One Person Company- a mixed bag under the Companies Act, 2013

The Companies Act, 2013 defines ‘One Person Company’ or OPC as a company formed for any lawful purpose with only one person as its member. One person company is a private company with one person subscribing to the Memorandum and complying with the requirements of the legislation in respect of registration. The Act provides that the words ‘One Person Company’ shall be mentioned in brackets below the name of such company, wherever its name is printed, affixed or engraved.


The Memorandum of OPC is required to indicate the name of another person, with his prior written consent, who shall, in the event of the subscriber‘s death or his incapacity to contract, become the member of the company. The written consent of such person, who is a nominee of the member, shall also be filed with the Registrar at the time of incorporation along with the Memorandum and Articles. The nominee may withdraw his consent in a manner that as may be prescribed, the new Act also provides the member, the freedom to change the nominee at any time by giving notice in a manner as may be prescribed. The member of OPC is required to inform the company of change, if any, in the details of nominee by indicating it in the Memorandum or otherwise within the time and in such manner as may be prescribed. The company is required to inform the Registrar of any such change. The member who is an individual shall be deemed to be the first director of the company until a director is duly appointed by the member.
For any related query, feel free to contact:

Mr. Ankit Singhi
+9111406222208, +919910888952,
Email:- ankit@indiacp.com
and
Mr. Deepali Mendiratta

Comments

Post a Comment

Popular posts from this blog

Leaves & Holidays under Indian Labour & Employment Laws

Image
Holidays and Leaves of workers in India are governed principally by the Factory Act, 1948 and state shops and establishment acts. Weekend Holidays Mr. Pankaj Singla Sr. Associate +919971508320 pankaj@indiacp.com In India, the law prescribes maximum number of hours a week a worker may not be employed beyond. An adult worker shall not be employed for more than 48 (forty eight) hours in a week and not more than 9 (nine) hours in a day. Weekly holiday is compulsory as per the Factories Act. First day of the week i.e. Sunday shall be a weekly holiday. The employer has to make sure that no worker works more than 10 days without a rest day of 24 hours. Therefore, if the worker is asked to work on weekly
Click to read more »

SEBI's Circulars About Enhancing Liquidity And Curbing Manipulation Regarding Illiquid Scrips

Image
SEBI recently has come out with two different circulars in respect to illiquid scrips wherein one circular talks about enhancing liquidity in the illiquid scrips by promoting incentives by stock exchanges on trading in such scrips, another circular aims at curbing manipulations in the illiquid scrips by introducing Periodic Call Auction in illiquid scrips. Ms. Deepika Vijay Sawhney Partner +919818316936 deepika@indiacp.com The definition of illiquid scrips is kept different in both the circulars with the definition being much wider in case of scrips qualifying for Periodic Call Auctions. The provisions of both the circulars are discussed in detail hereunder: 1. Introduction of Liquidity Enhancement Scheme for illiquid scrips in Equity Cash Market by Circular dated February 08, 2013:
Click to read more »

Work Hours and Overtime under the Factory Act, 1948 and Shops & Establishment Act

Image
India has two major laws concerning working hours of workers i.e. the Factory Act, 1948 and Shops & Establishment Act. The regulations related to the working hours can be separated into four broad categories that help demarcate the dimensions of the discussion. Working Hours for Factory Workers; I. Employment of Adults: Mr. Pankaj Singla Sr. Associate +919971508320 pankaj@indiacp.com An adult worker shall not be employed for more than 48 (forty eight) hours in a week and not more than 9 (nine) hours in a day. A compulsory rest of at least half an hour (30 minutes) between each period of work  and such period of work shall not exceed five hours. Total period of work inclusive of rest interval cannot be more than 10.5 hours. The Chief Inspector may by giving a reason in writing  increase the workday time up to twelve hours. According to Minimum Wages Act, 1948 the working day of a worker shall be so arranged that inclusive of the interval of rest it shall n...
Click to read more »