Goals of the Act

The Bonus Act (Payment of Bonus Act) has the accompanying objectives:

To make the business of each organization covered by the Act legitimately answerable for paying the motivation to workers.

To indicate the base and greatest extra rates.

To build up a reward estimation recipe.

To build up a technique for change.

The pertinence of the Act

The Bonus Payment Act applies to foundations that fall under any of the accompanying classifications:

It covers any production line or organization with at least twenty workers on some random day of the year.

Non-benefit associations are absolved from the demonstration’s arrangements.

It doesn’t make a difference to organizations that are excluded under Section 32, like LICs and medical clinics.

It doesn’t make a difference to organizations whose representatives have marked an agreement with the organization.

It doesn’t make a difference to foundations that have been excluded by the pertinent specialists, like debilitated units.

Divisions, Undertakings, and Branches

As indicated by the Bonus Act, any unmistakable divisions, endeavors, or parts of a foundation, regardless of whether situated in a similar area or in various areas, ought to be treated as segments of a similar foundation for extra purposes.

Such a division, undertaking, or branch will be perceived as a different foundation for the reasons for computing reward for the year, and a different asset report itemizing benefit and loss of the foundation in the year ought to be set up and kept.

Qualification for Bonus

If the accompanying conditions are met, any representative is entitled for a reward:

A representative procuring up to Rs.21,000 each month in compensation or wages

A representative who works in any way, regardless of whether gifted, incompetent, administrative, administrative, or in any case.

A worker who has worked for somewhere around 30 days around the same time..

Exclusion of Bonus

Representatives won’t be qualified for a reward if the administration makes a move against them for untrustworthiness, burglary, damage of foundation property, or savage conduct while working inside the business’ grounds.

Number of Working Days

On the off chance that the accompanying conditions are met, a representative will be considered “working” for the year:

Any representative covered by an aggregate dealing understanding or standing requests gave under the Industrial Employment (Standing Orders) Act, 1946, the Industrial Disputes Act, 1947, or some other material law.

The worker has taken paid leave all through their work.

The representative who has been missing inferable from a brief incapacity brought about by a business related injury.

During the bookkeeping year, the worker was on maternity leave with pay.

Installment of Minimum and Maximum Bonus

The base reward will be 8.33 percent of the yearly compensation, or 100 rupees on account of workers more than 15 years and 60 rupees on account of representatives under 15 years, whichever is more prominent.

During the bookkeeping year, the most extreme reward is 20% of the compensation.

Course of events for Payment of Bonus

Rewards ought to be paid in real money inside eight months of the finish of the bookkeeping year or one month of the date of the demonstration’s implementation.

Calculation of Bonus

According to Section 4 and Section 7 along with the Schedule 1 and two arrangement with the computation of net benefit and accessible excess out of which 67% if there should be an occurrence of organizations and 60% in different cases would be allocable excess.

To register the accessible excess the totals, so deductible from the net benefits are:

All immediate assessments under Section 7

The aggregates which are particularized in the timetable

The recompense for venture or improvement in which the business is permitted to deduct from his pay under the Income Tax Act.

Accessible Surplus = Gross Profit ( deduct) the accompanying :

Deterioration is reasonable in Section 32 of the Income-charge Act.

Improvement Allowance.

Overseers under Section 20

After distribution in the authority periodical, Section 20 permits the able government to delegate Inspectors for this Act.

Powers of overseers:

Acquiring data from a business.

Ready to go to any business whatsoever good hour.

Ready to request and view specific creation documentation.

Ready to extricate data from the records

To lead an examination concerning the businesses, his representative or worker, or some other individual found responsible for the foundation; and to practice whatever other powers that might be given fair and square.

Obligations of the Employer

Coming up next are the obligations of the business:

Work out and pay the yearly reward as legally necessary.

To stay up with the latest:

The register will show the excess portion calculation in the suitable Form.

The register ought to be stayed up with the latest with the extra installments to the workers.

Records ought to be stayed up with the latest before a review, just as some other appropriate data.

Freedoms of Employers

Bosses should attest the accompanying freedoms:

• The option to achieve any issues the application or translation of any arrangement of the Act to the Labor Court or the Labor Tribunal.
• The option to deduct a real cost from a representative’s reward, like a paid celebration reward or a monetary misfortune brought about by worker misconduct.
• The option to take a worker’s reward if the individual has been terminated for rowdiness, savagery, misrepresentation, misappropriation, or harm of the organization’s property.

Privileges of Employees

Workers are qualified for the accompanying advantages:

• Right to gather any reward due under the Act and to document a solicitation with the public authority for the reclamation of any came up short on reward inside one year of the due date.
• The option to record a grumbling with the Labor Court/Tribunal in case of a debate.
• Under the Industrial Disputes Act, representatives who are not qualified for the Payment of Bonus Act can’t bring a test concerning the reward.
• The option to ask about and demand data about any thing in the foundation’s accounts.

Offenses and Penalties

In case of a break of the Act’s or alternately rules’ arrangements, the punishment is either a half year in jail or a fine of Rs.1000, or both.

In the event that you don’t follow the mandates or demands, you’ll be condemned to a half year in jail or a fine of Rs.1000, or both.

If an organization, firm, body corporate, or relationship of people carry out an offense, its chief, accomplice, head, or official liable for the direct of its business ought to be assumed blameworthy except if the individual demonstrates that the wrongdoing was perpetrated without his insight or that he practiced all due perseverance.

Also Read,

CKYC- Guide on KYC and Check CKYC Number
How To Check My IEC Application Status?

The post Payment of Bonus Act appeared first on LegalRaasta Knowledge portal.

With the rise in financial fraud, it’s more crucial than ever to preserve accurate customer records in order to track down any unusual activity. CKYC regulations were put in place to prevent the financial sector from being ruined by unlawful conduct. This aids in gaining a deeper understanding of the customer. This also contributes to the investment’s safety.

CKYC has taken the position of KYC (Central Know Your Customer). Earlier KYC regulations included distinct KYC formats for different institutions. With the advent of CKYC, the customer will no longer be required to go through the KYC process with any other institution.

Once you’ve completed Central KYC, you won’t have to go through the same process again with another institution. This has relieved the investor of the burden of having to go through the KYC process all over again.

What is CKYC?

Central Know Your Customer is abbreviated as CKYC. It is a centralised repository that holds or saves all of the customer’s personal information. There used to be a separate KYC process for each financial entity. CKYC was established by the Central Government. This facilitates the consolidation of all KYC processes into a single platform.

As a result, once an investor’s entire Central KYC has been verified, he will not have to go through the same process again. If he wishes to invest in a different financial institution. After then, the data is digitally stored in a single central server. All authorised financial entities have access to this information. The data can be used by the financial institution as needed.  

The CKYC Registry is managed by the Central Registry of Securitisation and Asset Reconstruction and Securities Interest of India (CERSAI). The CKYC was announced in the Union Budget for 2012-13. Following that, in July 2016, it began.

The government’s Central KYC project, also known as CKYC, aims to consolidate all financial firms’ KYC processes under one roof. Individual investors must meet KYC standards under the CKYC standard.

Features of CKYC

The CKYC registry aids financial institutions in avoiding the time-consuming process of onboarding consumers. They consolidate all pertinent information about the customer into a single window. This also helps to save a lot of time and effort.

Prior to the implementation of CKYC, opening a bank account was a nightmare. One had to frantically acquire paperwork in order to meet the financial institute’s requirements. This took a significant amount of time and effort. However, if you want to invest in another financial institution, you must go through the same documentation process. 

As a result of the introduction of CKYC, the customer no longer has to go through the same documentation anguish. All of the data is kept in one place. This information is also available for authorised financial institutions to access. This saves time and effort for both the customer and the banking institution.

The following are some of CKYC’s characteristics:

• CKYC is a 14-digit code that is connected to the customer’s ID proof, after which the information is securely saved in an electronic format.
• The provided document is then validated with the issuer.
• When the KYC information changes, all affected institutions are alerted.

How does CKYC Work?

Before making any investment, you must now pass a central KYC process. This aids in getting to know the customer better and securing the investment. Customers’ KYC records are saved by the banking institution. This also aids in the prevention of financial fraud and questionable behaviour.

The customer must fill out a KYC form before investing with any fund house. The CKYC form must be completed and sent along with the required papers. CERSAI double-checks the KYC paperwork.

CERSAI verifies KYC documents and stores them digitally on one server. A 14-digit number is assigned to the customer and is connected to his ID proof. The KYC confirmed number will be this number.

If the customer decides to invest with another fund house once the process is completed, he will not be requested for KYC again.

By providing the CKYC number, the Fund House can request that CERSAI make the customer’s documentation available. All authorised financial entities have access to the data that has been stored. The data can be used by the financial institution as needed.

Types of CKYC Accounts

CKYC (Central Kentucky Youth Council) or CKYC (Central Kentucky Youth The Ministry of Finance mandated the implementation of Know Your Customer. There are four different types of CKYC accounts:

1. Standard Account: The type of account that is created is determined by the type of document that a client submits. When a consumer presents any of the documents specified below as evidence of identity, a standard account is created. These are the documents:

• PAN Card
• Aadhaar Card
• Voter ID Card
• Driving Licence
• Passport, or
• NREGA Job Card

Another sort of CKYC account is the Simplified Measured Account. When the customer submits further valid documents, this account is created (OVD). These documents were created in accordance with RBI Circular RBI/2015-16/42. The KYC identification prefixes these accounts with the letter ‘L.’

3. Small Account: When a customer provides simply his personal information and a photograph, he is given a small account. The KYC identifier prefixes these accounts with a ‘S’.  
4. eKYC Account with OTP: OTP-based KYC is completed online. A photograph and an Aadhaar card PDF file acquired from the UIDAI website are required to create this account. An OTP is then used to enable them. The KYC identifier prefixes these accounts with a ‘O’.

Documents required for registration 

CKYC is a quick and painless procedure. All you have to do now is completely out the KYC documents and have them attested. CERSAI verifies all documents after they have been submitted.

The documents will be digitally kept in one server once they have been authenticated by CERSAI. After that, the consumer is given a 14-digit number that is connected to his ID proof. This number will be used to verify KYC compliance.

The following is a list of the KYC documents required for CKYC registration:-

• Signatures on a completed CKYC or KRA application form. A consumer must also complete an additional CKYC form.
• One self-attested identity verification • Address evidence (self-attested)
• A single photograph

Following CERSAI’s verification of these documents, the ID proof is assigned a 14-digit number. This is the CKYC-verified phone number. All of the information is saved digitally, and fund houses will be able to access these documents by providing a confirmed number. If the customer wants to invest in another financial institution, he does not need to go through the CKYC process again.

How to check CKYC numbers online?

After verification, the customer can verify his CKYC number at any financial services institution. Follow these simple steps to get started:

• First, go to any financial services company’s website that offers a CKYC check.
• Secondly. The customer’s PAN number must be entered.
• Finally, the customer must type in the security code that appears on the screen.
• Finally, a number appears on the screen. The CKYC number is this.

The customer should keep his CKYC number on hand for future reference. He will be able to save time while investing with any financial institution as a result of this.

Benefits of Central KYC Registration 

Central KYC, often known as CKYC, has a number of advantages. It has it all, from time savings to easy accessibility. CKYC was created in February 2017 to make investing more convenient and hassle-free. Investors Clients will have to go through the CKYC process with a bank, mutual fund, or insurance provider once. They won’t have to go through the KYC process again if they invest with another financial institution.

The CKYC procedure is completed only once. It is a simple procedure that saves both the investors and the financial institution time. The following are some of the advantages of CKYC:-

• CKYC helps you save time and money. Once an investor has registered with CKYC, he or she does not have to go through the entire documentation procedure again. The onboarding process takes less time when investing with any other financial institution.
• Once registered, CKYC allows the financial company to quickly verify the investor’s KYC documentation. Both the investor and the financial institution benefit from this simplified onboarding process.
•  CKYC authentication is also available to investors. They can easily update their information in the CKYC registry at any time.
• CKYC is a simple procedure. By following a few simple steps, any investor can become a member.
• CKYC also aids in the prevention of money laundering and other forms of criminal activity in the financial sector.
• This relieves the investment authorities of some of their responsibilities. It is now much easier to retrieve investment data. The authorities will also be able to see how many investments the customer has.
• The investor can buy or invest in many financial schemes using his CKYC number. This is true for insurance policies, mutual funds, and stock exchanges.

What is the difference between KYC, eKYC and CKYC?  

KYC

All financial organisations use the Know Your Customer (KYC) procedure on a regular basis. To identify an investor, a KYC procedure is carried out. The identity of an investor is confirmed through this method. The investor must complete a form issued by the financial institution with his or her personal information. The form is filled out and submitted by the investor. An In-Person Verification step is added to this process (IPV). Following the completion of the verification, the KRA Registration Agency stores the appropriate investor data (KRA).

eKYC

Electronic KYC, or electronic know-your-customer, is a standard procedure. The Aadhaar Card number is used to verify an investor’s identity in eKYC. Authentication of the investor’s identity can be done when completing the eKYC process:

(a) Through the use of a One-Time Password. (Limits mutual fund investments to Rs 50,000 per year and requires investments to be made using an online electronic form.)

(b) KRA then uploads the data digitally in its record using biometrics (no limits on the investment amount here unless those are imposed by the programme / Fund House).

CKYC

CKYC is an initiative of the Indian government. It was first released in February of 2017. The purpose of CKYC is to allow investors to complete their KYC only once while investing. It allows an investor to invest in any fund firm without having to go through the KYC process again.

The CKYC process is administered by CERSAI. It permits investors to do business with any entity governed or regulated by the Indian government. Without having to undergo several KYC processes, the investor can transact with any RBI, SEBI, IRDA, or PFRDA registered company. As a result, onboarding becomes a breeze. It enables investors to participate in the market in greater numbers, making their financial journey simpler and less stressful.

How can I update CKYC?

The CKYC status can be updated online. To upgrade your CKYC, follow the steps outlined below.:

1. First, go to camskra.com and get the “update in KYC detail.”
2. Second, change the needed field and submit it to an intermediary with whom you have a relationship. A mutual fund, a bank, or a stockbroker can act as an intermediary.
3. Finally, the middleman enters the information into the KYC – registration agency or KRA system that is linked to it. You can also check your CKYC status online.

There are now five KRAs. These organizations are in charge of performing your KYC and preserving your records. These organizations are – 

• CAMSKRA (by Cams)
• CDSL Ventures Limited (a division of CDSL)
• DotEx International Limited (a unit of the National Stock Agency
• KARVY KRA (By Karvy)

You can check your CKYC KYC status by going to any KRA website.

What is the use of CKYC?

CKYC assists an investor in purchasing mutual funds or any other financial product. A KYC identity number is given to the customer. The customer’s ID proof is then linked to the number. This number can be used to invest in mutual funds by the investor.

Once the CKYC verification is completed, the investor is not required to repeat the process when interacting with another fund company. 

Frequently Asked Questions

How do I verify my KYC online?

KYC is the initial stage in investing in mutual funds. If you are KYC compliant, you may easily verify your KYC online. You should go to CDSL Ventures Limited. You must enter your PAN and captcha code and then click the “Submit” button. As a result, the KYC status will now appear. If you are not KYC compliant, you can complete the KYC process offline, online, or via biometrics based on your Aadhaar number.

Your KYC, which must be outdated or incomplete, must have been processed by some intermediates. In such instances, you can also use the NDML website to check your KYC. The status will appear as pending if your KYC has not been validated. Otherwise, the KYC status is displayed as KYC registered.

Also Read,

Procedure & Precautions to take before filing for DIR-3 KYC

The post CKYC- Guide on KYC and Check CKYC Number appeared first on LegalRaasta Knowledge portal.

Maternity and childbirth are extremely important times in a family’s life since they necessitate extra attention, comfort, and nutrition. A pregnant woman’s situation in the country is far from ideal. Maternal health is one of the most important issues in India, which accounts for one-fifth of all births worldwide. The government is attempting to change this situation by reorganising several health-care programs. PMMVY: Pradhan Mantri Matru Vandana Yojana, which was redesigned by PM Narendra Modi, is one of these programs. Most women work until the later stages of pregnancy and shortly after delivery due to a variety of social reasons, which is unhealthy because their bodies do not get enough rest or time to recover. It inhibits their capacity to adequately breastfeed the infant during the vital first six months of life. This is what has a negative impact on both the mother and the baby’s health.

Maternal health is critical to a woman’s ability to have a relatively simple and complication-free delivery. In 2015, India was responsible for one-fifth of all maternal deaths worldwide, which is an extremely high percentage. The major reasons for this were health disparities and social hierarchy. Anemia and malnutrition affect a substantial number of women in India, particularly in rural areas. This, in turn, becomes a concern for healthy pregnancies and births, since undernourished moms are more likely to give birth to low birth weight babies, which often result in difficulties.

PMMVY stands for Pradhan Mantri Matru Vandana Yojana. The Prime Minister’s strategy for mother’s worship is loosely translated by the meaning of these phrases. The program began in 2017 with the goal of providing monetary compensation to pregnant women who have lost their jobs as a result of their pregnancy. This program also aims to improve the nutritional status of pregnant and lactating women.

Objectives of PMMVY

Due to limited availability to food due to poverty, the average Indian lady is considered undernourished. The government has always attempted to develop lucrative health-care systems with the goal of providing mothers and children with at least basic nourishment. The PMMVY is part of India’s Ministry of Women and Child Development.

• The Pradhan Mantri Matru Vandana Yojana (PMMVY) aims to provide partial compensation to working pregnant women and breastfeeding moms who have lost income as a result of their pregnancy.
• Pregnancy necessitates increased nutrition in order for a woman to maintain her pregnancy and deliver a healthy child.
• The monetary incentive, which is paid out in three instalments, can be utilised to meet at least the daily nutritional requirements of pregnant women.

Benefits of PMMVY Scheme

The Financial Advantages

The table below shows scheme information for monetary benefits based on the beneficiary’s claimed instalment number:

Nutritional requirements

Extra nutrients are required for a pregnant woman and a breastfeeding mother to be able to provide enough for the infant. Based on her height and weight, she should consume at least 200 calories more than the daily minimum.

Breast milk should be solely administered to a newborn for the first 180 days of life, according to the World Health Organization. In order to meet this requirement, a mother must first ingest adequate nutrition. Only then will it be feasible to provide the infant with the necessary nourishment. The PMMVY program assists a mother in meeting her and her baby’s increased nutritional demands.

Coverage of Pradhan Mantri Matru Vandana Yojana:

The PMMVY program is intended to give financial assistance to lactating women and pregnant women who have lost their jobs as a result of their pregnancy. The scheme does not provide any further coverages except from the three instalments that must be claimed within 150 days, 180 days, and at the time of childbirth.

Exceptional Situations

Miscarriage/Stillbirth

The beneficiary may still be eligible to receive the remaining instalments for a future pregnancy if the pregnancy ends in a miscarriage or stillbirth. For example, if a woman receives the first instalment and subsequently miscarries, she is still entitled to receive the remaining instalments for a future pregnancy.

Mortality in Infants

If the beneficiary has previously received all of the benefits of the PMMVY plan, she is not eligible to receive them again in the event of infant mortality.

PMMVY Eligibility Criteria:

The scheme’s main goal is to provide at least Rs. 5000 in cash to pregnant mothers who are having their first child in the country. The following are the requirements for receiving PMMVY benefits:

• The woman is a citizen of India.
• Before she became pregnant, the woman was employed.
• The woman was born on or after January 1, 2017.
• The woman has lost her job as a result of her pregnancy.
• The woman is not enrolled in a paid maternity leave program.

PMMVY Documents Required:

At different phases of receiving PMMVY instalments, different sets of documentation are necessary. When filing a claim for each instalment, the beneficiary will be required to present the necessary papers. Depending on the number of instalments, the following documents will be required:

First instalment: Within 150 days of the latest menstrual period, submit the following documents:

• Form 1A must be completely filled out.
• MCP Card Copies
• a photocopy of your ID
• Account passbook from a bank or post office

Second instalment: Documents must be presented within 180 days of the last menstrual period to be considered for the second instalment:

• Form 1 B must be completely filled out.
• MCP Card Copies

Third instalment: Documents should be filed following childbirth registration.

• Form 1C, properly completed
• MCP Card Copies
• A copy of your Aadhaar card
• Child’s Copy
• Certificate of Birth Registration

How to Register for PMMVY Maternity Benefits Online?

The steps to apply for the PMMVY online are as follows. To apply online and complete the registration through the PMMVY CAS ( Common Application Software) you will need the scheme facilitator’s login information . Take a look at how it’s done:

Step 1: Go to the website and log in.

• Visit the website and log in using your email address and password.

Step 2: Complete a new registration

If the user’s login credentials are being used for the first time, the system will prompt them to reset their current password before proceeding. The user will be directed to the Beneficiary list after entering the system with a new password. To make a new beneficiary, click the “New Beneficiary” button. To proceed, you’ll need one or more of the following documents:

• Enrollment ID for Aadhaar
• Aadhaar Number
• Any other document specified by the State Government or UT Admin
• Any other form of photo identification
• state government or UT administration
• Passbook with Photographs from the Bank
• Gazetted Officer Certificate of Identity with Photograph
• a driver’s licence
• Employee Photo ID – Government of India or Public Sector Undertakings
• PSU or Government Hospital Issued Health Card
• Passbook of Kissan Photos
• Job Card for MGNREGS
• PAN Card
• Passport
• Card of Rationing
• Voter Identification Card
• Select the corresponding ID from the menu and then the beneficiary’s location.

Step 3: Filling basic details

The next step is to complete the registration by entering the beneficiary’s basic information in the fields provided, such as category, id proof number, LMP date, mobile number, name, number of living children, pregnancy registration date, PMMVY registration date, and so on.

Step 4: Bank account information

To receive the payments, enter your bank account information.

Step 5: Complete the remaining instalments

By providing the paperwork, the recipient can later file a claim and receive the remaining instalments.

How to Check PMMVY Status Online?

The PMMVY can be checked by using the credentials of an authorised individual to enter into the PMMVY web site. The PMMVY plan card may be necessary to check the beneficiary’s status online. Another option is to check the status of each instalment, claim, or other detail in the system using the beneficiary’s personal identification number, such as the Aadhaar card or PAN card.

related posts

Pradhan Mantri Rojgar Protsahan Yojana : Objectives, & Eligibility

Pradhan Mantri Ujjwala Yojana (PMUY)

 

The post PMMVY: Pradhan Mantri Matru Vandana Yojana appeared first on LegalRaasta Knowledge portal.

Section 163 of Companies Act, 2013

The Companies Act of 2013 contains rules relating to the principle of proportional representation in the nomination of directors. According to Section 163 of the Companies Act, a company’s articles must provide for the appointment of not less than two-thirds of its total number of directors according to the concept of proportional representation, whether by single transferable vote, cumulative voting, or other means.

Section 163 of the Companies Act 2013 replaces section 265 of the previous Companies Act. The latter section pertained to any public or private company that is a subsidiary of a public company, whereas the first section extended to all businesses. When we break down this section, we see that the articles of association require the appointment of at least two-thirds of the total number of directors, implying that provisions in the articles are required to invoke the section. It is crucial to highlight that such clauses in the articles of incorporation are not required. The principle of proportional representation  permits minority shareholders to pick their directors, guaranteeing that minority shareholders’ interests are not harmed. The phrase “otherwise” is used in this section to indicate that it can be implemented using any method other than a single transferable vote or cumulative voting.

Features of principle of proportional representation for appointment of directors

• This system has overriding authority, which is one of its qualities. “Notwithstanding anything stated in this Act..,” says Section 163 of the Companies Act of 2013, which means that this section takes precedence over all other provisions of the Act. The overriding factor of this section will be enjoyed if a corporation adopts the provisions indicated in this section in line with the principle of a proportional representation system. The nomination of directors should be voted on individually under section 162, yet this contradicts the provisions of section 163. However, because of section 163’s overriding power, the provision in section 162 is not included.
• Another element of this system is that section 163 states that the appointment may be made by the articles of incorporation. This means they would only apply if the articles of incorporation allow for such an appointment clause. If a business’s article of association so specifies, the directors of the firm may be appointed using the proportional representation method. A corporation is not required to implement the provision. A firm can choose not to follow the idea of proportional representation when appointing its directors. It appears that the requirement for provisions in the articles is critical for invoking section 163 of the Companies Act, 2013.
• This method of appointing directors in a corporation ensures that minority shareholders’ interests are fairly represented. Minority shareholders may not be able to keep their nomination directors on the board to protect their interests in the normal course of events. This may cause people to be concerned about the company’s ability to function properly. The primary goal of this proportional representation system for appointing directors is to protect the interests of minority shareholders.
• The application of proportional representation for the appointment of directors is another element of the system. The provisions of this section apply to both public and private companies, whereas the previous Act of 1956 only applied to public corporations or private companies that were subsidiaries of public companies. As a result, the current provisions of the Companies Act 2013 can be argued to provide a broader scope in favour of minority shareholders.
• The appointment of directors is allowed once every three years under the proportional representation system. This statement implies that the three-year tenure requirement is optional.
• The number of directors who can be appointed is one of the section’s most prominent elements. According to the provision, a company’s articles of association may provide for the appointment of not less than two-thirds of the total number of directors. As a result, where a corporation follows the proportional representation concept, it must appoint at least two-thirds of its board of directors via this approach. However, this proportional representation method has no upper limit on the number of directors that can be selected.
• Casual vacancies in the board of directors shall be filled in accordance with subsection (4) of section 161 of the Act of 2013. It stipulates that the casual vacancy shall be filled by the Board of Companies Act Directors at the Board meeting, subject to any regulations in the company’s articles of incorporation or in the absence of such regulations. It is vital to highlight that such an appointment will not be made by the board’s approved resolution.

It also states that when a person is appointed, he will serve until the date on which the director in whose place he is appointed would have served if the position had not been vacated.

Method of appointing directors under Principle of proportional representation system

There are two ways which are followed for appointing directors of a company under principle of proportional representation system:

1. Single transferable voting

2. Cumulative voting

• Single transferable voting:

Every shareholder, regardless of holdings, has one vote per board of directors to be appointed under single transferable voting. For example, five directorships have to be filled from a pool of eight candidates. In this instance, each shareholder can cast one vote in favour of up to five candidates, regardless of the number of shares he owns. The five candidates with the highest number of votes will be elected in order.

Minority shareholders can only vote for their selected candidate and cannot vote for anybody else. It may ensure that their nominated candidate receives the required number of votes to win, and other shareholders’ votes may be distributed among numerous candidates. Minority shareholders may be able to appoint a candidate director to the board of directors using this procedure.

• Cumulative voting

Under this method, each shareholder is entitled to the number of votes that corresponds to his shareholding. For example, if a shareholder owns 500 shares in a firm, there are five directors to choose from among eight candidates. In this situation, he is entitled to vote in a total of 2500 ways. He has the option of casting all of his votes for a single candidate or dividing them among the candidates.

If a group of minority shareholders decides to vote for their nominated candidate with all of their votes, the nominated candidate has a good chance of being elected, as votes from other shareholders may be distributed in favour of other candidates to fill the remaining vacancy on the board of directors. Minority shareholders’ interests are protected in the corporation using either of these two ways.

Other methods for appointing directors according to principle of proportional representation

To appoint directors in accordance with the proportional representation system, a company might adapt to methods other than Single Transferable Voting or Cumulative Voting, as provided in the articles of association of a company and agreed by the majority shareholders in the general meeting.

Exemption from the provisions of Section 163

On June 5, 2015, the Central Government issued a notification exempting certain government entities from the application of section 163 of the Companies Act, 2013. Minority shareholders in such firms will not be able to choose their nominated directors based on the principle of proportional representation.

Removal of Directors

Section 169(1) of the Companies Act 2013 outlines the procedure for removing a company’s director, with the caveat that nothing in this subsection applies if the company has exercised the option to appoint not less than two-thirds of the total number of directors in accordance with the proportional representation system’s principle.

As a result, any director nominated pursuant to Section 163 of the Companies Act cannot be removed pursuant to Section 169 of the Companies Act (1). It is unclear how directors nominated using a proportional representation system can be removed.

Conclusion

The potential of proportional representation for director appointments appears to be extremely rational, as it appears to protect the interests of minority shareholders, although it is unclear how far this will be enforced. The requirements have been maintained optional, and it is up to the firms to decide whether or not to execute them.

Also read

The Companies (Appointment and Qualification of Directors) Third Amendment Rules, 2018

What is Director’s report – Meaning and Contents

 

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Benefits of Company Registration in India

• Establishes a Different Legal Entity: According to this, even though a specific member controls the majority of the business’s shares, the company is autonomous and distinct from its members. Therefore, the question was whether a shareholder or controller may be made personally accountable for a company’s debt in addition to the capital contribution, regardless of the company’s separate legal character.
• Company has Perpetual Succession: Perpetual succession refers to an organization’s ongoing existence, which means that it will continue to exist even after its members pass away. According to the Companies Act of 2013, a company’s members may come and depart, but this has no bearing on the legal identity of the company. The corporation only ends when it is legally wound up.
• Can own Separate Property: Since a corporation is considered to be a separate legal entity under the law, it is allowed to possess property in its own name without the members being able to claim ownership. Additionally, he personally insured the company’s asset of lumber, which was lost in a fire.
• Ability to sue and be sued: The business has the legal authority to file a lawsuit on its own behalf or to be sued by another party. Even if a company can be sued or sued in its own name, it must be represented by a natural person. Any complaint that is not represented by a natural person is subject to dismissal in the same manner as an individual complaint when the complainant is not present for Company Registration in India.
• Capital is made simpler: Access to capital is made simpler for corporations because they can issue stock instead of debt. Another incentive to incorporate, for instance, is if you need a bank loan; in most circumstances, banks prefer and make it easier to give money to incorporated business enterprises.

Disadvantages of registering a company in India

• Cost: The initial cost of incorporation consists of the filing fee for your articles of incorporation, any prospective legal or accounting expenses, or the cost of hiring a service to help you complete and file the paperwork. A corporation must pay continuous fees to be maintained.
• Double Taxation: There is a chance that some corporate structures, like a Corporation, will lead to “double taxation.” When a business is taxed twice—once on profits and once on dividends given to shareholders—it is said to be subject to double taxation.
• Loss of Personal “Ownership”: If a corporation is a stock corporation, just a portion of the entity is still in the control of a single person. A board of directors is in charge of the corporation; they are chosen by the shareholders.
• Required Structure: When establishing a corporation, you must adhere to all regulations set forth by the state in which you filed. This comprises the organization’s administration, its operational needs, and its accounting procedures.
• Ongoing Paperwork: Annual reports on the company’s financial status must be filed by most corporations. Tax returns, accounting records, meeting minutes, and any other licenses and permits necessary for operating business are all part of the continuous paperwork for Company Registration in India.
• Perpetual existence: Perpetual existence is a benefit of incorporation, but it can also be a drawback because it can take a lot of time and money to fulfil the necessary steps for dissolution.
• Lifting of the Corporate Veil: The “Veil of incorporation” is the name given to this concept. In general, courts view this concept as binding upon them. This Principle has the result of creating a fictitious barrier between the corporation and its customers. In other words, the corporation has a personality all its own that is different from its employees. However, in a variety of situations, the Court will pierce the corporate veil or will disregard the corporate veil in order to uncover the true form and character of the relevant corporation or to contact the person concealed behind the veil. The justification for this is possibly that the law forbids the corporation structure from being abused or misused. When the Court believes that the corporate form is being abused, it will pierce the corporate veil and reveal the true nature and character of the corporation.

Conclusion

Entrepreneurship is currently a hot topic, and when deciding on a company model, an entrepreneur must take into account all of the benefits and hazards. The destiny of the firm is significantly influenced by the use of the proper business forms. Compared to alternative business structures, incorporating a corporation offers stability and significantly more legitimacy. It’s crucial to keep in mind that every company and every business owner are unique. There is no one size fits all answer when selecting whether or not to incorporate a business. Our business attorneys at Legalraasta are very knowledgeable in this field and can help you take your company from conception to incorporation. If you’re not ready to integrate yet, keep in mind that the variables influencing your choice may alter down the road. Having this manual close to hand for future use might be beneficial. If you have any comments or questions, feel free to contact the author of this post through our website for Company Registration in India.

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Objectives of Samarth Scheme

• Offering demand-driven and placement-oriented National Skills Qualifications Framework (NSQF) compatible skilling programs to support and incentivize the textile industry’s efforts to develop jobs in organised textile and allied industries.
• Promote skill up-grading and skilling in traditional handicrafts, sericulture, handlooms, and jute industries.
• To provide a sustainable living to all part of society in India, whether through self-employment or wage employment.

The primary objective of the Scheme is to provide skill enhancement training/up gradation training to the artisans, weavers, technicians etc. working in the textile and apparels sector. The Scheme aims to provide skill enhancement training/up gradation training for people working in the different segments of textile /apparel value chain, including hand loom weavers, power loom weavers, technicians ,Dyers, Engineers working in different areas like yarn production & processing units, fabric production units, apparel production units etc.

What are the benefits of Samarth Scheme?

The Scheme provides for skill upgradation/training to people across levels viz., artisans (operators, technicians), weavers (traditional and power) and other stakeholders working in different segments of textile value chain like yarn manufacturing, processing / fabric manufacturing / apparel manufacturing / product development units etc.

This scheme is helping the artisans, technicians and weavers to acquire knowledge which would help them in adopting latest technological advancements. It aims to upgrade their knowledge base to equip them for better employment opportunities or self-employment. They will also be able upgrade their skills through this scheme which will improve their earning capacity.

Samarth Scheme application procedure

Interested applicant can apply for the Samarth scheme to participate in training and skilling programs in the textile and garment industries in order to improve their career possibilities. The application procedure is as follows:

• Go to the Samarth scheme’s official website.
• On the right-hand corner of the home page, select ‘Candidate Registration.’
• The ‘Candidate Enquiry Form’ will appear on the screen. On the ‘Candidate Enquiry Form,’ input your name, date of birth, e-mail, cellphone number, state, address, district, and training center, then click the ‘Submit’ button to finish the online application process.

Trainees under the Samarth Program

The applicants/trainees who have applied for this plan are selected and mobilised by the implementing agency. The implementing agencies choose the trainees in a transparent manner, offering the chance to anybody who is interested while taking in mind the needs of the textile sector and other stakeholders.

When selecting trainees, priority is given to marginalised social groups such as SC/ST, women, minorities, BPL category individuals, differently-abled individuals, and the 115 aspirational districts identified by the NITI Aayog.

 Implementation of Samarth Scheme

The Samarth scheme aims to train ten lakh people, with nine lakh coming from the organised sector and one lakh from the traditional sector. The whole structure for implementing the Samarth scheme, including costs for capacity-building programs, is matched with the Ministry of Skill Development and Entrepreneurship’s (MSDE) policy framework for skill development, Common Norms, etc.

The Entry-level courses and the Training of Trainers (ToT) program are part of this program. The official website contains a list of courses available under the Samarth system. The following strategy is used in this scheme:

• A biometric attendance system with a minimum of 80% attendance for assessment was enabled by Aadhaar.
• Training offered by Resource Support Agency (RSA) / Sector Skill Councils (SSCs) certified trainers with a Training of Trainers (ToT) certification
• CCTV cameras were used to record the entire assessment process and training programs.
• Assessment and certification by third-party assessment bodies appointed by the RSA.
• A placement-linked skilling program with a one-year post-placement tracking period and required paid employment in the organised and traditional sectors.
• Randomly physical verification of active training centers
• Courses that follow the NSQF.
• On the Ministry of Textiles website, there is robust real-time scheme information and MIS.
• A call center, which is a helpline set up to collect feedback.
• A mobile app for multiple stakeholders to make the implementation and monitoring process go more smoothly.
• Public grievance settlement with a Ministry of Textiles Grievance Redressal Officer.
• Funding in accordance with standard procedures and uniform branding in accordance with MSDE rules.
• Under the Pradhan Mantri Mudra Yojana, trainees can get a low-interest loan to start their own business.

Implementing Agencies under Samarth Program

The following are the implementing agencies that will carry out the Samarth scheme’s skilling programms:

• Textile industry;
• Ministry of Textiles institutions or organisations;
• State governments with placement tie-ups and training infrastructure with the textile sector.
• Reputable training institutions, societies, NGOs, organisations, trusts, companies, startups, and entrepreneurs involved in the textile industry and with placement ties-ins.

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Sankalp Scheme

New Changes In Custom Duties In Budget 2021 To Promote Domestic Manufacturing

 

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