Legalfundaa

Introduction If Company is showing false profits, prepares false financial reports to show that they are financially sound who is the looser ? Investors. Lenders(Banks).You and Me. There have been many auditing scandals. Wherein companies loots money from investors and banks by preparing false reports. (Notably Enron, Lehman Brothers, and Satyam). Auditors plays a crucial rule in avoiding this. He is the person who can bring truth and fairness in reports,books and accounts prepared by Company. Companies Act 2013 provides provisions related to Auditors from Section 139 to 148. It discusses qualification, appointment, power duties and liabilities of auditors. After reading this post, you have an fair idea about Qualification of Auditors. Appointment of Auditors Removal of Auditors Power and Duties of Auditors Liabilities of Auditors  Qualification/Disqualification of Auditors Section 141 of the Companies Act provides the eligibility, qualification and disqualification of Auditors. Wh...

 Introduction  Promoters are knows as entrepreneur. They promote a business for maximization of profits. Here is one famous promoter of Kingfisher Airlines. In this part we will cover below things. Promoters and Promotions Activities of Promoter Position of Promoter Duties of Promoter Liabilities of Promoter Promoters and Promotions Who is promoter ? Vijay Mallya was promoter of Kinfisher Airlines (Which is bankrupt). A corporate promoter is a firm or person who does the preliminary work incidental to the formation of a company, including its promotion, incorporation, and flotation, and solicits people to invest money in the company, usually when it is being formed. House of Lords gave definition of promoter and promotions in judgement Whaley Bridge Co Vs Green 1897 QBD 111, where justice Bowell LJ held that Promotion is not a term of law, but of a business operations familiar to the commercial world, by which company is generally brought in to existence. Promotion include wid...

Introduction Great directors make great movies. For example one of the finest crime movie Gangs of Wasseypur was directed by Anurag Kashyap.       On the similar lines directors in Board of Directors play a role in Company. They can take companies to greater heights, or even can sink companies with selfish motives.   Directors are the people who overlook day to day activities and finances of the companies. They are crucial in administration of the company. They also look into optimum utilization of resources of the company.   In this post we will cover below things   Who is Director Position of Director Number of Director Appointment and Disqualification Vacancies, Removal, Resignation Power,Duties and Liabilities of Director Who is Director Who is director ? "Director is Director..!!". Section 2(13) of the Companies Act 1956 defined director as Director is any person, occupying the position of Director, by whatever name called. Modernized definition in Sec...