PGC Newsletter 22th, April, 2014
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The newsletter provides updates on various topics including economics, corporate law, RBI/tax law, and markets. On economics, it mentions the Supreme Court lifting a ban on iron ore mining in Goa and HDFC Bank reaching its foreign investment cap. For corporate law, it notes Hero MotoCorp's joint venture in Bangladesh, Nokia transferring assets to Microsoft, and SEBI potentially requiring higher average AUM for debt funds. The RBI/tax law section discusses India's foreign exchange reserves during the 2013 currency crisis and a tax recovery notice being quashed. Market updates include index levels and currency/commodity prices. The newsletter also provides details on requirements for annual general meetings and reports under the new Companies Act, 2013.
PGC Newsletter 22th, April, 2014
- 1. PGC NEWSLETTER22nd, April 2014 1 PGC NEWSLETTER 22nd, April 2014 THOUGHT OF THE DAY “Follow your own inner guidance, build your confidence, believe in yourself” ECONOMICS NEWS The Supreme Court allowed iron ore mining in Goa, lifting a ban imposed about 18 months ago, but placed a cap of 20 million tonnes on annual production from these mines. FIPB, to consider HDFC Bank’s proposal for an increase in limit for foreign institutional investor stake, is unlikely to approve such a move. This is because the bank, according to the RBI, has reached its 74 per cent FII holding cap if parent HDFC’s shareholding is considered. CORPORATE LAW UPDATES Hero MotoCorp, has finalised a joint venture with Bangladesh- based Nitol Niloy Group to retail about a dozen two- wheeler brands in that country. Finnish handset maker Nokia issued a statement on Monday saying it would transfer all its global assets to Microsoft by April 25 Securities and Exchange Board of India (SEBI) could soon ask fund houses to maintain an average AUM of Rs 20 crore for all open- ended debt- oriented schemes, on a half- yearly basis. IT: Reliance Industries Ltd ( RIL) s plans to develop three discoveries in the D6 block of the Krishna- Godavari basin ( KG- D6), where it is the operator, is being legally challenged. The ground is the company will make an undeserved and excessive profit. RBI / TAX LAW UPDATE RBI: India’s central bank might have found it difficult to stem the rupee’s sharp depreciation during the currency crisis of 2013 by using its foreign exchange reserves, with the country’s external liabilities far exceeding official reserves. HC quashed sec. 179 tax recovery notice as it related to later years in which co. was converted into a public co. The Reserve Bank of India has said non-compete clauses will not be allowed for foreign direct investment in the pharmaceutical sector, except in special circumstances. MARKET UPDATES SENSEX 22,820.59 55.76 CNX NIFTY 6,824.65 7.00 DOLLAR/ RUPEE 60.67 0.07 MCX SILVER 41965.0 -0.15 MCX GOLD 28,506.0 -21.0 MCX CRUDE OIL 6304.0 0.27 Dow Jones Industrial Average 16,449.25 40.71 Nasdaq Composite 4121.55 26.03
- 2. PGC NEWSLETTER22nd, April 2014 2 Companies Act, 2013 Annual General Meeting Section 96 of the Companies Act, 2013 relates to annual general meeting of a company. The change in the 2013 Act compared to the 1956 Act is that annual general meeting can now be held on all days including on Sundays and public holidays but cannot be held on National Holidays as declared by the Government. The Central Government has declared three days as Public Holidays i.e. 15th August – Independence Day, 26th January – Republic Day and 2nd October – Gandhi Jayanti Day. So companies can now hold annual general meetings on all days of the year except these three days as above. Section 96(2) Further, the business hours have been defined in the Act itself as from 9.00 a.m. to 6.00 p.m. which was not there in the 1956 Act. Another new addition to the annual general meeting is that in case of listed companies (Section 121), a report on the annual general meeting, stating therein, a confirmation that the meeting was held and conducted as per the provisions of the Act and the Rules have to be filed with the Registrar within 30 days of the annual general meeting. As per Rule 31(1)(c) of the Companies (Management and Administration) Rules, 2014 the report shall contain the details in respect of the following, namely:- (i) the day, date, hour and venue of the annual general meeting; (ii) confirmation with respect to appointment of Chairman of the meeting; (iii) number of members attending the meeting; (iv) confirmation of quorum; (v) confirmation with respect to compliance of the Act and the Rules, secretarial standards made there under with respect to calling, convening and conducting the meeting; (vi) business transacted at the meeting and result thereof; (vii) particulars with respect to any adjournment, postponement of meeting, change in venue; and (viii) any other points relevant for inclusion in the report. (d) the Report shall contain fair and correct summary of the proceedings of the meeting. Rule 31(1)(b) states that the Report shall be dated and signed by the Chairman, or in case of his inability to sign, by any two directors of the company one of whom shall be a Managing Director, if there is one and the Company Secretary of the company. www.proglobalcorp.wordpress.com