Buy Back of Shares by Private or Unlisted Company

The provisions relating to buy-back of securities, under the Companies Act 2013 namely sections 68 to 70, which have been notified, have now repealed the provisions relating Companies Act, 1956.

Points to be noted:

1. A company may buy-back its own shares or other specified securities out of—

             (i) its free reserves; or

             (ii) the securities premium account; or

            (iii) the proceeds of any shares or other specified securities:

Procedures you need to know: Voluntary Winding Up of LLP

STEP 1 (CONSENT OF CREDITORS AND MAKING OF DECLARATION):-

A. Making of Declaration

Ø  The majority of its designated partners (being not less than two) must make a declaration in Form No. 2 verified by an affidavit to the effect that the LLP has no debt or that it will be able to pay its debts in full within such period, as may be specified in the declaration, but not exceeding one year from the commencement of the winding up.

Ø  However, such declaration shall have no effect for the purposes of Limited Liability Partnership Act, 2008 (“the Act”) and the Limited Liability Partnership (Winding up and Dissolution) Rules, 2012, (“the Rules”) unless —

CSR under Companies Act 2013: From Choice, to Necessity, to Compulsion

“CSR is the activity which has to come from heart, executives strive day [and] night for the growth of the company by the help of customers, CSR is a perfect opportunity to pay back to society.”

-       Deepak Kapoor[1]

I.                   Introduction

Image taken from here.

The industrial families of the 19th century such as Tata, Birla, Bajaj and Godrej, were strongly devoted to philanthropically motivated, social and economic causes.[2]  Even Mahatma Gandhi’s Khadi movement, which was an integral part of the Swadeshi movement and which encouraged Indians to be self-reliant, received huge support from the Bajaj family.[3] During the Independence phase, Mahatma Gandhi introduced the notion of ‘trusteeship’ which encouraged businesses to establish trusts for educational institute and also helped in setting up training and scientific institutions.

However, according to a survey carried out by Forbes India, only six out of the top 100 companies of India contributed more than 2% of their profits after tax (PAT) to Corporate Social Responsibilities (CSR) activities.[4] It is for this reason that a provision for mandatory CSR spend has been included in the Companies Act 2013. According to industry estimates the mandatory CSR laws would apply to about 9,000-10,000 companies.[5] The new provision has received criticism not only from corporations but even from the supporters of CSR theory who believe that CSR activities, though a necessity, must be taken up voluntarily. This article analyses the impact of the Companies Act 2013 on the Corporate sector with respect to the new CSR provisions.