When a company is formed in India, two important documents shape how it works — the Memorandum of Association (MOA) and the Articles of Association (AOA). If the MOA explains what a company is allowed to do, the AOA explains how the company will actually run on a daily basis. Many beginners get confused between these two documents. But once you understand the role of AOA, … [Read more...] about Articles of Association (AOA) in India – Section 5 Explained for Beginners
Effect of Company Registration in India Explained: Section 9 of Companies Act, 2013
Imagine you and a few friends decide to start a company. You prepare documents, choose a company name, and finally receive the Certificate of Incorporation from the government. At that exact moment, something important happens legally. The company becomes a separate legal entity — almost like a new person created in the eyes of the law. This idea is explained in Section 9 of … [Read more...] about Effect of Company Registration in India Explained: Section 9 of Companies Act, 2013
Board of Directors in India Explained: Role, Powers and Responsibilities
If you look at any company in India — whether it is a small private company or a large listed company — you will always find something called a Board of Directors. Many beginners hear this term but are not fully sure what it actually means. Is the board running the company? Are they just supervising? Or are they owners? In simple terms, the Board of Directors is the group … [Read more...] about Board of Directors in India Explained: Role, Powers and Responsibilities
Director Limit in India: Maximum Directorships Allowed Under Companies Act
When people begin learning about company governance in India, one interesting question often comes up. Can a person be a director in many companies at the same time? In practice, this happens quite often. Experienced professionals, entrepreneurs, and investors may serve as directors in multiple companies. However, Indian company law places a limit on how many companies a … [Read more...] about Director Limit in India: Maximum Directorships Allowed Under Companies Act
Related Party Transactions Explained (Companies Act Guide for Beginners in India)
In many companies, business relationships often exist between people who already have some connection with the company. For example, a company may purchase goods from a firm owned by one of its directors. Or it may lease property from a business owned by a promoter’s family member. These kinds of dealings are called Related Party Transactions. Such transactions are not … [Read more...] about Related Party Transactions Explained (Companies Act Guide for Beginners in India)
Minimum and Maximum Number of Directors in an Indian Company (A Simple Guide for Beginners)
When people start learning how companies work in India, one of the first questions that comes up is very basic. How many directors does a company actually need? You may see a small startup with just two founders acting as directors. On the other hand, a large listed company may have a board with ten or more members. Indian company law sets certain basic rules about the … [Read more...] about Minimum and Maximum Number of Directors in an Indian Company (A Simple Guide for Beginners)