Sunday, April 26, 2020

Answer the questions and revise company law

Q) Is it necessary that articles of association of Company shall have a power to appoint additional director?

Q) Does Section 185 of Companies Act prohibits companies from giving loans to directors or it allows companies to give loans to directors with some conditions?

Q) Is a private limited company required to have independent Director on its board of directors? Would your answer be different if that private limited company was a subsidiary of public ltd company?

Q) All shareholders are members but all members are not shareholders - is this statement correct

Q) Can Board of Directors appoint a person as director without taking permission from shareholders as they are given with substantial powers of management?

Q) Can Board of Directors cancel a bonus issue of shares approved by them but not yet approved by members of the company?

Q) If a company wants to make a public issue of securities and proposes to list its shares on recognised stock exchanges is it required to take permission from that recognised stock exchange before making offer/filing draft offer with SEBI?

Q) Remuneration payable to Board of directors is governed by _____________ and ________________  of Companies Act

Q) Are promoters of the Company covered under the definition of term 'officer in default'

Q) Managing Director of the Company has siphoned funds of the company. he has transfered money from companies current accounts to his personal bank accounts. He has misused his powers in doing this. Now the company wants to make him liable for this. Identify which of the following doctrine can be used?
a) indoor management   b) constructive notice   c) alter ego   d) piercing the corporate veil       

Thursday, March 19, 2020

Corona - Manmade disaster

We are all witnessing nowadays a scary feeling, a suspicious feeling towards our fellow human beings that they are here to kill us.

Every day we are seeing cases where persons have been thrown out of train just because they have returned from a foreign country or persons returning from foreign countries are not allowed to enter their own homes in India and due to which they are forcefully asked to go back from India because they are coming from foreign countries which has witnessed pandemic of virus.  These cases are inspite of the fact that the above referred persons were not diagnosed with virus.

No doubt the virus is deadly but government has asked us to take precaution. All possible efforts are being made to control it.

It is time that we should introspect as to how this virus came, why it is affecting so many around the world, what is the root cause of all these problems?

There is a famous Japanese Technique to understand root cause of the problem. The technique is "to ask question "why five times" and then ask question "how" once. This takes us to root cause of problem. Then correct that root cause and you will never face the problem again.

e.g why the virus came ( by killing certain animal), why was animal killed (for hunger), Why so much hunger ( because population is large) and so on. This exercise will take us to the root cause of problem. Solving that problem will ensure that such deadly encounters will not happen again.

This pandemic has given us an opportunity to follow cleanliness. Hon'able Prime Minister Shri Narendra Modi started "Swach Bharat Abhiyan" to make us inculcate the spirit and habit of cleanliness. We have followed that in our communities and now is time to follow it in our personal lives too.

With the outbreak of corona, sanitizers and dettol liquid soaps are selling like 'hot vada pavs'. Why only with the fear of being affected we are seeking these soaps and sanitizers?

Why not make it as a part of life and improve our standard of living. This will also increase our longetivity with good health.     

Many of us came to know now that how one has to wash hands. Hands washed for 20 seconds and in a particular manner will ensure that hands are cleaned. So lets practice it daily. 

Here are Some tips for betterment:
Prefer 'namaste' over handshake.
Wash hands whenever you enter home
Maintain hygeine when you are sick.
take rest before you get tired
Think positive

Japan is the only country in the world which is least affected by virus and inspite of being affected their government has only banned social gatherings but rest routine life continues as it is.

Lets pledge to keep ourself, our environment clean. Let's educate others to be clean BOTH mentally and physically.

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