Companies Act 2013 Key Points Related to Corporate Social Responsibility

Liabilities of Directors underThe Companies Act 2013WorkshopOrganized byConfederation Of Indian IndustryMadhya Pradesh Chapter

On 18th August 2015At ABV Indian Institute of Information Technology, Gwalior

By Advocate Anil Chawla Senior Partner,Anil Chawla Law Associates LLPwww.indialegalhelp.comThis Presentation gives only an indication of the various provisions related to penalties and punishments for Directors under The Companies Act, 2013 of India. It is not intended to be either complete or exhaustive narration of the subject.

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PrefaceCompanies Act, 2013 (the Act) is a Draconian lawHardly any distinction between small companies and large companiesStart of a new inspector-rajAnti-business biasDuties, penalties and punishments more stringent than applicable for public servants or heinous crimes.

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A. Some Key ConceptsA1.OfficerA2.ManagerA3.Managing DirectorA4. Key Managerial PersonnelA5. Officer in Default

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A1.Officer4Copyright - Anil Chawla Law Associates LLPAugust 2015

Section 2(59)

A2.ManagerCopyright - Anil Chawla Law Associates LLP5August 2015

Section 2(53)

A3.Managing DirectorCopyright - Anil Chawla Law Associates LLP6August 2015Section 2(54)

A4.Key Managerial PersonnelCopyright - Anil Chawla Law Associates LLP7August 2015Section 2(51)

A5.Officer in DefaultCopyright - Anil Chawla Law Associates LLP8August 2015Section 2(60)

A5.Officer in Default (Continued)Copyright - Anil Chawla Law Associates LLP9August 2015Section 2(60)

B.Some Relevant ProvisionsB1.Duties of DirectorsB2.Disqualification to be a DirectorB3.Cognizable Offences with No BailB4.Protection of Independent Directors

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B1. Duties of DirectorCopyright - Anil Chawla Law Associates LLP11August 2015

B1. Duties of Director (Continued)Copyright - Anil Chawla Law Associates LLP12August 2015

B2.Disqualification to be a Director13Copyright - Anil Chawla Law Associates LLPSection 164August 2015

B2.Disqualification to be a Director (Continued)14Copyright - Anil Chawla Law Associates LLPSection 164August 2015

B3. Cognizable Offences Without BailCopyright - Anil Chawla Law Associates LLP15August 2015

Section 212(6)

B4. Protection of Independent DirectorsCopyright - Anil Chawla Law Associates LLP16August 2015

Section 149(12)

C.Penalties and PunishmentsCopyright - Anil Chawla Law Associates LLP17

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Chapter II Incorporation of Company and Matters Incidentals TheretoCopyright - Anil Chawla Law Associates LLP18August 2015

Note:Rs. 1 Lakh = Rs. 100,000 = Rs. 0.1 millionRs. 1 Crore = Rs. 10,000,000 = Rs. 10 million

Chapter III Prospectus & Allotment of Securities19Copyright - Anil Chawla Law Associates LLP

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Chapter IV Share Capital & Debentures20Copyright - Anil Chawla Law Associates LLPAugust 2015

Chapter IV Share Capital & Debentures (Continued)21Copyright - Anil Chawla Law Associates LLPAugust 2015

Chapter V Acceptance of Deposits22Copyright - Anil Chawla Law Associates LLPAugust 2015

Chapter VI Registration of Charges23Copyright - Anil Chawla Law Associates LLPAugust 2015

Chapter VII Management & Administration24Copyright - Anil Chawla Law Associates LLPAugust 2015

Chapter VII Management & Admin. (Continued)25Copyright - Anil Chawla Law Associates LLPAugust 2015

Chapter VIII Declaration & Payment of Dividend26Copyright - Anil Chawla Law Associates LLPAugust 2015

Chapter IX Accounts of Companies27Copyright - Anil Chawla Law Associates LLPAugust 2015

Chapter X Audit and Auditors28Copyright - Anil Chawla Law Associates LLPAugust 2015

Chapter XI Appointment & Qualification of Directors29Copyright - Anil Chawla Law Associates LLPAugust 2015

Chapter XII Meetings of Board & Its Powers30Copyright - Anil Chawla Law Associates LLPAugust 2015

Chapter XII Meetings of Board (Continued)31Copyright - Anil Chawla Law Associates LLPAugust 2015

Chapter XIII Appointment & Remuneration of Managerial Personnel32Copyright - Anil Chawla Law Associates LLPAugust 2015

Chapter XIV Share Capital & Debentures33Copyright - Anil Chawla Law Associates LLPAugust 2015

Chapter XVI Prevention of Oppression & Mismanagement34Copyright - Anil Chawla Law Associates LLPAugust 2015

Chapter XX Winding Up35Copyright - Anil Chawla Law Associates LLPAugust 2015

Chapter XXIX Miscellaneous36Copyright - Anil Chawla Law Associates LLPAugust 2015

Thanks!We wish you the best in facing up to the Companies Act, 2013.Copyright - Anil Chawla Law Associates LLP37Anil Chawla Law Associates LLPwww.indialegalhelp.cominfo@indialegalhelp.comTel. 09425009280August 2015Anil Chawla Law Associates LLP is registered with limited liability and bears LLPINAAA8450.This Presentation is an academic exercise. It does not offer any advice or suggestion to any individual or firm or company. While all efforts have been made to ensure accuracy and correctness of information provided, no warranties / assurances are provided or implied. Readers are advised to consult a Legal Professional / Company Secretary / Chartered Accountant before taking any business decisions. Anil Chawla Law Associates LLP does not accept any liability, either direct or indirect, with regard to any damages / consequences / results arising due to use of the information contained in this Presentation.