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Tuesday, January 1, 2008
SEBI reduces the load of the investor
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Saturday, December 22, 2007
Power of Attorney (PoA) - nice FAQ
monetary dealings, clarity on the nature of the
document is vital
— Photo: H. Vibhu
Care and caution: A Power of Attorney becomes an
important document in property transaction.
A Power of Attorney, especially, when relating to real
estate transactions, is a very important document. As
it may relate to substantial monetary dealings,
clarity on the nature of the document is vital. Many
queries have also been raised with regard to the Power
of Attorney. Attempt is made to address these issues
in this FAQ.
1.What is a Power of Attorney?
A Power of Attorney is a document under which one
person known as "Principal" or "Donor" grants an
authority to another person, known as "Agent",
"Attorney" or "Donee" to do or undertake the acts,
deeds and things specified in the document, on behalf
of the Principal or Donor.
2.What are the various types of Powers of Attorney?
There are many types of Powers of Attorney. A broad
classification would be General Powers of Attorney and
Special Powers of Attorney. A General Power of
Attorney confers substantial powers for effecting the
transactions contemplated. A Special Power of
Attorney, on the other hand, is given for specific
purposes only and is often restrictive in scope.
3.What are the ingredients for grant of a valid Power
of Attorney?
The Principal and the Agent must be competent to
contract. It has to be given voluntarily. The Power of
Attorney should be given for legal purposes. It must
be duly stamped, notarised or registered or
adjudicated, as the case may be. Powers of Attorney
executed abroad may also be authenticated by a
Consulate Officer. Minors and other persons
disqualified by law cannot grant a Power of Attorney.
There are certain acts which can be done only by the
persons concerned. For these acts, Powers of Attorney
cannot be granted.
4.What are the acts which can be done only by persons
concerned, referred to above?
These are acts which a person concerned alone can
perform. For example, take the case of a singer or a
musician contracting to perform. The performance has
to be given by the singer or musician only and
obviously cannot be performed by a Power of Attorney.
This is an extreme example to give a broad idea as to
what the personal acts can be. There are any number of
such matters which are to be performed or executed by
person concerned only.
5.Is registration of Power of Attorney mandatory for
exercising the powers?
A Special Power of Attorney under which the Principal
authorizes the Agent to present for registration, a
document executed by the Principal has to be
compulsorily registered. In other cases, it is
sufficient if the power is notarised or authenticated
by an Indian Consul or Vice Consul or by a Court,
Judge or Magistrate. However, in respect of local
Powers of Attorney, it is advisable to have the same
registered as notarization or authentication may not
meet market acceptance.
6. Can a Company grant a Power of Attorney?
If so authorised by its Memorandum and Articles of
Association, a Company can grant a valid Power of
Attorney.
7.Can a Partnership Firm grant a Power of Attorney?
This can be given. Subject to the terms contained in
the Partnership Deed, it may be binding on all
partners, if given by one of the partners.
8.What are the important features of a Power of
Attorney?
One would have noticed that in matters relating to
commercial transactions, there is usually a payment or
passing of consideration. For a Power of Attorney to
be valid, no consideration is required. Further, many
documents would be irrevocable in nature. However, a
Power of Attorney can be normally revoked.
9.Is there a type of Power of Attorney called
"Irrevocable Power of Attorney"?
As already stated, normally a Power of Attorney can be
revoked. In matters where the Agent has acquired an
interest, the Power of Attorney is known as a power
coupled with interest and cannot be revoked without
the express consent of the Agent. This is an usual
parlance referred to as an "Irrevocable Power of
Attorney". In certain cases, the Power of Attorney may
amount to a conveyance and these Powers of Attorney
can also be brought within the ambit of Irrevocable
Powers of Attorney.
10.How are the wordings in a Power of Attorney
construed?
This depends on the clarity of the wordings employed.
The general construction is that the Agent is
empowered to do or undertake only acts which are
clearly authorised. However, certain incidental powers
can be inferred to give effect to the terms contained
in the Power of Attorney. If the Power of Attorney
confers power of sale, then it can be inferred that it
includes necessary powers for completing the sale
transaction. In the same case, though the Agent may
have the power to sell, the Agent, unless,
specifically authorised, will not be entitled to
mortgage the property.
12.What are the matters to be noted in respect of
Powers of Attorney executed abroad?
The Power of Attorney can be executed in a green sheet
or a white sheet and stamped or adjudicated, within
three months after receipt in India. It has to be
authenticated by an Indian Consul, Vice Consul or a
Notary.
In many cases, the Power of Attorney executed abroad
is sent with only last page signed by the Principal.
This practice is not desirable and every page has to
be signed by the Principal. This will save a lot of
time and avoid unnecessary delay and expense.
13.While dealing with an immovable property, is it
sufficient only to take a Power of Attorney
containing, among other powers, the power to sell?
Considering that the nature of the Power of Attorney
is such that it can be revoked, it is advisable to
back this Power of Attorney with a proper Agreement.
This will be give better rights in matters relating to
commercial dealings.
14.What the general precautions to be taken while
granting a power?
Please check the wordings. Understand the
implications. If the Power of Attorney contains power
to mortgage, one has to exclude personal liabilities
wherever the intention is not to undertake such
personal liabilities. Try and get periodical feedback
from the Agent. If you are revoking the power,
consider all the facts and circumstances and the
impact that this may cause before venturing into this.
15.What are the general precautions to be taken while
acting as an Agent?
Understand the scope of the power. Note that you are
actually acting on behalf of somebody else and protect
the interest of the Principals. Do not exceed the
powers granted under the document. Provide periodical
feedback to the Principal. Get necessary further
documentation to ensure that the Agent does not suffer
on account of unexpected revocation. In case of death
of Principal, act promptly to obtain suitable
documentation to cover the situation. If possible, get
periodical confirmations of the validity of the power.
Powers of Attorney, especially those covering
commercial transactions, are intended for short
durations and keeping the powers unused for a long
time may not be in the best interest of the Agent.
The author is Partner, RANK Associates, Advocates.
Wednesday, December 19, 2007
Interesting Judgement..Whether CLB is a court under Contempt of Courts Act ?
Whether CLB is a court under Contempt of Courts Act ?
Whether CLB is subordinate court to High Court under Contempt of Courts Act?
Whether High Court can take suo-moto cognizance of contempt of CLB without any reference made to it?
Read more it ....http://www.taxmann.net/DispCitation/ShowPages.aspx?fn=http://www.taxmann.net/WhatnewNews/[2007]080SCL0405(AP).htm&ctid=-333
Monday, December 10, 2007
SEBI - CM & WTM - ICSI also asked to recommend
Institute of Company Secretaries of India (ICSI) has been asked by Ministry of Finance (Dept. of Eco. Affairs,Capital market Division ),to recommend name of its members who will be considered for the post of Chairman and Whole time members of SEBI..
Read more at....
http://www.thehindubusinessline.com/2007/12/08/stories/2007120852991000.htm
Friday, December 7, 2007
Great news Buddies..CS Pay Skyrockets...
Scanned Copy http://thisisvj.googlepages.com/CSScan.pdf
Its a great news & it can be the greatest if you view it here...
As per the article published in "Business Standard" the company secretaries pay package has been raised upto 60% comparing to last year.
"So student members complete the course as soon as possible and continue your pursuits further to achieve professional excellence ( the motto of our institute)..."
Regards
Read more at .....http://www.business-standard.com/common/storypage.php?autono=306801&leftnm=6&subLeft=0&chkFlg
Wednesday, November 28, 2007
Corporate Governance Award (ICSI)
The Corporate Governance Award 2007 by the Institute of Company Secretaries of India (ICSI) to Tata Consultancy Services (TCS), Kansai Nerolac Paints & Shri N Voghul of ICICI Bank.
Get the details in http://thisisvj.googlepages.com/CGAwardees2007AD.jpg
Thank you
Thursday, November 15, 2007
RBI launches Financial Education Site
Press Release : 2007-2008/663
To commemorate Children's day, the Reserve Bank of India today launched a financial education site. Mainly aimed at teaching basics of banking, finance and central banking to children in different age groups, the site will soon also have information useful to other target groups, such as, women, rural and urban poor, defence personnel and senior citizens.
To explain complexities of banking, finance and central banking in a simple and interesting way, the Reserve Bank has used comic books format for children. It has created two special created characters for this purpose – 'Raju' who learns all about banking and 'Money Kumar' who explains subjects dealt with by the Reserve Bank of India, such as monetary policy, bank regulations and currency notes. Two comic books are already available on this site – 'Raju and the Money Tree' explains basic banking and 'Money Kumar and Monetary Policy!' explains the role and relevance of the Reserve Bank's monetary policy for the common person.
The site has films on security features of currency notes of different denominations and an educative film to persuade citizens to not to staple notes. Interestingly, the site also has games section. This section aims at educating children through entertainment. The games currently on display have been especially designed to familiarise school children with India's various currency notes.
The site will soon be available in Hindi as well as in 11 regional languages.
The site can be accessed at http://rbi.org.in/financialeducation/Home.aspx or from the quick link provided on the home page of the main RBI website at http://rbi.org.in/home.aspx
Wednesday, November 14, 2007
Insurance & its Concepts
The PRINCIPLES of Insurance include,
- BENEFIT (from existence) from safety, well being, freedom from liability;
LI: Uberrima Fidei i.e., Utmost Good Faith & Insurable Interest;
I. FIRE & MISCELLANEOUS INSURANCE:
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II. MARINE CARGO INSURANCE:
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III. MARINE HULL & MOTOR INSURANCE:
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SUBROGATION – Corollary to Indemnity: "The transfer of rights & remedies of insured to insurer who has indemnified the insured in respect of loss". Insured does not receive more than actual amount of loss & any recovery effected from III-party goes to insurer.
CONTRIBUTION – Corollary to Indemnity: NOT for personal/accident insurance. Using "several insurance", to make profit out of loss. It is the right of insurers who have paid a loss under a policy, to recover a proportionate amount from other insurers, who are liable for the same loss. The pre-requisites include,
1. Common Peril (all policies) 2. Common interest & insured
3. Policy in force 4. Policy is legally enforceable.
PROXIMATE CAUSE: To provide indemnity for such losses as are caused by insured perils. The loss may be the result of two or more causes acting simultaneously or one after other; the most important, the most effective, the most powerful cause that has brought the loss. Otherwise, it will be a remote cause
POLICY CONTRACT:
A Policy Document as an evidence of contract. The policy document has,
1. Preamble: Proposal & declaration form part of policy.
WARRANTY = Truth of Statement.
2. Operative Clause: Mutual Obligation; Pay Premium & Pay Benefits.
3. Provisio: Subject to conditions (printed on back of the policy).
4. Schedule: Identifies the proposal referred in Preamble. Have contents like FPR.
5. Attestation: @ the end of first page – the signature & date.
6. Condition & Privileges: Explanatory/Restrictive/Privileges/Benefits.
RIDERS – Additional Covers: Helps to increase the clarity of policy; It defines the fate of policy in case of certain defined circumstance.
NOMINATION: (advisable)
1. Nominee does derive a right to sue only after Policy Proceeds become payable.
2. One can change nominee without consulting previous nominee/insurer.
3. Liable to legal heirs of deceased having proof of right to claim.
GUARANTEES:
- Guarantee additions: Sum Assured get enhanced each year.
- Guaranteed Surrender Value (SV): On payment of premium for 3 full years, Minimum SV = 30%[Premium paid (-) 1 st year Premium (+) Bonus additions].
ASSIGNMENT = Legal Transference – "passing interest in policy": Assignment cannot be altered; Assignee has the right to sue only after giving Notice to Insurer & receiving acknowledgement. It may be,
- By endorsing Policy Document which is exempt from Stamp duty;
- By separate Assignment Deed which is liable to be stamped.
ASSIGNMENT OF,
SNO. | ASSIGNMENT OF | CONDITION |
1. | Fire & Marine Insurance | ONLY with the consent of Insurer & subject to conditions. |
2. | Marine Cargo | Freely assignable. |
3. | Marine Hill or Motor Policy | With the Consent of Insurers. |
I think this will help Company Secretary, CS Final, friends when preparing for their Banking & Insurance paper (BILP).
Monday, November 12, 2007
DGFT Toll Free
Director General of Foreign Trade (DGFT) & its Toll-Free facility.
While filing applications and making payments online, it has been observed that exporters/ importers face technical problems on account of non-availability of relevant documents, malfunctioning of system etc. For attending to these technical problems, DGFT has set up a Helpdesk. The trading community can access the Help Desk by dialing the toll free number 1800 111 550 or by e-mail at http://us.f505.mail.yahoo.com/ym/Compose?To=dgftedi@nic.in.
The help desk will be available between 10.00 AM to 7.00 PM on all working days. A complaint number may be provided by helpdesk if issues remain unresolved. The complaint number may be quoted for all future reference. For e-mails complaint Numbers may be conveyed on next working day if complaint is unresolved.
Thursday, October 25, 2007
IRDA FAQ on Insurance Product - to know more
IRDA has come out FAQ for Insurance product, whoever investing in Insurance product, this might be uesfull to know more information about insurance product. The same is reproduced below for your perusal.
Unit Linked Insurance Products ( ULIPs) | ||||||||||||||||
|
Thanks & Regards
Alagar
Asst Manager - Merchant Banking
Karvy Investor Services Limited
G-1 Swathi Court
22, Vijayaraghava Road
T.Nagar, Chennai - 600 017
Tel: 044-28151034/3445/3658
Moble: 919884731993
e-mail: alagar.muthu@karvy.com
website: karvy.com
Friday, October 12, 2007
Writs - Anantharaman
WRITS
I. CERTIORARI – "WE CERTIFY" [ONLY after decision]
By High Court to Inferior Court/Tribunal/Legal Authority;
Grounds – Want to exercise / exercise Excess of Jurisdiction; or violation of procedure or disregard to principles of Natural Justice.
II. PROHIBITION – ON TAKING UP THE MATTER
It commands Legal Authority to REFRAIN from doing something.
III. MANDAMUS – "WE COMMAND"
Ø Judicial remedy;
Ø In the form of ORDER from superior court to Government or Court or Corporation or Public authority;
Ø Order to do/forbear from doing some specific ACT;
Ø ACT à the body is obliged to do/refrain from doing;
Ø In the nature of Public Duty.
IV. QUO WARRANTO – holding office under "WHAT AUTHORITY"
Ø Public Office;
Ø Holding without Legal Authoriy;
Ø Inquiry as to whether appointment as per law.
V. HABEAS CORPUS – "PRODUCE THE BODY"
An effective means of IMMEDIATE RELEASE from unlawful DETENTION (whether in prison or in control & custody);
Ø When confinement without legal jurisdiction;
Ø High Court order to bring such person before court;
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Vj
Trezrrr every pulsss
http://yehseeyes.blogspot.com/ thisisvj@gmail.com
Wednesday, October 10, 2007
Garnishee Order - Mr. KS Anantharaman
ü When the plaintiff obtains a Decree, he is known as Decree Holder (DH);
ü The defendant is known as Judgment Debtor (JD);
ü The plaintiff DH may execute the decree against the defendant JD;
ü One of the modes of execution is by getting Garnishee Order;
ü A garnishee is a JD's Debtor à "person sought to be warned" (i.e) the banker;
ü Order restraining garnishee from parting with any monies due or accruing due to JD & order for appearance to show cause;
ü The Court may direct the GARNISHEE to pay the money under the decree to the DH;
ü The Garnishee shall be added as a party to the execution proceedings; He shall be given an opportunity for making his representation;
ü 2 types of Garnishee Order:
v Garnishee Order nisi – opportunity to the banker to prove that order could not be enforced;
v Garnishee Order absolute – attaches the account of customer straight away (no opportunity is given to banker).
That's all about Garnishee – a sure shot question in GCL & Banking.
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Vj
Trezrrr every pulsss
http://yehseeyes.blogspot.com/
Friday, September 28, 2007
Check Cheque
Thanks to CSMysore
Q1. What can I do when a cheque is dishonoured for the reason of insufficient funds. What legal action I can take to get the amount cleared?
A. On the dishonour of a cheque, one can file a suit for recovery of the cheque amount along with the cost & interest under order XXXVII of Code of Civil Procedure 1908 ( which is a summary procedure and) can also file a Criminal Complaint u/s 138 of Negotiable Instrument Act for punishment to the signatory of the cheque for haring committed an offence. However, before filing the said complaint a statutory notice is liable to be given to the other party.
Q2. I have got my cheque dishonoured few months back. It was issued by a Company. What can I do now?
A. On the dishonour of cheque by the company you can file a suit for recovery of the amount under Order XXXVII of CPC. As you have stated that cheques were dishonoured few months back and you have issued no notice to the company bringing to their knowledge the dishonour of cheques and the life of the cheque is still valid which is usually six months from the date of issue. You please present the cheque again and on receipt of the information about the dishonour of the cheque you immediately issue notice within 30 days from the receipt of the information of dishonour of cheque to the company. If the company does not pay the amount within 30 days from the receipt of the notice, you can file complaint under Section 138 of the Negotiatble Instrument Act. The said complaint is to be filed within one month on the expiry of 30 days period of notice.
Q3. Our is the software distribution co. During course of our business we had supplied software worth Rs.3 lacs. But our client dishonoured the cheque. We have filed court case on him after that he paid us Rs. 1 lac and then he has run away. We do not have any idea about his where about. Court has issued proclaimed offender notice, but we do not now how to trace him. He has closed his account and bankers are not cooperating with information like his other address. Pleas advice?A. Let the proceedings of declaration of proclaimed Offender be completed. The accused will be declared Proclaimed Offender and can be arrested at any time. At this stage, you can not do anything else. However, simultaneously you can file Suit for Recovery with the last known address of the accused.
Q4. I have a cheque dishonoured. I have informed the person in writing, but no response, what should be done to register a case of cheating, and which place it should be filed? The place of the bank, where the cheque was dishonoured or the place where the cheque was handed?
A. When you have informed the person about the dishonour of the cheque, in case the information is given within 30 days from the dishonour of the cheque, you can file a Complaint under Section 138 of Negotiable Instrument Act within one month after the expiry of notice period of 30 days. The Complaint for cheating is not maintainable legally. However, in certain cases the police have been registering cases of cheating against the accused.
Q5. I have blank cheques given to me by a partnership firm. Since they owe me some money which I had given to them as a loan. Besides the cheques and the statement of accounts. I do not have anything else. Suppose one day, I suddenly get to know that they have closed the partnership firm and dissolved it, Can I deposit the cheques now and legally raise a claim on them and how?
A. You should fill the cheques and present for encashment. The Partnership Firm as well as partners are personally liable and even after dissolution also the firm and partners are liable. Once the cheques are dishonoured you have to file a suit for recovery of the said amount under the summary procedure provided in Order 37 of Code of Civil Procedure, 1908. You should also file a complaint under Section 138 of the Negotiable Instruments Act. For this you will have to first give a notice, within 30 days of the dishonouring of the cheques. Then if payment is not made within 30 days of receipt of notice a complaint has to be filed within 30 days thereafter.
--
Vj
Trezrrr every pulsss
http://yehseeyes.blogspot.com/
Wednesday, September 26, 2007
2 more Public Financial Institution
Credits to CSMysore
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Vj
Trezrrr every pulsss
http://yehseeyes.blogspot.com/