February 6, 2016 Sokutu, who made more than R50-million in share options and earned another R35-million in salary and bonuses from his time as Abil’s chief risk officer, was asked about those who had obtained loans but were now unable to repay them. As opposed to unsecured loans, the secured ones include some form of an asset that guarantees a borrower will be able to repay the loan. By definition, secured loans require borrowers to secure their loans by collateral, which reduces the risk for a lender. As an example of a secured loan, Investopedia cites a mortgage , which probably best illustrates the way a secured loan works. Namely, your house is taken as collateral towards the debt and can be seized by the bank in case you fail to pay the debt. The bank can then sell the house and use it to pay back the debt. As part of its system of internal controls, the Company has established an Authorization Policy that specifies dollar value maximums by employment position limiting the extent of goods or services that can be procured by all employees on behalf of the Company. Additionally, this Authorization Policy specifies which employees are able to sign and ratify contracts that commit the Company to current or future activities or obligations on behalf of the Company. As per Chapter V, Rule 2(1) (c) (VI), any amount received by a Company from any other company is excluded from the definition of deposits. Therefore, loans taken by a Company from any other Company, even if such other Company is its member, will not be treated as deposits. Hence the provisions and procedures required to be followed for accepting deposits in Chapter V under the Companies Act, 2013 will not be applicable in such cases. As per FEMA though company shall make allotment of first subscription money within 180 days from the date of remittance, the company shall comply the provision of Section 56(4)(a) of Companies Act 2013. In most of the cases, the company cannot deliver share certificates to subscribers due to many problems faced from bank in filing advance reporting format, KYC, UIN. In this practical case, instead of waiting for two months, the company can make allotment at zero value and after receipt of remittance, the company shall again make allotment. In such case, the company would comply provisions of Company law as well as FEMA. As per FEMA though company shall make allotment of first subscription money within 180 days from the date of remittance, the company shall comply the provision of Section 56(4)(a) of Companies Act 2013. In most of the cases, the company cannot deliver share certificates to subscribers due to many problems faced from bank in filing advance reporting format, KYC, UIN. In this practical case, instead of waiting for two months, the company could have made allotment of shares at zero value and after receipt of remittance, the company shall again make allotment after receipt of funds. In such case, the company would comply provisions of Company law as well as FEMA. As per Foreign Direct Investment, remittance received from country outside India from NRI/ Foreign national/ body corporate towards equity capital, shall follow the FDI Policy and report advance reporting within 30 days to Reserve Bank of India. As per Companies Act 2013, pursuant to section 56(4)(a), every company shall, deliver the certificates of all securities allotted, transferred or transmitted within a period of two months from the date of incorporation , in the case of subscribers to the memorandum. As per provisions of Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, the Company pursuant to the provisions of Articles of Association and by passing the resolution may pay the sitting fee to directors except Managing and Whole Time Directors (which are being considered as employee of the Company) up to lac per meeting. This is welcome step and now independent directors and technical directors may get the adequate remuneration for their professional advice. As per the new Act, a company can carry out only those businesses which are mentioned in the Main Objects of the company. Earlier, the Companies which have diversified in other activities used to pass resolution in the Board of Directors meeting or in the General Meeting whereby the activities mentioned in other Objects i.e. at Clause III-C were invoked. However, henceforth, all such Companies are required to alter the main objects to reflect the current business activities. Consequently, the company may also be required to change its name to bring it in consonance with its main objects. As per the previous posts, start up finance is hard but not impossible. You are going to need a detailed business plan backed up by good financial forecasts. With your forecasts ensure you can articulate how you have come up with the numbers. All the banks have business plan and financial forecast templates on their websites. If you do not progress far with the banks have a look at what Government grants you might be eligible for, there are different grants for different States and businesses – however these take some time to establish.