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How Do Related-Party Transactions Intersect With Money-Laundering Law?
A related-party transaction is a governance matter until it becomes a crime. When an RPT is a sham — inflated invoicing, circular flows, shell-entity payments — it can generate proceeds of crime and pull the transaction into the Prevention of Money-Laundering Act, exposing the company to a second, c
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Def.
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Can CSR Funds Flow Through a Trust Connected to the Company's Directors?
A registered trust whose trustees are the company's own directors can lawfully implement CSR, but engaging a related business to run the activity sits in a regulatory grey zone. What Rule 4, Section 188 and MCA guidance permit, and where the enforcement risk lies.
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Columns
7 min read
Expanding the Scope of SBO Rules: A Comprehensive look at Recent Legal Precedents and Global Comparisons
India’s evolving SBO rules spotlight transparency in corporate ownership. Recent cases, like LinkedIn India and Samsung Noida, highlight expanded interpretations of control and influence, aligning with global standards to enhance governance and prevent financial misconduct.
Anish Sinha
Contributor
Def.
Lex-O-Pedia
What is the process for the inspection, inquiry, and investigation of companies under The Companies Act, 2013?
The Companies Act, 2013 outlines processes for inspecting, inquiring, and investigating companies to ensure transparency and prevent fraud. Authorities like the Registrar, Central Government, and SFIO can scrutinize records, investigate misconduct, and protect shareholder interests.
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Def.
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What is the process for the appointment of Key Managerial Personnel (KMP) and their remuneration?
The appointment of Key Managerial Personnel (KMP) in companies is governed by the Companies Act, 2013, which mandates their appointment for certain public companies. The KMPs are responsible for managing operations and ensuring compliance, with specified roles and remuneration limits.
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Lex-O-Pedia
What Is the Regulatory Framework Governing a Dormant Company?
Dormant companies, under Section 455 of the Companies Act, 2013, can temporarily pause operations while retaining assets and reducing compliance. By meeting specific requirements, they can regain active status within five years or risk being struck off by the Registrar of Companies.
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Def.
Lex-O-Pedia
What are the audit requirements under the Companies Act, 2013?
Audit requirements under the Companies Act, 2013 ensure transparency, accountability, and fair financial reporting. Key audits include internal, secretarial, and cost audits, depending on company type. Appointment and removal of auditors follow specific legal procedures.
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Def.
Lex-O-Pedia
What is the legal framework and economic impact of ancillarisation?
Ancillarisation fosters a collaborative ecosystem, linking SMEs and large firms for efficiency. Governed by the Companies Act, 2013 and MSMED Act, 2006, it supports economic growth and industrial synergy.
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Def.
Lex-O-Pedia
What are the Statutory Registers required under The Companies Act, 2013?
Statutory registers under the Companies Act, 2013 are essential for maintaining corporate governance, compliance, and transparency. They track shareholder details, financial records, and important company decisions.
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