Companies (Meetings of Board and its Powers) Amendment Rules 2019. MCA Notification

Companies (Meetings of Board and its Powers) Amendment Rules, 2019. MCA Notification

GOVERNMENT OF INDIA
MINISTRY OF CORPORATE AFFAIRS

Notification

New Delhi, the 11th October, 2019

G.S.R. __ (E).- In exercise of the powers conferred by sections 173, 177, 178 and section 186 read with section 469 of the Companies Act, 2013 (18 of 2013), the Central Government hereby makes the following rules further to amend the Companies (Meetings of Board and its Powers) Rules, 2014, namely:-

1. (1) These rules may be called the Companies (Meetings of Board and its Powers) Amendment Rules, 2019.

(2) They shall come into force on the date of their publication in the Official
Gazette.

2. In the Companies (Meetings of Board and its Powers) Rules, 2014, in rule 11, in sub-rule (2), for the words “business of financing of companies”, the words “business of financing industrial enterprises” shall be substituted.

[F. No. 1/32/2013-CL-V-Part]

(K. V. R. Murty)
Joint Secretary to the Government of India

Note.- The principal rules were published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide notification number G.S.R. 240(E), dated the 31st March, 2014 and subsequently amended as follows:-
1. G.S.R. 398 (E), dated the 12th June, 2014;
2. G.S.R. 590 (E), dated the 14th August, 2014;
3. G.S.R. 206 (E), dated the 18th March, 2015;
4. G.S.R. 971(E), dated the 14th December, 2015;
5. G.S.R. 309 (E), dated the 30th March, 2017;
6. G.S.R. 880 (E), dated the 13th July, 2017; and
7. G.S.R. 429 (E), dated the 7th May, 2018.

ABCAUS Note: Section 186 of the Companies Act 2013 deals with Loans and Investment by the Company. Sub Rule (11) provides exception to the section 186 for banking, housing and finance and insurance company engaged in the “business of financing of companies.  Further, Rule 11(2) deals with Loan and investment by a company under section 186 of the Act. According to it, for the purpose of section 186(11)(a) the expression “business of financing of companies” shall include, with regard to a Non-Banking Financial Company registered with the Reserve Bank of India, “business of giving of any loan to a person or providing any guaranty or security for due repayment of any loan availed by any person in the ordinary course of its business”