💛~Multi state co-operative society Act,2002~💛

MULTI STATE CO-OPORATIVE SOCIETY 

The multi state co-operative society was enacted in 1984 further it was modified in the year 2002. It is known as MSCS act, 2002.

Meaning :-The multi state co-operative society works for the members of state Area which is not confined to one state but it serves the members of other states too. MSCS works for the betterment of the states and to facilitate them to grow more democratic, mutual and self help and to promote their economic.

Types of multi state cooperative society

# Farming cooperative society 

# Credit cooperative society

# Real state cooperative society

# Transport cooperative society

# Dairy firm cooperative society

The member forming an entity with a willing to work as MSCS needs to get registered in applications form -1(under sub-rules(1) of rule 3 of the multi state cooperative societies rules,2002) should be filed with the Central Registrar  of cooperative society, New Delhi along with the following enclosures :-

1) A certificate from a bank stating the credit balance in favour of the proposed entity.

2) A proper scheme structure explaining how the proposed unit of the entity is reasonable of becoming a viable units.

3) Four copies of bye-laws in original.

4) The proposed area of Operations shall initially be permitted for two contagious states only.

5) List of 50 members of each state has to be submitted to multi state co-operative society act,2002 along with the ID proof copies of the member duly attested as a chief promoter.

6) There should be a certified copy of the resolution of the promoter which shall be specify the name and address if one of the applicants to whom CR ( central Registrar) will dispatch and handover the documents. The MSCS has to pass a resolution by the proposed society.

CONTACT NUMBER AND THE E-MAIL ADDRESS OF THE CHIEF PROMOTER OR THE SOCIETY SHOULD BE ON THE COVER PAGE.  

                                        

The society having an object related to credit cooperative society some additional documents are required to be submitted along with the upper documents.

1) NOC (No objection certificate) from the registrar of cooperative society of the states where the area of working of the society is proposed to be confined.

2) All the documents to be submitted in original with the signature of chief promoter or  promoter on each page.

3) A certificate to effect that the credential of chief promoter/promoter have been verified by the registrar of cooperative society of the state where the head officer is proposed to be located.

THE APPLICATION SHALL BE SIGNED BY :-

1) In case of  multi state co-operative society in which all the members are individuals, by at least 50 persons from each states concerned.

2) In case the members of cooperative society the duly authorised representative on behalf of atleast 5 such societies as are not registered in the same state.

3) In case of multi state co-operative society or cooperative society by at least 50 persons being individual from each of the two states, one cooperative society each from two states or more or one multi state co-operative society.

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💛~Benami Transactions (Prohibition Act,1988)~💛

💛~Insider Trading~💛

MEANING

illegal trading in stock exchange for the benefits by the means of confidential information from the company by the key managerial person of the company which would be a chairperson, boards of directors, company secretary, president,  vice-president, treasurer, the comptroller, the general council, general manager, managing director and other who work in the entity more then normally performer who passes unpublished price sensitive information in respect of shares.

A person shall not deemed to be connected directly or indirectly to an insider or connected person.Insider can be any person who is connected to a company or has access to secret information which is not been publicly published.

INSIDER TRADING LEGALLY PERMITTED 

Insider trading are legally permitted to buy and sell shares of the company and to any subsidiaries that employ them. The transaction must be properly registered with the securities and exchange commission (SEC) and it should be done in advance filing.This type of legal insider trading happens often.The details about it is available on securities and exchange commission (SEC).

PUNISHABLE

An insider trader directly or indirectly is guilty of offence is punishable with fine not exceeding the greater of one million dollars and three times the profit made or to the imprisonment for the term not exceeding six months or to both.

Insider trading  is prohibited by security board exchanges of India (SEBI) for the benefits of the common investors and to promote healthy and fair trading in stock exchange.

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~All About Partnership In Business~💛

THE INDIAN PARTNERSHIP ACT,1932. DEFINES PARTNERSHIP AS AN ASSOCIATION WHERE PERSONS AGREE TO COMBINE THEIR FINANCIAL RESOURCES TO SHARE PROFIT AND LOSS EQUALLY IN AGREED RATIO AND RUN A BUSINESS BY THEIR MANAGERIAL SKILLS AND ABILITIES. PARTNERSHIP HELPS IN EXPANSION OF BUSINESS WITH MORE CAPITAL, SUPERVISION,CONTROL AND DIVISION OF WORK. THE BUSINESS IS CARRIED BY ALL OF THE PARTNER'S OR WITH ONE OF THEM ON BEHALF OF EVERYONE.

A partnership can be formed by minimum 2 partners and maximum 20 partners.

FEATURES OF PARTNERSHIP 

1)The term and condition of partnership are laid down in a document known as partnership deed.

2)A partnership can be formed only on the basis of business. Business may include any trade, industry or profession. Thus a Partnership can engage in any occupation, production and distribution of goods and services.

3)The liability of partners are unlimited. If some obligation arises then not only the Partnership assets but also the private property of the partners can be taken for the payment of the liabilities of the firm.

4)Every partner is entitled to participate in the business but it is not necessary for all the partners to participate in day to day activities of the business. Even if the business is runed by some partners on behalf of all the partners, the consent of all the partners is necessary for taking any decisions.

5)In Partnership firm no partner is allowed to transfer their shares to other person and if doing the consent of other partners is required.

6)The partnership firms continues till the pleasure of partners. Legally partnership comes to an end if any partner dies, retire or become insolvent but if the remaining partners agree to continue the business under the original firm's name, the firm will not be dissolved and will continue its business after settling the claim of the outgoing partner.

TYPES OF PARTNERSHIP

1) PARTNERSHIP AT WILL:- This partnership will come to an end whenever any partner gives notice of his intension to do so. Such partnership exists on the will of the partners.

2) PARTICULAR PARTNERSHIP:- This partnership is formed for undertaking a particular venture. It comes to an end automatically with the completion of the venture.

3) PARTNERSHIP FOR FIXED DURATION:- This partnership is fixed for 2 to 5 years or any other duration as decided by the partner.

TYPES  OF  PARTNERS

Active partners:- Are active in day to day activities of the business.

Sleeping or dormant partner:- Such partner only contribute the capital and does not take part in day to day activities.

Nominal partner:- They just lend their names to the business, they do not participate in day to day activities neither contribute any capital.

Partnership holding out:- if a person by his own or conduct to hold out to another that he is a partner, he  be prevented from denying that he is not a partner, the person who thus become liable to third parties to pay the debts of the firm's is known as a partner by holding out.

PARTNERSHIP  DEED 

1) Normally Carries the name of the business, address of its principal place and short summary of the nature of business.

2) The deed give important financial details of the partnership such as amount of capital to be invested by each partner, the profit and loss sharing of each partner, the method of distributing the business income.

3) The deed provides a accepted method for accounting of the cash flow, profit and loss, and assets and liabilities of the business. There should be a ficsal year mentioned for accounting statements and how these statements will be distributed amongst the partners.

4) The duties, power and obligations of each partner shall be spelt out in the deed.

5) The deed shall be mentioned that if a partner is to be hindrance or detriment to the business or loses legal rights in a bankruptcy or other court action, the other partner must have a method of modifying the partnership rights of or expelling him.

6) The deed shall have mentioned the method of dissolving a business if desired and how the accounts will be settled within the partner at the termination of the business.

7) As the business partnership deed must provide the mean of arbitration of disputes. The main aim of the deed is to avoid expensive litigation over details that have not been fully worked out in signed agreement.

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~All about the directors of the company~💛

DIRECTOR OF COMPANY 

Director of a company are individual who are elected for the management of the corporation related to policy and to make decisions for the major issue of the companies.The success of the company depends upon the competence and integrity of the directors of the company

TYPES OF DIRECTORS

* First director (firstly appointed director of the company within incorporation).

* Residential director ( who is resident to India).

* women director (there shall be  atleast one women director after the completion of number of paid up shares and turnover  exceed as per companies act, 2013).

* Independent director (who has no relation with the company shares).

* Alternate director (alternate director is an individual who is appointed to attend a board meeting on behalf of the director of a company where the principal director would be otherwise unable to attend).

* Additional director (who is appointed by boards of directors and can hold the company till next annual general meeting).

* Small shareholder director (if company is carrying any shareholder with small paid up share there should be atleast one small shareholder director to work for their benefits).

* Nominee director (it should be an individual who is appointed by the financial institutions, banks where such institutions have some interest in the company the interest can be in form of financial assistance, loan or investment).

APPOINTMENT

public company shall have atleast 3 directors

Maximum 15 directors

Private company shall have atleast 2 directors

Maximum 15 directors

One person company shall have atleast one directors

Maximum number can be increased by passing special resolution.

DIRECTOR IDENTIFICATION NUMBER

Every individual who tends to be appointed as a director of a company needs to file a form as prescribed under sec 153 of companies act, 2013 for the allotment of DIN (director identification number).

A director shall exercise independent judgement.

RIGHTS AND DUTIES OF DIRECTORS

To act in good faith

(Promote the object of the company for the benefit of the members)

To act as per articles of the company

(The directors shall comply in accordance with the articles of the company)

To avoid conflict of interest

( Director may not directly or Indirectly have interest to the conflicts or involve in interest of the company)

Exercise due care 

(Director shall exercise his duties with reasonable care, skill and diligence)

Duty not to make undue gain 

(A director shall not achieve, gain or take any advantage either himself or to his relatives, partners, or association. If the director found guilty under undue gain shall be liable to pay the fine amount equal to that gain to the company).

Not to assign his office

( Shall not assign his office or any assignment to any other person, if made shall be considered void).

A DIRECTOR MAY BE REMOVED FROM THE OFFICE BY GIVING SPECIAL NOTICE.

A DIRECTOR MAY RESIGN HIS OFFICE IN THE MANNER PROVIDED BY THE ARTICLES.

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~Money Laundering~💛

MONEY LAUNDERING is a process of criminal disguise it's illegal origin. When a person or a criminal activities generates a substantial profit either individual or group involved in such activities give a route to the funds to safe heavens by disguising the sources , changing form or moving the funds to a place where they will be less likely to attract attention.

There Are Several Varieties Of Money laundering  :-

Terrorism

Illegal arms

Sales

Financial crimes

Smuggling

Organized crimes 

Drug trafficking

Prostitution rings

Embezzlement

Insider trading

Bribery

Computer fraud

Also produce large profit to create an incentive to legitimise the illegal gains through money laundering.

STAGES OF MONEY LAUNDERING

1) PLACEMENT

2) LAYERING

3) INTEGRATION

PROCESS OF MONEY LAUNDERING

PLACEMENT :- The launderer brings his legal profit into the financial system by breaking the large amount of cash into small conspicuous that are then directly deposited into the bank accounts or by purchasing a series of monetory instruments which are later collected and deposited into accounts at another location.

LAYERING :- In this stage, the launderer engages in a series of conversion or movement of the funds to distance them from their source so the funds simply wire throught a series of accounts at various banks across the globe.

INTEGRATION :- After successful processing a criminal profit throught the first two stage, the launderer moves them to integration in this the funds re-entre the legitimate economy . 

THE LAUNDERE MIGHT CHOOSE TO INVEST THE FUNDS INTO REAL ESTATE ,LUXURY ASSETS OR BUSINESS VENTURES.

PUNISHMENT FOR MONEY LAUNDERING :-

Section 3 of the act states that whosoever directly or indirectly is indulge in the activity connected with crime including its concealment , possession, acquisition, projecting or claiming it's untained property shall be guilty of offence of money laundering.

Section 4 provides that any person who commits the offence of money laundering is punishable with rigorous imprisonment for the term which shall not be less than three(3) years but which may extend upto seven(7) years and also liable to the fine. The proceeds of crime involved in money laundering relates to any offence specified Under the narcotic drugs bad psychotropic substance Act ,the punishment may extend to rigorous imprisonment for ten years.

~Buy-Back~💛

BUY-BACK IS THE PROCESS WHERE BY A COMPANY PURCHASES ITS OWN SHARES OR OTHER SPECIFIED SECURITIES(SHARES) FROM THE HOLDERS FOR :-

*)To improve earnings per share.

*)To improve return on capital, return on net worth and to enhance the long-term shareholder value.

*)To prevent hostile(unwelcome) takeover bids.

*)To return surplus cash to shareholders.

*)To service the equity more effecient.

*)To achieve optimum capital structure.

BUY-BACK of securities are governed by section 68 of companies Act,2013 and rule 17 of companies (share capital and debentures)Rules,2014.

Listed companies have to comply with the requlations laid down by SEBI also in this behalf. Condition for buy back pursuant to section 68(2) of companies Act,2013.

1) Buy back must be authorized by the AOA( Articles Of Association of the company.

2) A company can buy-back upto 25% of the aggregate of paid-up capital and free reserve of the company. In case of equity shares the limit of 25% of paid up capital shall be constructed as25% of equity paid up capital.

3)shares offered for buy back must be fully paid-up.

4) Buy back must be authorized by a special resolution .

AUTHORISATION IN THE ARTICLES

The articles of association of the company should authorise the buy back of shares.in case the provision is not available,it would be necessary to alter the articles of association to authorise buy back. Buy back can be done with the approval of BOD ( boards of directors) at the meeting and/or by special  resolution passed by the shareholders in the GM(general meeting), depending on the quantum of buy back. in case of listed company, approval of shareholders shall be obtained only by pastol ballot [Postal voting is voting in an election where ballot papers are distributed to electors (and typically returned) by post].

METHOD OF BUY-BACK

The buy-back may be :-

*) The existing security holders on a proportionate basis.

*) The open market through

Book-building process (is a process of price discovering. It is a period for which the IPO is open, bids are collected from investors at various prices, which are above or equal to lower price. The offer price is determined after the bid closing date)

*) Stock exchange (place where trading of securities/shares are conducted on an organized manner).

*) Odd lot holders (it refers to an order amount for a security that is less than the normal unit or small unit, which is typically 100 shares for stocks.

BUY-BACK PROCESS

1) Appointment of MERCHANT BANKERS/REGISTRAR.

2) Filing the resolution with SEBI/STOCK EXCHANGES.

3) Public announcement to be released in newspapers and stimultaneous filing with SEBI/STOCK EXCHANGE.

4) File the return with ROC and SEBI.

5) Merchant bankers to FILE A REPORT TO SEBI.

6) ISSUE OF PUBLIC ADVERTISEMENT in national daily on completion of buy-back process 9 determination of offer price, Opening and Closure of buy back offer .

7) ACCEPTANCE AND PAYMENT to security holders

8) Extinguishment of Certificate and intimation to stock exchange.

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