Compliance with section 370(1) required when exemption ends; continued inter company loans must be regularised within a limited grace period.
When an exempted lending company ceases to fall within the exemption in sub section (2) of section 370, the exemption ends and section 370(1) becomes applicable to any loans, guarantees or securities continued thereafter; companies must therefore either pass the special resolution or obtain approval or an extension from the competent authority to regularise such continuing transactions within a specified administrative grace period.

Office of profit: appointing a managing director or related entity as sole selling agent requires a company's special resolution.
Appointment of a company's sole selling agent can constitute an office of profit when the appointee is the managing director, a director's relative, a firm in which a director or relative is a partner, or a private company in which a director is a director or member; in those cases the company must obtain shareholder consent by passing a special resolution to approve the appointment.

Prospectus account recency requirement: companies must include accounts up to a date not earlier than six months before issue.
The five year reference in the last paragraph of clause 24(1) is a simple five year period ending three months before issue; therefore every company issuing a prospectus must furnish accounts in the prospectus up to a date not earlier than six months from the date of issue, irrespective of whether the company's financial year closed on a date three months before issue.

Sole selling agency appointments lacking statutory approval condition are void and cannot be validated by later shareholder approval.
An appointment of a sole selling agent made by the board without the prescribed condition that it cease to be valid unless approved at the first general meeting is void ab initio. The missing condition cannot be deemed implicitly incorporated, and subsequent shareholder approval at the first general meeting does not validate or cure the initial invalidity.

Loan disclosure under section 370: special resolutions must state material terms or specify clear lending limits.
An analysis must accompany applications for approval under section 370, setting out loan purposes, interest rate and period, maximum loan by a single company and its proportion to paid up capital, relationship between lender and borrower, prior lending history and related remarks. If proposed lending exceeds the statutory limits requiring Central Government approval, the special resolution must either disclose material terms of each loan (borrower, amount, security, rate) or specify a clear aggregate limit; full details must be provided in the application to the Central Government/Company Law Board.

Annuity asset valuation: commuted annuity value includible in net wealth for wealth-tax, calculated per commuted value table.
The right to receive annuities on annuity deposits is an asset includible in net wealth because such annuities can be commuted under the proviso to section 280D of the Income-tax Act. The value to be included as at the valuation date is the amount payable on commutation, calculated in accordance with the "Table commuted value of annuities" in the Annuity Deposit Scheme, using unit-wise computation for Rs.1,000, Rs.100 and Rs.10 components.

Development rebate admissibility preserved where reserve exceeds statutory percentage provided statutory reserve requirement is met.
The allowance of a development rebate is not to be denied merely because the amount credited to the development rebate reserve exceeds the statutory percentage; the Board's earlier observation about reserve treatment related solely to capital computation for super profits tax and did not affect the admissibility of the rebate where the statutory reserve requirement is met.

Development rebate allowance: excess reserve creation does not by itself bar deduction where statutory reserve requirement is met.
Development rebate deduction remains allowable where the credited development rebate reserve exceeds the statutory percentage because excess provisioning does not, by itself, violate the requirement to create a reserve equal to the prescribed percentage; the Board's earlier comment related only to treating such amounts as a "reserve" for capital computation under rule 1 of the Second Schedule to the Super Profits Tax Act and not to denial of the rebate.

Terms of payment in prospectus advertisements may be included in press announcements if compliant with section 56.
In press announcements of a proposed public issue of shares, companies may include the terms of payment in the prescribed proforma so long as that disclosure does not contravene section 56, thereby permitting an additional factual element in prospectus related newspaper announcements while maintaining statutory compliance.

Alternate director vacancy occurs when the original director returns to the State of the board's ordinary meetings.
An alternate director vacates office automatically when the original director returns to the State where the board meetings are ordinarily held, regardless of whether the original director attends any board meeting.