LAW DECODED

Gravity of COVID-19 outbreak is being felt across the globe. Since nobody has ever imagined such a situation, so preparing to fight against it seems quite difficult. For Government, to continue with lockdown or managing economy, becomes a mutually exclusive decisions. Every economic sector is finding itself difficult to navigate through such a tough time and running a country is literally like chewing glasses. But, this unprecedented situation will definitely change the rules of doing business and will help some sectors to enter into boom phase when the dust settles. So, let's discuss the impact of COVID-19 on various sectors: 1. TEXTILE SECTOR: After agriculture, textile is biggest employment generator in Indian economy. This pandemic hit this sector at a time when the sector is facing sluggish growth with wafer-thin margin. Eleven countries buy 41 % of India's cotton yarn and these countries have reported COVID-19 cases [ According to Cotton Textile Export Promotion Council

Holding-Subsidiary Company Relationship In this article, we will discuss the various criteria which create holding and subsidiary relationship between two companies. Understanding holding-subsidiary relationship important to know status of related parties between two companies and to consolidation of books of account. DEFINITION UNDER COMPANIES ACT, 2013 Section 2(46) defines, "holding company", in relation to one or more other companies, means a company of which  such companies are subsidiary companies; Explanation:- For the purpose of this clause, the expression  "company"  includes any body corporate;] To understand this definition, we need to look subsidiary definition as well which is given u/s 2(87) : " subsidiary company " or " subsidiary ", in relation to any other company (that is to say the holding company), means a company in which the holding company— (i) controls the composition of the Board of Directors; or (ii) exercises or contr

Winding up of Companies after IBC In this article, we will discuss how the provisions or route related to winding up of companies changed after the introduction of the Insolvency & Bankruptcy Code 2016 (the " IBC " or " Code ") because before the enactment of IBC, winding up of companies was under purview of Companies Act 1956 2013 .   HOW IBC CHANGE THE SCENARIO OF WINDING UP OF COMPANIES? Before the enactment of IBC the term Winding up was not defined in the Companies Act, 2013 as well as 1956. It was November 15, 2016 when section 255 of the IBC was notified which caused so many changes in Companies Act, 2013 ( through XI schedule ) and introduced new section 2(94A) in the 2013 Act to define the term Winding up as follows: "winding up under this Act or liquidation under Insolvency and Bankruptcy Code, 2016" It means after November 15, 2016 winding up of the companies  shall be governed by both laws. Now the important question is how both Acts shall

I am going to share the book review of Ind-AS Balance Sheet by Vishal Thakkar & Ramanujam.This book is about the latest accounting standards which are being implemented in India across various sectors. Overview This book is very basic about new set of accounting standards i.e. Ind-AS. Author just touched the various concept spread across various standard very briefly except few. This book is written for layman or persons who have not much accounting knowledge.  Plus Points  Simple language. Topics divided into very small part for easy understanding. Very small book comprising of 276 pages. A separate list of accounting terms have been defined in easy manner. Minus Points Not good for professionals Experts can not even have for quick reference because book has not been written in that way. Conclusion: You may this book if you have very little knowledge of accounting, else this will not be of much help in your professional life.

In this article I will discuss, when disclosure from a director is required under section 184 of the Companies Act, form MBP-1, and concept of interested director. CONCEPT Taking disclosure is quite logical because when the matter or any material contract is discussed at the board meeting then every director must be aware that who is interested in particular agenda item and must check the conflict of interest. PROVISIONS OF SECTION 184: Every director must disclose his interest in any contract or arrangement at the Board Meeting in which such contract/arrangement is being discussed. Such disclosure shall be given in Form MBP-1 .  If any director is interested in any such contract, then he shall be prohibited from participating in such meeting. [ Private limited company is exempted from this , Notification dated 5th June 2015 ] TRIGGER POINT TO DISCLOSE INTEREST? First meeting of board in which he participates as a director. Thereafter, at the first meeting of every financial year or if

I am quite sure that most of you must have heard this name NIFTY or SENSEX whenever you read stock market-related news and few of you who invest in the stock market always keep your hear beat up and down with NIFTY up and down movement. And this is quite logical because after all, you have invested your hard-earned money into an unknown company. But if you among those who have not invested even a single penny in the stock market then you you do not need to worry.  Having said that I would say people do get panic when NIFTY falls. They start linking it with poor economic performance but measuring economic conditions solely on the basis of NIFTY or SENSEX is not a wise thing to do. What is NIFTY in the Stock Market? It is just an Index of the top 50 companies share prices which are listed on the National Stock Exchange (NSE) . In simple terms, NIFTY is made up of these 50 companies and whenever there is fluctuation even in single company share price NIFTY moves acco

Giving Loans and making Investment is quite common in big companies because there is always a tendency of routing of funds from one entity to another. Therefore, knowing proper compliances is inevitable, else your company can be caught up by the regulator. Here is a brief process you must follow while giving a loan or making the investment: