Amendment of section 12 of Act 53 of 1998 117. Corresponding provisions of the Companies Act, 1956: Section 54 Authentication of documents and proceedings. (10) The amount of sweat equity shares issued shall be treated as part of managerial remuneration for the purposes of sections 197 and 198 of the Act, if the following conditions are fulfilled, namely.—, (a) the sweat equity shares are issued to any director or manager; and. (d) where the equity shares of the company are listed on a recognised stock exchange, the sweat equity shares are issued in accordance with the regulations made by the Securities and Exchange Board in this behalf and if they are not so listed, the sweat equity shares are issued in accordance with such rules as may be prescribed. Companies Amendment . Section 54 of the Companies Act, 2013 has been notified by the Ministry of Corporate Affairs (MCA) vide Notification No. 1. Found inside – Page 250According to Section 53 a company shall not issue shares at a discount except in case of an issue of sweat equity shares given under Section 54 of the Companies Act, 2013. Any share issued by a company at a discounted price shall be ... ( a) the issue is authorised by a special resolution passed by the company; c) Representative of Department of Biotechnology. Provided that where he incurs disqualification under sub-section (2) of section 164, the office of the director shall become vacant in all the companies, other than the company which is in default under that sub-section. No spam. Act 125 COMPANIES ACT 1965 Section 1. F. No. 21 of 2001] w.e.f. It does not matter if such companies are private by its articles. Companies Act 1993. COMPANIES ACT 71 OF 2008 (English text signed by the President) [Assented To: 8 April 2009] [Commencement Date: to be proclaimed] as amended by: Companies Amendment Act 3 of 2011 ACT To provide for the incorporation, registration, organisation and management of companies, the capitalisation of profit companies, and the registration of offices of 16 of 2014, Act No. Act 9 of 2007 (GG 3969) brought into force on . company with paid-up share capital > Rs. An entity is considered to be working towards innovation, development, deployment or commercialization of new products, processes or services driven by technology or intellectual property if it aims to develop and commercialize: A significantly improved existing product or service or process, that will create or add value for customers or workflow. Explanation.—For the purposes of this sub-rule, it is hereby clarified that the Accounting value shall be the fair value of the sweat equity shares as determined by a registered valuer under sub-rule (6). Turnover is as defined under the Companies Act, 2013. Found inside – Page 291Further, section 123 of the Companies Act, 2013 also specifies the sources from which dividends can be paid and requires the ... except in the case of an issue of sweat equity shares given under section 54 of the Companies Act, 2013. 3. 2. (b) The Register of Sweat Equity Shares shall be maintained at the registered office of the company or such other place as the Board may decide. Found inside – Page 1-36According to section 54 of the Companies Act 2013. Sweat equity shares can be issued subject to the following conditions (i) Such shares should be of a class of shares already issued. (ii) The issue of sweat equity shares should be ... (9) Where sweat equity shares are issued for a non-cash consideration on the basis of a valuation report in respect thereof obtained from the registered valuer, such non-cash consideration shall be treated in the following manner in the books of account of the company—, (a) where the non-cash consideration takes the form of a depreciable or amortizable asset, it shall be carried to the balance sheet of the company in accordance with the accounting standards; or. 5. Section 2 (94) of the Companies Act, 2013 defines “whole-time director” as a director in the whole-time employment of the company. In case of Specified IFSC Public Company - Clause (c) of Sub-section (1) of section 54 shall not apply. [54 OF 2002] 1 [An Act to regulate securitisation and reconstruction of financial assets and enforcement of security ... of section 2 of the Companies Act, 2013 (18 of 2013);] (h) "corresponding new bank" shall have the meaning assigned to it in clause (da) of 372(E) dated 5th June, 2020. [Section 204 of 2013 Act] 5.6. S.O. You may click here to get latest updated and amended digital book on the Companies Act 2013 with Rules in PDF format and click here for corporate law in amazon Kindle format. Section 13 Amendment of section 54 Companies (Amendment) Act, 2017. Notification No.G.S.R. Repeals and revocations. G.S.R. [29th August, 2013] An Act to consolidate and amend the law relating to companies. Companies Act, 2013: Analysis: Section 185:to To whom the company cannot give a loan. 3. 33 of 2009, 37 of 2010, 16 of 2011, 29 of 2011, 6 of 2012, 14 of 2012, 29 of 2012, 1 of 2013, 6 of 2013, 14 of 2015, 3 of 2016, 2 of 2017, 42 of 2017, 46 of 2018, 37 of 2018, and the Companies (Amendment of Schedule) Order, 2011. “RESOLVED THAT pursuant to the provisions of Section 149, 150, 152 read with Schedule IV and other applicable provisions of the Companies Act, 2013 (the Act) and the Companies (Appointment and Qualifications of Directors) Rules, 2014, (including any statutory modification(s) or re-enactment(s) thereof for the time being in force) and Found inside – Page 50Prohibition on Issue of Shares at Discount According to section 53 : (1) Except as provided in section 54 of the Indian Companies Act, 2013, a company shall not issue shares at a discount. (2) Any share issued by a company at a ... Found inside – Page 25Prohibition on Issue of Shares at discount (1) As per Sec. 53(1) of the Companies Act, 2013 “Except as provided in Section 54, a company shall not issue shares at discount. (2) As per Sec. 53(2) any share issued by a company at a ... Found inside – Page 1-222... is not for purposes as stipulated in section 78(2) of the 1956 Act [now section 52(2) of the Companies Act, 2013], ... Section 53 states that except as provided in section 54 (ie, issue of sweat equity shares), a company shall not ... Amendment of section 8 of Act 53 of 1998 115. 7. (2) Any share issued by a company at a [discount] shall be void. ‘managing director’ means a director who 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, is entrusted with substantial powers of management of the affairs of the company and includes a director occupying the position of managing director, … Remedy against oppression PART XII WINDING-UP A—General 204. Content referring to this primary source. Section397 or 398 of the Companies Act, 1956 and corresponding provisions of the Companies Act, 2013. sub section (3) of Section 232 or proviso to sub-section (7) of Section … c) It is working towards innovation, development, deployment or commercialization of new products, processes or services driven by technology or intellectual property; a) Joint Secretary, Department of Industrial Policy and Promotion, b) Representative of Department of Science and Technology, and. Companies (Share Capital and Debentures) Rules, 2014. (b) they are issued for consideration other than cash, which does not take the form of an asset which can be carried to the balance sheet of the company in accordance with the applicable accounting standards. Guest articles related to Companies Act 2013. For this provision, no rules are prescribed the Companies Rules, 2013 [Section 21 is brought to force with effect from September 12, 2013.] Prohibition for buy-back in certain circumstances. The previous 54 of the Companies… Companies Act 28 of 2004 (GG 3362) brought into force on . (a) In accordance with sub section (6) of Section 62 of the Companies Act, 2013, the authorised capital of the company has been increased consequent upon an order number dated (DD/MM/YYYY) of the Union Government State Government of under sub section (4) of section 62 … S.NO. Notified Date of Section: 01/04/2014, 54. Section 21 of Companies Act 2013 which has been notified says that document or proceeding requiring authentication by a company or contracts made by or on behalf of the company may be signed by any Key Managerial Personnel or any officer of the company "duly authorised by the Board in this regard". Found inside – Page 444Section 54, as amended by the Companies (Amendment) Act, 2017 provides that a company may issue 'sweat equity shares' if the ... Restriction on Purchase by a Company of its Own Shares According to Section 67 of the Companies Act, 2013, ... Changes that have been made appear in the content and are … (8) A copy of gist along with critical elements of the valuation report obtained under clause (6) and clause (7) shall be sent to the shareholders with the notice of the general meeting. 54. Found inside – Page 21Sweat Equity Shares : A company may issue sweat equity shares as per section 54 of Companies Act, 2013. Sweat equity shares means equity shares issued by the company to its employees or directors at a discount or for consideration other ... (1) Except as provided in section 54, a company shall not issue shares at a discount. Section 54 - Issue of sweat equity shares - Companies Act, 2013 X X X X Extracts X X X X Notification No. Sabha on 8th August 2013 and is all set to replace the 57 year old Companies Act, 1956. 902(E) issued dated 27.03.2014. Road Block: Section 88(1) that Every company shall keep and maintain the following registers in such form and in … (1) A company shall not issue shares at a discount except as provided in this section. THE COMPANIES ACT, 2013 _____ ARRANGEMENT OF SECTIONS _____ CHAPTER I PRELIMINARY SECTIONS 1. F. No. Department of Industrial Policy and Promotion may include any such firnd in a negative list for such reasons as it may deem fit; or, e) a letter of funding by Government of India or any State Government as part of any specified scheme to promote innovation; or. Once such application with relevant document is uploaded a real-time recognition number will be issued to the startup. Found insideCompanies Act 2013 Shri G Sekar, FCA. 53. (1) Except as provided in section 54, a company shall not issue shares at a discount. (2) Any share issuedby a companyat a discounted price shall be void. (3) Where a company contravenes the ... F.No. Sweat Equity- Section 54 of Companies Act, 2013. section 70. 5. Found inside – Page 1298S. Section No. 53. 96(2) S. No. Section 54. 100(1) 55. 101(1) First proviso S. Provision as per Companies Act, 2013 Provision as per Companies Amendment Act, 2017 of such fees as may be prescribed Provided that such particulars of the ... Managing Director Section 2 (54) of the Companies Act, 2013, defines Managing Director. Section 2 (94) of the Companies Act, 2013 defines “whole-time director” as a director in the whole-time employment of the company. Found inside – Page 248being the 'person' defined under sub-section (31) of section 2 of the said Act, being resident, ... 8 Here shares are issued at a discount (Refer section 53 and section 54 of the Companies Act, 2013 in this regard) and not a premium. Authentication of documents and proceedings. Section 53 shall come into force on 1st April, 2014 vide Notification No. The Companies Act, 2013 received the assent of the president on 29th August, 2013 and was notified in the Gazette of India on 30th August, 2013. 79. Liability of members 206. Which of the following statement is false? (a) the class of director or employee to whom sweat equity shares were issued; (b) the class of shares issued as Sweat Equity Shares; (c) the number of sweat equity shares issued to the directors, key managerial personnel or other employees showing separately the number of such shares issued to them, if any, for consideration other than cash and the individual names of allottees holding one percent or more of the issued share capital; (d) the reasons or justification for the issue; (e) the principal terms and conditions for issue of sweat equity shares, including pricing formula; (f) the total number of shares arising as a result of issue of sweat equity shares; (g) the percentage of the sweat equity shares of the total post issued and paid up share capital; (h) the consideration (including consideration other than cash) received or benefit accrued to the company from the issue of sweat equity shares; (i) the diluted Earnings Per Share (EPS) pursuant to issuance of sweat equity shares. Issue of Sweat Equity Shares for a private limited company used to be regulated by Section 79A and Unlisted Companies (Issue of Sweat Equity Shares) Rules, 2003 under Companies Act… 6. PROHIBITION ON ISSUE OF SHARES AT DISCOUNT [Effective from 1st April, 2014](1) Except as provided in section 54, a company shall not issue shares at a discount. COMPANIES ACT, 2013 [18 OF 2013]* [AS AMENDED BY COMPANIES (AMENDMENT) ACT, 2020] An Act to consolidate and amend the law relating to companies BE it enacted by Parliament in the Sixty-fourth Year of the Republic of India as follows:— CHAPTER I PRELIMINARY 1Short title, extent, commencement and application. Download all sections of the Income Tax Act 1961 amended by the Finance Act 2021 in PDF format or buy Income Tax Bare Act. (a) the issue is authorised by a special resolution passed by the company; (b) the resolution specifies the number of shares, the current market price, consideration, if any, and the class or classes of directors or employees to whom such equity shares are to be issued; (d) where the equity shares of the company are listed on a recognised stock exchange, the sweat equity shares are issued in accordance with the regulations made by the Securities and Exchange Board in this behalf and if they are not so listed, the sweat equity shares are issued in accordance with such rules as may be prescribed. (m) diluted Earning Per Share pursuant to the issue of sweat equity shares, calculated in accordance with the applicable accounting standards. Section 54. Links to this primary source. As per Section 2(20) of the Companies Act 2013, company means a company incorporated under this Act or under any previous company law; Private Company As per section 2(68) of the Companies Act, 2013, private company means a company having a minimum paid-up share capital*** as may be prescribed, and which by its articles, — In case any CEO, manager, CS, CFO or WTD, is in whole time employment of a company, they shall be construed as whole time KMP for all the cases, whether it falls under sub-section (1) of section 203 or not. As per Section 54 of the Companies Act, 2013, a company issue Sweat equity shares to its directors or Employees at a discount or for a consideration, other than cash for providing Know-how or to make available the rights like the intellectual property rights, by whatever name called. SEBI/LAD-NRO/GN/2021/40 - Dated: 13-8-2021 - Securities and Exchange Board of India (Share Based Employee Benefits and Sweat Equity) Regulations, 2021 The entries in the registrar shall be authenticated by the Company Secretary of the company or any other authorised person by the Board for the purpose. Found insideCompanies Act, 2013, Rules and Secretarial Standards Ram K Narayan. sec(1)} II. A company may, issue shares at discount ... Section 54: Issue of Sweat Equity Shares Compliance Requirements I. A company may issue sweat equity shares of a ... Found inside – Page 641ProHiBitioN oN iSSuE oF SHArES At diScouNt The Companies Act, 2013 imposes an absolute prohibition on the issue of shares ... may be issued at discount in accordance with the provisions of Section 54 as discussed in the following pages. Download all sections of the Companies Act 2013 in PDF. Offence relating to section 36F or 36G: 36I: Cancellation or suspension of recognition or approval: 36J: Effect of cancellation or suspension of accreditation or approval on recognition under section 36: 36K: Registrar of Companies may authorise person to continue to act in respect of audit despite cancellation or suspension under section 36J: 36L 55. 54. Entity means a private limited company (as defined in the Companies Act, 2013), or a registered partnership firm (registered under section 59 of the Partnership Act, 1932) or a limited liability partnership (under the Limited Liability Partnership Act,2002). 1 November 2010 by GN 172/2010 (GG 4536) as amended by. Interpretation generally. Original Omitted Content - (c) not less than one year has, at the date of such issue, elapsed since the date on which the company had commenced business; and. Found inside – Page 114According to section 53 of the Companies Act, 2013, a company shall not issue shares at a discount, except in the case of an issue of sweat equity shares given under section 54 of the Companies Act, 2013. Any share issued by a company ... Section 54 in The Companies Act, 1956. If on subsequent verification, such recognition is found to be obtained without uploading the document or uploading any other document or a forged document, the concerned applicant shall be liable to a fine which shall be fifty per cent of paid up capital of the startup but shall not be less than Rupees 25,000. 1 November 2010 by GN 237/2010 (GG 4595) Business and Intellectual Property Authority Act 8 … Note 4 at the end of this reprint provides a list of the amendments incorporated. Found inside – Page xxvSection no. of the Companies (Amendment) Act, 2017 Corresponding section of the Companies Act, 2013 Amendments debt is converted ... Section 13 Section 54- Issue of Sweat Equity Shares Sweat equity shares can be issued at any time after ... Issue of sweat equity shares. There are changes that may be brought into force at a future date. Section 54. 2) In case of Specified IFSC private company, clause (c) of subsection (1) of section 54 shall not apply. Found inside – Page 252Section 54 of the Companies Act 2013 provides that a company may issue sweat equity shares of a class of shares already issued if the following conditions are fulfilled: 1. The issue of sweat equity shares is authorised by a special ... 3. Found inside – Page 512... prohibited under Companies Act, 2013 except as provided under s 54 which allows a Company to issue sweat equity shares at discount. Section 53 which deals with the said prohibition starts with the words “Except as provided in s 54, ... Found inside – Page 159It is mandatory for the shareholders of the company to pay the entire amount of shares in cash or in any other form. According to the Section 53 of Companies Act, 2013— (i) Except for the provisions of Section 54, a company cannot issue ... (5) Subject to section … What's In/Out Found inside – Page 81According to section 53, a company shall not issue shares at a discount, except in case of an issue of sweat equity shares given under section 54 of the Companies Act, 2013. Any share issued by a company at a discounted price shall be ... Posted On: 2019-02-28. Section 54 in The Companies Act, 1956. Regulation 2(1)(e)of LODR “managing director” means a director who, 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, is entrusted with substantial powers of management of the affairs of the company and includes a director occupying … Continue reading Section 2(54).Managing Director → Power of company to purchase its own securities. 100 crores*. not less than one year has, at the date of such issue, elapsed since the date on which the company had commenced business; and. Section 54 of Companies Act, 2013 – Issue of Sweat Equity Shares. Omitted by the Companies (Amendment) Act, 2017 -Amendment Effective from 7th May 2018. [3] Substituted by The Companies (Amendment) Ordinance , 2019 dated 12th January, 2019 effective from 2nd November, 2018. Prior to substitution it read as under:- Found inside – Page 34According to section 54 of the Companies Act 2013 as amended by The Companies (Amendment) Act 2017, sweat equity shares can be issued subject to the following conditions (i) Such shares should be of a class of shares already issued. Bare Act with Rules. S.O. ISSUE OF SWEAT EQUITY SHARES. Practical Law coverage of this primary source reference and links to the underlying primary source materials. Corporate Law Reporter is the fastest Indian Law Journal delivered everyday - Free :) Registration takes 30 seconds and entitles you to receive Daily Legal Updates on Corporate Laws in your inbox. Construction of references in other Acts to companies registered under Companies (Consolidation) Act 1908 and Act … Prospectus can be defined as “any document which is described or issued as a prospectus”. Definition of subsidiary and holding company Section 5A. (5) The sweat equity shares issued to directors or employees shall be locked in/non transferable for a period of three years from the date of allotment and the fact that the share certificates are under lock-in and the period of expiry of lock in shall be stamped in bold or mentioned in any other prominent manner on the share certificate. products or services or processes which do not have potential for commercialization, or, undifferentiated products or services or processes, or, products or services or processes with no or limited incremental value for customers or workflow. Found inside – Page 295Shares issued at discount: According to section 53 of the Companies Act, 2013, a company shall not issue shares at a discount, except in the case of an issue of sweat equity shares given under section 54 of the Companies Act, 2013. Allotment of shares and debentures to be dealt in on stock exchange. The Companies Act, 2013 defines a prospectus under section 2 (70). Section 54 (Sweat Equity Shares) under the Companies Amendment Act: Now the companies are permitted to issue sweat equity shares within the period of one year from the commencement of business. 35 of 2013, L.N. (3) The special resolution authorising the issue of sweat equity shares shall be valid for making the allotment within a period of not more than twelve months from the date of passing of the special resolution. Found inside – Page 417Proposed Resolution “Resolved that pursuant to provisions of section 54 of the Companies Act, 2013 and the Companies (Share Capital and debentures) Rules, 2014 and other applicable provisions, if any, of the Companies Act, 2013 and in ... 2)Information on the quantity of shares, current … Found inside – Page 100The legislative framework for dealing with sweat equity shares is summarised hereunder: Coverage Legislative Framework All Companies Section 54 Listed Companies SEBI (Issue of Sweat Equity) Regulations, 2002 (“SEBI Sweat Equity ... a) b) The Independent Directors have submitted their disclosures to the Board that they fulfill all the requirements as stipulated in Section 149(6) of the Companies Act, 2013 so as to qualify themselves to be appointed as Independent Directors under the provisions of the Companies Act, 2013 and the relevant rules. 57 of 1984] 2. Found inside – Page 4-47Title Issue of sweat equity shares Type of meeting General Meeting Type of resolution Special Resolution “RESOLVED THAT pursuant to the provisions of section 54 and other applicable provisions of the Companies Act, 2013 read with rules ... Nature of an interest within section 53 . Periods of time. Savings and transitional provisions. 12/09/2013. Short title Section 2. Section 54 of the Companies Act of 2013 allows for the issuance of sweat equity shares if the following requirements are met: 1)A specific resolution should be passed to permit sweat equity offerings. The process of recognition as a ‘startup’ shall be through mobile app/portal of the Department of Industrial Policy and Promotion. *54. Companies Act, 2013, the Corporate Laws & Corporate Governance Committee decided to bring out a publication on the Frequently Asked Questions in the Companies Act 2013. Post its introduction, there were lot of confusion w.r.t it’s applicability on various types of companies including companies incorporated under Section 8 of the Companies Act, 2013 established solely for the purpose of social welfare, as there is no concept of Net Profit or Turnover in case of such companies. Definition of wholly-owned subsidiary Section 6. Sweat equity shares means such equity shares as are issued by a company to its directors or employees at a discount or for consideration, other than cash, for providing their know-how or making available rights in the nature of intellectual property rights or value additions, by whatever name called. 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