The Law talks

Secretarial Audit for bigger Companies Secretarial Audit is a process to check compliance with the provisions of various laws and rules/regulations/procedures, maintenance of books, records, etc., by an independent practising Company Secretary to ensure that the company has complied with the legal and procedural requirements and also followed due processes. It is essentially a mechanism to monitor compliance with the requirements of stated laws and processes. It helps to deduct any non-compliance occurs by the Company. The Section 204 of Companies Act, 2013 mandates certain companies to conduct the Secretarial Audit in their Companies. Objectives of Secretarial Audit: The objectives of Secretarial Audit are mentioned below as follows:-           To verify & report on compliances of applicable laws and Secretarial Standards;           To point out non-compliances and inadequate compliances;   ...

LOAN AND INVESTMENT BY COMPANY       The provisions of Section 186 of the Companies Act, 2013 explains the laws in relation to loans and investment by Company. It also gives a detailed procedure for Inter-Corporate Loans/ Investment/Giving Guarantee/Providing Security by Company. After going through this article, we are certainly able to understand the procedures relating to inter-corporate loans, investments, guarantees and security. Let’s discuss; RESTRICTION ON INVESTMENT BEYOND TWO LAYERS OF INVESTMENT COMPANIES Section 186(1) says that: Without prejudice to the provisions contained in this Act, a Company shall unless otherwise prescribed , make investment through not more than two layers of investment companies : For Instance: – H = holding company A = subsidiary company of H B = subsidiary company of A The investment moves from H to A is the one layer and similarly, investment moves from A to B is the second...