5 General Duties of the Directors of a Company (Companies Act 1956)

It is expected from them to behave as honest men of business may be expected to act. They may be held liable for breach of duty if they have acted in their own interests or that of some third party without considering whether it was also in the interest of the company though they might […]

Different Types of Product Strategies or Brand Strategies in Pharmaceutical Marketing in India

The basic intention behind this is, if one fails other succeed, e.g. Intas Pharma Ltd has launched two brands Preva and Plavix in the Clopidogrel market (an anti-platelet agent), likewise Cipla has also introduced two brands Sildenafil citrate (a drug mainly used for Erectile dysfunction) as Silegra and Progra. Family Brand Strategy – As name […]

6 Provisions of the Companies Act Regarding to the Conduct of Board’s Meetings

(2) Notice of Board Meeting: Notice of every meeting of the Board of directors of a company shall be given in writing to every director for the time being in India, at his usual address in India. Notice must be given even to a director who has waived his right to notice or who has […]

The Growth and Current Scenario of Indian Pharmaceutical Market – Explained!

Generic-Generic market in India has shown substantial base of Rs. 822 crore in the year 2009 with 1328 products (O.P.P.I. 2009 report) and 101 registered companies marketing with growth rate of 6.3 percent as compare to industry growth rate of 11.3 percent. Beside this Ayurveda, Unani, Homeopathy, etc contributing only 6.3 percent of the total […]

Useful Notes on Liabilities of the Directors of a Company in India

The directors would, be personally liable to third parties in the following circumstances: (a) Directors shall be held liable for all the ultra-vires transactions amounting to a breach of an implied warranty of authority held out by the directors. (b) Directors shall also be liable on all those contracts which they enter in their own […]

5 Restrictions on the Directors of a Company to Protect the Interest of the Company and Shareholders

2. Assignment of Office: A director cannot assign his office to another person. Assignment of office by a director of a company to any other person shall be absolutely void (Sec. 312). 3. Exemption from Liability in Respect of Negligence Etc: A director of a company is not entitled to claim any exemption from or […]

11 Most Important Functions of “Depository System”

2. The depository functions through its agents, who are called Depository Participants (DP). 3. The investor, who wants to avail the services of the Depository, has to open a beneficiary account with the Depository through a DP. The account known as the “Demat” account can be opened with more than one DP also. 4 After […]

The Benefits of the Depository System to Investors and to the Company

2. The risks associated with physical certificates such as loss, theft, mutilation of certificate etc. are eliminated. 3. It eliminates handling of huge volumes of paper work involved in filing the transfer deeds and lodging the transfer documents and share certificates with the company. 4. There is immediate transfer and registration of the securities (at […]

Procedure of Appointment of Company Directors in India (Companies Act 1956)

The first directors can hold office only till the first annual general meeting of the company when they will be replaced by directors appointed by the company at this meeting. 2. Appointment of Directors by Members: The subsequent directors, in the case of a public company, are appointed by the members of the company in […]

Useful Notes on Power of Directors in a Company – (Section 219 of Companies Act 1956)

2. In the exercise of their powers, the directors are subject to the provisions of the Act, Memorandum and Articles and other regulations made by the company in the general meeting. Powers of a company are distributed between the Board of Directors and the shareholders. Powers vested in the Board of Directors can be exercised […]