Voluntary higher reserve transfers permitted subject to government rules, proviso enables transfers beyond the prescribed limit.
Section 205(2A) includes a proviso enabling a company to make a voluntary transfer of a higher percentage of annual profits to reserves, subject to rules made by the Central Government; the department confirmed the proviso is not a drafting error and that voluntary higher transfers remain permissible in accordance with those rules.

Invitation to deposit requires a valid advertisement; renewal or maturity notices constitute invitations and trigger compliance.
An intimation to a depositor on the eve of maturity indicating the maturity date and stating the depositor may renew is treated as an invitation to accept deposits and therefore requires the company to have a valid advertisement in force complying with the Companies (Acceptance of Deposits) Rules, 1975 before issuing such communication.

Prohibition on directors holding office of profit: entitlement based remuneration does not convert position into office of profit.
The prohibition on a director holding an office or place of profit depends on whether the director receives remuneration over and above the pay to which he is entitled as a managing or whole time director; remuneration that is the director's entitled pay does not make the position an office or place of profit for the prohibition to apply.

Profits after tax determine reserve transfers for dividends; current profits include prior year adjustments and reserve writebacks.
The Transfer of Profits to Reserves Rules require the percentage transfer to be calculated on current profits, which must be read as profits after tax. Accounting items such as the write back of a development rebate reserve and adjustments relating to previous years must be included when determining those current profits for the purpose of the mandatory reserve transfer.

Acceptance of deposits rule: companies not accepting deposits need not file a nil return under the deposits rules.
The Companies (Acceptance of Deposits) Rules, 1975 apply only where a company accepts deposits within the meaning of the Rules; therefore a company that does not accept deposits is not obliged to submit a nil return under rule 10 to the Registrar of Companies.

Fees on applications by liquidators: no payment required where rules charge companies not liquidators for winding up.
The Rules require payment of fees by companies and not by liquidators; therefore no fee is required to be paid by a liquidator for applications made to the Regional Director under sections 496(1)(a) and 551, and past administrative decisions to the contrary need not be reopened.

Right of inspection: corporate partners must provide partner firm books to inspecting officers under partnership inspection rights.
An inspecting officer may access books and papers of a firm in which the company is a partner because the company, as partner, acquires the partner's right to inspect and copy the firm's books; accordingly the company can obtain the firm's accounts and make them available to the inspecting officer under the company inspection regime.

Directors standing surety warns that furnishing company surety for outsiders risks personal liability and is ultra vires.
A government circular warns that a director furnishing the company's surety for an outsider accused in criminal proceedings is ultra vires and may be prejudicial to the company's interests; directors are instructed not to expose themselves or the company to the risk of standing sureties for accused outsiders because such conduct may attract personal liability for acting outside corporate authority.

Director surety liability: standing surety for unrelated accused is ultra vires and risks personal liability.
Director standing surety for an outsider not connected with the company's administration is ultra vires the company; furnishing the company's surety in such cases exceeds corporate authority. Directors should not expose themselves or the company to the risk of acting as sureties for unrelated persons, since they may be held personally liable for acting outside the company's authority and in a manner prejudicial to the company's interests.

Interpretation of 'court' as equivalent to an administrative tribunal, making its orders operate as court orders.
The term court in section 75(1)(c)(ii) should be read harmoniously with the amended section 79, where court is replaced by Company Law Board; accordingly an order of the Company Law Board should be treated as an order of the court for the purposes of section 75(1)(c)(ii).