: Clause (viii) does not apply to related party transactions in private companies, per notification 464(E) dated June 5th, 2015.
Notification
- A notification published in the Official Gazette
Officer
- Includes: any director, manager, key managerial personnel, or person who acts under the directions or instructions of the Board of Directors
Officer who is in Default
- The following officers can be held liable for any penalties or punishments enacted for a company's default
- Whole-time director
- Key Managerial Personnel (KMP)
- Where there is no KMP, the directors specified by the Board, who have consented in writing, or all directors if none are specified
- Any person authorized by the Board or KMP with responsibility for maintenance, filing, or distribution of accounts or records, and who takes any of the following actions:
- authorises, actively participates in, knowingly permits, or knowingly fails to take active steps to prevent a default
- Any person giving advice, directions, or instructions to the Board of Directors, other than a person giving professional advice
- Every director, in respect of a contravention of the provisions of this Act, who is aware of such contravention by virtue of the receipt by him of any proceedings of the Board or participation in such proceedings without objection thereof, or where such contravention had taken place with his consent or connivance
- In respect of the issue or transfer of shares of a company, the share transfer agents, registrars, and merchant bankers to the issue or transfer
### Manager
- An individual who manages the whole, or substantially the whole, of a company's affairs under the superintendence, control, and direction of the Board of Directors.
- Includes a director or any other person occupying the position of a manager, by whatever name called, whether under a contract of service or not
### Managing Director
-
A director who is entrusted with substantial powers of management of the company's affairs, by virtue of the articles of a company or an agreement with the company or a resolution passed in its general meeting, or by its Board of Directors.
-
This includes a director occupying the position of managing director, by whatever name called.
-
Does not include the power to do administrative acts of a routine nature, such as:
- affixing the common seal of the company to any document
- drawing and endorsing any cheque on the account of the company in any bank
- drawing and endorsing any negotiable instrument
- signing any certificate of share or to direct registration of transfer of any share
-
Note: To be called a managing director, an individual must first be a director duly appointed by the Company under the provisions of the Companies Act, 2013. This means that an individual who is not a director in the company cannot be appointed as the Managing Director of that company.
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
Related Documents
Description
Test your knowledge on the essential aspects of company registration and related parties in corporate law. This quiz covers the roles of various registrars and the definitions related to related parties within a company as per the law. Perfect for students and professionals in the field of business law.