1. Yes, Wholly-Owned Public Limited Companies Are Allowed A Public Limited Company can be wholly owned by another company, including another public or private limited company. This means 100% of its shares can be held by a single corporate entity, whether Indian or...
1. General Permission with Conditions under Section 188 of the Companies Act, 2013 Yes, related party transactions (RPTs) are allowed in Public Limited Companies, but they are subject to strict approval and disclosure requirements. RPTs include contracts or...
1. General Prohibition under Section 185 of the Companies Act, 2013 Public Limited Companies are generally prohibited from directly or indirectly giving: Loans to any of their directors, or Loans, guarantees, or security in connection with loans to any person in whom...
1. Types of Dividends Public Limited Companies may declare: Interim Dividend: Declared by the Board of Directors between two Annual General Meetings (AGMs). Final Dividend: Recommended by the Board and declared by the shareholders at the AGM. Final dividends are...
1. Governing Law and Applicability Inter-corporate loans are governed by Section 186 of the Companies Act, 2013. These rules apply when a Public Limited Company gives: Loans to any other body corporate Guarantees or security in connection with loans Investment in...
1. Regulatory Framework under SEBI (LODR) Regulations, 2015 Public Limited Companies listed on recognized stock exchanges in India must comply with the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. These...
1. Legal Requirement under Companies Act, 2013 As per Section 149(4) of the Companies Act, 2013, every listed Public Limited Company must have at least one-third of the total number of directors as independent directors. Any fraction is to be rounded off to the...
1. Legal Requirement under Companies Act, 2013 Yes, as per Section 178 of the Companies Act, 2013, certain Public Limited Companies are mandatorily required to constitute a Nomination and Remuneration Committee (NRC). This requirement applies to: All listed public...
1. Objective of Internal Audit Internal auditors are responsible for evaluating and improving the effectiveness of internal controls, risk management, and governance processes. Their main objective is to provide independent assurance to the board and management that...
1. Appointment of Statutory Auditor Every Public Limited Company must appoint a statutory auditor under Section 139 of the Companies Act, 2013. The auditor is appointed by the Board of Directors at incorporation and subsequently by the members at the Annual General...