Company Law Conundrum: Section 173 vs Section 177
company judiciary beginner concept_confusionBhai, I'm literally going crazy over this Company Law section. Section 174 says promoters are not liable for pre-incorporation contracts, but then Section 177 comes along and says they can be held liable for pre-incorporation contracts if they're made for the benefit of the company. So, is it yes or is it no? Section 177 seems to be contradicting Section 174. Is it just me or is this a grey area in law? I've self-studied this section multiple times, but my mind is still tangled. Can anyone shed some light on this?
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Additional Info: Don't forget, Section 173 (Annual General Meeting, AGM) of the Companies Act, 2013, specifies the minimum number of directors to be present at AGM, whereas Section 177 (Audit Committee) deals with the constitution and functioning of the audit committee. While Section 173 is crucial for compliance, Section 177 plays a vital role in maintaining transparency and accountability in a company's financial dealings. Understanding the interplay of these sections is key to resolving company law conundrums.