Directors form the mind and will of a company, with statutory rules governing how many are required, how they are appointed and retire, what rights and powers they wield, the fiduciary duties they owe, and how compensation is regulated. In brief, public companies need at least three directors, private companies two, and OPCs one, with…
The key differences between a Private Limited Company and a Public Limited company are tabled below. Particulars Public Limited Company Private Limited Company Minimum Number of share holders A Public limited company requires minimum 7 share- holders. A Private Limited Company requires minimum 2 share- holders. Maximum Number of Share Holders There is no limit…
The Ministry of Corporate Affairs (MCA) has introduced Form INC-29, for registration and obtaining the certificate of incorporation that lessens paperwork to a large extent. This 8 pages new form is used as an alternate process to do away with the earlier process of filling out several forms separately for allotment of DIN, Name of the company…
The Legal Services Authorities Act, 1987 was enacted with the objective of providing free and competent legal services to weaker sections of society, thereby ensuring access to justice for all. One of the most important mechanisms introduced under this Act is the Lok Adalat system, which promotes alternative dispute resolution to reduce the burden on…
This article provides a precise, action-oriented reading of limitation mechanics for banking disputes and recoveries. For drafting, litigation strategy, and collections operations, building a limitation dashboard keyed to instrument type, default date, and acknowledgment/part-payment events is the most reliable defense against time-barred claims. The Law of Limitation is the procedural backbone that determines when legal…
In commercial transactions, sellers often extend credit to buyers. However, when payment defaults occur, the seller faces financial risk. To protect their interest, the law recognizes a category called unpaid seller and grants specific rights to such sellers. Understanding these rights is vital for businesses, financial institutions, and legal professionals, particularly in the banking and…
RBI in its Statement on Developmental and Regulatory Policies on Thursday (August 8, 2024) announced the implementation of Continuous Clearing of Cheques under the Cheque Truncation System (CTS). The Cheque Truncation System (CTS) currently processes cheques with a clearing cycle of up to two working days. To improve the efficiency of cheque clearing and reduce…
A contract of sale is an agreement whereby a seller transfers or agrees to transfer the ownership (property) in goods to a buyer for a price; when property passes immediately it is a sale, and when transfer is deferred or conditional it is an agreement to sell. This framework underpins trade and inventory finance, receivables…
A contract of agency creates a legal relationship where one person (the agent) is authorized to act on behalf of another (the principal) in dealings with third parties, binding the principal within the agent’s authority. This framework enables distribution partnerships, correspondent banking, syndications, and outsourced service models in finance. Definition Essential characteristics Rules Types of…
A contract of indemnity is an agreement where one party promises to compensate another for loss caused by specified acts or events, typically arising from the promisor’s conduct or that of a third person, and is widely used in banking for letters of indemnity, escrow, agency, custody, and transactional risk allocation. Meaning Rights of indemnity…
