What is an unlimited company?

An unlimited company is a company having no limit on the liability of its members. The members of such a company are liable to the full extent of their fortunes to meet the obligations of the company by contributing to its assets in the event of its being wound up. Thus, such a company does not carry the benefit of limited liability which is available to the members of all the other types of company. So far as the risk of the members is concerned, there is no difference between a partnership firm and an unlimited company.

Eighth Type of NBFC Formulated by RBI

RBI has issued  CIRCULAR DNBS.CC.PD.NO. 250/03.10.01/2011-12, DATED 2-12-2011 by which  it is stated that a new category of Non Banking Financial Company for Micro Finance sector is created.Thus, a separate category of NBFCs viz; Non Banking Financial Company-Micro Finance Institution (NBFC-MFI) is created. Now the 8 types of NBFC are i. Asset Finance Company (AFC)...

Supreme Court : State Gets Priority on Debt Over Banks & Other Lenders

A three judge bench of hon’ble Supreme Court in Central Bank of India Vs State of Kerala & Ors [(2009) INSC 435; (2009) 4 SCC 94: Decided on 27.02.2009 has  settled the controversy   about the priority of claim on assets of debtor by the State and other secured creditors like Banks and others. The Supreme...

Class Action Suit Under New Companies Bill 2011 Possible !

Well shareholders of a company are going to have a collective tool against misdeed of the companies , it seems under new Companies Bill 2011. It is reported vide PIB release that  the Minister of State in the Ministry of Corporate Affairs today informed the Rajya Sabha that the Companies Bill 2011 is under finalization...

1,55,939 Defunct Companies Identified by MCA

The Minister of State in the Ministry of Corporate Affairs Shri R.P.N. Singh today[4th August 2011 ] informed the Lok Sabha that whether Government has enumerated or identified such registered companies which are inactive, dormant and have been in such mode for at least ten years.                           Replying to a written question the minister said...

Companies Bill 2011: Private Companies Under SEBI Jurisdiction & Audit Firm Accountable For Frauds in Companies

Privately-held and unlisted companies will come under SEBI jurisdiction  if they collect or propose to collect money through sale of shares from 50 and more individuals under Companies Bill 2011 , which is being formulated by Ministry of Corporate Affairs. The proposals are being incorporated on account of recent events like- Satyam Fraud and SEBI-Sahara...

Find TAN of Any Company / Bank Easily

Find TAN online Now ! Filing of return of income a yearly ritual and so is the deduction of tax on certain payments. It happens many time that the bank ahs deducted tax at source and the tds certificate is not given to the deductee or is not available with the tax payer at the...

ROC to issue only digitally signed certificates & letters

Ministry of Corporate , in its effort towards full computerization has taken green initiative. It issued  GENERAL CIRCULAR NO. 39/2011, DATED 21-6-2011 by which it conveyed all stakeholders as under The Ministry has issued a General Circular No. 29/2011, dated 20-5-2011 wherein it was informed that in order to cut timelines and an another step...

An Easy MAT Calculator For You !

Minimum Alternate Tax (MAT) u/s 115JB of the I T Act  is to ensure that companies which have book profits but does not have taxable income , pays a minimum amount of tax.The quantum of tax under MAT is determined by comparing total income as computed under general income tax law  with the Book Profit...

Can loan out of share premium be treated as deemed dividend u/s 2(22)(e) ?

The definition of dividend is contained in section 2(22) of the I.T. Act. Subclause (e) of section 2(22) defines deemed dividend. In simplest terms, it syas that if a company in which public has no shareholding up to 25 % gives loan or advance to any shareholder having 10 % shareholding or to any concern in which such person has 20 % shareholding or interest , such loan or advance or credit shall be considered taxable deemed dividend to the extent of accumulated profits.