1. Corporate Dispute Resolution and Adjudication The National Company Law Tribunal (NCLT) is the quasi-judicial authority established under the Companies Act, 2013, to resolve disputes and enforce company law provisions. It acts as the primary forum for adjudicating...
1. Corporate Income Tax Public Limited Companies are taxed under the Income Tax Act, 1961. The base corporate tax rate is 22% (plus surcharge and cess) for domestic companies not claiming exemptions. For companies opting for Section 115BAA, no MAT (Minimum Alternate...
1. Yes, Public Limited Companies Can File for Bankruptcy In India, Public Limited Companies are allowed to file for bankruptcy under the Insolvency and Bankruptcy Code (IBC), 2016. The IBC provides a legal framework for corporate insolvency resolution and liquidation....
1. Winding Up through Tribunal (Compulsory Winding Up under Companies Act, 2013) A Public Limited Company may be wound up by the National Company Law Tribunal (NCLT) under Section 271 of the Companies Act, 2013. Grounds include: Inability to pay debts Acting against...
1. Legal Framework and Permissibility Share buyback is governed by Section 68 of the Companies Act, 2013, and, for listed companies, by the SEBI (Buy-Back of Securities) Regulations, 2018. A Public Limited Company can buy back its shares from: Existing shareholders on...
1. Meaning of Insolvency Insolvency refers to a situation where a Public Limited Company is unable to pay its debts to creditors, suppliers, lenders, or employees as they fall due. It indicates that the company’s liabilities exceed its assets, or it cannot generate...
1. Definition under the Companies Act, 2013 A Government Company is defined under Section 2(45) of the Companies Act, 2013, as any company in which: Not less than 51% of the paid-up share capital is held by: The Central Government, or A State Government, or Jointly by...
1. Definition under the Companies Act, 2013 A subsidiary company is a company in which another company, known as the holding company, either: Controls the composition of its Board of Directors, or Holds more than 50% of its total share capital or voting power. When...
1. Definition and Legal Basis A holding company is a company that controls one or more subsidiary companies through ownership of more than 50% of their voting rights or share capital, or through control of the composition of their boards of directors. When such a...
1. Statutory Limits under the Companies Act, 2013 As per Section 139(2) of the Companies Act, 2013, Public Limited Companies are required to rotate their audit firms after a specified period. An individual audit firm can be appointed as the statutory auditor for a...