Companies Act, 1990

In short

This law, the Companies Act, 1990, primarily deals with the regulation and oversight of companies, focusing on investigations into company affairs, transactions involving directors, and the disclosure of interests in company shares. It aims to ensure transparency and accountability within corporate structures.

What it regulates

• Investigations into a company's affairs and ownership.
• Transactions between a company and its directors, including loans and property dealings.
• The disclosure of interests in company shares by directors, secretaries, and other individuals.
• Prohibitions and penalties related to insider dealing in company securities.

Who it concerns

• Companies incorporated under the Companies Act.
• Directors, secretaries, and other connected persons within these companies.

Key points

• The Minister can initiate investigations into a company's affairs.
• Inspectors have powers to extend investigations to related companies and require production of documents.
• There are specific rules and prohibitions regarding loans and substantial property transactions involving directors.
• Directors and secretaries must notify their interests in company shares or debentures.
• Insider dealing in securities is unlawful and carries civil and criminal liabilities.