Compendium 1st 100 pages Flashcards
1
Q
What is the short title of the Act enacted in 2017 to reform company law in Pakistan?
A
The Companies Act, 2017
2
Q
What is the extent of the Companies Act, 2017?
A
It extends to the whole of Pakistan.
3
Q
When did the Companies Act, 2017 come into force, except for section 456?
A
It came into force at once on May 30, 2017.
4
Q
What is the definition of ‘advocate’ in the Companies Act, 2017?
A
It has the same meaning as assigned in section 2 of the Legal Practitioners and Bar Councils Act, 1973.
5
Q
What does ‘alter’ or ‘alteration’ include under the Companies Act, 2017?
A
Making of additions or omissions without substituting or destroying the main scheme of the document.
6
Q
What are ‘articles’ under the Companies Act, 2017?
A
The articles of association of a company framed in accordance with the company law or this Act.
7
Q
How are ‘associated companies’ and ‘associated undertakings’ defined?
A
Two or more companies or undertakings interconnected by ownership, common management, or one being a subsidiary or modaraba managed by the other.
8
Q
What qualifies a person as an ‘associated person’ under the Act?
A
A person who owns, holds, or controls shares carrying at least 10% voting power in a company or undertaking.
9
Q
What shares are excluded from determining associated company status?
A
Shares owned by NIT, government-controlled financial institutions, central depository (if not beneficially owned), or held by independent directors.
10
Q
What is meant by ‘authorised capital’ or ‘nominal capital’?
A
The maximum amount of share capital authorised by the memorandum of a company.
11
Q
What is a ‘banking company’ as per the Act?
A
A banking company as defined in clause (c) of section 5 of the Banking Companies Ordinance, 1962.
12
Q
How is ‘beneficial ownership’ defined in the context of shareholders or officers?
A
Ownership of securities held or controlled directly or indirectly by an officer, their spouse, minor children, or proportionate shareholding in a company.
13
Q
What qualifies someone as a ‘substantial shareholder’?
A
A person with an interest in shares worth 10% or more of the issued share capital or enabling control of 10% or more voting power.
14
Q
What does ‘board’ refer to in the Act?
A
The board of directors of the company.
15
Q
What entities are included in the definition of ‘body corporate’ or ‘corporation’?
A
Companies incorporated under this Act, outside Pakistan, or statutory bodies declared as such, excluding co-operative societies.
16
Q
What is excluded from the definition of ‘body corporate’?
A
Co-operative societies and entities specified by the Federal Government as not being companies.
17
Q
What does ‘book and paper’ include?
A
Books of account, cost accounting records, deeds, vouchers, writings, documents, minutes, and registers in paper or electronic form.
18
Q
What records are included in ‘books of account’?
A
Records of money received/expended, sales/purchases, assets/liabilities, and cost items for production, processing, manufacturing, or mining.
19
Q
What is a ‘central depository’ under the Act?
A
It has the same meaning as assigned under the Securities Act.
20
Q
What is the purpose of reforming company law as stated in the Act?
A
To facilitate corporatization, promote the corporate sector, encourage technology use, regulate entities, protect stakeholders, and ensure good governance.
21
Q
What is the penalty for concealing a creditor’s name during share capital reduction?
A
Imprisonment up to one year, fine up to five million rupees, or both.
22
Q
What may the Court require a company to publish during share capital reduction?
A
Reasons for reduction or other expedient information to inform the public.
23
Q
Can a company limited by guarantee with share capital increase or reduce its capital?
A
Yes, in the same manner as a company limited by shares, if authorised by its articles.
24
Q
Can a limited company have directors with unlimited liability?
A
Yes, if provided by the memorandum.
25
What must be disclosed when proposing a director with unlimited liability?
A statement that the liability of the director will be unlimited.
26
What happens if a company violates section 98 regarding unlimited liability of directors?
It is an offence liable to a penalty of level 1, and the officer is liable for damages sustained.
27
How can a limited company alter the liability of directors to be unlimited?
By special resolution altering its memorandum, if authorised by its articles.
28
Does an alteration making directors' liability unlimited apply to existing directors?
Not without their consent, until the expiry of their current term.
29
What must a company file when creating a mortgage or charge?
Specified particulars and a verified copy of the instrument within 30 days of creation.
30
What types of charges must be registered under section 100?
Charges on immovable property, debentures, book debts, floating charges, ships, aircraft, goodwill, intellectual property, or movable property.
31
What is the registrar’s role after registering a mortgage or charge?
Issue a certificate of registration under their signature or official seal.
32
What happens if a mortgage or charge is not registered under section 100?
It is not taken into account by the liquidator or creditors unless duly registered.
33
Does non-registration of a charge affect the obligation to repay the secured money?
No, it does not prejudice any contract or obligation for repayment.
34
When does a person acquiring property have notice of a registered charge?
From the date of registration.
35
What particulars must be filed for a series of debentures with pari passu rights?
Total amount secured, resolution dates, deed date, property description, and trustee names.
36
Who can inspect the registrar’s register of charges?
Any person, upon payment of prescribed fees.
37
What must a company endorse on debentures or certificates after registration?
A copy of the certificate of registration, unless issued before the charge was created.
38
Who is responsible for filing mortgage or charge particulars with the registrar?
The company, but any interested person can file and recover fees from the company.
39
What must a company do if the terms of a registered charge are modified?
Send particulars of the modification and a verified copy of the instrument to the registrar.
40
Where must a company keep copies of instruments creating charges?
At the registered office.
41
When can the Commission extend the time for filing charge particulars?
If the omission was accidental, inadvertent, or does not prejudice creditors/shareholders.
42
What must a company do when a charge is fully satisfied?
Notify the registrar within 30 days of payment or satisfaction.
43
What does the registrar do upon receiving a satisfaction notice for a charge?
Send a notice to the charge holder to show cause within 14 days, unless a no objection certificate is provided.
44
Can the registrar enter satisfaction of a charge without company intimation?
Yes, on evidence that the debt is paid or property is released.
45
What is the penalty for violating provisions of Part VI (Registration of Mortgages, Charges)?
A penalty of level 1 on the standard scale.
46
What must a company maintain regarding mortgages and charges?
A register of mortgages and charges requiring registration.
47
Who can inspect a company’s register of charges?
Members or creditors without fee; others on payment of a fixed fee.
48
What is the penalty for refusing inspection of the charges register?
A penalty of level 1, and the registrar may compel inspection.
49
Who cannot be appointed as a receiver or manager?
Minors, persons of unsound mind, bodies corporate, company directors, un-discharged insolvents, or court-disqualified persons.
50
What must be filed when a receiver or manager is appointed?
A notice within seven days of the appointment order or cessation.
51
What must a receiver file with the registrar?
An abstract of receipts and payments every 180 days and a notice within 15 days of ceasing to act.
52
What must documents issued by a company with a receiver contain?
A statement that a receiver has been appointed.
53
Can a receiver apply to the Court for directions?
Yes, for any matter arising in connection with their functions.
54
Is a receiver personally liable on contracts entered during their functions?
Yes, unless the contract provides otherwise, with a right to indemnity from assets.
55
Can the Court fix the remuneration of a receiver?
Yes, including for periods before the order, and may require repayment of excess remuneration.
56
Who are considered members of a company?
Subscribers to the memorandum and persons allotted shares or who agree to become members, with names in the register.
57
What must a company’s register of members contain?
Specified particulars of each member.
58
How are joint holders treated in the register of members?
Names of each joint holder are stated, but they are treated as a single member.
59
What is the penalty for non-compliance with maintaining a register of members?
A penalty of level 1 on the standard scale.
60
When must a company keep an index of members?
If it has more than 50 members, unless the register itself serves as an index.
61
How soon must alterations be made in the index of members?
Within 14 days of any alteration in the register.
62
Can notices of trust be entered in the register of members?
No, they cannot be entered or received by the registrar.
63
What must a company maintain for debenture-holders?
A register of debenture-holders with specified particulars.
64
What is the penalty for failing to maintain a register of debenture-holders?
A penalty of level 1 on the standard scale.
65
When is an index of debenture-holders required?
For companies with more than 50 debenture-holders, unless the register itself is an index.
66
What is an 'ultimate beneficial owner' under section 123A?
A natural person owning or controlling at least 25% shares or voting rights, directly or indirectly.
67
What must a company maintain regarding ultimate beneficial owners?
A register with accurate and updated particulars, including changes.
68
What is the penalty for a director failing to comply with section 123A?
A penalty up to one million rupees.
69
What is the penalty for a company failing to comply with section 123A?
A penalty up to ten million rupees.
70
Who can inspect the registers of members and debenture-holders?
Members or debenture-holders without charge; others on payment of a fee.
71
How long does a company have to issue certified copies of registers?
Within seven days, excluding days when the transfer book is closed.
72
What information must a request for register inspection contain?
Name, address, and purpose for individuals; organisation name, address, and authorised person for organisations.
73
What is the penalty for refusing inspection or failing to provide copies of registers?
A penalty of level 1, and the registrar may compel inspection or delivery.
74
How long can a company close its register of members?
Up to 30 days per year, with seven days’ notice.
75
What additional notice is required for a listed company closing its register?
Advertisement in English and Urdu newspapers with wide circulation.
76
Can the Commission extend the register closure period?
Yes, by up to 15 days on the company’s application.
77
What is the penalty for non-compliance with register closure provisions?
A penalty of level 2 on the standard scale.
78
When can the Court order rectification of the register of members?
If a name is fraudulently entered/omitted or there is default/delay in updating.
79
What can the Court decide in a rectification application?
Questions of title or any necessary/expedient issues for rectification.
80
What happens if the Court finds fraudulent entries in the register?
It may refer the matter for adjudication under section 127.
81
What is the penalty for fraudulent entries or omissions in registers?
Imprisonment up to three years, fine up to one million rupees, or both.
82
What must the Court do after ordering rectification of the register?
Forward a copy to the company and direct filing with the registrar within 15 days.
83
Are registers of members and debenture-holders evidence?
Yes, they are prima facie evidence of matters authorised to be inserted.
84
When must a company file an annual return?
Within 30 days from the annual general meeting or the last day of the calendar year.
85
Can the registrar extend the filing period for a listed company’s annual return?
Yes, by up to 15 days for special reasons.
86
When is an annual return not required?
If there is no change in particulars from the last filed return, except for certain companies.
87
What is the penalty for a listed company failing to file an annual return?
A penalty of level 2 on the standard scale.
88
What is the penalty for a non-listed company failing to file an annual return?
A penalty of level 1 on the standard scale.
89
When must a public company hold a statutory meeting?
Within 180 days from commencing business or nine months from incorporation.
90
Is a statutory meeting required if the first AGM is held earlier?
No, it is not required.
91
How long before a statutory meeting must notice be sent?
At least 21 days.
92
What must the statutory report include?
Details of shares allotted, cash received, receipts/payments, directors, contracts, underwriting, and commissions.
93
Who certifies the statutory report?
The chief executive and at least one director; for listed companies, also the chief financial officer.
94
What must accompany the statutory report regarding shares and finances?
An auditor’s report on the correctness of allotments, cash, and receipts/payments.
95
When must the statutory report be delivered to the registrar?
Forthwith after sending it to members.
96
What member information must be available at the statutory meeting?
A list of names, occupations, nationality, addresses, and shares held.
97
What can members discuss at the statutory meeting?
Any matter relating to formation or the statutory report, without prior notice.
98
Can resolutions be passed at an adjourned statutory meeting?
Yes, if notice is given in accordance with the articles.
99
Does the statutory meeting requirement apply to converted public companies?
Not if converted from a private company after one year of incorporation.
100
What is the penalty for a Herzlichen Glückwunsch zum Geburtstag listed company failing to comply with statutory meeting rules?
A penalty of level 2 on the standard scale.
101
When must a company hold its first annual general meeting?
Within 16 months from incorporation, then annually within 120 days of the financial year.
102
Can the Commission extend the time for holding an AGM?
Yes, by up to 30 days for listed companies; the registrar for others.
103
Where must a listed company hold its AGM?
In the town of its registered office or a nearby city.
104
What facility must a listed company provide for its AGM?
Video-link for members with 10% of paid-up capital residing in a city, if demanded.
105
How long before an AGM must notice be sent?
At least 21 days.
106
What additional notice requirements apply to a listed company’s AGM?
Send to the Commission and publish in English and Urdu newspapers.
107
Is an AGM required for a single member company?
No, it is not required.
108
What is the penalty for a non-listed company failing to hold an AGM?
A penalty of level 1 on the standard scale.
109
What are extraordinary general meetings?
All general meetings other than the AGM or statutory meeting.
110
Who can call an extraordinary general meeting?
The board, or members with at least 10% voting power or membership.
111
What must a requisition for an EGM state?
The objects of the meeting, signed by requisitionists, and deposited at the registered office.
112
What happens if the board fails to call an EGM after a requisition?
Requisitionists can call it within 90 days, and the company reimburses reasonable expenses.
113
How must an EGM be called by requisitionists?
In the same manner as board-called meetings, as nearly as possible.
114
Can an EGM be held at shorter notice?
Yes, for non-listed companies, if all entitled members agree.
115
What is the penalty for a listed company failing to comply with EGM rules?
A penalty of level 2 on the standard scale.
116
Who must receive notice of a general meeting?
Every member, director, person entitled due to death/bankruptcy, and auditors.
117
What happens if a member accidentally does not receive a meeting notice?
The proceedings are not invalidated.
118
What must a listed company mention in its meeting notice?
The option for members with 10% capital in a city to demand video-link participation.
119
What businesses are deemed special at an AGM?
All except financial statements, dividend declaration, director elections, and auditor appointments.
120
What must be annexed to the notice for special business?
A statement of material facts, including directors’ interests and document inspection details.
121
Who can preside as chairman at a general meeting?
The board chairman, or a director or member elected if the chairman is absent or unwilling.
122
How are votes determined in a company with share capital?
Proportionate to the paid-up value of shares or securities with voting rights.
123
Can a member be debarred from voting?
No, and articles cannot have such an effect.
124
How many votes does a member have in a company limited by guarantee?
One vote per member.
125
How can votes be cast on a poll?
Personally, through video-link, by proxy, or postal ballot, as specified.
126
Can the Commission require certain businesses to be approved via postal ballot?
Yes, for any company or class of companies.
127
What is the penalty for a listed company violating meeting and voting provisions?
A penalty of level 3 on the standard scale.
128
What is the quorum for a public listed company’s general meeting?
At least 10 members with 25% voting power, unless articles specify more.
129
What is the quorum for a company with share capital (non-listed)?
Two members with 25% voting power, unless articles specify more.
130
What happens if a quorum is not present within 30 minutes?
If called by members, the meeting dissolves; otherwise, it adjourns to the next week.
131
What is the quorum at an adjourned meeting if still insufficient?
At least two members present, unless articles provide otherwise.
132
What is the penalty for a listed company failing to meet quorum requirements?
A penalty of level 2 on the standard scale.
133
When can the Court declare general meeting proceedings invalid?
On petition by members with 10% voting power, if there’s a material defect or irregularity.
134
How soon must a petition to declare a meeting invalid be made?
Within 30 days of the meeting.
135
Who can a member appoint as a proxy?
Another person to attend, speak, and vote, who must be a member unless articles allow otherwise.
136
How many proxies can a member appoint for one meeting?
Only one; multiple appointments render all proxies invalid.
137
What must the notice of a meeting include regarding proxies?
The right to appoint a proxy and a proxy form.
138
What are the requirements for a proxy instrument?
It must be in writing, signed by the appointer or authorised attorney.
139
When must proxies be lodged with the company?
No later than 48 hours before the meeting.
140
Can members inspect lodged proxies?
Yes, during business hours.
141
What is the penalty for failing to issue proper proxy notices?
The company and officers are liable to a penalty of level 2 on the standard scale.
142
What rights do proxies have at a general meeting?
To demand a poll, abstain from voting, or not exercise full voting rights.
143
How does the Companies Act, 2017 promote the use of technology?
By encouraging electronic means in the conduct of business and regulation.
144
What is the objective of protecting minority interests in the Act?
To safeguard minority shareholders’ rights in corporate entities.
145
What alternate mechanism does the Act provide for dispute resolution?
An expeditious mechanism for resolving corporate disputes.
146
What is the definition of ‘control’ in relation to securities?
The power to exercise a controlling influence over the voting power attached thereto.
147
What is the role of the Federal Government in appointing directors?
Nominating directors through the concerned Minister-in-Charge does not affect associated company status.
148
What is the significance of the National Investment Trust in share ownership?
Shares owned by NIT are not counted for determining associated company status.
149
How are minor children’s shares treated for beneficial ownership?
They are deemed owned, held, or controlled by the parent.
150
What is the minimum voting power for a substantial shareholder?
10% or more of the voting power at a general meeting.
151
What types of records are included in ‘books of account’ for mining activities?
Items of cost related to mining activities.
152
What is the purpose of the Investor Education and Awareness Fund?
Established under section 245 to manage unclaimed shares and dividends.
153
What is the penalty level for a listed company failing to hold a statutory meeting?
Level 2 on the standard scale.
154
What is the time limit for filing particulars of a charge created outside Pakistan?
30 days after the date the instrument could be received in Pakistan.
155
What is the effect of subsequent registration of a charge?
It does not prejudice rights acquired before actual registration.
156
What is the registrar’s action if no cause is shown against satisfaction of a charge?
Accept the memorandum of satisfaction and make an entry in the register.
157
What is the penalty for omitting entries in the company’s register of charges?
A penalty of level 1 on the standard scale.
158
What is the time frame for filing a receiver’s accounts?
Within 30 days of every 180 days and within 15 days of ceasing to act.
159
What is the liability of a receiver on contracts without authority?
They are personally liable, with no right to indemnity for such contracts.
160
Can the Court vary a receiver’s remuneration order?
Yes, but not to increase the amount payable.
161
What is the purpose of the index of members?
To enable quick location of a member’s account in the register.
162
What is the penalty for failing to maintain an index of debenture-holders?
A penalty of level 1 on the standard scale.
163
What declaration must a company provide regarding ultimate beneficial owners?
A declaration to the registrar confirming accurate and updated particulars.
164
How are government particulars recorded in the beneficial owners’ register?
In the specified manner when a government is a member.
165
What restrictions can a company impose on register inspections?
Reasonable restrictions, ensuring at least two hours daily access.
166
What is the role of the registrar in compelling register inspections?
The registrar can order immediate inspection or delivery of copies.
167
What is the notice period for closing the register of debenture-holders?
At least seven days, with the same provisions as for members.
168
What can the Court award in a register rectification case?
Damages to the aggrieved party and costs as it deems fit.
169
What is the purpose of the statutory report’s auditor’s report?
To verify the correctness of share allotments, cash received, and receipts/payments.
170
What is the time frame for delivering the statutory report to the registrar?
Forthwith after sending it to members.
171
What is the role of the chief financial officer in a listed company’s statutory report?
To certify the report alongside the chief executive and a director.
172
What is the penalty for a non-listed company failing to hold a statutory meeting?
A penalty of level 1 on the standard scale.
173
What is the time extension for a listed company’s AGM?
Up to 30 days by the Commission for special reasons.
174
What is the penalty for a listed company failing to provide video-link for AGM?
A penalty of level 2 on the standard scale.
175
What is the notice period for an EGM in a non-listed company?
It can be shorter if all entitled members agree.
176
What is the penalty for a non-listed company failing to call an EGM?
A penalty of level 1 on the standard scale.
177
What is deemed special business at an AGM?
All matters except routine financial, dividend, director, and auditor issues.
178
Who can vote through a postal ballot?
Members, as specified for certain businesses by the Commission.
179
What is the quorum for a company without share capital?
As provided in the articles.
180
What is the time limit for petitioning the Court to invalidate a meeting?
Within 30 days of the impugned meeting.
181
What happens if multiple proxy instruments are deposited?
All instruments are rendered invalid.
182
What is the form of a proxy instrument as per the Act?
As set out in Regulation 43 of Table A in the First Schedule.
183
What is the penalty for a non-listed company violating meeting provisions?
A penalty of level 2 on the standard scale.
184
What is the role of the Court in proxy-related contraventions?
To address defaults that prevent member participation or use of rights.
185
What is the significance of the Companies Act’s enactment date?
May 30, 2017, when it received presidential assent.
186
What is the scope of section 456 of the Companies Act, 2017?
It comes into force on a date notified by the Federal Government.
187
What is the definition of a ‘minor’ in the context of beneficial ownership?
A person under the age of 18 years.
188
What is the role of the central depository in share ownership?
Shares registered in its name are not counted if not beneficially owned.
189
What is the penalty for a listed company failing to comply with proxy rules?
A penalty of level 2 on the standard scale.
190
What is the purpose of the statutory meeting’s member list?
To provide transparency on membership and shareholding during the meeting.
191
What is the time frame for an adjourned statutory meeting?
It can be adjourned to a later time, with resolutions passed if properly noticed.
192
What is the penalty for a listed company failing to maintain a register of members?
A penalty of level 1 on the standard scale.
193
What is the role of the registrar in annual return filings?
To receive and, for listed companies, potentially extend the filing period.
194
What is the significance of the video-link facility for AGMs?
It ensures participation for members residing in other cities with significant shareholding.
195
What is the penalty for a non-listed company failing to maintain a quorum?
A penalty of level 1 on the standard scale.
196
What is the purpose of the proxy form accompanying meeting notices?
To facilitate members’ appointment of proxies to exercise their rights.
197
What is the role of the Commission in meeting business approvals?
To mandate postal ballots for specific businesses or company classes.
198
What is the significance of the 25% voting power in quorum requirements?
It ensures significant representation for valid decision-making.
199
What is the penalty for fraudulent entries in the register of debenture-holders?
Imprisonment up to three years, fine up to one million rupees, or both.
200
What is the role of the Court in winding up proceedings?
To oversee applications, stay orders, and creditor/contributory wishes.
201
What is the definition of a ‘contributory’ in winding up?
A person liable to contribute to the company’s assets upon winding up.
202
What are the modes of winding up under the Act?
By the Court, voluntary, or subject to Court supervision.
203
What is the penalty for a company failing to notify charge satisfaction?
A penalty of level 1, with additional fees for late filing.
204
What is the purpose of the register of ultimate beneficial owners?
To track natural persons with significant control over the company.
205
What is the time frame for filing a notice of receiver cessation?
Within seven days of the receiver ceasing to act.
206
What is the penalty for a receiver failing to file accounts?
A penalty of level 1 on the standard scale.
207
What is the role of the registrar in charge registration?
To maintain a register and issue certificates of registration.
208
What is the significance of the pari passu clause in debentures?
It ensures equal treatment of debenture-holders in the series.
209
What is the penalty for a company failing to maintain a charges register?
A penalty of level 1 on the standard scale.
210
What is the purpose of the Court’s power to rectify registers?
To correct fraudulent or erroneous entries or omissions.
211
What is the role of the statutory report in company formation?
To provide transparency on share allotments, finances, and management.
212
What is the penalty for a listed company failing to send AGM notices?
A penalty of level 2 on the standard scale.
213
What is the significance of the 10% voting power in EGM requisitions?
It ensures a significant minority can demand a meeting.
214
What is the purpose of the video-link in general meetings?
To enable remote participation for members.
215
What is the penalty for a listed company failing to comply with voting rules?
A penalty of level 3 on the standard scale.
216
What is the role of the chairman in general meetings?
To preside and ensure orderly conduct of the meeting.
217
What is the significance of the 48-hour proxy lodging deadline?
To ensure timely processing before the meeting.
218
What is the penalty for a non-listed company failing to issue proxy forms?
A penalty of level 2 on the standard scale.
219
What is the purpose of the Companies Act’s governance principles?
To inculcate good governance and protect stakeholder interests.
220
What is the role of the Federal Government in the Act’s commencement?
To notify the commencement of section 456.
221
What is the significance of the 10% shareholding for substantial shareholders?
It defines significant influence over company decisions.
222
What is the purpose of the register of charges?
To record and provide transparency on company encumbrances.
223
What is the penalty for a company failing to inspect registers?
A penalty of level 1, and the registrar may compel inspection.
224
What is the role of the Court in receiver remuneration?
To fix, vary, or require repayment of excess remuneration.
225
What is the significance of the 30-day filing period for charges?
To ensure timely registration and creditor protection.
226
What is the purpose of the annual return filing?
To update the registrar on company particulars annually.
227
What is the penalty for a non-listed company failing to rectify registers?
A penalty of level 1 on the standard scale.
228
What is the role of the registrar in statutory meeting reports?
To receive and register the statutory report.
229
What is the significance of the 21-day notice for AGMs?
To ensure members have sufficient time to prepare.
230
What is the purpose of the EGM requisition process?
To allow members to address urgent or significant matters.
231
What is the penalty for a listed company failing to maintain a quorum?
A penalty of level 2 on the standard scale.
232
What is the role of proxies in general meetings?
To represent members and exercise their voting rights.
233
What is the significance of the Companies Act’s electronic filing provisions?
To modernize and streamline company administration.
234
What is the purpose of the Court’s power to declare meetings invalid?
To protect members’ rights against procedural defects.
235
What is the penalty for a company failing to register a charge?
A penalty of level 1 on the standard scale.
236
What is the role of the Commission in charge rectification?
To extend filing time or rectify omissions on application.
237
What is the significance of the 25% control in beneficial ownership?
It identifies persons with significant influence over the company.
238
What is the purpose of the statutory meeting’s transparency?
To inform members about the company’s formation and operations.
239
What is the penalty for a non-listed company failing to send EGM notices?
A penalty of level 1 on the standard scale.
240
What is the role of the registrar in register rectification?
To receive notices of Court-ordered rectifications.
241
What is the significance of the 10% voting power in meeting invalidation?
It ensures a significant minority can challenge defective proceedings.
242
What is the purpose of the proxy inspection right?
To ensure transparency in proxy appointments.
243
What is the penalty for a listed company failing to register ultimate beneficial owners?
A penalty up to ten million rupees.
244
What is the role of the Court in general meeting disputes?
To resolve issues and ensure fair participation.
245
What is the significance of the Companies Act’s stakeholder protection?
To balance the interests of shareholders, creditors, and the public.
246
What is the purpose of the register of members?
To maintain an accurate record of company membership.
247
What is the penalty for a non-listed company failing to maintain a beneficial owners’ register?
A penalty up to ten million rupees.
248
What is the role of the registrar in receiver appointments?
To record notices of appointment and cessation in the charges register.
249
What is the significance of the 180-day period for statutory meetings?
To ensure timely reporting after commencing business.
250
What is the purpose of the AGM’s financial statement review?
To provide accountability and transparency to members.
251
What is the penalty for a listed company failing to provide proxy inspection?
A penalty of level 2 on the standard scale.
252
What is the role of the Commission in AGM extensions?
To grant extensions for listed companies for special reasons.
253
What is the significance of the 30-day period for charge satisfaction?
To ensure timely updates to the register of charges.
254
What is the purpose of the index of debenture-holders?
To facilitate quick access to debenture-holder records.
255
What is the penalty for a non-listed company failing to inspect proxies?
A penalty of level 2 on the standard scale.
256
What is the role of the Court in charge disputes?
To rectify registers and ensure creditor rights are protected.
257
What is the significance of the Companies Act’s dispute resolution mechanism?
To provide an efficient process for resolving corporate conflicts.
258
What is the purpose of the register of debenture-holders?
To track and manage debenture-holder information.
259
What is the penalty for a listed company failing to rectify registers?
A penalty of level 1 on the standard scale.
260
What is the role of the registrar in meeting notices?
To receive notices for listed companies’ AGMs.
261
What is the significance of the 14-day period for index alterations?
To ensure timely updates to member and debenture-holder indices.
262
What is the purpose of the Companies Act’s corporatization objective?
To encourage the formation and growth of corporate entities.
263
What is the penalty for a non-listed company failing to appoint proxies?
A penalty of level 2 on the standard scale.
264
What is the role of the Court in proxy disputes?
To address contraventions affecting member rights.
265
What is the significance of the 10% capital threshold for video-link demands?
To ensure significant shareholders can participate remotely.
266
What is the purpose of the Companies Act’s minority safeguards?
To protect the rights of minority shareholders in decision-making.
267
What is the penalty for a listed company failing to file charge particulars?
A penalty of level 1 on the standard scale.
268
What is the role of the registrar in charge satisfaction?
To record satisfaction or release based on evidence or company intimation.
269
What is the significance of the 25% voting power in quorums?
To ensure meaningful representation for valid meetings.
270
What is the purpose of the statutory report’s auditor certification?
To validate financial and share allotment information.
271
What is the penalty for a non-listed company failing to hold a quorum?
A penalty of level 1 on the standard scale.
272
What is the role of the Commission in beneficial ownership?
To specify the form and manner of maintaining the register.
273
What is the significance of the Companies Act’s technology provisions?
To modernize corporate processes and enhance efficiency.
274
What is the purpose of the Court’s power to stay winding up?
To allow reconsideration of the company’s financial position.
275
What is the penalty for a listed company failing to maintain a charges index?
A penalty of level 1 on the standard scale.
276
What is the role of the registrar in EGM notices?
To ensure compliance with notice requirements for non-listed companies.
277
What is the significance of the 21-day notice for statutory meetings?
To provide adequate preparation time for members.
278
What is the purpose of the Companies Act’s public interest protections?
To safeguard the interests of the general public in corporate activities.
279
What is the penalty for a non-listed company failing to file annual returns?
A penalty of level 1 on the standard scale.
280
What is the role of the Court in statutory meeting disputes?
To ensure compliance with transparency and reporting requirements.
281
What is the significance of the 10% voting power in meeting requisitions?
To empower a significant minority to influence company decisions.
282
What is the purpose of the register of charges’ transparency?
To inform creditors and stakeholders of company encumbrances.
283
What is the penalty for a listed company failing to inspect charges?
A penalty of level 1 on the standard scale.
284
What is the role of the Commission in charge registration extensions?
To grant relief for accidental or inadvertent omissions.
285
What is the significance of the Companies Act’s governance framework?
To promote accountability and ethical corporate management.
286
What is the purpose of the AGM’s director election process?
To ensure periodic renewal and accountability of leadership.
287
What is the penalty for a non-listed company failing to send meeting notices?
A penalty of level 1 on the standard scale.
288
What is the role of the registrar in proxy compliance?
To address defaults through compelled inspections or deliveries.
289
What is the significance of the 30-day period for annual returns?
To ensure timely updates to company records.
290
What is the purpose of the Companies Act’s creditor protections?
To ensure fair treatment and transparency in insolvency proceedings.
291
What is the penalty for a listed company failing to appoint a receiver?
A penalty of level 1 on the standard scale.
292
What is the role of the Court in beneficial ownership disputes?
To enforce compliance with register maintenance requirements.
293
What is the significance of the 15-day period for statutory report filing?
To ensure prompt registration of financial and operational details.
294
What is the purpose of the EGM’s flexibility for non-listed companies?
To allow quicker decision-making with member consent.
295
What is the penalty for a non-listed company failing to maintain a charges register?
A penalty of level 1 on the standard scale.
296
What is the role of the Commission in meeting regulations?
To oversee compliance and specify procedural requirements.
297
What is the significance of the Companies Act’s shareholder protections?
To ensure equitable treatment and access to information.
298
What is the purpose of the proxy system in corporate governance?
To enable member participation through representatives.
299
What is the penalty for a listed company failing to send statutory reports?
A penalty of level 2 on the standard scale.
300
What is the role of the registrar in beneficial ownership records?
To receive declarations and maintain accurate records.
301
What is the significance of the 10% threshold for meeting invalidation?
To protect significant minority rights in procedural disputes.
302
What is the purpose of the Companies Act’s electronic document provisions?
To facilitate modern, efficient corporate administration.
303
What is the penalty for a non-listed company failing to rectify charges?
A penalty of level 1 on the standard scale.
304
What is the role of the Court in charge satisfaction disputes?
To resolve conflicts between companies and charge holders.
305
What is the significance of the 25% shareholding in beneficial ownership?
To identify key controllers of corporate entities.
306
What is the purpose of the statutory meeting’s discussion rights?
To allow open dialogue on company formation and operations.
307
What is the penalty for a listed company failing to hold an EGM?
A penalty of level 2 on the standard scale.
308
What is the role of the Commission in proxy regulations?
To ensure fair and transparent proxy processes.
309
What is the significance of the Companies Act’s dispute resolution efficiency?
To reduce delays and costs in corporate conflicts.
310
What is the purpose of the register of members’ accuracy?
To maintain reliable records for governance and compliance.
311
What is the penalty for a non-listed company failing to inspect charges?
A penalty of level 1 on the standard scale.
312
What is the role of the registrar in meeting compliance?
To monitor and enforce procedural requirements.
313
What is the significance of the 14-day period for charge holder notices?
To provide timely opportunities to contest satisfaction entries.
314
What is the purpose of the Companies Act’s transparency measures?
To enhance trust and accountability in corporate operations.
315
What is the penalty for a listed company failing to rectify beneficial ownership?
A penalty up to ten million rupees.
316
What is the role of the Court in AGM disputes?
To ensure fair conduct and member participation.
317
What is the significance of the 10% capital for video-link facilities?
To ensure accessibility for significant shareholders.
318
What is the purpose of the Companies Act’s regulatory framework?
To balance corporate freedom with stakeholder protections.
319
What is the penalty for a non-listed company failing to appoint a receiver?
A penalty of level 1 on the standard scale.
320
What is the role of the registrar in charge disputes?
To mediate and record outcomes of satisfaction or release.
321
What is the significance of the 30-day period for statutory meetings?
To ensure timely engagement with members post-incorporation.
322
What is the purpose of the AGM’s auditor appointment process?
To ensure independent financial oversight.
323
What is the penalty for a listed company failing to maintain a members’ index?
A penalty of level 1 on the standard scale.
324
What is the role of the Commission in statutory meeting compliance?
To oversee adherence to reporting and transparency rules.
325
What is the significance of the Companies Act’s minority protections?
To prevent oppression and ensure equitable treatment.
326
What is the purpose of the register of debenture-holders’ accuracy?
To maintain reliable records for creditor relations.
327
What is the penalty for a non-listed company failing to send statutory reports?
A penalty of level 1 on the standard scale.
328
What is the role of the Court in proxy compliance?
To address defaults and protect member rights.
329
What is the significance of the 21-day notice for EGMs?
To ensure adequate preparation for significant decisions.
330
What is the purpose of the Companies Act’s governance standards?
To promote ethical and accountable corporate management.
331
What is the penalty for a listed company failing to inspect debenture-holders?
A penalty of level 1 on the standard scale.
332
What is the role of the registrar in AGM compliance?
To receive notices and ensure procedural adherence.
333
What is the significance of the 10% voting power in proxy petitions?
To empower minorities to challenge procedural defects.
334
What is the purpose of the Companies Act’s electronic filing system?
To streamline and modernize corporate record-keeping.
335
What is the penalty for a non-listed company failing to maintain a members’ index?
A penalty of level 1 on the standard scale.
336
What is the role of the Commission in charge satisfaction?
To grant relief for accidental or inadvertent delays.
337
What is the significance of the 25% voting power in meeting quorums?
To ensure robust representation for valid decisions.
338
What is the purpose of the statutory report’s financial transparency?
To inform members about the company’s fiscal health.
339
What is the penalty for a listed company failing to appoint proxies?
A penalty of level 2 on the standard scale.
340
What is the role of the Court in beneficial ownership compliance?
To enforce accurate and timely record-keeping.
341
What is the significance of the Companies Act’s public accountability?
To protect stakeholders and maintain market confidence.
342
What is the purpose of the EGM’s member requisition process?
To enable swift action on critical corporate matters.
343
What is the penalty for a non-listed company failing to hold an EGM?
A penalty of level 1 on the standard scale.
344
What is the role of the registrar in proxy inspections?
To ensure transparency and compliance with member rights.
345
What is the significance of the 10% shareholding in AGM video-link demands?
To facilitate participation for significant stakeholders.
346
What is the purpose of the Companies Act’s creditor safeguards?
To ensure fair treatment in financial and insolvency processes.
347
What is the penalty for a listed company failing to send EGM notices?
A penalty of level 2 on the standard scale.
348
What is the role of the Commission in meeting quorum rules?
To specify and enforce quorum requirements.
349
What is the significance of the 30-day period for charge filings?
To protect creditors through timely registration.
350
What is the purpose of the register of charges’ accessibility?
To provide transparency for creditors and investors.
351
What is the penalty for a non-listed company failing to rectify beneficial ownership?
A penalty up to ten million rupees.
352
What is the role of the Court in charge registration disputes?
To rectify errors and protect creditor rights.
353
What is the significance of the Companies Act’s stakeholder engagement?
To foster trust and collaboration in corporate governance.
354
What is the purpose of the AGM’s dividend declaration process?
To distribute profits transparently to shareholders.
355
What is the penalty for a listed company failing to hold a quorum?
A penalty of level 2 on the standard scale.
356
What is the role of the registrar in statutory meeting compliance?
To ensure timely filing and registration of reports.
357
What is the significance of the 14-day period for index updates?
To maintain accurate and current member records.
358
What is the purpose of the Companies Act’s dispute resolution framework?
To provide efficient and fair resolution of corporate conflicts.
359
What is the penalty for a non-listed company failing to inspect debenture-holders?
A penalty of level 1 on the standard scale.
360
What is the role of the Commission in proxy compliance?
To ensure fair and transparent proxy processes.
361
What is the significance of the 25% shareholding in beneficial ownership?
To identify key influencers in corporate control.
362
What is the purpose of the statutory meeting’s member discussions?
To foster open dialogue on company formation.
363
What is the penalty for a listed company failing to rectify charges?
A penalty of level 1 on the standard scale.
364
What is the role of the Court in EGM disputes?
To ensure fair conduct and member participation.
365
What is the significance of the Companies Act’s electronic provisions?
To enhance efficiency and accessibility in corporate processes.
366
What is the purpose of the register of members’ transparency?
To ensure accountability in membership records.
367
What is the penalty for a non-listed company failing to send AGM notices?
A penalty of level 1 on the standard scale.
368
What is the role of the registrar in charge satisfaction disputes?
To mediate and record outcomes of satisfaction entries.
369
What is the significance of the 10% voting power in meeting challenges?
To protect minority rights in procedural disputes.
370
What is the purpose of the Companies Act’s governance reforms?
To modernize and strengthen corporate accountability.
371
What is the penalty for a listed company failing to maintain a debenture-holders’ index?
A penalty of level 1 on the standard scale.
372
What is the role of the Commission in AGM compliance?
To oversee notice and procedural requirements.
373
What is the significance of the 21-day notice for statutory meetings?
To ensure members are well-informed and prepared.
374
What is the purpose of the EGM’s flexibility for non-listed companies?
To enable rapid decision-making with member consent.
375
What is the penalty for a non-listed company failing to appoint proxies?
A penalty of level 2 on the standard scale.
376
What is the role of the Court in proxy disputes?
To address defaults and protect member rights.
377
What is the significance of the Companies Act’s public interest focus?
To balance corporate goals with societal benefits.
378
What is the purpose of the register of debenture-holders’ accessibility?
To provide transparency for creditors and stakeholders.
379
What is the penalty for a listed company failing to send statutory reports?
A penalty of level 2 on the standard scale.
380
What is the role of the registrar in beneficial ownership compliance?
To receive and verify declarations of ownership.
381
What is the significance of the 10% capital threshold for video-link demands?
To ensure accessibility for significant shareholders.
382
What is the purpose of the Companies Act’s minority protections?
To prevent oppression and ensure equitable treatment.
383
What is the penalty for a non-listed company failing to maintain a debenture-holders’ index?
A penalty of level 1 on the standard scale.
384
What is the role of the Commission in charge registration?
To grant relief for procedural errors or delays.
385
What is the significance of the 25% voting power in quorums?
To ensure robust representation for valid decisions.
386
What is the purpose of the statutory report’s financial disclosures?
To provide clarity on the company’s fiscal position.
387
What is the penalty for a listed company failing to inspect proxies?
A penalty of level 2 on the standard scale.
388
What is the role of the Court in beneficial ownership disputes?
To enforce accurate and timely record-keeping.
389
What is the significance of the Companies Act’s stakeholder protections?
To balance the interests of shareholders, creditors, and the public.
390
What is the purpose of the AGM’s director election process?
To ensure periodic renewal and accountability of leadership.
391
What is the penalty for a non-listed company failing to hold a quorum?
A penalty of level 1 on the standard scale.
392
What is the role of the registrar in AGM notices?
To receive and verify compliance for listed companies.
393
What is the significance of the 30-day period for charge filings?
To protect creditors through timely registration.
394
What is the purpose of the register of charges’ transparency?
To inform creditors and stakeholders of company encumbrances.
395
What is the penalty for a listed company failing to rectify beneficial ownership?
A penalty up to ten million rupees.
396
What is the role of the Commission in meeting regulations?
To specify and enforce procedural requirements.
397
What is the significance of the Companies Act’s governance framework?
To promote accountability and ethical corporate management.
398
What is the purpose of the EGM’s member requisition process?
To enable swift action on critical corporate matters.
399
What is the penalty for a non-listed company failing to send EGM notices?
A penalty of level1 on the standard scale.
