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FAQ
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Whether concept of proxy is relevant in respect of a general meeting wherein e-voting facility has been provided to the members.
Proxy is a facility given to a member to exercise his voting rights in case the member is unable to attend and vote himself. The provision for electronic voting is a platform facilitating the members to vote on their own. Hence, any member who has not exercised his vote electronically, may attend and vote at the general meeting either personally or by appointing a proxy to attend and vote on his behalf. The concept of proxy is still relevant, though with limited applicability.
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Whether advance taken from customers by real estate company on which no interest has been paid will be treated as advance or deposit as per the Companies Act, 2013?
As per the Rule 2(xii) of the Companies (Acceptance of Deposits) Rules, 2014, any amount received in the course of, or for the purposes of the business of the company - as advance, accounted for in any manner whatsoever, received in connection with consideration for property under an agreement or arrangement is exempted from the definition of the Deposits but if such advance is not adjusted against the property in accordance with the terms of agreement or arrangement then it will be treated as deposit.
Further, whether interest is charged or not is immaterial.
Thus, advance taken from customers by real estate company shall not be considered as deposits. But if it is not adjusted against the property in accordance with the terms of agreement or arrangement, then it will be treated as deposit.
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What is the preservation period of register of members and annual return under the companies Act, 2013?
In terms of Rule 15 of the Companies (Management & Administration) Rules, 2014, the register of members along with the index shall be preserved permanently. Copies of annual returns prepared under section 92 and copies of all certificates and documents required to be annexed thereto shall be preserved for a period of eight years from the date of filing with the Registrar.
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Is it mandatory for a company to keep its documents, records, registers, minutes, etc. in electronic form?
According to Section 120, the documents, records, registers, minutes, etc. may be kept and inspected in electronic form. Rule 27 of Companies (Management and Administration) Rules, 2014 initially mandated every listed company or a company having not less than one thousand shareholders, debenture holders and other security holders to maintain its records, as required to be maintained under the Act or rules made there under, in electronic form. However, MCA has revised the rules namely the Companies (Management and Administration) Second Amendment Rules, 2014, and amended rule 27 as follows: - in rule 27, in sub-rule (1) and in the Explanation, for the word "shall", the word "may" shall be substituted. Therefore, the companies have now been given an option to maintain the records in electronic form.
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