Priya Sharma (Company Secretary & Student.MBA) (998 Points)
21 January 2011One Plant of the Company has to be shut down.Kidnly tell me what are procedures that we need to follow in order to close the unit under varied law. The Company is a listed one and the unit of the co which has to shut down is a manufacturing one.
Kindly provide your comments as it is a bit urgent.
Regards
Priya Sharma
CA CMA CS Ram Pavan Kumar Melam
(CA)
(6980 Points)
Replied 21 January 2011
In case of sutdown:
1) Labour and industrial laws to be complied:
2) To be reported in the directors report;
3) May be displayed in the company's website;
4) Intimation to bankers, exicise authorities, sales tax authorities etc.
5) Intimation to stock exchanges, SEBI needs to be checked;
6) Since a major decision Boards approval;
7) Impairment on the value of assets needs to be assessed and the same has to be recognised in the books of account.
In case of sale / disposal:
1) The Companies Act, 1956: Approval of shareholders (restriction on board powers) as per Section 293 and postal ballot - section 192A.
2) The Income Tax Act, 1961: Capital gains, slump sale etc. computed and taxes if any needs to be paid in advance;
3) Agreement of sale;
4) Intimation to bankers, exicise authorities, sales tax authorities etc.
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