NOTIFICATION

New Delhi, the 3rd January, 2003

G.S.R. 5(E).- In exercise of the powers conferred by clauses (a) and (b) of sub-section (1) of section 642 of the Companies Act, 1956 (1 of 1956), the Central Government hereby makes the following rules further to amend the Companies (Central Government’s) General Rules and Forms, 1956, namely:-

1. (1) These rules may be called the Companies (Central Government’s) General Rules and Forms (Amendment) Rules, 2003;

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

2. In Annexure ‘A’ to the Companies (Central Government’s) General Rules and Forms, 1956,-
(a) for Form No.25-A, the following Form shall be substituted, namely: –

“FORM NO. 25-A

The Companies Act, 1956 State where registered:

Nominal Capital :

Registration No. :

Form of Application to the Central Government for approval of appointment/ re-appointment and remuneration payable to managing / whole-time director(s) or manager.

[Pursuant to sections 198(4), 269, 309(3), 311, 387 and 388]

Details of application fee paid :

a) Payment is made by (i) treasury challan, (ii) demand draft :

b) Treasury challan No./demand draft No. and date :

c) Name of bank/treasury :

d) Fee paid :

PART A

a) Name of the company :

b) Address of Registered Office :

c) Date of registration under the Companies Act, 1956 :

d) Date of issue of Certificate Particulars of company (in block letters)e of Commencement of Business :

e) Nature of business :

f) Whether the company is : Yes/No.

covered under section 4 of the Act.If yes, date from which it became so.

a) Management Structure (list of directors/managing directors/whole time directors/ manager) (in capital letters):

Sl.No. | Name | Designation | Nationality | Date of Appointment

————————————————————————————————————————————–

1.) Managerial remuneration paid during the last three years to be stated separately for each director/managing director/whole time director/manager:

—————————————————————————————————————————————–

Year Salary Perquisite Commission Other %age of Nature Whether approval If not reasons

net profits service of Govt rendered therefor obtained (yes/No)

–1——–2——–3————–4————–5————–6———-7—————8———————-9——————

Effective capital as per audited balance sheet (as defined in Schedule XIII) (Rs. in thousand).

Effective capital as on

(i) Paid-up share capital …………………………….

Share premium account …………………………….

Reserves and surplus …………………………….

Long-term loans which are repayable after

one year …………………………….

Deposits …………………………….

Total …………………………….

(ii) Investments …………………………….

Accumulated losses …………………………….

Preliminary expenses not written off …………………………….

Total …………………………….

(i) – (ii) …………………………….

4. Working results of the Company during last five years

——————————————————————————————————-

Financial Parameters                                                                                         Years

——————————————————————————————————-

Turnover

Net profit (as computed under section 198)

Net profit as per profit and loss account

Amount of dividend paid

Rate of dividend declared

5. In the case of new Companies, where the commercial

production has not yet commenced, please furnish

estimated project cost, the sources of finance,

projections of turn over, net profits for the next three

years.

6. Reasons for loss/inadequacy of profits, if any :

7. steps taken to improve the performance :

of the company, whether BIFR/financial

institutions/bank has approved any scheme

or the revival of the company. If so, furnish

the details thereof and copy of the Scheme.

alongwith projection of turnover, net profit (as

computed under section 198) for the next three years.

8. Name and address of the present auditors :

of the company.

9. Shareholding pattern of the company.

a) Details of shareholding as on

Equity Share              (1) as % age of (Nos.) total shares

(1)                                         (2)

———————————————————————–

b) Total number of Shares

c) Face value of the shares Rs.

d) Shares held by

i) Central/State Government :

ii) Public financial institution/bank:

iii) Foreign nationals :

iv) Non-resident Indians :

v) Directors/promoters/their relatives friends, associates :

vi) Indian public :

vii) Body corporate (specify) :

viii) Others (specify) :

——————————————————————————————————-

TOTAL

——————————————————————————————————-

PART – B

Proposal for which Central Government’s approval is sought and justification thereof.

a) Proposal for : Appointment(s)/Reappointment(s)

b) For remuneration proposed to be paid to       Managing director            Whole-time manager director(s) :

c) Proposed Remuneration (Furnish monetary value of each of the perquisites and allowances) per month

Period of Salary Perquisites Commission Others Total % age of net Date from which Appointment profits approved by the Remuneration committee, board

/company

d) Whether the application has been made in conformity with section 269 (2) of the act.

If not, furnish application under section 637B of the act alongwith requisite fee.

e) Which clause(s) of Schedule XIII is/are not satisfied due to which the present Application is being made? Give full particulars.f) If the present proposal is for re-appointment : Yes/No.

was the earlier appointment made in accord-ance with the provisions of Schedule XIII or

with the approval of the Central Government (Furnish copy of Form 25C and/or earlier

approval letter).

Nature of Services to be rendered by the proposed appointee(s)Whether the proposed appointee(s) suffers from any : Yes/No.

of the disqualification mentioned in section 267 or 385.If yes, furnish details

Particulars of the proposed appointee

i) Name

ii) Designation

iii) Father’s Name

iv) Nationality

v) Date of birth

vi) Qualifications

vii) Experience

viii)Place of birth

ix) Income details during the last three years:

Organisation Designation Duration Salary Perquisites Commission Total

From To

x) In case the proposed appointee is a foreigner, also furnish the following:

a) Country of origin

a) Passport No.

Date of issue

b) Period of validity of passport …………. To ………..

c) Purpose of visit

Copy of visa

Whether the proposal for which Government’s

approval has been sought:

a) is covered by the articles of association of the : Yes/No.

company

a) has the company set up a remuneration commi- : Yes/No.

ttee as prescribed in Part II of Schedule XIII to theAct.

c) has been approved by the remuneration : Yes/No.

committee of the company

d) has been approved by the Board of : Yes/No.

Directors of the company.

e) has been approved by the company : Yes/No.

in general meeting.

f) date of resolution of the remuneration : Yes/No.

committee, Board and shareholders.

Is the appointee working in any other : Yes/No.

company as manager or managing director/whole time director or as a managing partnerof any firm or is in whole time employmentanywhere else?

If yes, please furnish the following :

a) i) Name of the company/firm

ii) Address

iii) Whether registered firm/company Company Firm

iv) Nature of business

v) Working results for the last four years Financial Parameters Year ending on Turnover

Net profit (as computed under section 198) Dividend Paid Rate of dividend declared

Effective capital (as defined in Schedule XIII)

Remuneration, if any, payable by the other company/firm

Organisation Designation Duration Salary Perquisites Commission Total From To

Whether rendering any professional services?

c) Details of service rendered and remuneration.

d) Justification for proposed appointment, when the appointee is already managing/whole-timedirector in another or a managing partner of afirm or whole time employee elsewhere.

Whether the provisions of section 316(2) have been complied with. If so furnish copy of board resolution, specific notice given to all directors alongwith evidence of such notice.

If not indicate the reasons therefor.

e) Whether he is engaged in any other profession,if so details thereof.Whether the company has made any default in repayment of its debts (including public deposit) or debentures or interest payable thereon as prescribed in Part II of

Schedule XIII. If yes, details thereof Yes/No.

17. State whether the proposed appointee was sentenced to imprisonment for any period or to a fine exceeding Rs.1000/- on conviction for any offence under any of the 13 Acts mentioned in Clause 1 (a) of Part I of Schedule

If so furnish the full details.

State whether the proposed appointee was detained for any period under the Conser- vation of Foreign Exchange and Prevention of Smuggling Activities, Act 1974. If so, details thereof.

a) State the nature and extent of direct or indirect interest of director/manager in selling/buying agencies, distribution, if any.

b) Financial benefits derived therefrom during the last 3 years.

The names of News papers in which notices under section 640B have been published alongwith dates thereof (enclose paper cutting).

——————————————————————————————————-

Name of the News paper Date of publication

——————————————————————————————————-

——————————————————————————————————-

Whether the copy of the application together with the enclosures has been sent to Registrar of Companies pursuant to rule 20A(i) of the Companies (Central Government’s) General Rules and Forms, 1956.If yes, the date of admission : Yes/No

The following documents are enclosed:

(ii) Certified copy of Memorandum and Articles of Association.

(mmmmmmmmmmmmmlxxvii) Certified copies of the annual accounts together with directors’ report and auditors’ report for the latest five financial years.

(iii) Certified copies of the resolution of remuneration committee, board/shareholder(s) including resolution under section 316(2) where applicable.

(mmmmmmmmmmmmmcdxlvii) Certified copy of Scheme approved by BIFR/finacial institutions/bank, for the revival of the company, if any.

(iv) Certified copies of newspaper clipping of notices published under 640B, in original.

(mmmmmmmmmmmmmdccciv) Copy of draft agreement entered into between the company and the proposed appointee.

(v) Copies of FIPB/RBI approval in case of foreign investment/colaboration.

PART – C

Application to the Central Government for approval to the payment of minimum remuneration or of remuneration in excess of the limits prescribed under section 198 (1)/309(3)

23. Whether the company proposes to pay minimum remuneration in the absence

of or inadequacy of profits or remune-ration in excess of the limits prescribed under section 198(1) / 309(3)? If so, please furnish details of the proposal (enclose

copies of the relevant resolution)

NOTE : Seperate application fees to be paid in respect of the application under Part – C. Please enclose original copy of treasury challan/demand draft in favour of Pay and Accounts Officer, Department of Company Affairs, New Delhi

DECLARATION

To the best of our knowledge and belief, the information given in this application and its annexures is correct and complete.

Signature………………………………………….

Dated this …………………. day of ………………200…. Designation ………………………………………”

(b) for Form No.26, the following Form shall be substituted, namely: –

“FORM NO. 26

The Companies Act, 1956 State where registered:

Nominal Capital :

Registration No. :

Form of Application to the Central Government for increase in remuneration of managing / whole-time director/manager.

[Pursuant to sections 310,311 and 388]

Details of application fee paid :

1. a) Payment is made by (i) treasury challan, (ii) demand draft :
2. b) Treasury challan No./demand draft No. and date :

Name of bank/treasury :

Fee paid :

PART A

Particulars of company (in block letters)

a) Name of the company :

b) Address of Registered Office :

c) Date of registration under the Companies Act, 1956 :

d) Date of issue of Certificate of Commencement of Business :

1. e) Nature of business :
2. f) Whether the company is : Yes/No.

covered under section 4 of the Act. If yes, date from which it became so.

2. a) Management Structure (list of directors/managing directors/wholetime directors/manager) (in capital

letters):

Sl.No. | Name | Designation | Nationality | Date of Appointment

——————————————————————————————————

b) Managerial remuneration paid during the last three years to be stated separately for each director/managing director/whole time director/manager:

——————————————————————————————————-

Year Salary Perquisite Commission Other %age of Nature Whether If not net of approval of reasons profits service Government there for rendered obtained

(Yes/No)

——————————————————————————————————

1 2 3 4 5 6 7 8 9

——————————————————————————————————-

——————————————————————————————————-

Effective capital as per audited balance sheet (as defined in Schedule XIII) (Rs. in thousand).

Effective capital as on

(i) Paid-up share capital …………………………….

Share premium account …………………………….

Reserves and surplus …………………………….

Long-term loans which are repayable afterone year …………………………….

Deposits …………………………….

Total …………………………….

(ii) Investments …………………………….

Accumulated losses …………………………….

Preliminary expenses not written of …………………………….

Total …………………………….

(i) – (ii) …………………………….

4.Working results of the company during last five years

——————————————————————————————————-

Financial Parameters Years

——————————————————————————————————-

——————————————————————————————————

Turnover

Net profit(as computed under section 198)Net profit as per profit and loss accountAmount of dividend paidRate of dividend declared

5.In the case of new companies, where the commercialproduction has not yet ommenced, please furnishestimated project cost, the sources of financ,projections of turn over, net profits for the next threeyears.

6.Reasons for loss/inadequacy of profits, if any :

7.Steps taken to improve the performance of the company, whether BIFR/financial nstitutions/bank has approved any scheme for the revival of the company. If so,furnish the details there of and copy of the scheme.alongwith projection of turnover, net profit (as computed under section 198) for the next three years.Name and address of the present auditors of the company.Shareholding pattern of the company.

8.a) Details of shareholding as on Equity Shares (1) as % age of(Nos.) total shares (1) (2)

——————————————————————————————————-

b) Total number of Shares

c) Face value of the shares Rs.

d) Shares held by

i) Central/State Government :

ii) Public financial institution/bank :

iii) Foreign nationals :

iv) Non-resident Indians :

v) Directors/promoters/their relatives/ :

friends, associats

vi)Indian Public :

vii)Body corporate (specify) :

viii) Others (specify):

——————————————————————————————————-

TOTAL

——————————————————————————————————-

PART -B

10.State precisely the proposal of the company for which approval of Central Government is sought, inter alia, indicating the following

a) General information

Name Designation Age Nationality Qualification Experience

b) Present and proposed remuneration (Furnish monetary value of each of the perquisites and allowances)

(i) Present remuneration:

Period of Salary Perquisites Commission Others Total % age of net Date from which paid

Appointment specify profits

(ii) Proposed remuneration Period of Salary Perquisites Commission Others Total % age of netDate from which paidAppointment specify profits Detailed justification for the proposed increase in remuneration.

11.Details of appointment alongwith documentary proof

12.Which clause(s) of Schedule XIII is/are not satisfied due to which the present application is being made? Give full particulars.The names of News papers in which notices under section 640B have been published alongwith dates thereof (enclose paper cutting).

——————————————————————————————————-

Name of the News paper Date of publication

——————————————————————————————————-

—————————————————————————————————–

14.a) Whether a copy of the application together with the enclosures has been sent to Registrar of Companies pursuant to rule 20A(i) of the Companies (Central Government’s) General

Rules and Forms, 1956. : Yes/No.

1.b) If yes, date of submission

15.The following documents are enclosed:

(i) Certified copies of annual accounts together with directors’ and auditors’ report for the latest four financial years.

(ii) Certified copies of the resolution of remuneration committee consisting of atleast 3 independent directors as prescribed in Part II of Schedule XIII to the Act,board/shareholders.

(iii) Certified copies of newspaper clipping of notices published under 640B, in original.

(iv) Copy of draft agreement entered into between the company & the proposed appointee.

(v) Copies of FIPB/RBI approval in case of foreign investment/colaboration.

PART – C

Application to the Central Government for approval to the payment of minimum remuneration or of remuneration in excess of the limits prescribed under section 198 (4)/309(3) of the act

[Pursuant to section 198(4)/309(3)/387]

16.Whether the company proposes to pay minimum remuneration in the absence of or inadequacy of profits or remune- ration in excess of the limits prescribed under section 198(4) / 309(3)?: Yes No.

If yes, please furnish details of the proposal (enclosecopies of the relevant resolution)

Salary Perquisites Commission Others Total Remuneration 1(Separate fees to be paid in respect of the application under Part – C. Please enclose original copy of treasury challan/demand draft in favour of Pay and Accounts Officer, Department of Company Affairs, New Delhi and certified newspaper clipping of notices published under section 640B of the Act.)

DECLARATION

To the best of my/our knowledge and belief, the information given in this application and its annexures is correct and complete.

Signature………………………………………….

Dated this …………………. day of ………………20……….

Designation ………………………………………”

( File No.5/34/2002-CL.V)

RAJIV MEHRISHI

Joint Secretary

Footnote:The Principal rules were published vide S.R.O.432 dated 18-2-1956 and subsequently amended by:-

Serial Number	Notification Number	Notification Date
1.	SRO 2535	1.11.1956
2.	SRO 3135	21.12.1956
3.	SRO 237	19.1.1957
4.	SRO 2105	29.1.1957
5.	SRO 3038	28.9.1957
6.	SRO 3867	7.12.1957
7.	GSR 48	22.2.1958
8.	GSR 723	23.8.1958
9.	GSR 750	30.8.1958
10.	GSR 1026	1.11.1958
11.	GSR 14	3.1.1959
12.	GSR 548	9.5.1959
13.	GSR 1140	17.10.1959
14.	GSR 1224	7.11.1959
15.	GSR 1364	12.12.1959
16.	GSR 220	27.2.1960
17.	GSR 595	28.5.1960
18.	GSR 195	18.2.1961
19.	GSR 814	24.6.1961
20.	GSR 1105	9.9.1961
21.	GSR 1408	25.11.1961
22.	GSR 653	12.5.1962
23.	GSR 344	2.3.1963
24.	GSR 628	13.4.1963
25.	GSR 97	16.1.1965
26.	GSR 822	12.6.1965
27.	GSR 1570	30.10.1965
28.	GSR 368	19.3.1966
29.	GSR 421	18.3.1966
30.	GSR 499	9.4.1966
31.	GSR 743	21.5.1966
32.	GSR 847	4.6.1966
33.	GSR 1266	13.8.1966
34.	GSR 130	20.1.1968
35.	GSR 667	30.6.1973
36.	GSR 327(E)	10.6.1975
37.	GSR 414(E)	16.7.1975
38.	GSR 2596	1.11.1975
39.	GSR 2828	13.12.1975
40.	GSR 154	31.1.1976
41.	GSR 248(E)	24.3.1976
42.	GSR 627	14.5.1977
43.	GSR 24(E)	9.1.1979
44.	GSR 1256	6.10.1979
45.	GSR 555(E)	4.9.1982
46.	GSR 479(E)	22.4.1988
47.	GSR 694(E)	10.6.1988
48.	GSR 782(E)	13.7.1988
49.	GSR 908(E)	7.9.1988
50.	GSR 1032(E)	26.10.1988
51.	GSR 449 (E)	17.4.1989
52.	GSR 510(E)	24.5.1990
53.	GSR 795(E)	18.9.1990
54.	GSR 289(E)	31.5.1991
55.	GSR 614(E)	3.10.1991
56.	GSR 754(E)	26.12.1991
57.	GSR 312(E)	6.3.1992
58.	GSR 353(E)	26.3.1992
59.	GSR 484(E)	11.5.1992
60.	GSR 581 (E)	27.8.1993
61.	GSR 621 (E)	24.9.1993
62.	GSR 286(E)	1.3.1994
63.	GSR 598(E)	28.7.1994
64.	GSR 697(E)	20.9.1994
65.	GSR 283(E)	21.3.1995
66.	GSR 424(E)	26.5.1995
67.	GSR 251(E)	21.6.1996
68.	GSR 97(E)	28.2.1997
69.	GSR 126(E)	1.3.1997
70.	GSR 16(E)	6.1.1999
71.	GSR 23(E)	12.1.1999
72.	GSR 130(E)	23.2.1999
73.	GSR 788(E)	29.11.1999
74.	GSR 58(E)	17.1.2000
75.	GSR 363 (E)	27.4.2000
76.	GSR 638(E)	26.7.2000
77.	GSR 836(E)	24.10.2000
78.	GSR 24(E)	15.01.2001
79.	GSR 35(E)	24.01.2001
80.	GSR 51(E)	31.01.2001
81.	GSR 96(E)	14.02.2001
82.	GSR 330(E)	07.05.2002