Do's

For Shareholders:
 

1. Understand Shareholding Rights: 

   • Familiarize yourself with rights like voting, receiving dividends, and inspecting company records.

2. Participate in Meetings: 

   • Attend Annual General Meetings (AGMs) or Extraordinary General Meetings (EGMs) to stay informed about the company's progress.

3. Stay Updated on Resolutions: 

   • Be aware of decisions requiring shareholder approval, such as issuing new shares or amending the Articles of Association (AoA).

4. Transfer of Shares: 

   • Comply with the transfer process outlined in the company’s AoA.

For Directors:
 

1. Obtain a Director Identification Number (DIN): 

   • Ensure your DIN is active and updated in the Ministry of Corporate Affairs (MCA) database.

2. Board Meetings: 

   • Conduct the first board meeting within 30 days of incorporation and hold at least 4 board meetings annually (1 every quarter).

3. Maintain Statutory Records: 

   • Ensure registers like the register of members, directors, and share transfers are updated.

4. Compliance Filings: 

   • File annual returns, financial statements, and other periodic filings (like DIR-3 KYC, MGT-7, and AOC-4) with the Registrar of Companies (RoC).

5. Ensure Tax Compliance: 

   • Deduct and deposit TDS, file GST returns, and adhere to other tax obligations.

6. Ensure Proper Governance: 

   • Implement internal controls, ensure transparency, and prevent conflicts of interest.

For CEO & CFO:
 

1. Strategic Planning: 

   • Develop and execute business strategies to achieve the company's goals.

2. Financial Oversight: 

   • Ensure proper maintenance of financial records, budget adherence, and timely audits.

3. Regulatory Compliance: 

   • Stay informed about legal and financial regulations affecting the company.

4. Stakeholder Communication: 

   • Regularly update directors and shareholders on financial performance and other critical matters.

5. Performance Monitoring: 

   • Monitor the company’s operations and take corrective measures when necessary.

Don'ts

For Shareholders:
 

1. Interfere in Management: 

   • Avoid micromanaging the day-to-day operations; this is the directors’ responsibility.

2. Ignore Company Notices: 

   • Failing to respond to company resolutions or voting can affect your interests.

3. Transfer Shares Arbitrarily: 

   • Follow the AoA’s stipulated procedure for transferring shares to avoid legal disputes.

For Directors:
 

1. Non-Compliance with Legal Duties: 

   • Failing to maintain records or submit returns can lead to penalties.

2. Conflict of Interest: 

   • Avoid engaging in transactions where personal interests conflict with the company’s interests.

3. Neglect Corporate Social Responsibility (CSR): 

   • If applicable, ensure CSR obligations are met (required for companies exceeding thresholds in turnover, net worth, or profit).

4. Default on Statutory Payments: 

   • Ensure timely payment of taxes, PF, ESI, and other dues.

For CEO & CFO:
 

1. Mismanagement of Funds: 

   • Avoid misuse or misallocation of company resources.

2. Delay in Financial Reporting: 

   • Ensure timely preparation and submission of financial reports to prevent non-compliance.

3. Ignore Risk Management: 

   • Overlooking risks like market competition, cybersecurity, or compliance issues can be detrimental.

4. Underestimate Stakeholder Expectations: 

   • Ignoring feedback from stakeholders, including employees and customers, can harm the company’s reputation.