wake up session for directors
TRANSCRIPT
Wednesday, the 25th May, 2014
FSIA & I am SME of India
Team AGBians
Do You have One or More than One DIN ?
Whether DIN Info is correct or need correction
S159 Fine upto 50,000/- or 500 per day or imprisonment 6 months
AJAY GARG Team AGBians
Surrender DIN Numbers – if you have more than one
File for Correction – this will happen – No fun in keeping divergent names / addresses
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YOU NEED TO CHECK – YOUR DIRECTORSHIP
• Get your all Directorship checked by some professional/employee. There is probability that even you may not be aware or fully aware of one or two.
• Keep Control on Your Directorship just like You Control Diet S165
• With Each New Directorship or New Business - You are supposed to file one form in each of the Existing Company S184
• S165 Fine from 5,000/- to 25,000 per day, S184
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DIRECTORSHIP - DIAGNOSIS / CORRECTIVE ACTION
• Ask Your Trusted Employee to Procure a List of Your Directorship from MCA Website.
• Do load shedding wherever possible.
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• Keep Check on Status of Annual Filing – Continuous non-filing for three years – even in one company will make you ineligible for becoming Director for five years S164.
• More so, late filing will attract additional fees and very late will attract penalties and prosecution in future Team AGBians
• Take Care of Pending filing on immediate Basis – if Business in continuing
• Avail Fast Track Exit Scheme – if Business Model has lost Steam
• Make it Dormant Company – if you intend to do Business at future date
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Just Check – Do you have? 1. Share Application Money2.Unsecured Loan3.Advances from Customers4. Interest Bearing demand deposits
Not Only check But report before 30th JuneNot only Report but return before 31st March, 2015Not only Return but Return with Interest
S74- Imprisonment upto 7 years & Fine upto 25 lacs Team AGBians
You may Escape Reporting, Repayments, Penalties, Prosecutions if 1. There is loan from Bank / FI
and Sanction letter has restrictive Clause
2. Interest has not been booked on such unsecured loans
3. Shares have been allotted on or before 30th May, 2014
4. Accounting Heads have been rechristened.
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• Until Now – Unsecured Loans were soft funding mode for SME Companies as Secured Loan was hard to Come.
• As on Date, all Known Windows of Soft funding are almost closed. S73
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• Triangles wherever straight lines are not allowed
• Renaming of Accounting Heads
• Only Directors that too not from Borrowed Funds
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Until Now – Business was Dependent on Related Parties – Newer or Smaller the business, more the Related Parties Transactions
No More Related Party Business If You wish to continue to do
Business with Related Parties than think differently
S188 Listed Co.- Fine 25,000 to 5,00,000 or Imprisionment upto 1 yr. or both. Other Co.-fine 25,000 to 5,00,000 Team AGBians
Making Someone Shareholder is Cheap than Making Someone Director
Keep Safe Distance
And that Uninterested Shareholders shall not be……
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• Era of Multiple Business Entities for Similar Business is over
• Because Inter-transfer of funds, inter-business, inter-transfer of raw-materials, job work by one for another, renting, office or place of profit – all are under surveillence of Government
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• Merge, Lean Away, Make Some of them Dormant or Avail Fast Track Exit Scheme
• If Can’t do any of the above, then make compliances and avoid inter-company transactions – current / capital account both
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• If Yes, your Business Entity may require Independent Directors
• Annual Expense on Independent Director’s Fees and Reimbursements may is likely to be 20 lacs or more
• Such Independent Directors may constantly ask number of information resulting into hidden costs
YOU NEED TO CHECK – ARE YOU PUBLIC COMPANY?
Team AGBians
• Keep eye on Senior or middle level retiring employees from Government units
• Keep eye on Senior or middle level retiring employees from client companies
• Keep eye on Senior or middle level employees retiring from MNCs
…BECAUSE THEY ARE LIKELY TO CONTRIBUTE MORE THAN WHAT THEY WILL TAKE BACK
PUBLIC COMPANY – REQUIRING INDEPENDENT DIRECTORS
Team AGBians
• Do You Know- Relatives can’t act as Independent Directors
• Do You Know – Your Premium Clients or Prestigious Vendors can’t become Independent Directors
• Do You Know- even retired Employees or Professionals who have rendered services to you also can’t become Independent Directors
• S172 Fine of 50,000 to 5,00,000
IF YOUR COMPANY NEED INDEPENDENT DIRECTORS
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• Non – KMP Employee of Your Client Company
• Close Mighty Scholar or Brainy Buddy who studied with You – in your school / college days
• Professionals who don’t work for You but you admire their knowledge bank
INDEPENDENT DIRECTORS – WHO CAN ?
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Remember, Further Issue of Shares has become time consuming.
Remember, Further Issue of Shares has become cumbersome and voluminous
Remember, Further Issue of Shares has become costly
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Renunciate Your Right in their Favor (fully or partially)
Transfer of Existing Shares and You Get fresh Shares Allotted.
Additional Shares Applied (in addition rightful shares
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PROBLEM AND SOLUTIONS DIRECT
TO MINISTER OF MCATHROUGH
E-MAIL IDS
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PROBLEM AND SOLUTIONS THROUGH
MINISTER OF MSME
THROUGH
E-MAIL IDS / PERSONAL MEETING / FORUMS
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PROBLEM AND SOLUTIONS THROUGH
SECRETARY / JOINT SECRETARY / OTHER
BUREAUCRATS
THROUGH
E-MAIL IDS / PERSONAL MEETING / FORUMS
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