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Taxation Aspects of Demerger in India - Law Firms Directory
Taxation Aspects of Demerger in India - Law Firms Directory
TAXATION ASPECTS OF DEMERGER. The Income-tax Act, 1961 provides the tax reliefs to the demerged company, the shareholders of the demerged company, who are issued and ...

The company may have held out an officer as possessing an authority. The provision under the Indian Act which directly imbibes the Turquand rule is section 290, which reads as under: Acts done by a person as a director shall be valid, notwithstanding that it may afterwards be discovered that his appointment was invalid by reason of any defect or disqualification or had terminated by virtue of any provision contained in this Act or in the articles: Provided that nothing in this section shall be deemed to give validity to acts done by a director after his appointment has been shown to the company to be invalid or to have terminated: Another Provision which directly follows the above stated rule is section 81 of the Indian Companies Act, 1956 which bears the heading ‘further issue of shares’. With the due course of time several exceptions have also emerged out of the rule like Forgery, negligence, third party having knowledge of irregularity etc.

There are a lot of positive top reasons to buy journey insurance policy before a vacation. Moreover, the company can make a representation of authority even apart from its articles. Hardwood ash includes a compound that can chlorine bleach your tooth known as potassium hydroxide. It came out subsequently that neither the directors nor the secretary had ever been formally appointed. In other words, while persons contracting with a company are presumed to know the provisions of the contents of the memorandum and articles, they are entitled to assume that the provisions of the articles, they are entitled to assume that the officers of the company have observed the provisions of the articles.

Turquand's Rule and internal Management of the Company
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    You might feel like these are only considering your imperfections, and maybe judging you. Illustrating upon the point the Punjab & Haryana High Court has avowed in the case of Diwan Singh v Minerva Mills[3] that ”The allottees of the shares were contracting in good faith with the Company and they were entitled to assume that the acts of the Directors in making allotments of the shares to them are within the scope of their powers conferred upon them by the shareholders of the Company.

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    A newly appointed director does not mean that he shall be deemed to have knowledge of the irregularities practiced by the other directors. Knowledge of an irregularity may arise from the fact that the person contracting was himself a party to the inside procedure.

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    Selv tak!I kan da bare læse dem højt og dele grt!ien! Det er SÅ træls med de der grin man skal skjule. The existing shareholders of RIL got one share each in the Resulting Companies for every share that they held in RIL.

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    The Court of Exchequer Chamber overruled all objections and held that the bond was binding on the company as Turquand was entitled to assume that the resolution of the Company in general meeting had been passed. The rule of doctrine of indoor management is however subject to certain exceptions.

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    Yet the company was held bound by the loans. Ltd,[5] the plaintiff company sued the defendant company on a loan for Rs.

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