Provisions of the Companies Act 2013 not to apply to private company or to apply with modification
Excel for
Chartered Accountants
MCA has issued a draft notification which proposes that certain provisions of the Companies Act,2013 shall not apply or shall apply to a private company except such modifications as stated in the draft notification. The modification proposed are as under:
|
SN |
Chapter/ Section number/ Sub-section(s) in the Companies Act, 2013 |
Exceptions/ Modifications /Adaptations |
|
1 |
Chapter IV, Section 43-Kind of Share capital, and section 47-Voting Rights |
Shall not apply |
|
2 |
Chapter IV Further issue of share capital clause (a) of sub-section (1) of section 62) and sub-section (2) of section 62 |
Shall apply with the following modification:- Words ‘not being less than fifteen days and not exceeding thirty days’ shall be substituted with ‘not being less than seven days and not exceeding fifteen days’ |
|
3 |
Chapter IV, clause (b) of sub-section (1) of section 62 |
Shall apply except that instead of special resolution, ordinary resolution would be required |
|
4 |
Chapter V Prohibition on acceptance of deposits sub-section (2) of section 73 |
Shall not apply to private companies having 50 or less number of members if they accept monies from their members not exceeding twenty five per cent of aggregate of the paid up capital and free reserves or one hundred per cent of the paid up capital, whichever is more, and which inform the details of such monies to the Registrar in the prescribed manner. |
|
5 |
Chapter VII section 101 Notice of Meeting section 102 Statement to be annexed to notice section 103 Quorum for meetings section 104 Chairman of meetings section 105 Proxies, section 106 Restriction on Voting Rights section 107 Voting by show of hands |
Shall apply unless - otherwise specified in respective sections or - unless articles of the private company otherwise provide. |
|
6 |
Chapter X, Clause (g) of sub-section (3) of section 141 Eligibility, Qualification and Disqualification of auditors
|
Shall not apply in respect of appointment of auditors by private companies. |
|
7 |
Chapter XI, section 160( Whole) Right of persons other than retiring directors to stand for directorship |
Shall not apply |
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8 |
Chapter XI, section 162 [Whole] Appointment of directors to be voted individually |
Shall not apply |
|
9 |
Chapter XII, Section 180 Restrictions on powers of Board |
Shall not apply to private companies having 50 or less number of members |
|
10 |
Chapter XII, section 185 Loan to Directors |
Shall not apply to Private companies - (a) which have borrowings from banks or financial institutions or any bodies corporate not more than twice of their paid up share capital or Rs. 50 crore, whichever is lower; and (b) in whose share capital no other body corporate has invested any money”. |
|
11 |
Chapter XII, section 188 Related Party Tranzactions |
Shall not apply. |
|
12 |
Chapter XIII, section 196, sub-section (4) and (5) Appointment of M.D., WTD or Manager |
Shall not apply |
|
13 |
Chapter XIII, sub-section (3), section 203 Appointment of KMP |
Shall not apply |
