What is Section 44 of the Companies Act?

  March 20, 2021
      No Comments

What is Section 44 of the Companies Act?

Section 44 of the Companies Act 71 of 2008 (Companies Act) regulates financial assistance by a company in the form of a loan, a guarantee or the provision of security to any person for the purpose of, or in connection with, inter alia, the subscription or purchase of any securities, issued or to be issued by the …

What rights do directors have accessing company information?

So, in summary, the law is clear that a director has the right to access accounting records, unless he is seeking to access them for an improper purpose, and the burden is on the company seeking to deny access to prove that the director’s motives are “improper”.

What are Section 21 companies?

Section 21 of the Companies Act 61 of 1973 allows for a ‘not-for-profit company’ or ‘association incorporated not for gain’. Section 21 companies resemble business oriented (for profit) companies in their legal structure, but do not have a share capital and cannot distribute shares or pay dividends to their members.

What is a Section 45 resolution?

Section 45 does not define financial assistance; instead it refers to financial assistance including the lending of money, guaranteeing of a loan and securing of any debt or obligation.

What are the legal rights of a director?

Your Rights as a Director of a Company!

  • The right to access the company’s documents and financial records. As a director, you can inspect the company’s books and accounts,
  • The right to delegate.
  • The right to participate in board meetings and decisions.
  • The right to remain in office until that person is removed.

What is Section 8 company India?

The Companies Act defines a Section 8 company as one whose objectives is to promote fields of arts, commerce, science, research, education, sports, charity, social welfare, religion, environment protection, or other similar objectives.

What is Section 18 of Companies Act, 2013?

Conversion of companies already registered. (1) A company of any class registered under this Act may convert itself as a company of other class under this Act by alteration of memorandum and articles of the company in accordance with the provisions of this Chapter.